July 17, 2024

Growing demand for sustainable and energy efficient cooling solutions to boost the growth of Commercial Refrigeration Equipment Market

The global Commercial Refrigeration Equipment Market is estimated to be valued at US$ 53.38 Bn in 2023 and is expected to exhibit a CAGR of 4.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
The commercial refrigeration equipment are majorly used in food retail establishments like restaurants, grocery stores, supermarkets, and convenience stores for storing and preserving perishable goods. These equipment include walk-in coolers, reach-in coolers, freezers, and refrigerated display cases. Walk-in coolers and freezers are main storage areas where large quantities of food products are kept before use or sale. Reach-in coolers and freezers are smaller storage units used for products being accessed more frequently. Refrigerated display cases prominently showcase food and beverage items for customer access. Commercial refrigeration equipment play a crucial role in food safety and quality maintenance along the supply chain. Growing food retail sector worldwide is driving demand for more efficient and eco-friendly commercial cooling solutions.

Market key trends:
The global commercial refrigeration equipment market is witnessing rising demand for sustainable and energy efficient products. Stringent government regulations regarding phasing out of hydrochlorofluorocarbons (HCFCs) and adopting natural refrigerants are encouraging manufacturers to invest in developing environmentally responsible offerings. Growing adoption of magnetic refrigeration technology which utilizes magnetism instead of conventional refrigerants is opening new growth avenues. Rising food retail infrastructure in developing nations and need for proper food storage from farm to fork is propelling the commercial refrigeration industry expansion. Implementation of IoT enabled smart refrigeration systems for remote monitoring is gaining traction. Adoption of cloud-based solutions for centralized equipment management is supplementing the market growth.
Porter’s Analysis

Threat of new entrants: Low capital requirements and technological advancements have lowered barriers to entry in this market. However, well established players dominate the market making it difficult for new entrants.

Bargaining power of buyers: Large customers like supermarkets have high bargaining power forcing prices down and demanding better quality products. However, need for food storage gives suppliers negotiation power.

Bargaining power of suppliers: Major component manufacturers dominate the supply market. However, buyers can easily switch to alternate suppliers minimizing supplier power.

Threat of new substitutes: No major substitute threats exist. Innovation in cooling technologies may bring potential substitutes but refrigeration has widespread usage.

Competitive rivalry: Market dominated by few global giants. Intense competition on pricing and quality results in high competitive rivalry.

Key Takeaways

The global commercial refrigeration equipment market is expected to witness high growth, exhibiting CAGR of 4.7% over the forecast period, due to increasing demand for storage of perishable foods items in supermarkets and hypermarkets. The market size for 2023 is US$ 53.38 Bn.

Regional analysis: North America dominates the market owing to robust food retail infrastructure and organized food service sector in the US and Canada. Asia Pacific exhibits highest growth led by increasing number of supermarkets, restaurants and hotels in developing nations like China and India.

Key players operating in the commercial refrigeration equipment market 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.