Commercial Refrigeration Equipment Market is Poised to Grow at a Robust Pace Due to Rising Demand from Food Retail and Food Service Sectors

Commercial refrigeration equipment refers to machinery designed for cooling and refrigeration purposes in commercial applications such as supermarkets, food processing industry, food services, and retail stores. These types of equipment play a vital role in storing and displaying food products at controlled temperatures to ensure food safety and extend their shelf life. Rising urbanization, growing food retail sector, increasing demand for ready-to-eat and packaged food products, and expansion of global food chains are some of the key factors driving the need for commercial refrigeration equipment worldwide.

The global commercial refrigeration equipment market is estimated to be valued at US$ 53.38 Bn in 2024 and is expected to exhibit a CAGR of 4.7% over the forecast period 2023 to 2030.

Key Takeaways
Key players operating in the commercial refrigeration equipment are United Technologies Corporation, Ingersoll-Rand plc, Johnson Controls Incorporated, Daikin Industries Limited, Dover Corporation, Hussmann Corporation, AHT Cooling Systems GmbH, Ali SpA, Illinois Tool Works Incorporated, Emerson Electric Company, Leer Incorporated, True Manufacturing Company Incorporated, and Whirlpool Corporation. These players are focusing on new product development and offering customized and innovative commercial refrigeration solutions to meet diverse customer requirements.

Key opportunities in the market include growing demand from emerging economies of Asia Pacific and Latin America owing to rapid economic development and urbanization. Countries such as India, China, Brazil, Mexico, and others are witnessing rising food retail sectors and food consumption which is propelling the commercial refrigeration equipment market.

Major players are expanding their global presence through acquisitions and partnerships with regional players. For instance, in 2019, Illinois Tool Works acquired Delfield, a manufacturer and provider of foodservice equipment including refrigeration products. In 2021, United Technologies acquired refrigeration business of Chubb Fire & Security to strengthen its commercial refrigeration product portfolio.

Market drivers: The rising demand for frozen and processed food products globally acts as a major market driver. Frozen food offers convenience and longer shelf-life which is increasing its adoption worldwide. growing food retail industry including supermarkets, hypermarkets, and convenience stores also propels the commercial refrigeration market as they require massive refrigeration systems for storage and display of various food products.

Market restraints: High initial investments and maintenance costs associated with commercial refrigeration equipment could hinder the market growth. Furthermore, stringent energy efficiency regulations regarding commercial refrigeration systems increase compliance costs for manufacturers. Volatility in raw material prices including metals also poses a challenge for market players.

Segment Analysis
Refrigerated display cases is the dominating sub segment in the commercial refrigeration equipment market. Refrigerated display cases account for over 35% of the total market share as they allow grocers and retail stores to effectively display perishable goods like meat, dairy, produce, and prepared foods in an energy efficient manner while extending their shelf life. Various types of refrigerated display cases like vertical display cases, horizontal display cases and hybrid/combinational cases are widely used across supermarkets, hypermarkets and convenience stores globally to attract customers and boost product sales.

Global Analysis
North America presently accounts for the largest share in the commercial refrigeration equipment market and is expected to continue its dominance during the forecast period. This is attributed to the growing demand from supermarkets, restaurants, hotels and other food retail stores in the region. However, the Asia Pacific region is anticipated to witness the fastest growth through 2030 on account of rising disposable incomes, growing working woman population, burgeoning food retail sector and increasing spending on modernization of stores and restaurants across developing countries like China and India. Latin America and Middle East & Africa are also projected to emerge as lucrative regional markets for commercial refrigeration equipment over the coming years.