Commercial Refrigeration Equipment Market Size, Share & Trends Analysis Report By Product, By System Type, By Capacity, By Application, By Refrigerant, By Distribution Channel, By Region, And Segment Forecasts, 2024 - 2030

Market Size & Trends

The global commercial refrigeration equipment market size was valued at USD 40.82 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 5.2% from 2024 to 2030. The rapid expansion of the hospitality and tourism sector and the growing preference among end-consumers for takeaway meals are expected to drive market growth over the forecast period. In addition, increasing regulatory implications resulting in the adoption of lower global warming potential (GWP) commercial refrigerants coupled with ongoing technological breakthroughs will also provide growth prospects for the market.

A considerable rise in the international food trade has also boosted the demand for commercial refrigeration systems for frozen foods, processed foods, and seafood required for to storage and transportation. The continual innovations and rapid improvements in technologies, including liquid-vapor compression and ammonia absorption systems, are driving the product demand further. Various leading manufacturers are focusing on R&D activities to enhance the design and temperature control of their products to gain a competitive edge in the industry. The increasing need to control and monitor the environment of a commercial kitchen is expected to provide ample growth opportunities for the refrigeration industry over the forecast period.

Products equipped with automated or smart refrigeration controls are gaining massive traction in the market. As per the Federal Energy Management Program, commercial refrigerators with ENERGY STAR certification consume 1.89 kWh energy per day on an average, while refrigerators with lesser efficiency consume energy of around 4.44 kWh per day. The increasing demand for energy-efficient commercial refrigeration units driven by the rising awareness about their environment-friendly and cost-effective nature is encouraging the market players to develop innovative designs.

Climate concerns related to high GWP refrigerants, such as global warming and ozone depletion, are urging manufacturers to produce alternatives. The rising demand for technologies that can address hazardous gas emissions has urged market participants to equip their products with advanced magnetic refrigeration systems. These systems also improve the energy efficiency of refrigeration equipment, thereby minimizing operational costs. As per the U.S. Department of Energy statistics, these systems are highly energy-efficient and can help in energy saving of up to 30%.

The worldwide outbreak of the COVID-19 crisis led to the establishment of stringent containment measures, resulting in a temporary halt in the manufacturing and shipment of commercial refrigeration equipment. However, the pandemic created a strong demand for vaccine production and storage, which triggered the demand for cold storage solutions to support the mass immunization program against the coronavirus. The accelerating usage of vaccine storage units is likely to propel the demand for transportation refrigeration equipment in the subsequent years.

Market Concentration & Characteristics

The market growth stage is moderate to high, and the pace of the market growth is accelerating. The commercial refrigeration equipment market is driven by a high degree of innovation, owing to the increased demand for improved energy efficiency and reduced operating costs along with regulatory compliant commercial refrigerators. The commercial sector is demand refrigerating solutions that reduce their energy consumption and lower their carbon footprint. For instance, hydrocarbon-based refrigerants and natural alternatives are witnessing higher demand owing to their lower impact on the environment.

In addition, the industry is witnessing moderate to high merger and acquisition activities by the leading market players, which further accelerates market growth. These strategies by commercial refrigeration industry players are aimed at expanding their market share and increase existing product portfolio. In December 2023, Haier announced the acquisition of the commercial refrigeration business from Carrier. This acquisition is expected to help Haier Smart Home business establish its commercial refrigeration platform.

The commercial refrigeration equipment market is also subject to increasing regulatory scrutiny owing to an increasing number of regulations aimed at reducing the usage of refrigerants with high global warming potential. Implementation of stringent regulations by various governments authorities globally is compelling manufacturers to develop new technologies and products that using natural refrigerants including carbon dioxide (CO₂) and ammonia (NH₃). For instance, the American Innovation and Manufacturing (AIM) Act was enacted in December 2020, which mandates about 85% reduction in the consumption and production of high-GWP HFCs by 2036.

End-user concentration is high in the commercial refrigeration equipment market owing to rapid demand for refrigeration equipment from end users such as supermarkets, restaurants, convenience stores, and hospitality businesses.

Product Insights

The refrigerators and freezers segment accounted for the largest revenue share of more than 22.0% in 2022. This can be attributed to the worldwide expansion of the travel and tourism industry, leading to the opening of various food joints and restaurants. The segment also covers blast chillers that are mainly used for prompt freezing or cooling of items at lower temperatures and stopping bacteria growth in the stored item. Besides, the wide adoption of chillers by healthcare professionals to store tissue samples of vaccines, controlled tests, and critical medicines is also contributing to the segment's growth.

The beverage refrigeration segment is expected to grow at a CAGR of more than 6.0% from 2023 to 2030, owing to the increased deployment of medium-capacity beverage coolers for travelers and vacationers. Moreover, the emerging trend of ‘grab and go’ and ‘sip and shop’ across the retail chains to offer a better shopping experience to their consumers is expected to drive the demand for beverage commercial refrigerators in the forthcoming years.

System Type Insights

The self-contained segment held major revenue share of the global commercial refrigeration equipment market in 2022 on account of the rising product demand driven by easy and cost-effective installation and low maintenance and relocation costs of the appliances. As per the Environmental Protection Agency (EPA) statistics, in 2020, self-contained commercial refrigeration equipment produced around 26% of the overall HFC emissions globally. The stringent HFC emission norms are compelling the manufacturers to replace R-404A refrigerant with R-448A, minimizing the GWP of refrigeration equipment by around 70%.

The remotely operated refrigerators segment is expected to grow at a notable CAGR from 2023 to 2030, with increasing adoption across restaurants with limited kitchen space to reduce the heat produced by the refrigerators. These refrigerators offer less resonating noise than the self-contained refrigerators as the compressor unit is deployed outside the kitchen. However, they are less energy-efficient, and their installation requires professionals, which further increases the already high installation cost.

Capacity Insights

The 51 cu. Ft. to 100 cu. Ft. segment held the largest revenue share in 2022, owing to the rising number of specialty food stores, hypermarkets, and supermarkets across the globe. These retail chains have a wide range of products that require ample refrigeration, such as fresh produce, dairy, meat, and frozen foods. Their expansion is propelling the demand for commercial refrigerators in this capacity range to accommodate their growing inventory. Moreover, they are also required to comply with the regulations pertaining to food quality, which, in turn, leads to increased product demand.

The less than 50 cu. Ft. segment is anticipated to grow at a fastest from 2023 to 2030. This can be majorly credited to the increasing need for various refrigeration equipment in this capacity range for highly concentrated application areas such as cold channel logistics and food service. Moreover, they are also in high demand across smaller businesses with limited space as they are more compact, energy-efficient, cost-effective and can store perishable items without taking extra space. They are commonly used in convenience stores, cafes, smaller restaurants, etc.

Application Insights

The food & beverage retail segment is estimated to record a substantial CAGR from 2023 to 2030. The ongoing developments in cold channel logistics for transporting temperature-sensitive items are positively impacting segmental growth. Moreover, the demand for high-end temperature-controlled refrigerators for various transport vehicles for reliable distribution of beverages, liquor, fish, biopharmaceuticals, and other perishable products is also favoring the business growth. Besides, the growing inclination of capital-intensive customers in the food & beverage distribution industry toward the sectional refrigerated trailers will drive the segment’s growth in the upcoming years.

The food service segment captured a revenue share of around 32.0% of the overall market in 2022. The sizable revenue share can be credited to the increasing trend of quick-service restaurants (QSRs) and food trucks in the food service industry. According to the National Restaurant Association (NRA), there were more than 1 million restaurant locations in the U.S. in 2022, including QSRs, FSRs, bars, and taverns, which have a considerable demand for refrigeration equipment. Furthermore, the expansion of various prominent food and beverage chains, such as McDonald's, Subway IP LLC, and Starbucks Coffee Company is expected to impel the demand for commercial refrigeration equipment further.

Regional Insights

North America accounted for a dominant revenue share of over 32% in 2022 in the global commercial refrigeration equipment market. The significant growth can be attributed to the mature retail industry and the availability of major supermarket chains, such as Walmart, Costco, Kroger, Publix, etc., in the region. Besides, the strong presence of various leading manufacturers of commercial refrigeration equipment coupled with the early adoption of smart equipment across the commercial kitchens is favoring the expansion of the regional market further.

Europe commercial refrigeration equipment market is expected to witness a CAGR of over 4% from 2023 to 2030. This can be attributed to the high demand for commercial refrigeration equipment from food, drinks, medicines, and chemicals industries. High growth in consumption of convenience foods in Europe region is boosting the market’s growth.

Asia Pacific is expected to witness a growth at CAGR of over 6.0% from 2023 to 2030, owing to increasing product demand driven by the improving economic conditions, steady employment rates, growing gross disposable income, and rising expenditure on leisure activities, including traveling, and dining out. The flourishing travel & tourism industry in the countries, such as Malaysia, Indonesia, and Singapore, is further contributing to the segmental growth.

Middle East & Africa is expected to witness a growth at CAGR of over 6.0% from 2023 to 2030, owing to expansion of the cold storage sector. In addition, the region is seeing rapid growth in demand for smart and connected refrigeration, further contributing to the market’s growth.

U.S. Commercial Refrigeration Equipment Market Trends

The commercial refrigeration equipment market in U.S. is anticipated to grow at a CAGR of 4.3% from 2023 to 2030. The expansion of retail chains, convenience stores, and grocery stores, along with increasing demand for fresh and frozen food products in the U.S. region, is expected to drive market growth in upcoming years. Technological innovation aimed at reducing energy consumption and reducing the impact on the environment by focusing on the application of natural refrigerants is expected to strengthen the market growth in the near future.

U.K. Commercial Refrigeration Equipment Market Trends

The commercial refrigeration equipment market in U.K. accounted for over 15% revenue share of the European market in 2022. Ongoing trend of using eco-friendly refrigerants in the U.K. along with the integration of artificial intelligence (AI) is projected to drive market’s growth in upcoming years.

Germany Commercial Refrigeration Equipment Market Trends

The commercial refrigeration equipment market in Germany accounted for over 25% revenue share of the European market in 2022. Continuous development of efficient and reliable refrigeration systems in Germany is driving the growth of the market.

France Commercial Refrigeration Equipment Market Trends

The commercial refrigeration equipment market in France is driven by its booming food industry with consumer demand for high-quality bakery, dairy, and meat products. This leads to the continuous demand for efficient and reliable commercial refrigeration equipment in the country.

China Commercial Refrigeration Equipment Market Trends

The commercial refrigeration equipment market in China is expected to witness a growth at CAGR of nearly 6.0% from 2023 to 2030. High-quality and fresh food products in China drives demand for commercial refrigeration equipment. In addition, high adoption rate of vaccine storage units across research institutions and biopharmaceutical companies in the country drives growth of the market.

India Commercial Refrigeration Equipment Market Trends

The commercial refrigeration equipment market in India is expected to witness a growth at CAGR of over 8.0% from 2023 to 2030. High growth in number of cafes, restaurants, supermarkets, and convenience stores in India fuels demand for the commercial refrigeration equipment.

Japan Commercial Refrigeration Equipment Market Trends

The commercial refrigeration equipment market in Japan accounted for over 20% revenue share of the Asia Pacific market in 2022. Rising demand for efficient and space-saving refrigeration solutions owing to the limited space availability and high population density is supporting the growth of commercial refrigeration equipment market in Japan.

Saudi Arabia Commercial Refrigeration Equipment Market Trends

The commercial refrigeration equipment market in Saudi Arabia accounted for highest revenue share of the Middle East & Africa market in 2022. High prevalence of prevalence of packaged and frozen food & beverages due to hot and dry climate of the country drives commercial refrigeration equipment market growth.

Key Companies & Market Share Insights

The market players are focusing on implementing various strategic initiatives such as capacity expansion, collaborations, mergers, and acquisitions to strengthen their foothold in the market. For instance, in June 2023, Johnson Controls acquired M&M Carnot, a prominent company involved in the development of natural refrigeration solutions with ultra-low global warming potential. This strategic initiative is aimed at broadening the former’s portfolio of sustainable solutions to help customers achieve net zero emissions.

