Global Commercial Refrigeration Equipment Market Size By Product Type, By System Type, By Refrigerant Type, By Distribution Channel, By Application, By Geographic Scope And Forecast

Commercial Refrigeration Equipment Market Size and Forecast

Commercial Refrigeration Equipment Market size was valued at USD 47.04 Billion in 2023 and is projected to reach USD 77.01 Billion by 2031, growing at a CAGR of 7.01% from 2024 to 2031. Commercial refrigeration equipment encompasses various chilling systems designed for application in commercial settings, including supermarkets, restaurants, food processing facilities, and pharmaceutical storage locations. The primary function of these systems is to safeguard perishable goods while ensuring optimal temperature control for a range of products, including food, beverages, pharmaceuticals, and other items sensitive to temperature fluctuations. Additionally, the category of commercial refrigeration equipment encompasses walk-in coolers and freezers, display cases, reach-in refrigerators and freezers, ice machines, and chilled transport trucks.

The implementation of these technologies is essential for ensuring product safety and quality, mitigating spoilage, and minimizing waste throughout the supply chain.

They assist organizations in reducing costs through efficient temperature management and lower energy consumption.

Global Commercial Refrigeration Equipment Market Dynamics

The key market dynamics that are shaping the global commercial refrigeration equipment market include:

Key Market Drivers

Rising Awareness Regarding the Energy Efficiency:

The increasing costs of energy and heightened sustainability concerns are driving a significant demand for refrigeration systems that prioritize energy efficiency. Organizations are progressively integrating technologies aimed at minimizing power usage to decrease operational costs and environmental impact.

Rapid Urbanization:

The expansion of cities is driving significant growth in the food retail and hospitality sectors, which in turn is increasing the demand for refrigeration equipment necessary for the storage and display of perishable goods. The ongoing urban development is significantly increasing the need for commercial refrigeration solutions.

Regulatory Compliance:

Governments globally are enacting stringent environmental regulations aimed at decreasing greenhouse gas emissions, resulting in the increased utilization of refrigeration systems that incorporate eco-friendly refrigerants and adhere to energy efficiency standards.

Developing Technological Advancements:

The incorporation of advanced technologies such as IoT in commercial refrigeration systems facilitates real-time monitoring, predictive maintenance, and improved control, thereby enhancing operational efficiency and minimizing downtime. This development is drawing the attention of enterprises seeking enhanced and automated solutions.

Key Challenges

Significant Initial Investment:

Commercial refrigeration systems equipped with advanced functionalities, including energy-efficient compressors or smart IoT-enabled technologies, typically require a substantial initial financial commitment. The potential for deterrence exists for smaller enterprises or those with constrained financial resources when it comes to system upgrades, which may impede the market's adoption of newer and more efficient products.

Stringent Environmental Regulations:

Governments across the globe are implementing stricter regulations on refrigerants, driven by concerns over their contributions to global warming and ozone layer depletion. Adhering to the continuously changing refrigerant and emissions regulations necessitates that manufacturers consistently innovate and implement environmentally friendly alternatives, resulting in increased research and development expenses and operational intricacies.

Supply Chain Disruptions:

The global supply chains for refrigeration equipment and components have experienced significant disruptions attributed to various factors, including the COVID-19 pandemic, geopolitical tensions, and shortages of materials. The impact on the timely delivery of components and completed equipment results in manufacturing and installation delays.

Key Trends

Optimization of Energy Use and Environmental Responsibility:

A significant trend influencing the uptake of commercial refrigeration equipment in the United States is the increased emphasis on energy efficiency and sustainability. Organizations are progressively pursuing refrigeration options that comply with rigorous environmental standards and aid in minimizing energy usage. The incorporation of sustainable refrigerants, innovative insulation technologies, and high-efficiency compressors exemplifies this trend.

