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The global commercial refrigeration equipment market size was valued at USD 50.42 billion in 2022. The market is projected to grow from USD 52.86 billion in 2023 to USD 77.73 billion by 2030, exhibiting a CAGR of 6.4% during the forecast period.
Commercial refrigeration equipment is used for various cooling and freezing operations. It comprises equipment such as a freezer, refrigerator, and ice-making machine. It has applications in diverse sectors such as food & beverages, retail stores, hotels & restaurants, chemicals & pharmaceuticals, and others. Another segment includes vending machines. These types of products are used for commercial restaurants, hotels, supermarkets, and quick service restaurants such as McDonald’s, KFC, and others.
The global market exhibited stable average growth due to the resuming retail sector operation and growing demand for carbonated drinks globally. Additionally, there is a growing demand for commercial refrigerators and freezers across supermarkets, hypermarkets, and food retailers for storing ready-to-eat products, processed foods, and frozen foods. Another major factor that drives the growth is rise in disposable income of end-users globally, resulting in high spending on frozen foods and ready-to-eat meals that subsequently drive the refrigeration equipment market growth. Furthermore, the growing traveling trend has boosted the demand for ready-to-eat meals, which will consecutively increase the sale of commercial refrigeration equipment over the forecast period.
Rising Need for Pharmaceutical Products to Boost Market Growth Amid the Pandemic
The sudden emergence of the COVID-19 pandemic disrupted the demand for commercial refrigeration in the first and second quarters of 2020 around the globe. This led to the enfolding of the retail chains network across the industry, creating complex challenges for the delivery of products to end-users. This resulted in the contraction of margins for the players manufacturing commercial refrigerators and freezers for various applications.
On the other hand, the demand to keep medicines and drugs from spoiling led to a surge in demand for commercial refrigerators and freezers. Further, post-pandemic demand for frozen food meals raised the demand for this equipment across developing and developed economies. Henceforth, this equipment became a primary need for medicinal storage across pharmaceutical companies and supply networks in the medical sector.
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Leveraging Technological Advancement Trends and Smart AI integration to Drive Market Expansion
There has been a rise in demand for the Internet of Things and Big Data technologies across all verticals from the simplest mobile devices to smart manufacturing. Also, growing demand for the Internet of Things by manufacturers of commercial refrigerators is accelerating the market growth. In addition, key players shifted strategies to integrate machine learning and AI-based solutions. Thus, technological advancement for smart connectivity is setting a new trend for smart monitoring and energy-efficient equipment, which is consecutively growing the commercial refrigeration equipment market share across various sectors over the forecast period.
Rising Investments in the Food and Beverage Industry to Drive Market Growth
The food and beverage refrigeration industry is one of the topmost sectors across all the regions, generating the highest annual revenue in the global GDP. The industry caters to customers from its raw farm commodities, which 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 of commercial refrigeration equipment sales globally. Foreign Direct Investment (FDI) in the food processing industry has increased by 86% from April 2022-September 2022, with USD 410.62 million compared to the previous year 2021, for USD 220.42 million. Such investment in the food & beverages industry fuels the growth of the market globally.
High Capital Expenditure and Maintenance Costs to Obstruct Adoption Across Industries
Commercial refrigeration systems are used in heavy load applications and as their usage is high, the norms they have to follow are stricter. Commercial refrigeration systems use commercial grade refrigerants, which are developed as per the government regulations to minimize carbon emission and greenhouse gas impact. Also, as this equipment is used in commercial applications, the price of the equipment varies from size and application as commercial refrigerators and freezers are built to fit in large spaces. Thus, buying costly refrigeration systems needs a high initial investment, and maintenance of such huge equipment becomes an obstruction to the adoption of systems across various industries. However, lack of awareness regarding energy-efficient systems and advanced refrigeration machines amongst customers is another major factor responsible for hampering the commercial refrigeration equipment market growth.
Refrigerator & Freezer Segment to Dominate the Type Segment with Growing Adoption
The market is segmented by type into refrigerator & freezer, transport refrigeration, refrigerated display cases, ice machines, and others.
The refrigerator & freezer segment is expected to experience exponential market growth owing to the increasing demand for cold storage equipment for numerous industrial applications. The equipment is used in the food service sector to store and provide customers with healthy and fresh food products.
Moreover, the transport refrigeration segment depicts liberal growth due to increasing export and import services through various transportation refrigeration channels such as road, water or air.
Furthermore, refrigerated display cases and ice machines segments are anticipated to experience moderate growth due to their moderate selling price and their applications.
The others segment comprises vending machines that represent steady growth due to stagnant demand as it has a longer shelf life with minimal applications across various sectors.
