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.
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.
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.
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.
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.
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 Attribute |
Details |
Market size value in 2020 |
USD 37.5 billion |
Revenue forecast in 2025 |
USD 48.6 billion |
Growth Rate |
CAGR of 5.4% from 2019 to 2025 |
Base year for estimation |
2018 |
Historical data |
2015 - 2017 |
Forecast period |
2019 - 2025 |
Quantitative units |
Revenue in USD million/billion and CAGR from 2019 to 2025 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Product, retail channel, application, region |
Regional scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
Country scope |
U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico |
Key companies profiled |
Dover Corp.; Daikin Industries Ltd.; Carrier Commercial Refrigeration Inc.; Johnson Control Inc.; Haier Group Corp. |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
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
b. The global commercial refrigeration equipment market size was estimated at USD 35.4 billion in 2019 and is expected to reach USD 37.5 billion in 2020.
b. The global commercial refrigeration equipment market is expected to grow at a compound annual growth rate of 5.4% from 2019 to 2025 to reach USD 48.6 billion by 2025.
b. North America dominated the commercial refrigeration equipment market with a share of 32.3% in 2019. This is attributable to the presence of well-established distribution channels for all categories of retail companies.
b. Some key players operating in the commercial refrigeration equipment market include Dover Corp.; Daikin Industries Ltd.; Carrier Commercial Refrigeration Inc.; Johnson Control Inc.; and Haier Group Corp.
b. Key factors that are driving the commercial refrigeration equipment market growth include rising demand for packaged food and beverages along with the rapid expansion of the hospitality sector.
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