February 24, 2024

The Commercial Refrigeration Equipment Market is driven by rising number of food retail chains and food services industry

 

Commercial refrigeration equipment refers to heavy-duty refrigeration systems and devices used across food retail outlets and food services industry for storage and display of foods and beverages at recommended temperatures. Commercial refrigerators and freezers are designed to store large quantities of perishables and other food products at precise temperatures for longer shelf life. They find widespread adoption across supermarkets, convenience stores, food processing facilities, restaurants, and other food retail and foodservice establishments. Adoption of commercial refrigeration equipment allows businesses to effectively showcase food offerings, while ensuring safety and quality throughout the supply chain. They help minimize food wastage and expedite inventory management. Growing organized retail, quick service restaurants, and increasing demand for convenience and packaged foods has fueled demand for commercial refrigeration globally.

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 key trends:

One of the key trends prevailing in the commercial refrigeration equipment market is rising adoption of eco-friendly refrigerants. Currently, hydrofluorocarbons (HFCs) are widely used as refrigerants in commercial refrigeration units owing to their non-flammability and non-toxicity. However, HFCs have high global warming potential which is prompting regulatory push for transition to more environment-friendly alternatives such as hydrofluoroolefins (HFOs) and natural refrigerants like ammonia, carbon dioxide, and hydrocarbons. Adoption of natural refrigerants is expected to grow significantly over the forecast period, driven by stringent regulations on F-gas in many countries and sustainability initiatives of end-use industries. Manufacturers are increasingly focusing on green product innovation to capitalize on this trend.

Porter’s Analysis

Threat of new entrants: Low due to high capital requirements and economies of scale.

Bargaining power of buyers: High as there are many established brands in the market providing variety of options.

Bargaining power of suppliers: Moderate as suppliers have to rely on large commercial refrigeration equipment manufacturers.

Threat of new substitutes: Low as commercial refrigeration equipment has well established applications.

Competitive rivalry: Intense as the market is dominated by global players.

Key Takeaways

The global commercial refrigeration equipment market is expected to witness high growth. 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.

Regional analysis related content comprises Regional analysis related content. The Asia Pacific region dominated the market owing to growing food retail industry especially in emerging countries like China and India. North America is also expected grow at a significant rate supported by rising consumer demand for fresh and packaged food.

Key players related content comprises Key players operating in the commercial refrigeration equipment market are Daikin Industries Ltd., Johnson Controls International plc, Illinois Tool Works Inc., United Technologies Corp., Dover Corp., Haier Group, AB Electrolux, Panasonic Corp. Key players are focusing on strategic partnerships and product innovation to strengthen their market presence. The market is moderately competitive in nature. Diversification of product portfolio is a key strategy adopted by major players.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it