Global Commercial Refrigeration Equipment Market by System Type (Remotely Operated, Self-contained) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

In 2020, the global commercial refrigeration equipment market was worth USD 33.53 trillion. The market is expected to grow at a 4.2% compound annual growth rate (CAGR), between 2021 and 2028. The market's primary growth factors are expected to be the rapid expansion of the hospitality and tourism sector, as well as the increasing preference for take-out meals by end-customers over other options. The market will also benefit from technological advances, regulatory pressures, shifting to lower Global Warming Potential refrigerants, and adapting to changing consumer behavior.

International food trade has seen a significant increase in demand for refrigeration of frozen meals, seafood and processed foods. The market has seen rapid advancements in technology such as liquid-vapor compression and ammonia absorption systems. The demand for refrigeration equipment in the foodservice industry has increased significantly. Leading manufacturers emphasize continuous R&D in order to stand out among their competitors. This includes improvements to the design and temperature control of products. Key industry players will be able to reap the rewards of being able to control and monitor the environment in commercial kitchens.

There is increasing demand for products with automated or smart refrigeration controls. Federal Energy Management Program (FEMP) reports that commercial refrigerators certified by ENERGY STAR consume 1.89 kWh per day, while less efficient freezers and refrigerators use nearly 4.44 kWh per day. Manufacturers are focusing on new designs to meet the growing demand for energy-efficient commercial fridges. This is due to increased awareness of their environmental-friendly and cost-effective nature. Heatcraft Refrigeration introduced the intelliGen Refrigeration Controller in 2018 as a commercial refrigeration equipment provider. The controller monitors commercial refrigeration equipment and provides temperature control and automatic superheat adjustment. This reduces overall operating costs.

Commercial refrigeration equipment manufacturers are now looking for alternatives to high GWP refrigerants. This includes global warming and ozone loss. Market participants are increasingly using magnetic refrigeration systems to cool their products. These systems also improve the efficiency of refrigeration equipment and reduce the cost of operation. These systems can save up to 30% on energy, according to the U.S. Department of Energy. These multi-attributes of magnetic refrigeration systems are driving demand for greener technologies that can be used in place of conventional cooling systems.

Due to the rapid increase in coronavirus cases worldwide, strict containment measures were imposed. This resulted in the slowdown in manufacturing units and a reduction in commercial refrigeration equipment shipments. However, vaccine storage and handling has become an integral part the cold storage supply chain to support the efficient mass immunization against COVID-19. In the coming years, the demand for transportation refrigeration equipment will grow due to the rapid increase in vaccine storage. Increased pressure to distribute large numbers of vaccines globally is expected to drive higher investments in cold storage supply chains. This will increase the demand for commercial refrigeration equipment.

Product Insights

In 2020, the refrigerators and freezers sector accounted for nearly 25% of the total revenue and will likely continue to dominate the forecast period. This segment has seen strong growth due to the thriving tourism and travel industry globally. Blast chillers are used to quickly freeze or cool items at lower temperatures, stopping bacteria growth in the stored items. Global healthcare professionals have been using chillers to store tissues from controlled tests, vaccines and critical medicines. This is a major factor in the market's growth.

In the next seven years, the beverage refrigeration segment will see the highest CAGR. Over the last few years, the hospitality industry has seen a boom which has led to increased deployment of medium-capacity personal drink coolers for vacationers and travelers. Retail channels encourage'sip, shop, and grab and go' to provide better shopping experiences to their customers. Over the forecast period, this trend will also drive demand for beverage refrigeration equipment.

System Type Insights

In 2020, the market share of commercial refrigeration equipment was 85.0%. The segment's dominance is due to its low cost installation, low relocation costs, and low maintenance costs. The Environmental Protection Agency (EPA) estimates that self-contained commercial refrigeration equipment accounted nearly for 26% of global HFC emissions in 2020. Manufacturers are replacing R404A refrigerant by R-448A refrigerant to comply with the strict HFC emission standards. This will reduce the GWP by as much as 70%.

Restaurants with small kitchen spaces are increasingly choosing small refrigerators to reduce heat generated by refrigeration appliances. Because the compressor unit is located outside of the restaurant, remote-operated refrigerators are more efficient than self-contained refrigerators that produce minimal resonating sound. Remotely operated refrigerators are not as efficient in terms of energy efficiency. Additionally, professional installation is required to install compressors, adding to the already high cost.

Capacity Insights

The 51 cu. Ft. to 100 Cu. Ft. segment was responsible for close to 50% of the overall market's revenue in 2020. This segment is dominated by the increasing number of supermarkets and specialty food stores worldwide. Reach-in refrigerators are one of the most widely used equipment in commercial spaces. The most popular storage capacity is 50 cu. Ft. 75 cu. Ft. Manufacturers offer a variety of turn-key products to meet the varied needs of customers.

Less than 50 cu. The Ft. segment accounted for a large revenue share in the overall market in 2020. Different types of refrigeration equipment have been developed to meet the needs of the various application areas, including cash & carry shops and cold channel logistics. However, it is important to consider the space available, the budget and the number and size of the sections that will be needed to store food.

Application Insights

Food and beverage distribution is expected to experience the highest CAGR, at 5.0%, between 2021-2028. Rapid developments in cold channel logistics and a rise in refrigerated transportation activities for shipping temperature-sensitive products to any part of the world have worked in the favor of the segment. Furthermore, the availability of cutting-edge temperature-controlled refrigerators for food trucks and other transport vehicles allows for the reliable distribution of fish, beverages, liquor, biopharmaceutical, and other perishable items to remote locations. This segment is expected to grow due to the increasing use of sectional refrigerated trucks by capital-intensive customers within the food and beverage distribution industry.

In 2020, the foodservice market accounted for over 30% of all revenue. This is due to the growing penetration of Quick-Service Restaurants and food trucks within the global foodservice sector. According to the National Restaurant Association (NRA), U.S. there will be more than 1 million restaurants in 2020. This includes FSRs and QSRs as well as bars and taverns. There is a significant demand for refrigeration equipment. The expansion of major food and beverage brands such as Subway IP LLC and McDonald's worldwide by franchisees encourages the use of commercial refrigeration equipment within the foodservice industry.

Regional Insights

North America was the dominant market in 2020, and it is expected to account for close to 30.0% of global revenue share by 2028. The well-established U.S. retail industry is responsible for this. A number of leading commercial refrigeration equipment companies are responsible for the strong growth in the region. Over the forecast period, smart equipment will be adopted in regional commercial kitchens.

Asia Pacific will experience significant growth during the forecast period. This is mainly due to factors like stable employment rates, improved economic conditions and increased spending on leisure activities like traveling and dining out. India and China are potential markets for growth due to their increased deployment of vaccine storage units. The region's thriving tourism and travel industry, particularly in Malaysia, Singapore, Indonesia, and other countries, will drive market growth.

Market Share Insights & Key Companies

Key players have to concentrate on business strategies like mergers and acquisitions, which may help them grow their business. To address food waste in supermarkets, hypermarkets and grocery stores, manufacturers can work with solution providers. In 2018, AB Electrolux partnered with Karmalicious AB (a Swedish startup that designs and creates apps to reduce food waste in grocery stores and restaurants). The collaboration was to introduce a new, technologically advanced refrigerator for grocery shops in order to reduce food waste.

Other key manufacturers are also focusing their efforts on acquiring niche manufacturers or leading players to increase their product lines and geographic reach. Daikin Industries, Ltd., for example, acquired AHT GROUP GmbH in Germany in 2019. This was one of the most prominent commercial refrigeration manufacturers in Germany. The acquisition allowed the company to increase its European presence. To gain an edge over competitors, new products and strategies like target marketing are being launched. The following are some of the major players in the global market for commercial refrigeration equipment:

• AB Electrolux

• Ali S.p.A

• Carrier

• DAIKIN Industries, Ltd.

• Dover Corporation

Up Market Research published a new report titled “Commercial Refrigeration Equipment Market research report which is segmented by System Type (Remotely Operated, Self-contained), By Players/Companies AB Electrolux, DAIKIN Industries Ltd, Ali SpA, Carrier, Dover Corporation”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Commercial Refrigeration Equipment Market Report Segments:

The market is segmented by System Type (Remotely Operated, Self-contained).

Commercial Refrigeration Equipment Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Commercial Refrigeration Equipment Market

Overview of the regional outlook of the Commercial Refrigeration Equipment Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Commercial Refrigeration Equipment Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Commercial Refrigeration Equipment Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Remotely Operated

                2. Self-contained

7. Market scenario by region, sub-region, and country.
8. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
9. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
10. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Commercial Refrigeration Equipment Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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Reasons to Purchase the Commercial Refrigeration Equipment Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.