Europe Commercial Refrigeration Equipment Market by End-user and Product - Forecast and Analysis 2024-2028

Europe Commercial Refrigeration Equipment Market Size 2024-2028

The Europe Commercial Refrigeration Equipment Market size is forecast to increase by USD 3.78 billion and is estimated to grow at a CAGR of 6.78% between 2023 and 2028. The Commercial Refrigeration Equipment market is experiencing significant growth due to several key factors. The increasing demand for extended food shelf life is a primary driver, as retailers seek to minimize waste and maintain product freshness. Additionally, the expanding food retail sector in Europe, driven by population growth and urbanization, is fueling market expansion. Furthermore, stringent food safety and quality regulations in Europe are prompting businesses to invest in advanced refrigeration technology to ensure compliance and maintain consumer trust. These factors collectively contribute to the robust growth of the Commercial Refrigeration Equipment Market in Europe.

What will be the Size of the Market During the Forecast Period?

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Technavio’s Exclusive Market Customer Landscape

Our analysis of the adoption life cycle of the market indicates its movement between the innovator’s stage and the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2023 to 2028. 

Market Customer Landscape

Market Dynamics 

Commercial refrigeration equipment is essential for various industries, including food and beverage production, retail, and hospitality. This market encompasses a range of equipment such as self-contained and remote condensing refrigerators and freezers, ice-making machines, refrigerated display cases, and transport refrigeration units. These systems are used in commercial kitchens, restaurants, hotels, supermarkets, hypermarkets, and food processing facilities. Commercial refrigeration equipment plays a crucial role in maintaining food quality and preserving perishable goods. Traditional systems have relied on ozone-depleting substances like hydrochlorofluorocarbons (HCFCs) and hydrofluorocarbons (HFCs). However, there is a growing trend towards natural refrigerant-based systems due to their environmental benefits. The market for commercial refrigeration equipment includes various applications such as food processing, low-temperature distribution facilities, and vending machines. Key components of these systems include condensers, compressors, and refrigerators. The market is expected to grow significantly due to increasing demand from the food and beverage industry and the need for efficient and sustainable refrigeration solutions. Applications in the retail sector, particularly in supermarkets and hypermarkets, are also driving market growth. Additionally, the transportation sector uses commercial refrigeration equipment for temperature-controlled transportation of perishable goods. Overall, the commercial refrigeration equipment market is expected to continue expanding in the coming years, driven by the need for efficient and sustainable refrigeration solutions.

Key Market Driver

The growing need to increase the shelf life of food products is a major driving factor for the growth of the market in Europe during the forecast period. The shelf life of food products highly relies on factors such as storage conditions. Thus the storage of food products at inadequate temperatures results in degradation and losses to food service establishments. 

One of the key factors which control the shelf life of food products is either preventing or limiting microbial growth. Some of the methods used to prevent this microbial growth include refrigeration, reducing water activity, and adding preservatives. Refrigeration is very important for maintaining nutritional and microbial quality. Hence, commercial refrigeration equipment is crucial for the smooth functioning of food service establishments. Hence, such factors are expected to drive market growth during the forecast period.

Significant Market Trends

The increasing number of launches related to refrigerated food and beverage products is the primary trend in the market growth.  There is a growing preference by consumers for food products that provide benefits in terms of convenience and storage life. Hence, food retailers and food services are increasingly offering refrigerated food products that have improved storage life, so that they can reduce wastage and increase their profitability.

Due to this rising demand, many food retailers are introducing new variants of refrigerated food products such as gluten-free variants of refrigerated food products. For example, in September 2021, Iceland Foods introduced its own branded frozen food products across its supermarkets in the UK. Also, in July 2020, under its Tyson flagship brand, Tyson Foods introduced a variety of chicken products in the European food service industry, which includes eateries, some cafeterias, and caterers. Therefore, such product launches by vendors are expected to drive market growth during the forecast period.

Major Market Challenge

Regular maintenance and service requirements are a major challenge to the growth of the market. As modern refrigeration systems are designed to be durable and reliable, regular maintenance and servicing are crucial to ensure optimal performance, energy efficiency, and food safety. Furthermore, components can wear out over time as commercial refrigeration equipment operates continuously, often under demanding conditions.

Hence, regular maintenance is very essential to identify and address these issues before they escalate, minimizing the risk of equipment failure, disruptions to business operations, and potential food spoilage. Furthermore, due to the complex mechanism of modern refrigeration systems, there is a growing need for skilled technicians to diagnose and rectify issues effectively. Hence, such factors can hinder the market growth during the forecast period.

Who are the Major Market Players?

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.

AFE Group Ltd: The company offers commercial refrigeration equipment such as cabinets, counters, and medical racks.

