Commercial Refrigeration Equipment Market Size, Share & Trends Analysis Report By Product, By Retail Channel (Supermarket, Hypermarket), By Application (Food Service, F&B Retail, F&B Distribution), And Segment Forecasts, 2019 - 2025

Industry Insights

The global commercial refrigeration equipment market size was valued at USD 33.46 billion in 2018 and is estimated to grow at a CAGR of 5.4% over the forecast period. Rising demand for packaged food and beverages along with rapid expansion of the hospitality sector has led to substantial market growth. Increasing preference of consumers to dine out and ongoing expansion of consumer goods retail chains across the globe are likely to drive the market further. Owing to the reduction in overall meat consumption in Europe and North America, as a result of environmental and sustainability impacts, the global food industry is concentrating on seafood exports.

This offers commercial refrigeration system manufacturers with immense growth opportunities to handle extra seafood. Innovation in magnetic refrigeration systems and other evolving technologies are expected to positively impact market growth. Growing international food trade is generating demand for the refrigeration of frozen foods, seafood, and processed foods. Subsequently, cold rooms are also witnessing higher demand, however, they involve great investment and maintenance costs, which might limit their demand.

The market growth can also be accredited to increasing capital investments in the food industry and growth of food services business, in terms of production, distribution, and transportation. Rising use of commercial refrigeration systems in diversified applications, such as horticulture and seafood processing, is also projected to drive the market over the forecast years. In addition, growing global trade of frozen food items, owing to changing food habits, has accelerated the demand for these equipment in the commercial sector.

Rising number of hypermarkets, specialty food stores, and supermarkets across the globe is also projected to boost the market growth over the forecast period. Need for reducing the operating costs within the hospitality industry has provided numerous growth opportunities for suppliers offering energy-efficient equipment. The equipment can be customized as per individual’s requirements. However, a number of innovations, in terms of design, have led to the manufacturing of generalized products, suiting the requirements of a majority of commercial customers.

Product Insights

The refrigerators & freezers segment is anticipated to reach USD 12.31 billion by 2025expanding at the highest CAGR of 6.4% over the forecast period. Rising product demand across various sectors, such as hospitality, food service, and healthcare, is expected to fuel the segment growth in future. Increased revenue from hospitals over the past five years, owing to rise in geriatric population and need for medical care, has boosted the sales of ice equipment. Presence of well-established retail chains and supermarkets will drive the segment further.

Reach-in refrigeration is the most common product type used in commercial spaces. These refrigerators are easy to access and offer ample storage for food storage and preservation. Commercial reach-in refrigerators and freezers are used across different food service settings, including restaurants, convenience stores, and cafeterias.

Commercial refrigerated systems are witnessing huge growth owing to increasing preferences for packaged and frozen foods and chilled beverages, among others. Retailers in the commercial space are investing in innovative and advanced systems, which is driving the demand for high-end and efficient refrigeration parts, such as evaporators, condensers, and compressors. Moreover, the demand for customized evaporators and condensers is on the rise to meet specific application and device requirements, such as cold food and snacks machines, cabinets, frozen machines, pizza vending machines, chill centers, and refrigeration vending machines. This is also likely to boost the segment growth.

Retail Channel Insights

The convenience store segment is expected to register the highest CAGR of 6.0%over the forecast period. Convenience stores have limited floor space as compared to supermarkets and thus, require small reach-in systems and beverage coolers. The supermarket segment has grown significantly over the years, profiting from strengthening economies across major regions. With increasing disposable income, large number of consumers have shifted to organic, all-natural, and premium food brands, which are retailed at supermarkets and specialty food stores, fueling the segment growth.

Supermarkets utilize several advanced equipment, such as cabinet coolers and display cases, to attract more customers and increase profitability. These systems help supermarkets and convenience stores to enrich their product offerings and offer customers with quick access to chilled products, such as dairy products. According to the data of Office of Energy Efficiency and Renewable Energy of U.S., most of the walk-in coolers are tailored to meet individual customer requirements.

Application Insights

Food service is expected to be the dominant application segment over the forecast period due to rising number of Quick Service Restaurants (QSRs) and food trucks across developed economies and a few developing economies. Use of cold treatment in the food production industry is expected to boost product demand in the food & beverage production segment over the coming years. Product demand in the food service industry supported by an emerging trend of opting for new equipment instead of repairing and maintaining the existing obsolete systems will drive the segment.

For example, Foodservice Equipment and Supplies Magazine, in their 2015 operator purchasing study, cited that 85.0% of the food service providers in U.S. purchased new systems. Replacement sales are strongest in areas where the installed base of equipment is the largest (such as hotels, motels, and restaurants). Other factors that influence product demand include the trade-off between repair and replacement, age of the system, and eco-friendly aspects of newer equipment.

Regional Insights

North America is expected to record a CAGR of 4.4% over the forecast period. U.S. is a market leader in the retail industry with the presence of well-established distribution channels for all categories of retail companies. Several opportunities for growth exist in U.S. retail market for retail providers of all sizes, from small-, medium-sized franchise unit owners, direct or individual sellers to large store operators. The food service industry in Asia Pacific has experienced a substantial growth over the past decade.

The refrigeration industry is driven by various factors, such as steady employment, improving economic conditions, and rising gross disposable income levels, which ultimately enable consumers to spend more on leisure activities, such as traveling and dining out. India and China, in particular, provide potential growth opportunities for market participants. In China, around 40% of commercial equipment is sold to supermarkets sector, which is growing at a rate of 10% per annum. On the other hand, these systems are also used on a large scale for storing beverages and food items in cafes, bars, and food outlets.

Commercial Refrigeration Equipment Market Share Insights

Key companies in the market include Dover Corp.; Daikin Industries Ltd.; Carrier Commercial Refrigeration Inc.; Johnson Control Inc.; and Haier Group Corp. Most of these companies have undertaken R&D activities to offer unique products at low costs. Additionally, the launch of new products and implementation of strategies, such as target marketing, are being adopted by them to gain a competitive edge over others.

Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global commercial refrigeration equipment market report on the basis of product, retail channel, application, and region:

• Product Outlook (Revenue, USD Million, 2015 - 2025)

  • Transportation Refrigeration Equipment

  • Refrigerators & Freezers

  • Beverage Refrigeration

  • Display Showcases

    • Self-contained

    • Remotely Operated

  • Ice Merchandisers & Ice Vending Equipment

  • Others

• Retail Channel Outlook (Revenue, USD Million, 2015 - 2025)

  • Hypermarket

  • Supermarket

  • Convenience Store

  • Specialty Store

  • Others

• Application Outlook (Revenue, USD Million, 2015 - 2025)

  • Food Service

  • Food & Beverage Retail

  • Food & Beverage Distribution

  • Food & Beverage Production

  • Others

• Regional Outlook (Revenue, USD Million, 2015 - 2025)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa