Market Scenario

Global Commercial Refrigeration Market was valued at US$ 33.0 billion in 2023 and is projected to surpass a valuation of US$ 52.3 billion by 2032 at a CAGR of 5.27% during the forecast period 2024–2032.

The global commercial refrigeration market is a very considerable industry that affects many aspects of people’s lives. Several factors could be driving this growth, such as the increasing need for refrigeration to reduce food waste (which can reach 40% in retail) and keep it safe (within 3°F). Energy use is an important factor in commercial refrigeration worldwide. Commercial refrigeration accounts for about 1% of global electricity consumption. In the US alone, these systems consume around 120 billion kWh per year or equivalent to 70% of restaurants’ energy demand being met by cooling equipment. However, there are positive signs on energy efficiency improvement too; upgrading with high-performance units would save up to 30% more than standard ones – potentially $3.7bn over the next decade for American businesses.

Efficient commercial refrigeration systems are believed to cut down yearly food waste by around one fifth. More than 95% of vaccines in the healthcare sector rely on correct storage provided through commercial refrigeration. What’s more, advanced technologies can potentially reduce CO2 emissions from this source alone by up to 60 million metric tons each year. Supermarkets are among the largest users of commercial refrigeration; an average store consumes over 4000 kWh electricity daily. Changes in upcoming US regulations could have significant impacts on such establishments since there are about 68000 supermarkets nationwide that may be affected by these rules alone in the commercial refrigeration market.

Currently, services account for about 60% of overall demand for commercial refrigeration market across all sectors where they’re used commercially – this includes hotels and restaurants too. But it’s not just about now; prospects look good with innovation and sustainability being key drivers in future developments within the industry. It is estimated that 50% of food retailers will have invested in green solutions before 2025 which reflects wider concerns amongst businesses around natural refrigerants due to their environmental impact considerations. New energy efficiency standards expected from DOE should see a further 30% increase achieved by 2027.

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Market Dynamics 

Driver: Increasing Demand in the Food & Beverage Sector

The world’s population is projected to hit 8.5 billion by 2030, and this will bring about a need for more safe and efficient food storage across the global commercial refrigeration market. Supermarkets, restaurants, and food retailers are at the forefront of this change. There has been an unprecedented increase in consumer demand for fresh, frozen and healthy products. In America alone, sales of frozen foods rose by 22% in 2020 and the upward trend has continued into 2023 – demonstrating that dependable refrigeration remains vital for preserving such items. This is part of wider move towards health consciousness; people are also demanding more fruits, vegetables as well as dairy goods which require efficient refrigeration systems if they are to reach customers intact. 

Governments worldwide now recognize the importance of food safety along with strong cold chain infrastructure and have taken steps accordingly towards their promotion through various policies and schemes while actively participating in boosting commercial refrigeration industry through different programs aimed at increasing investment attractiveness therefore speeding up technological advances within this sector besides sustainability forms one other critical driver where manufacturers together with businesses make energy-saving oriented models top priority during R&D so as to reduce ecological footprint left behind besides improving energy management because such efficiency drives have positive implications not only on environment but also cost-effectiveness for enterprises.

The UN’s Food Agriculture Organization predicts between +35% up to +56% growth in global food needs over next three decades (by 2050), giving a boost to the demand for commercial refrigeration market.This means more pressure than ever before on ability keep produce fresher for longer periods; According recent survey conducted among companies engaged across entire value chain within F&B sector ,31% reported facing difficulties linked up with international logistics thus underlining significance good quality controls like those provided through strong chilling equipment right from point farm gate through processing points onto distribution centers up till final destination market; And then rising prices just make things worse – efficient cooling can save money.

Trend: Adoption of Environmentally Friendly Technologies

A primary global commercial refrigeration market trend is the wide acceptance of green technologies. By the year 2022, regions such as the European Union, North America and parts of Asia began having tougher rules on greenhouse gas emissions among other environmental policies. Because of this shift in regulations and rise in environmental consciousness, people have started using CO2 and hydrocarbons as natural refrigerants rather than conventional HFCs. Therefore, this change over to eco-friendly cooling options is picking up speed; approximately 9.2% growth per annum for such technologies can be witnessed within their markets. In an attempt to go green while saving money businesses are striving towards energy efficient commercial refrigerators, which meet local or international standards. Not only does it help reduce ecological footprints but also ensure long term financial benefits come into realization for energy-saving cooling appliances used by companies worldwide.

