"Catapult Your Business to Fore, Gain Competitive Advantage "
The global commercial refrigeration equipment market size was USD 46.13 billion in 2020 and is projected to grow from USD 48.18 billion in 2021 to USD 68.81 billion in 2028 at a CAGR of 5.2% in the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with the market witnessing a positive demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a stellar growth of 4.1% in 2020. The sudden fall in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
Commercial refrigeration equipment is gaining popularity due to increased demand for refrigerated of food and beverage products, along with its growing applications in chemicals and pharmaceuticals, hospitality sector and many more. Consumption of healthy food items such as ready to eat and frozen fruits is increasing owing to the necessity of a healthy diet and change in preferences of the customers globally. Rising government regulations, and concerns regarding harmful refrigerants that aid the ozone depletion are providing ample market opportunities to implement magnetic refrigeration technology and green technology over the forecast period.
Rising Demand for Pharmaceutical Products and Food Safety Concerns amid COVID-19 to Boost Growth
Sudden emergence of COVID-19 pandemic disrupted the demand for commercial refrigeration equipment in the first and second quarter of 2020 around the globe. This led to unexpected stress on the supply chain across each sector without giving time to the manufacturers and distributors to reorganize themselves and face the immediate challenges.
On the other hand, the need to keep the medicines and drugs from spoiling led to the surge in the demand for commercial refrigerators and freezers. Rising demand for this equipment across developing and developed economies to store COVID-19 medications, and later in the fourth quarter to store the vaccine vials has established the cold chains that offer efficient and clean refrigeration equipment. Henceforth, this equipment became a primary source for all the pharmaceutical companies, and the healthcare centers.
Similarly, increasing dependence of customers over the safe and hygienic packaged food products have led the producers and retail stores working overtime owing to take-away of food from commercial stores and restaurants, thus propelling the demand for refrigerators in the commercial sector.
Request a Free sample to learn more about this report.
Increasing Cold Storage Services to Drive Market Growth
The cold storage warehouses offer numerous facilities in the food logistic sector such as storage of perishable and seasonal foods, for availing them year-around, export-import logistic facilities across global transportation routes, and meeting strategic locations for retail distributions. These refrigeration warehouse services are becoming an emerging trend in the short-term across varied industries globally. Growing number of warehouses will thus create lucrative opportunities for the market expansion.
Rising Investments in Food and Beverage Industry to Drive Market Growth
The food and beverage industry are one of the topmost sectors across all the regions, generating highest annual revenue in the global GDP. The industry caters the customers from its raw farm commodities, that is over 2 million farms, into consumer food products through nearly 680,000 retail stores and food service outlets. This enhances the production and consumption rate along-with commercial refrigeration equipment sales globally. As per the study by Food and Agriculture Organization (FAO), the food sector sales in 2017 accounted for USD 1.4 trillion, out of which, the food and beverage industry alone generated USD 164 billion value added revenue. Moreover, increasing demand for consumer and ready to eat food and beverage products lead to rise in adoption of commercial refrigeration equipment globally.
Adoption of Advanced Magnetic Refrigeration Technology to Boost Market Growth
The newly introduced magnetic refrigeration technology is based on magneto caloric effect, with a change in temperature induced by applying reversible magnetic field. The refrigerant is placed in a strong magnetic field, aligning various magnetic dipoles thus lowering the temperature within the equipment. Integration of this magnetic refrigeration technology is cost-efficient, eco-friendly, durable, safe and reduces the overall power consumption, thus enabling its utilization in the commercial refrigeration equipment globally.
Higher Purchasing and Maintenance Cost to Hinder Market Growth
The growth of the market is expected to be hindered owing to the high purchasing cost of the machines. As this equipment is used in commercial applications, the price of the equipment varies from size to size as commercial refrigerators, freezers, etc. are built to fit in large spaces. Thus, purchasing and maintenance of such huge equipment becomes another restraining factor. The lack of awareness regarding efficient utilization of such refrigeration machines amongst the customers is another major factor responsible for hampering the commercial refrigeration equipment market growth.
Refrigerator & Freezer Segment to Exhibit Highest CAGR over 2021-2028
The market share is segmented by type, and is further segmented into refrigerator & freezer, transport refrigeration, refrigerated display cases, ice-machines and others.
The refrigerator and freezer segment are expected to experience exponential market growth owing to the increasing demand of cold storage equipment for numerous industrial applications. Refrigerators and freezers are basic equipment in the food service sector that are used to store and provide healthy and fresh food products to the customers.
Moreover, the transport refrigeration segment depicts liberal growth due to increasing export and import services through various transportation channels such as by road, water or air transport. The segment has the highest market share owing to fast delivery and sales services.
Furthermore, the refrigerated display cases and ice machines are anticipated to experience moderate growth due to its moderate selling price, and its applications. These types of equipment are most likely to be used in bakeries, full and quick service restaurants for displaying cakes and pastries and to serve beverages with ice.
The other sub-segment comprises vending machines that represents steady growth, due to stagnant demand as it has longer shelf life with minimal applications across various sectors.
To know how our report can help streamline your business, Speak to Analyst
Food & Beverage Segment is Expected to Dominate the Market in the Near Future
By application, the market is segmented into food and beverage, retail stores, hotels & restaurants, chemicals and pharmaceuticals, and others.
Food and beverage application has the highest growth rate in this market due to rising interest of customers towards healthy and ready to eat food products globally. Food and beverage sector has the highest usage of commercial refrigeration owing to a wide range of applications, thus enhancing the equipment sale.