Increasing Need in Online Retail and Temperature-Controlled Supply Chain Management:

The expansion of online retail and the rising need for effective cold chain logistics significantly influence the uptake of commercial refrigeration systems. The increasing dependence of consumers on online grocery shopping has led to a greater demand for sophisticated refrigeration solutions. The requirement for temperature-controlled transportation of perishable goods highlights the increasing demand in this sector.

Services for Retrofitting and Upgradation:

Businesses are increasingly choosing to retrofit and upgrade existing refrigeration systems instead of investing in entirely new installations. The current trend reflects an intention to improve the efficiency of current equipment, lower energy usage, and comply with changing regulatory standards.

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Global Commercial Refrigeration Equipment Market Regional Analysis

Here is a more detailed regional analysis of the global commercial refrigeration equipment market:

North America

In 2023, North America held a significant revenue share in the global commercial refrigeration equipment market.

The notable expansion can be linked to the established retail sector and the presence of prominent supermarket chains, including Walmart, Costco, Kroger, and Publix, within the area.

The significant presence of various leading manufacturers of commercial refrigeration equipment, along with the early adoption of smart technology in commercial kitchens, is contributing to the continued growth of the regional market.

Europe

The commercial refrigeration equipment market in Europe is projected to experience a compound annual growth rate during the forecast period.

The increased demand for commercial refrigeration equipment is primarily driven by the food, beverage, pharmaceutical, and chemical sectors.

The significant increase in the consumption of convenience foods within the European region is driving the expansion of the market.

Global Commercial Refrigeration Equipment Market: Segmentation Analysis

The Global Commercial Refrigeration Equipment Market is segmented based on By Product, By System Type, By Refrigerant, By Application, By Distribution Channel, and Geography.

Commercial Refrigeration Equipment Market, By Product Type

• Refrigerator & Freezer
• Trailers
• Trucks
• Shipping Containers
• Transportation Refrigeration
• Trailers
• Trucks
• Shipping Containers
• Refrigerated Display Cases
• Ice Cream Cabinets
• Bakery/Deli Display
• Others
• Beverage Refrigeration
• Ice Cream Merchandiser
• Refrigerated Vending Machine
• Others

Based on Product Type, the Global Commercial Refrigeration Equipment Market is bifurcated into Refrigerator & Freezer, Transportation Refrigeration, Refrigerated Display Cases, Others. The refrigerators and freezers segment represented the most significant revenue share in 2023. The global growth of the travel and tourism sector has resulted in the emergence of numerous food establishments and restaurants. The segment additionally addresses blast chillers, which are primarily utilized for the rapid freezing or cooling of products at reduced temperatures, effectively inhibiting bacterial growth in the stored items. The extensive utilization of chillers by healthcare professionals for the storage of vaccine tissue samples, controlled tests, and essential medications is significantly driving the growth of this segment.

Commercial Refrigeration Equipment Market, By System Type

• Self-contained
• Remotely Operated

Based on System Type, the Global Commercial Refrigeration Equipment Market is bifurcated into Self-contained, Remotely Operated. The self-contained segment captured a significant revenue share of the global commercial refrigeration equipment market in 2023, attributed to increasing product demand fueled by straightforward and economical installation, as well as minimal maintenance and relocation expenses associated with the appliances. According to data from the Environmental Protection Agency (EPA), self-contained commercial refrigeration equipment accounted for approximately 26% of total global HFC emissions in 2020. The rigorous HFC emission regulations are driving manufacturers to transition from R-404A refrigerant to R-448A, effectively reducing the global warming potential of refrigeration systems by approximately 70%.

Commercial Refrigeration Equipment Market, By Refrigerant Type

• Synthetic Refrigerants (HFCs, HCFCs)
• Natural Refrigerants
• Carbon Dioxide (CO2)
• Ammonia (NH3)
• Others

Based on Refrigerant Type, the Global Commercial Refrigeration Equipment Market is bifurcated into Synthetic Refrigerants, Natural Refrigerants. The synthetic refrigerants segment is a key driver of growth in the commercial refrigeration equipment market, attributed to its extensive application in refrigeration systems. The selection of these refrigerants is driven by their superior cooling capabilities, consistent performance, and adaptability to a range of refrigeration systems. Considering increasing apprehensions regarding their ecological consequences, particularly their contribution to ozone depletion and global warming, they persist in maintaining a dominant position in the market.