Moreover, there has been a drive towards cost-effective refrigeration systems around world commercial refrigeration market that follow both national and international guidelines due to an increasing focus on energy efficiency too. In addition to being good for the planet, these green technologies can also improve a company’s public image through corporate social responsibility initiatives.  At the same time, they are meeting legal obligations set by various bodies around different countries concerning environmental conservation efforts alongside climate change mitigation measures. Hence, promoting sustainable development goals adoption within organizations globally as well. The demand shift toward more sustainable forms of cooling is projected not only increase competition amongst players but also necessitate continuous product improvement. These initiatives aimed at enhancing performance levels associated with natural friendly compounds-based alternatives currently available in the market space.

Restrain: High Initial Installation and Maintenance Costs

Even if there has been good growth and the commercial refrigeration market is showing signs of sustainability, it still faces one major obstacle: high costs of installation and maintenance. Capital expenses are usually great in this area particularly when it comes to environmental conservation rules that require very efficient systems; also meeting energy saving standards may call for a lot more money than expected. For instance; in some developing countries businesses are unable to invest heavily into sophisticated refrigerating facilities because they have to meet other needs first due to enormous set up fees.

Moreover, keeping up with the changes made in ensuring ecological balance can escalate operational costs further, which tends to be difficult especially among SMEs as they may not allocate enough funds towards improving their infrastructure. Some surveys carried out indicate that such like expenditures account for about 15% of total operation overheads incurred by food retail industries hence making it hard for many people to afford advanced commercial refrigerator technologies thus limiting their widespread use.  To overcome this restraint, players within the commercial refrigeration market should come together and find ways through which cheaper models can be produced without necessarily violating any green laws or being too costly. Therefore, governments alongside companies as well technology providers are more likely to create incentives that will promote use of sustainable cooling devices among these organizations since most firms lack financial strength. Therefore, they need tax rebates or subsidies from authorities thereby reducing their financial burdens.

Segmental Analysis 

By Product Type:

In 2023, the biggest moneymaking segment in the commercial refrigeration market was merchandising refrigerators, as they brought in an astonishing $7.8 billion. It can also be said that this section contributed 23.9% towards total revenue of this industry. These include reach-in commercial fridges which are widely used as storing devices for perishable foods across many types of food service establishments such as restaurants, grocery stores, cafeterias among others. There is a wide range in terms of style when it comes to merchandising refrigerators and freezers. Some being basic models while others being more advanced ones designed with longevity in mind so that they can endure heavy usage over time. Manufacturers produce different types all meant to ensure maximum storage capacity for edibles without necessarily having to disturb other items which may be either low or high volume hence full doors, solid doors or glass doors configurations catering for various business requirements.

By System Type:

The Self-contained segment emerged as the dominant revenue generator and held around 86% revenue of the global commercial refrigeration market. The popularity of self-contained refrigeration systems can be attributed to their ease of installation, low cost, and straightforward maintenance and relocation processes. This segment has gained significant traction in the market.

However, one need to consider the environmental impact of self-contained refrigeration systems. In 2022, the Environmental Protection Agency (EPA) estimated that commercial self-contained refrigeration systems contributed about 26% of global hydro fluoro carbon (HFC) emissions. Manufacturers have been moving from the use of R-404A for their refrigerants to R-448A due to strict HFC emission limits; this reduces GWP by up to 70% in refrigeration equipment generally. Self-contained fridges are easy to set up in many different businesses. This is because they are plug-and-play ready and can be used immediately after being connected. It also found that they can be maintained easily by service staff who may have limited skills in such appliances since they come complete with everything required for their operation including controls and monitoring devices. Thus, making them ideal for such situations where simple installation is necessary coupled with ease relocatability which adds more value to their appeal among other features.

By Capacity:

In terms of Capacity, the 50 to 100 cu. Ft segment accounted for the highest revenue of $16.6 billion (50%) in 2023 in the global commercial refrigeration market. Projections suggest that this segment will maintain its dominance throughout the forecast period, exhibiting a healthy CAGR of 5.33%. The 50 cu. Ft. to 100 cu. ft. segment is the most popular among commercial refrigerators because of its dynamism in the market. This storage capacity works best for supermarkets, hypermarkets, and specialty stores which are on the rise today. Such enterprises require robust storage systems that can accommodate different types of products that need temperature regulation such as fruits and vegetables; dairy; or even meat products among others. Reach-in refrigerators within this size bracket i.e., between 50-75 cubic feet do not take much space but provide enough room for storage.

Manufacturers in the commercial refrigeration market have noticed this shift hence they are producing many ready-made options called “turn-key” solutions where everything is already set up before being sold or installed elsewhere later on if needed so too does after sales service follow suit. These units come with features designed according to various needs identified by users’ feedback collected over time like customizable racks for displaying drinks. Better illumination systems especially those meant for enhancing fresh produce displays among others. 

