The Commercial Refrigeration Equipment market is estimated to be valued at US$ 55.89 Bn in 2023 and is expected to exhibit a CAGR of 4.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Commercial refrigeration equipment refers to heavy-duty refrigeration systems and accessories used for food preservation and storage in commercial applications such as restaurants, convenience stores, supermarkets and others. Key commercial refrigeration equipment include display cases, refrigerator and freezer units, bottle coolers and storage water coolers among others. These equipment effectively maintain temperatures required for storing food and beverage items safely for longer duration.
Market Dynamics:
The increased demand for commercial refrigeration equipment from growing food service industry is driving the market growth. According to data, the global food service market generated a revenue of over US$ 7 trillion in 2020 which is anticipated to grow exponentially in forthcoming years. Furthermore, rapid expansion of organized retail sector especially in developing countries of Asia Pacific and Latin America has also bolstered the sales of commercial refrigeration equipment as retail stores increasingly require reliable refrigeration solutions for storing perishable inventory.
Also, technological advancements in commercial refrigeration such as introduction of energy-efficient and eco-friendly equipment are encouraging commercial establishments to replace existing refrigeration infrastructure. However, high initial capital requirements for commercial refrigeration systems remains a major challenge.
SWOT Analysis
Strength: Commercial refrigeration equipment market has strong presence of established players with global footprint. These players continuously invest in R&D to develop new energy efficient and sustainable refrigeration solutions. Commercial refrigeration equipment offers enhanced storage capacity and temperature control for food and beverages. Growing food retail industry augments the demand for commercial refrigeration equipment.
Weakness: High initial investments and maintenance costs associated with commercial refrigeration equipment hinder its adoption among small businesses. Lack of technical expertise for installation and operations of advanced commercial refrigeration systems is a challenge.
Opportunity: Growing organized retail sector and increasing number of retail grocery stores & hypermarkets in developing countries create demand for commercial refrigeration. Development of eco-friendly commercial refrigeration solutions using natural refrigerants will support sustainable growth.
Threats: Volatility in raw material prices can increase the cost of commercial refrigeration equipment. Stringent government regulations regarding energy efficiency and use of ozone-friendly refrigerants pose compliance challenges.
Key Takeaways
The global commercial refrigeration equipment market is expected to witness high growth, exhibiting CAGR of 4.7% over the forecast period, due to increasing food retail sales across the world. Growing work force and busy lifestyles have boosted the demand for ready-to-eat food products, prompting retailers to install energy efficient commercial refrigeration units.
Regional analysis: North America dominated the global commercial refrigeration equipment market in 2023, accounting for around 30% share. Presence of leading manufacturers and retailers along with stringent energy efficiency policies support the market growth. Asia Pacific is poised to witness fastest growth, exhibiting a CAGR of over 6% during 2023-2030. Expanding organized retail sector in China and India along with rising income levels will augment the regional market.
Key players operating in the commercial refrigeration equipment are United Technologies Corporation, Ingersoll-Rand plc, Johnson Controls Incorporated, Daikin Industries Limited, Dover Corporation, Hussmann Corporation, AHT Cooling Systems GmbH, Ali SpA, Illinois Tool Works Incorporated, Emerson Electric Company, Leer Incorporated, True Manufacturing Company Incorporated, and Whirlpool Corporation. Major players are investing in developing sustainable solutions to strengthen market presence.
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