The global commercial refrigeration equipment market value is expected to exceed USD 40.87 billion by 2024 growing at an estimated CAGR of over 5.6% from 2016 to 2024. Increasing industrialization and technological development have changed the food patterns coupled with rising specialty food stores, supermarkets, and hypermarkets have been the key factor in driving the industry growth.
There is a need for energy efficient system in hospitality industry due to the continuous advanced cooling technologies. These equipment are used to store perishable goods for safe and healthy use at appropriate temperatures and for food service needs.
The rapid growth of frozen food items in global due to changes in trends of consumption pattern has increased the commercial refrigeration demand in the market. Additionally, the growth of remotely monitored products which has a benefit of monitoring the system for detecting high liquid levels, refrigerant leak, and high system pressures has increased the growth opportunities.
For reducing operating cost in the food industry, there is a demand for supplying energy efficient products coupled with recent research activities and development of various alternatives has a great potential for improving compactness, noise level, and environmental concerns.
The introduction of advanced products like multi-deck display cabinets and open front cases integrated with proximity sensors and LEDs is expected to have high growth over the forecast period.
Growing awareness among people and industries in the emission of global warming gasses are expected to make great opportunities for commercial refrigeration market. Change of people behavior in their busy lifestyle to save their time will increase the growth of food industry which drives the future market.
Change in oil prices is also impacting the global commercial refrigeration market price trend especially in the area of transportation of refrigeration equipment sector.
The commercial refrigeration equipment products include refrigerators and freezers, beverage refrigeration, transportation devices and parts. Transportation segment is expected to grow significantly at a CAGR of over 7% from 2016 to 2024 and the segment includes truck, shipping containers, and trailer systems.
Due to the increase of restaurants, there is a great demand for beverage segment over the forecast period especially due to raising fast-food shops.
In Developing countries there will be a demand for refrigerated vending machines owing to the need of dampening the automated beverage and food distribution, and low labor cost.
The industry is classified into food and beverage retail, production, distribution, and food service. Food service sector is estimated to exceed USD 15 billion by 2024, growing at a CAGR of over 6.6% from 2016 to 2024.
Foodservice segment uses refrigeration to store food before and during serving customers and also it has applications in convenience stores, restaurants, schools, supermarkets and other food serving places.
The demand for storing frozen foods, processed foods, and seafood across the globe is increasing due to rising in international food trade is anticipated to increase the food & beverage distribution volume growth.
The walk-in demand for air coolers is growing for food merchandising and storage in food service and sales application which estimates the growth of demand for these components in the forecast period.
The commercial refrigeration equipment market size will increase at a higher rate with expected revenue to over USD 15 billion by 2024.
In China there will be a greater demand for commercial refrigeration due to an increase of usage in limited service restaurants that will get benefit from middle class expanding restaurants and there is a surplus international fast coffee and food chains which increase the popularity.
There will be a significant demand in the U.S commercial refrigeration market due to the demand in food service where customer preference to spend their majority of money for food outside the home.
Due to the innovation and renovation of production facilities combined with raising trade in food and beverages is estimated to increase the food production. To reduce labor cost, the regional manufacturers have moved their production facilities.
Key companies in the industry are Johnson Controls, Daikin, Carrier Corporation and Dover Corporation. There are initiatives taken by companies to make competitive advantage among others like mergers and acquisitions and increasing investment in R&D to launch and develop new products.
In 2015, Daikin to make its presence in European region acquired Solvay’s refrigeration business based in Belgium. The carrier also launched a monitoring system in the same year to enable building owners, maintenance departments, and other users to track and monitor their HVAC systems to remotely monitor.
For advancing and sustaining in the industry, companies need to have an established brand value. There is a degree of competition in the market share of commercial refrigeration equipment with the high degree of barriers for entry on account of significant R&D expenditure, capital investment, and rules & regulations framed by government bodies.
Research Support Specialist, USA