However, there is another side to this story: With the expansion of global food distribution networks around the world, there will be an increased demand for these small-sized fridges worldwide too.  Since they can store more types of perishable goods at different points along such chains, thereby improving efficiency in general apart from keeping freshness intact all through until required by customers wherever they may be located vis-a-vis manufacturers’ supply points. Thus, any company that comes up with new energy-saving models among other features while targeting mid-range capacities like these will definitely make a kill in future markets related with them.

By Application:

Accounting for more than 30.7% of the global commercial refrigeration market, the food service segment commands a significant amount of revenue. The reason behind its dominance is that commercial refrigeration systems have been adopted widely by different food service establishments including hotels, cafes and restaurants among others. In the foodservice industry, commercial refrigeration is very important as it enables safe storage and preservation of perishable goods like meats, dairy products fruits vegetables beverages etcetera while still maintaining their quality. This demand has been further fueled by an increase in dining out numbers coupled with convenience foods becoming more popular than ever before thus calling for needful measures within this sector such efficient reliable refrigeration solutions.

With world’s population on an exponential rise due to urbanization shift in lifestyle choices, it is projected that there will be continued growth as well sustainability drive towards innovation capital investments within commercial refrigeration market globally. This is driven primarily by ever expanding cities’ increasing numbers restaurants, hotels, eateries, among other places where people can eat from but also heightened awareness about hygiene standards. In addition to this, entire value chain touching upon both primary secondary tertiary levels right up until final consumer stage itself whose only source safety rests solely upon advanced cooling methods applied at each stage.

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Regional Analysis 

By 2032, global consumption of frozen food is set to touch 186.6 million tons which would grow at a CAGR of 3.4% between 2023 and 2032. In terms of frozen food consumed in the world during 2023, North America and Europe were the largest consumers accounting for a combined share of around 53.4%. Nevertheless, Asia-Pacific region will probably have the highest rate of growth in terms of consumption; this area is expected to experience demand increase by having CAGR equalling circa four-point two percent through those same years. The commercial refrigeration market has been greatly affected by the expansion in retail industry.

There has been observed a global demand for commercial refrigerators due to increased number of supermarkets, hypermarkets as well as convenience stores. Commercial refrigerators are very important for these retailers because they help them store and showcase various goods such as fresh produce or frozen foods among others.

Commercial refrigerators are also experiencing higher demand globally because people have started embracing online grocery shopping more than before. As customers continue choosing online shopping over physical visits to stores, there arises need by suppliers who must transport perishable items from one place another while maintaining their quality standards; hence efficient refrigeration services become necessary.

North America together with Europe commercial refrigeration market can be regarded as mature markets with established infrastructures still account for significant shares when it comes to consumption levels.  However, there is no doubt that Asia pacific stands out having realized fast growth rates within its retail sector. Thus, the region is becoming an attractive destination for commercial refrigeration systems providers. Rapid urbanization coupled with rising disposable incomes among other factors have contributed towards changing consumer behavior patterns particularly regarding preference towards frozen and other perishable food products thereby necessitating advanced technologies used in commercial refrigeration within this region.

Top Players in the Commercial Refrigeration Market 

• AHT Cooling Systems GmbH
• Beverage-Air Corporation (Ali S.p.A)
• Daikin Industries, Ltd.
• Electrolux AB
• Haier Inc.
• Hoshizaki Corporation
• Hussmann Corporation
• Lennox International Inc.
• Panasonic Corporation
• Whirlpool Corporation
• Fujimak Corporation
• Illinois Tool Works Inc. (ITW)
• Ingersoll-Rand PLC
• Other Prominent players

Market Segmentation Overview:

By Product Type

• Reach-In Refrigeration
• Merchandising Refrigerators
• Prep Refrigeration
• Bar Refrigeration
• Refrigerated Display Cases
• Commercial Ice Machines
• Commercial Ice Cream Freezers
• Commercial Blast Chillers
• Others

By System Type

• Self-contained
• Remotely Operated

By Capacity

• Less than 50 cu. Ft
• 50 to 100 cu. Ft
• More than 100 cu. Ft

By Application

• Food Service
• Food & Beverage Retail
• Food & Beverage Distribution/Transportation
• Food & Beverage Production
• Others

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • Western Europe
    • The UK
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Western Europe
  • Eastern Europe
    • Poland
    • Russia
    • Rest of Eastern Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia & New Zealand
  • South Korea
  • ASEAN
  • Rest of Asia Pacific
• Middle East & Africa (MEA)
  • Saudi Arabia
  • South Africa
  • UAE
  • Rest of MEA
• South America
  • Argentina
  • Brazil
  • Rest of South America