Commercial Refrigeration Equipment Market: Global Industry Analysis and Forecast (2024-2030) by Product Type and Application

Commercial Refrigeration Equipment Market Overview

Business refrigeration hardware comprises cold stockpiling gadgets explicitly intended for use in business settings like grocery stores, cafés, and corner shops. These sort of hardware incorporates different models like reach-in fridges and coolers, module-encased candy machines, semi-vertical showcase cupboards, flat cases, shop cases, drop-in coolers, draft lager frameworks, under-counter fridges, backbar coolers, refrigerated showcases, and prep tables. Business refrigeration gear works as persevere energy proficiency norms set out by government regulation and agree with the Energy Preservation Principles.

The Commercial Refrigeration Equipment Market is influenced by various factors such as Energy-Efficient Systems, increase in R&D investments, growth in Food and Beverage Production and Urbanization, and Changing Consumer Preferences. However, the primary drivers that are helping the Commercial Refrigeration Equipment Market to grow significantly include- Increasing demand for Packaged Food and Beverages, Consumer preference for convenience, and the escalating demand for Transportation Refrigeration Equipment. Though the Commercial Refrigeration Equipment market has seen tremendous growth in recent years, the rising growth is hindered by factors like Higher Initial Costs, Concerns regarding Operational Costs, and Sluggish Obligation for Upgrading systems. The Commercial Refrigeration Equipment Market is segmented into By Product Type and Application.

The Commercial Refrigeration Equipment Market is regionally segmented into North America, Asia-Pacific, Europe, South America, and the Middle EastHolds the biggest market share, surpassing 32% in 2022 because of the laid-out food and drink industry, broad retail area, and developing interest for accommodation food choices. Whereas, APAC is expected to witness the fastest growth rate due to factors like- Rapid urbanization and rising disposable income leading to increased demand for foodservice and processed food.Expanding retail sector, particularly in developing nations like China and India. Growing government investments in infrastructure development, including cold chain facilities.

Europe is expected to exhibit steady growth driven by stringent environmental regulations promoting energy-efficient equipment and the need for food waste reduction.Some of the key players who are actively dominating the Commercial Refrigeration Equipment Market are Daikin Industries Ltd., Dover Corporation, Emerson Electric Co., Frigoglass S.A.I.C., Fujimak Corporation, GEA Group AG, Hussmann Corporation, Johnson Controls International PLC, United Technologies Corporation, AB Electrolux, Ali Group Srl, Blue Star Ltd, Baltimore Aircoil Company, De Rigo Refrigeration, Fogel, Imbera, KMW, Mayekawa Mfg. Co., Ltd., Runte, SCM Frigo.

Commercial Refrigeration Equipment Market Dynamics

Increasing Demand for Packaged Food and Beverages-

The rising interest inPackaged Food and Beveragesinternationally is a vital driving element for the Commercial Refrigeration Equipment Market. The request is filled by the developing food and refreshment industry, the rising familiarity with food handling and cleanliness, and the extension of retail areas like general stores, corner shops, and hypermarkets. The global packaged food market size was valued at USD 3.10 trillion in 2023 and is projected to reach USD 5.32 trillion by 2032, growing at a CAGR of 6.2%. As buyers look for new and handled food sources, organizations put resources into cutting-edge refrigeration answers to keep up with item quality. Also, the drug business depends on refrigeration for putting away temperature-touchy items, further helping market development.

Consumer Preference for Convenience- Consumers today are busier than ever, leading them to prioritize convenience in every aspect of their lives, including food. The translates into a growing demand for readily available, prepared, and easy-to-consume food options. The shift in behaviour has significantly impacted the food and beverage industry, driving the need for efficient and reliable commercial refrigeration equipment.As per the data released by the United States Census Bureau, an agency of the US Federal Statistical System of Maryland, overall retail and food services sales experienced a growth of 12.9% in the year 2021. Also, the rise of grab-and-go meals and snacks in convenience stores, supermarkets, and gas stations exemplifies The trend. These items require refrigerated display cases to maintain safe temperatures and ensure freshness, highlighting the crucial role of commercial refrigeration in catering to consumer preferences. Similarly, the growing popularity of online grocery shopping has led to a surge in demand for cold chain logistics.

The intricate network of refrigerated trucks, warehouses, and storage facilities relies heavily on commercial refrigeration equipment to preserve food integrity throughout the delivery process. Also, the expansion of foodservice chains and quick-service restaurants (QSRs) necessitates reach-in coolers, freezers, and walk-in coolers for storing ingredients, preparing meals, and maintaining food safety standards, showcasing another key area where commercial refrigeration equipment plays a vital role in meeting evolving consumer demands. In conclusion, the increasing preference for convenience has significantly reshaped the food industry, and commercial refrigeration equipment has emerged as a critical enabler in catering to The demand by ensuring the safe, fresh, and readily available food options consumers seek.