The chemical and pharmaceutical sector is expected to experience exponential growth, as these sectors are implemented with huge commercial refrigerators for storing chemicals, pathology samples and other biological samples. Rising anti-COVID drugs and other medications are concerning the healthcare centers and pharmaceuticals to install advanced refrigeration and freezer units.
Retail stores of developed countries offer frozen foods to its customers, as the requirement for frozen meat and other food and beverages increases, henceforth expected to portray gradual market growth. Hotels and restaurants depict a steady growth rate owing to an increase in changing preferences of customers for full and quick service restaurants and their food services.
Moreover, the other sub-segment is likely to depict minimal growth due to limited applications in the hospitality sector globally.
Asia Pacific Commercial Refrigeration Equipment Market Size, 2020 (USD billion)
To get more information on the regional analysis of this market, Request a Free sample
Asia Pacific market is expected to witness the highest growth, due to increasing demand for frozen food products in India, China, South Korea, and Japan. Food manufacturing companies across the region are focusing on producing frozen versions of regional food products, thereby supporting the market growth.
According to the Organic Trade Association (OTA), the global organic food industry is expected to witness the highest growth amongst the food sector. Customers tend towards healthy and nutrition-based food products that are cultivated naturally using organic seeds and supplements, resulting in higher dependence on the refrigeration process and equipment. As per the study of BIOFACH and COOP, Asia Pacific has the highest revenue generation in the organic sector accounting USD 42.0 million, followed by Europe (USD 14.6 million), Latin America (USD 8.0 million), North America (USD 3.2 million) and Africa (USD 2.1 million) respectively.
China to Witness Highest Growth Rate over the Forecast Period
The rising disposable income in the urban areas of China has led consumers to spend more on food outside home. Restaurants are installing these refrigerators to offer fresh, hygienic, and high-quality food. Wherein, the availability of several local manufacturers for commercial applications is creating ample market opportunities for China in trading this equipment globally.
The increasing investments in the food & beverage industries across North America will drive the regional market growth. Consumers are observing the demand for healthy & hygienic food, and are willing to pay extra for good quality food, which in turn, leads restaurants & hotels to deploy these devices to keep food products fresh & safe. Moreover, the increasing numbers of food joints and quick service restaurants coupled with the proliferating restaurant industry in the U.S. and Canada will propel the market size in North America over the forecast period. According to the National Restaurant Association of the U.S., in 2019, the restaurant industry’s sales reached around USD 863 billion in the U.S., also providing ample opportunities to the commercial refrigeration equipment rental market expansion.
The European market is witnessing significant growth owing to the presence of leading food & beverage manufacturing companies in the region. Food & beverage producers are making investments in advanced refrigeration systems to keep food products fresh and frozen. Additionally, the rapidly developing hospitality industry, especially in France, the U.K., and Germany has led regional restaurants to adopt these appliances to store large quantities of food products to cater to the ongoing consumer demands. Moreover, the implementation of stringent food safety regulations by the European governments is creating huge demand for these devices to keep food products hazard-free.
Additionally, the Middle East & Africa market is primarily driven by the increasing travel & tourism sector, particularly in Saudi Arabia and UAE. Upcoming events such as World Expo in the UAE and FIFA World Cup 2022 in Qatar is attributed to the regional food & beverage retail industry, thereby driving the market growth. Moreover, the increasing South African government’s efforts to reduce the food waste will propel the regional market growth over the forecast timeline.
To know how our report can help streamline your business, Speak to Analyst
Similarly, the Latin American market will witness a growth owing to the increasing consumer demand for premium food products. Consumers in the urban areas of Brazil and Mexico are making investments in premium food products, such as bakery products, attributing to the market demand.
Carrier Corporation Focusses on Strategic Agreements to Strengthen its Natural Refrigeration System Offerings
Carrier Corporation announced an agreement in February 2020, with a European wholesale center operator, METRO AG, to offer natural refrigerant CO2 commercial systems to the major European stores. METRO has planned to remodel the European stores under METRO’s F-gas Exit Program (FEP) that aims to convert the retail stores with natural refrigerant systems, thus reducing the ozone depletion. Moreover, such offerings and initiatives advent the demand and integration of commercial refrigeration equipment worldwide.
An Infographic Representation of Commercial Refrigeration Equipment Market
To get information on various segments, share your queries with us
The market research report offers an elaborative commercial refrigeration equipment market analysis with numerous factors driving or affecting the global market. These include opportunities, growth drivers, threats, key developments, and restraints. In addition to this, it further helps in analyzing, segmenting, and defining the market based on different segments such as type and application. It strategically analyzes several strategies such as product innovations, mergers, alliances, joint ventures, and acquisitions adopted by players in the industry.
2017 – 2028
2021 – 2028
2017 – 2019
Value (USD billion)
By Type, Application and Region
Fortune Business Insights says that the value of the global market was USD 46.13 billion in 2020
The market is projected to reach USD 68.81 billion by 2028
The market will grow at the rate of 5.2% CAGR. Adoption of advanced magnetic refrigeration technology to is enhancing the market growth
The Asia Pacific is expected to witness highest market growth in the market valuing USD 12.53 billion in 2020 owing to the increasing focus on producing frozen regional food products
Refrigerator and Freezer segment is expected to be the leading segment during the forecast period
Rising investments in food and beverage industry to drive the market worldwide
Emerson Electric Co., Carrier Corporation, and Danfoss are the top players in the market
Increasing cold storage services to drive the market
Food and Beverage application segment is expected to witness highest growth rate in the market during the forecast period
Higher purchasing and maintenance cost hinders market growth
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry