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The Commercial Refrigeration Equipment Market size is estimated to grow by USD 14.50 billion at a CAGR of 6.86% between 2022 and 2027. The need to increase the storage life of food products is driving demand for refrigeration solutions that can maintain optimal storage conditions. Market expansion by end-users, such as supermarkets, convenience stores, and restaurants, is also fueling growth in the market. Additionally, the growing focus on merchandising refrigerated food and beverages is creating opportunities for innovative refrigeration solutions that can enhance product visibility and appeal to customers. The increasing demand for fresh and healthy food options is also driving the growth of the market, as consumers seek out products that are properly stored and maintained. Additionally, advancements in technology, such as energy-efficient systems and smart monitoring capabilities, are enabling businesses to reduce operating costs and improve overall efficiency.
It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
Market Forecast 2023-2027
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This report extensively covers market segmentation by end-user (retail, restaurants, hotels, and catering units), product (walk-in coolers, display cases, refrigerators for drinks, ice-making machines, and freezers and others), and geography (APAC, Europe, North America, Middle East and Africa, and South America).
The retail segment is estimated to witness significant growth during the forecast period. The retail segment of the market mainly comprises hypermarkets, supermarkets, grocery stores, convenience stores, and others. These retail stores offer different types of refrigerated food products in packaged form and they utilize these commercial refrigerators, mainly freezers and refrigerators with glass doors, for storing drinks.
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The retail segment was the largest segment and was valued at USD 12.50 billion in 2017. Several retailers in the market are launching new variants of private-label refrigerated food products. For instance, in March 2021, Target Brands Inc. (Target) launched its new frozen meal products under its brand Good and Gather. Factors such as the increasing demand across retail outlets and the growing expansion of these retail outlets are expected to drive the growth of this segment which, in turn, will drive the growth of the market during the forecast period.
Based on product, the segment is classified into walk-in coolers, display cases, refrigerators for drinks, ice-making machines, freezers, and others. Some of the main companies in the \market include Standex International and Middleby. The manufacturing of walk-in coolers is in standard sizes but can be customized as per the end-user requirements. For instance, Standex International offers Bilt2Spec customized walk-in coolers under its brand Master-Bilt Products. Hence, such factors are expected to drive the growth of this segment which, in turn, will drive the growth of the market growth during the forecast period.
APAC is estimated to contribute 42% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
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Some of the countries in APAC that are significantly contributing to the growth of the market include Japan, China, India, South Korea, and Australia. One of the main factors for the significant growth of the global transplant box market in APAC is the expansion of presence by prominent companies and the launching of new products at competitive pricing by market players. There is an increasing demand in South Korea due to rising awareness of food safety in South Korea and to meet the growing demand for these products having a greater cooling capacity. Hence such factors are expected to drive the market growth in the region during the forecast period.
The market is witnessing growth driven by various factors, such as the increasing demand from the hospitality and tourism sector and the rising popularity of takeaway meals. With a focus on reducing environmental impact, there's a shift towards refrigerants with lower Global Warming Potential (GWP). Technologies like magnetic refrigeration systems are gaining traction for their energy efficiency. The market also sees developments in vaccine production and storage solutions, particularly relevant for mass immunization programs. R&D activities and merger and acquisition activities are shaping the industry, while energy efficiency standards like ENERGY STAR certification and the Federal Energy Management Program are influencing product development and market dynamics. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
The need to increase the storage life of food products is a key factor driving the market growth. The shelf life of food products is significantly influenced by storage conditions. Inadequate storage temperatures can lead to degradation and losses for commercial spaces like food service establishments, highlighting the importance of commercial refrigerators in such settings. This is particularly crucial for convenience stores, hospitality businesses, and other establishments dealing with perishable food items. Commercial refrigeration equipment, including blast chillers, plays a key role in maintaining proper temperatures for storing food and beverages.
Refrigeration plays a critical role in maintaining the nutritional and microbial quality of food products. For frozen foods, maintaining a sufficiently low temperature throughout their storage is crucial to prevent the growth of bacteria and pathogens, ensuring their quality and safety. Proper refrigeration offers numerous benefits for food quality by minimizing moisture transport and preserving the flavor, color, and texture of food products. These factors contribute to the market's growth during the forecast period.
The growing demand for energy-efficient models of commercial refrigeration equipment will fuel the global market growth. One of the main factors driving the growing preference for commercial refrigeration by end-users is its benefits, especially cost-saving benefits in terms of energy consumption. Hence, ENERGY STAR-certified commercial refrigeration equipment helps the end-user to ensure minimum energy consumption.
For instance, commercial refrigeration equipment that has ENERGY STAR certification is 20% more energy efficient on average than standard commercial refrigeration equipment. Some of the key features of this refrigerator include special components, such as Electronically Commutated Motor (ECM) evaporators and condenser fan motors, as well as equipped with hot gas anti-sweat heaters and high-efficiency compressors that help in reducing energy consumption and utility bills. Hence, such factors are expected to drive the global market growth during the forecast period.
The rising preference for pre-used and rented commercial refrigeration equipment is the major challenge to the market growth. Several companies operating in the market are innovating products with additional features. However, all end-users cannot afford to invest in improved models of commercial refrigeration equipment.
As a result, many end-users prefer to purchase low-cost commercial refrigeration equipment or pre-used models of commercial refrigeration equipment that cost less than new products. These pre-used commercial refrigeration equipment are available on various online portals, such as Gumtree and eBay Inc. (eBay). Therefore, the rising preference for pre-used models of commercial refrigeration equipment is expected to impact the market negatively. Hence, such factors can hinder the market growth during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Ali Group Srl: The company offers commercial refrigeration equipment that adapts to the load for the best cooling results, optimal temperature uniformity, and increased savings in energy consumption.
Blue Star Ltd: The company offers commercial refrigeration equipment where its upright cabinet ensures easy storage and an electronic panel ensures proper temperature control.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. companies are specially categorized into dominant, leading, strong, tentative, and weak based on their quantitative data analysis.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is witnessing a shift towards energy-efficient solutions due to concerns over carbon footprint and global warming potential (GWP) of refrigerants. Technologies like liquid-vapor compression and ammonia absorption systems are gaining traction, especially with regulations from bodies like the Environmental Protection Agency (EPA) aiming to reduce HFC emissions. This trend is evident in various sectors, including cold channel logistics, food service outlets, and specialty food stores, where remotely operated refrigerators and walk-in coolers are common. With a focus on food safety and energy conservation, the market is evolving to meet consumer preferences and government regulations across the globe.
The market is experiencing a significant shift towards energy-efficient solutions to address concerns related to the global warming potential (GWP) of refrigerants. High GWP refrigerants are being phased out, leading to the adoption of environmentally friendly alternatives. This trend is evident in various sectors, such as transportation refrigeration equipment, food service industry, and food processing and storage facilities, where energy-efficient refrigeration solutions are becoming increasingly popular. The market is also witnessing a focus on food safety standards and convenience foods, especially in light of the recent lockdown measures and the increased demand for dairy products, seafood, fruits and vegetables, and even vaccines requiring specialized refrigeration equipment.
Market Scope |
|
Report Coverage |
Details |
Page number |
185 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.86% |
Market growth 2023-2027 |
USD 14.50 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.9 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 42% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AB Electrolux, Ali Group Srl, Blue Star Ltd., Daikin Industries Ltd., Dover Corp., Felix Storch Inc., FUJIMAK Corp., HOSHIZAKI Corp., Illinois Tool Works Inc., Imbera, Lennox International Inc., Panasonic Holdings Corp., Standex International Corp., Tecumseh Products Co. LLC, TEFCOLD AS, The Middleby Corp., TURBO AIR Inc., UAB FREOR LT, Valpro Refrigeration, and Welbilt Inc. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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