ARNEG SPA: The company offers commercial refrigeration equipment such as Amburgo, Arles, and Daytona.

We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:

• Carrier Global Corp.
• Daikin Industries Ltd.
• Electrolux AB
• ENOFRIGO SPA
• Epta Group
• FRIGOGLASS SAIC
• Haier Smart Home Co. Ltd.
• HOSHIZAKI Europe BV
• Illinois Tool Works Inc.
• Infrico SL
• Jongor Ltd.
• Liebherr International Deutschland GmbH
• Scotsman Ice Srl
• TEFCOLD AS
• True Refrigeration UK Ltd.
• UAB FREOR LT
• Viessmann Climate Solutions SE
• Ziegra Eismaschinen GmbH

Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  

Market Segmentation 

By End-user 

The retail segment is estimated to witness significant growth during the forecast period. Retail establishments, including supermarkets, convenience stores, grocery stores, and specialty retailers, have unique requirements when it comes to commercial refrigeration equipment. These businesses are highly dependent on refrigeration solutions to preserve the quality, freshness, and safety of their perishable food and beverage products.

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The retail segment was the largest segment and was valued at USD 3.25 billion in 2018. One of the most common refrigerators across retail sectors is open-front refrigerated display cases that are commonly used to present fresh produce, dairy products, meats, and other chilled items. There is a growing demand for display cases from retailers as they not only maintain proper temperatures but also enhance product visibility and maximize energy efficiency.  These refrigerators are widely used by retailers to store perishable goods such as dairy products, deli items, and ready-to-eat meals at optimal temperatures. Other major types of refrigerators include beverage coolers and bar refrigeration units are commonly used in convenience stores, supermarkets, and hospitality establishments. Hence, such factors are expected to drive the growth of this segment which in turn will drive the growth of the commercial refrigeration market in Europe during the forecast period.

By Product 

Based on product, the segment is classified into walk-in coolers display cases, refrigerators for drinks, ice-making machines and freezers, and others. There is an increasing demand for walk-in coolers from Restaurants, hotels, supermarkets, and any other establishment that needs to store fresh, frozen, or pre-cooled food products. Walk-in coolers are commonly adopted for medium-term cold storage, with conventional refrigerators serving as short-term storage and refrigerated warehouses serving as long-term storage. Some of the main types of walk-ins include self-contained, remote condensing, and multiplex condensing. Several vendors in the market are offering a wide range of walk-in solutions catering to various industries and applications. Hence, such factors are expected to drive the growth of this segment which in turn will drive the commercial refrigeration market in Europe during the forecast period.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

• End-user Outlook 
  • Retail
  • Restaurants
  • Hotels
  • Catering units
• Product Outlook 
  • Walk-in coolers
  • Display cases
  • Refrigerator for drinks
  • Ice-making machines
  • Freezers and others

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Market Analyst Overview

Commercial refrigeration equipment plays a crucial role in various industries, including restaurants, hotels, bakeries, and retail chains. This type of equipment includes self-contained refrigerators and remote condensing units, which utilize compressor and condenser to maintain the required temperature for storing and displaying perishable items such as dairy products, cheese, cream, plain yogurt, raw fruits, and vegetables. In the food service industry, commercial refrigeration equipment is essential for storing and preserving ready-to-eat food, frozen food, beverages, and other consumer goods. The hospitality sector, including hotels and convenience stores, also relies heavily on commercial refrigeration equipment to maintain the nutritional values of their offerings. The market for commercial refrigeration equipment is driven by the growing demand for food and beverage retail and the increasing popularity of natural refrigerant-based systems. The market landscape depends on processed meat, fish seafood products, transportation refrigeration, Freezer, Ice-making machine, Retail stores, Chemicals pharmaceuticals, Refrigerator freezer, Ice machines, Food beverage, Chemicals and pharmaceuticals, Organic food industry, and Cold chain process.

However, the phase-out of ozone-depleting substances such as hydrofluorocarbons (HFCs) and hydrochlorofluorocarbons (HCFCs) is expected to impact the market. The use of these substances in commercial refrigeration equipment is being phased out due to their negative impact on the environment. As a result, the market for natural refrigerant-based systems is expected to grow significantly in the coming years. Commercial refrigeration equipment is used extensively in the food processing industry to maintain the temperature of raw materials and finished products during production and storage. The increasing demand for packaged food and beverages is also driving the growth of the commercial refrigeration equipment market. Overall, the market for commercial refrigeration equipment is expected to grow significantly in the coming years due to its increasing use in various industries and the shift towards natural refrigerant-based systems.

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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2028.
• Precise estimation of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across Europe
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of the market players

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