The increased adoption of sustainable technology equipment has urged the major market players to launch new and enhanced product offerings to cater to consumer demands effectively. For instance, in January 2024, Hussmann Corporation, a retail refrigeration systems company, launched Evolve Technologies, a new offering focused on the development of technologies that facilitate the use of environmentally friendly refrigerants. As part of this strategy, the company also expanded its production capacity for transcritical CO2 refrigeration systems in the Suwanee, Georgia, facility.

In January 2022, Carrier Commercial Refrigeration installed its PowerCO2OL refrigeration system at a COVID-19 vaccine storage warehouse in Spain. This system uses carbon dioxide, a natural refrigerant, and serves as a sustainable and low global warming potential refrigerant to help preserve critical vaccines in Spain.

Recent Developments

• In November 2023, Whirlpool Corporation introduced SlimTech insulation, the vacuum-insulated structure (VIS) technology, in a refrigerator. According to the company, this technology signifies a substantial transformation in refrigeration technologies.

• In September 2023, Carrier partnered with Relayr, Inc., an industrial Internet of Things (IIoT) technology company, an innovative Refrigeration-as-a-Service (RaaS) offering for customers. This collaboration will help food retailers avoid the upfront investment required for refrigeration equipment and infrastructure.

• In March 2023, Carrier launched the Transicold EverFRESH active controlled atmosphere system for refrigerated containers. This software development helped transporters to carry a wide range of perishable goods, including high value products.

• In February 2023, Carrier launched a Carbon Air Purifier with UV in their Healthy Homes portfolio. This product delivers air purification to help in the reduction of unwanted odor, volatile organic compounds, and common household gases from indoor air.

• In January 2023, Daikin Industries, Ltd. invested in Atomis Co., Ltd., a company originating from Kyoto University. Atomis is involved in the development of innovative functional materials using "metal-organic frameworks (MOFs)." This investment from Daikin is aimed at developing next-generation refrigerants and equipment that are environmentally friendly.

Commercial Refrigeration Equipment Market Report Scope

Global Commercial Refrigeration Equipment Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels in addition to providing an analysis of the latest industry trends and opportunities in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global commercial refrigeration equipment market report based on the product, application, system type, refrigerant, capacity, distribution channel, and region.

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • Transportation Refrigeration Equipment

    • Trailers

    • Trucks

    • Shipping Containers

  • Refrigerators & Freezers

    • Walk-in-Refrigerators

    • Reach-in Refrigerators

    • Chest

  • Beverage Refrigeration

  • Display Showcases

    • Ice Cream Cabinets

    • Bakery/Deli Display

    • Others

  • Ice Merchandisers & Ice Vending Equipment

  • Other Equipment

• System Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Self-contained

  • Remotely Operated

• Capacity Outlook (Revenue, USD Million, 2018 - 2030)

  • Less than 50 cu. Ft

  • 50 to 100 cu. Ft

  • More than 100 cu. Ft

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Food Service

  • Food & Beverage Retail

    • Hypermarkets

    • Supermarkets

    • Convenience Store

    • Specialty Food Store

    • Others

  • Hotels and Hospitality

  • Pharmaceuticals

  • Healthcare

  • Biotechnology

  • Chemicals

  • Others

• Refrigerant Outlook (Revenue, USD Million, 2018 - 2030)

  • Synthetic Refrigerants (HFCs, HCFCs)

  • Natural Refrigerants

    • Carbon Dioxide (CO2)

    • Ammonia (NH3)

    • Others

• Distribution Channel Outlook (Revenue, USD Million, 2018 - 2030)

  • OEMs (Original Equipment Manufacturers)

  • Distributors and Wholesalers

  • Retailers

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

    • Spain

  • Asia Pacific

    • Japan

    • China

    • India

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Mexico

  • Middle East and Africa (MEA)

    • Saudi Arabia

    • South Africa