Commercial Refrigeration Equipment Market, By Application:

• Food & Beverage Retail
• Hypermarkets
• Supermarkets
• Convenience Store
• Specialty Food Store
• Others
• Food Service
• Hotels and Hospitality
• Pharmaceuticals
• Healthcare
• Biotechnology
• Chemicals
• Others

Based on Application, the Global Commercial Refrigeration Equipment Market is bifurcated into Food & Beverage Retail, Food Service, Others. The food and beverage retail sector are projected to experience a significant compound annual growth rate during the forecast period. The current advancements in cold channel logistics for the transportation of temperature-sensitive goods are contributing favourably to the growth of this segment. Additionally, the increasing need for premium temperature-controlled refrigeration solutions in diverse transport vehicles is significantly contributing to the growth of the industry. This is particularly relevant for the dependable distribution of beverages, liquor, fish, biopharmaceuticals, and other perishable goods.

Commercial Refrigeration Equipment Market, By Distribution Channel

• OEMs (Original Equipment Manufacturers)
• Distributors and Wholesalers
• Retailers

Based on Application, the Global Commercial Refrigeration Equipment Market is bifurcated into The OEMs segment plays a crucial role in the commercial refrigeration equipment market, primarily because it provides tailored and sophisticated refrigeration solutions across diverse sectors, including food and beverage, retail, and healthcare. Original Equipment Manufacturers are essential to driving innovation by incorporating energy-efficient technologies and advanced features such as IoT connectivity. These advancements contribute to lowering operational costs and ensuring adherence to strict environmental regulations. The partnerships with international brands enable them to address specific requirements, guaranteeing superior production quality and prompt delivery, which contributes to the overall market expansion.

Commercial Refrigeration Equipment Market, By Geography

• North America
• Europe
• Asia Pacific
• Rest of the world

Based on Geography, the Global Commercial Refrigeration Equipment Market is classified into North America, Europe, Asia Pacific, and the Rest of the world. In 2023, North America held a significant revenue share in the global commercial refrigeration equipment market. The notable expansion can be linked to the established retail sector and the presence of prominent supermarket chains, including Walmart, Costco, Kroger, and Publix, within the area. The significant presence of various leading manufacturers of commercial refrigeration equipment, along with the early adoption of smart technology in commercial kitchens, is contributing to the continued growth of the regional market.

Key Players

• The "Global Commercial Refrigeration Equipment Market" study report will provide valuable insight with an emphasis on the global market. The major players in the market are
• AHT Cooling Systems GmbH, Ali Group S.r.l. a Socio Unico, Carrier, Dover Corporation, DAIKIN Industries, Ltd, Carrier, Electrolux AB, Hussmann Corporation, Illinois Tool Works Inc., Johnson Control Lennox International Inc., Panasonic Corporation, and Whirlpool Corporation.

Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with its product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Global Commercial Refrigeration Equipment Market Key Developments

• In November 2023, Whirlpool Corporation launched SlimTech insulation, utilizing vacuum-insulated structure (VIS) technology in a refrigerator. The company asserts that this technology represents a significant shift in refrigeration technologies.
• In September 2023, Carrier formed a partnership with Relayr, Inc., a company specializing in industrial Internet of Things (IIoT) technology, to introduce an innovative Refrigeration-as-a-Service (RaaS) solution for its customers. This partnership enables food retailers to circumvent the initial capital expenditure associated with refrigeration equipment and infrastructure.
• In March 2023, Carrier introduced the Transicold EverFRESH active controlled atmosphere system designed for refrigerated containers. This software development enabled transporters to efficiently handle a diverse array of perishable goods, encompassing high-value products.