Transportation Refrigeration- The heightening interest in transportation refrigeration is a huge driver for the Commercial Refrigeration Equipment market. As global exchange extends and the food store network turns out to be more mind-boggling, the requirement for dependable and effective transportation refrigeration frameworks increments. The global road transport refrigeration equipment market is projected to grow from $4.08 billion in 2023 to $5.74 billion by 2030, at a CAGR of 5.0%, indicating a sustained increase in demand for transportation refrigeration equipmentThe driver is contributedby factors like-

1. The constant advancement of global exchange and supply chains spurs more prominent interest in temperature-controlled transportation strategies.
2. The development of the food and drink industry prompts higher volumes of transitory merchandise requiring refrigeration throughout the whole production network.
3. The rising significance of food safety and quality, which requires appropriate dealing with and capacity works on during travel
4. The development of e-commerce platforms, which works with the offer of transitory merchandise on the web and consequently requires viable transportation refrigeration.

Restraints Faced by the Commercial Refrigeration Equipment Market

High Initial Cost- High initial costs address a critical test for the commercial refrigeration equipment market, going about as a significant restriction. The cost of buying and introducing refrigeration frameworks is significant, making them less open to more modest organizations without satisfactory monetary assets.For instance, Small Reach-in Refrigerator or Freezer Units range from 200 USD to 2000 USD. Larger walk-in coolers or Freezers range approximately over 10,000 USD, with the custom designs potentially exceeding 6 figures.  Whereas the installation fees amount to approximately half of the total cost of a refrigeration system.

Sluggish Obligation for Upgrading Systems-The sluggish speed of upgrading and replacing outdated systems unfavourably affects organizations, prompting a decrease in item interest. The hesitance to redesign innovation frameworks brings about inflated costs, diminished proficiency, and uplifted security gambles. Delaying redesigns prompt greater expenses over the long haul as outdated systems require greater updates or substitutions, bringing about surprising costs.Security Risks like running old, unpatched, and out-of-date software increase the risk of security breaches, data loss, and exposure to cyber threats. For instance, the survey done by MMR revealed that 59% of solos and 41% of firms with 2-5 attorneys did not budget for technology upgrades, new equipment, and IT support.

Segmentation of Commercial Refrigeration Equipment Market

By Product, the Commercial Refrigeration Equipment Marketis further segmented into Transportation Refrigeration Equipment, Refrigerators & Freezers, Beverage Refrigeration, Display Showcases, and Ice Merchandisers & Ice Vending Equipment. With the Transportation Refrigeration Equipment segment to hold the largest market share. The dominance is attributed to the growing demand for efficient transportation of perishable goods, particularly in the North American market, where retail outlet infrastructure is expanding.

By Application, the Commercial Refrigeration Equipment Market is further segmented into Food Service, Food and Beverage Production, and Food and Beverage Retail segments by Application. The Food and Beverage retail segment occupies the largest market share in the Application segment, holding approximately about 50% of the global Commercial Refrigeration Equipment Market. The dominance is mainly attributed to factors that include increasing demands for supermarkets, hypermarkets, and convenience stores, as commercial refrigeration equipment is necessary for showcasing food items and storing them.

By End-User, the End-User segment of the Commercial Refrigeration Equipment Market consists of Hospitality, Hypermarkets/Supermarkets, Departmental Stores, Healthcare, Offices & Buildings, and Convenience Stores. The Hypermarket/Supermarkets segment is expected to grow with the quickest CAGR in the projected years. Whereas, the Convenience store holds more than 50% of the market share in the global Commercial Refrigeration Equipment Market.

Competitive Landscape for the Commercial Refrigeration Equipment Market

The business Refrigeration Hardware Market is characterized by serious contests among vital participants offering a scope of items to meet different industry needs while confronting difficulties connected with expenses and accessibility. Some of the dominant players in the CommercialRefrigeration Equipment Market are- Daikin Industries Ltd., Dover Corporation, Emerson Electric Co., Frigoglass S.A.I.C., Fujimak Corporation, GEA Group AG, Hussmann Corporation, Johnson Controls International PLC, United Technologies Corporation, AB Electrolux, Ali Group Srl, Blue Star Ltd, Baltimore Aircoil Company, De Rigo Refrigeration, Fogel, Imbera, KMW, Mayekawa Mfg. Co., Ltd., Runte, SCM Frigo. . To maintain and improve their position in the market, they employ a variety of strategies. For Instance,-

• In November 2022, Chemours collaborated with BOHN to innovate the cold food chain and launched the first low Global Warming Potential (GWP) Solution in the Americas. Such collaborations aim to introduce environmentally friendly solutions and drive innovation in the commercial refrigeration equipment market.
• Daikin Industries Ltd- Daikin Europe N.V., a subsidiary of Daikin Enterprises Ltd., declared a huge venture of 300 million euros to lay out another plant for private intensity siphons in ?ód?, Poland. The venture is essential for Daikin Europe's essential administration intends to extend its creation base and fulfill the developing need for private intensity siphon units in Europe.
• De Rigo Refrigeration- recently joined Eurovent, a leading industry association representing manufacturers of commercial refrigeration equipment. The strategic move signifies De Rigo Refrigeration's commitment to industry standards, collaboration, and innovation within the commercial refrigeration sector.

Commercial Refrigeration Equipment Market Key Players

1. Daikin Industries Ltd.
2. Dover Corporation
3. Emerson Electric Co.
4. Fujimak Corporation
5. GEA Group AG
6. Hussmann Corporation
7. Johnson Controls International PLC
8. United Technologies Corporation
9. AB Electrolux
10. Ali Group Srl
11. Blue Star Ltd
12. De Rigo Refrigeration
13. Runte
14. SCM Frigo
15. Coolplus