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Food & Beverage Segment to Dominate the Market with Ready-to-Eat Food Products
By application, the market is segmented into food & beverage, retail stores, hotels & restaurants, chemicals and pharmaceuticals, and others.
Food & beverage segment accounted for the highest market share due to the rising interest of customers toward healthy and ready-to-eat food products globally.
The chemical and pharmaceutical segment is expected to experience exponential growth due to the need for storing chemicals, pathology samples, and medicines diversifying commercial refrigeration applications.
Furthermore, retail stores in developed countries offer frozen food products and processed food to their consumers and henceforth expected to implicate gradual market growth.
Hotels & restaurants segment depicts a steady growth rate owing to an increase in consumers’ changing preferences for full and quick-service restaurants and their food services.
Moreover, the others segment will likely depict minimal growth due to limited global applications in the hospitality sector.
Asia Pacific Commercial Refrigeration Equipment Market Size, 2022 (USD billion)
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The Asia Pacific market is expected to grow mostly 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 market growth.
According to the Organic Trade Association (OTA), the global organic food industry is expected to witness the highest growth in the food sector. Consumers are more inclined toward healthy and nutritional organically produced food products, resulting in higher dependence on the cold chain process and equipment. Also, the rising number of supermarkets and hypermarkets is expected to expand the Asia Pacific market share over the forecast period.
The rising urbanization in China and growth in potential income have led to shopping more and availing hygienic and organic produce in fresh condition. These refrigerators offer more freshness and hygiene, and high-quality food has raised the demand for commercial refrigeration systems in various industries. Wherein the availability of several local manufacturers for commercial applications is creating ample market opportunities for China in trading commercial refrigeration equipment globally.
Increasing investments in North America’s food & beverage industries will drive the regional market growth. Players are making strong investments in research & development and participating in strategic partnerships, acquisitions, and entering into collaborations and joint ventures, which are pivotal factors boosting the development potential of the North America market. Moreover, busy lifestyle and rising disposable income of the population make people spend more on ready-to-eat products and frozen foods, which subsequently increases the demand for commercial refrigerators and drives the market growth in North America.
The Europe market is set to witness significant growth owing to the presence of leading food & beverage manufacturing companies. The increasing count of quick service restaurants, fast food counters, and cold chain centers is considered to be the important factor that drives the market growth in Europe. Food & beverage producers invest in advanced refrigeration systems to keep food products fresh and frozen. Moreover, the implementation of stringent food safety regulations by the European governments is creating a 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. Additionally, high infrastructure spending and standard of living in the UAE, Saudi Arabia, and others will boost market expansion. Such developed and high-rise economies need innovative commercial refrigeration systems for keeping and storing frozen foods, meats, and ice creams, which will aid market growth in the Middle East and Africa. Moreover, increasing efforts by the South Africa government to reduce food waste will propel regional market growth over the forecast timeline.
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Similarly, the Latin America market will witness stable growth owing to the increasing number of urban areas in Brazil and Mexico and their growing investments in premium food products such as bakery products.
Technological Advances and New Product Strategies to Expand Market Potential
Key players in the market are raising potential by introducing innovative commercial refrigeration equipment. These capabilities enable consumers to save more with smart, efficient equipment and raise the trend of market development and customer needs. The key manufacturers have also launched advanced products to improve commercial refrigeration equipment sales across the globe and establish a leading position in the market.
An Infographic Representation of Commercial Refrigeration Equipment Market
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The research report offers in-deep analysis of global market and factors affecting the equipment sales. These include opportunities, growth drivers, threats, key developments, and restraints. In addition, it further helps in analyzing, segmenting, and defining the market based on different segments such as type and application. Our research strategically analyzes several strategies such as product innovations, mergers, alliances, joint ventures, and acquisitions adopted by players in the market.
CAGR of 6.4% from 2023 to 2030
Value (USD Billion)
By Type, By Application, By Region
Fortune Business Insights says that the value of the global market was USD 50.42 billion in 2022.
The market is projected to reach USD 77.73 billion by 2030.
The market will grow at the rate of 6.4% CAGR over the forecast period. Adoption of advanced energy-efficient refrigeration technology is enhancing the market growth.
The Asia Pacific is expected to witness highest market growth in the market and was valued at USD 13.87 billion in 2022.
Refrigerator & freezer segment is expected to be the leading segment during the forecast period with growing adoption in the medical sector.
Rising investments in the food and beverage industry to drive market growth.
Emerson Electric Co., Carrier Corporation, and Danfoss are the top players in the market.
Leveraging technological advancement trends and smart AI integration to drive market growth.
Food & beverage segment is expected to witness highest growth rate in the market during the forecast period.
High capital expenditure and maintenance cost to obstruct adoption across industries.
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