Commercial Refrigeration Market

The commercial refrigeration market is projected to grow from USD 45.5 billion in 2023 to USD 60.5 billion by 2028, at a CAGR of 5.8%. The commercial refrigeration market has observed stable growth throughout the study period and is anticipated to continue with the same trend during the forecast period. Rapid urbanization and changing consumer lifestyles have increased the demand for convenience foods, fresh produce, and ready-to-eat meals. This, in turn, drives the need for efficient refrigeration solutions to store and transport these products which is expected to drive the growth of the market in the upcoming years.

Attractive Opportunities in the Commercial Refrigeration Market

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Market Dynamics:

Driver: High demand for frozen & processed food worldwide

Frozen food products are increasingly becoming an integral part of daily diets worldwide. The global demand for fresh and processed fruits and vegetables is increasing because of the changing food consumption habits of the urban population. Also, rapid urbanization in developing countries and rising living standards are fueling the demand for processed and packaged food, thereby leading to higher commercial refrigeration system sales, which is expected to propel the demand for the commercial refrigeration market during the forecast period.

Restraint: Stringent regulations against use of fluorocarbon refrigerants

Stringent regulations against fluorocarbon refrigerants have been implemented globally to address their harmful environmental effects, particularly their contribution to ozone depletion and climate change. These regulations aim to reduce the production, consumption, and emissions of hydrochlorofluorocarbons (HCFCs) and hydrofluorocarbons (HFCs), commonly used in refrigeration and air conditioning systems. Thus, regulations imposed on certain refrigerants are expected to hamper the growth of commercial refrigeration market.

Opportunity: Potential demand for carbon dioxide/ ammonia cascade refrigeration systems

Ammonia/ Carbon Dioxide (NH3/CO2) cascade refrigeration systems have been used for several years. Various advantages of NH3/CO2 cascade refrigeration systems include low operating costs (as these use less energy per ton of refrigeration than other systems), low capital costs and compliance costs, optimal food quality, and increased throughput for food and beverage processing. These factors further create opportunities in the commercial refrigeration market during forecast period.

Challenge: Few purification companies

Different grades of ammonia and CO2 can be used as refrigerants in commercial refrigeration. Purification companies are crucial in providing high-quality ammonia and carbon dioxide refrigerants that meet industry standards and regulations. They ensure that these refrigerants are properly processed, purified, and packaged for safe and efficient use in refrigeration systems. There are limited companies that produce refrigerant-grade ammonia and CO2. Thus, the presence of a few purification companies is a challenge to the growth of the commercial refrigeration market.

Commercial Refrigeration Market: Ecosystem

Prominent companies in this market include well-established, and financially stable manufacturers of commercial refrigeration systems. These companies have been operating in the market for several years and possess a diversified product portfolio and strong global sales and marketing networks. Prominent companies in this market include Daikin (Japan), Johnson Controls (US), Carrier (US), Dover (US), and Baltimore Aircoil Company (US).

Based on product type, the transportation refrigeration segment is projected to account for the largest share in 2023.

The transportation refrigeration segment is estimated to have the largest share of the global commercial refrigeration market in 2023. Commercial refrigeration systems for refrigerated transport are one of the essential links in the cold chain system for the distribution of food commodities. Refrigerated transport ensures that these food commodities maintain their quality and safety during transit across different climates and regions.

Based on refrigerant type, the fluorocarbons segment is projected to account for the largest share in 2023.>

The fluorocarbons segment is estimated to have the largest share of the global commercial refrigeration market in 2023. Fluorocarbon refrigerants, despite their negative environmental impact, continue to be prevalent in the market due to their established infrastructure, affordability, and availability. These refrigerants cater to applications in refrigerators (domestic, transport, and commercial) and large refrigerators (supermarkets/hypermarkets), which can be contribute to the commercial refrigeration market growth.

Based on application, the food service segment is projected to account for the largest share in 2023.

The food service segment is estimated to have the largest share of the global commercial refrigeration market in 2023. Commercial refrigeration plays a crucial role in the food service industry by ensuring the safe storage and display of perishable goods. Effective refrigeration solutions are essential in restaurants, cafes, hotels, or other food-related businesses to maintain the quality and safety of ingredients, prepared dishes, and beverages. With increasing consumer expectations and evolving industry standards, businesses continue to invest in advanced refrigeration solutions to meet the demands of a competitive and dynamic market.

Based on end use, the supermarkets & hypermarkets segment is projected to account for the largest share in 2023.

The supermarkets & hypermarkets segment is estimated to have the largest share of the global commercial refrigeration market in 2023. They are one of the key end users of the commercial refrigeration market. Changing food consumption trends and rising international food trade are the factors contributing to the market's growth.

Based on region, North America region is projected to be the second largest region for commercial refrigeration market during the forecast period

North America is one of the largest exporters and importers of perishable food, meat, and seafood globally and the largest importer of fruits & vegetables, making it a significant market for cold stores. North America also has a high demand for frozen desserts due to diverse tastes, preferences, and quality. Hence, retail outlet infrastructure, which includes refrigerated storage and refrigerated transport, is growing in the North American market, thereby driving the demand for commercial refrigeration systems in the region.

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Key Market Players

Daikin (Japan), Johnson Controls (US), Carrier (US), Dover (US), Baltimore Aircoil Company (US), Blue Star Limited (India), De Rigo Refrigeration (Italy), Fogel (Guatemala), Hussmann (US), Imbera (Mexico), KMW (Germany), Mayekawa Mfg. Co., Ltd. (Japan), Runte (China), SCM Frigo (Italy), True (US), Viessmann (Germany), Voltas (India), and others are among the major players leading the market through their innovative offerings, enhanced production capacities, and efficient distribution channels.

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Scope of the Report

:

This research report categorizes the commercial refrigeration market based on product type, refrigerant type, application, end use, and region.

Based on product type, the commercial refrigeration market has been segmented as follows:

• Refrigerator & Freezer
• Transportation Refrigeration
• Refrigerated Display Case
• Beverage Refrigeration
• Ice Cream Merchandiser
• Refrigerated Vending Machine

Based on refrigerant type, the commercial refrigeration market has been segmented as follows:

• Fluorocarbons
• Hydrocarbons
• Inorganics

Based on application, the commercial refrigeration market has been segmented as follows:

• Food Service
• Food & Beverage Production
• Food & Beverage Distribution
• Food & Beverage Retail
• Others

Based on end use, the commercial refrigeration market has been segmented as follows:

• Supermarkets & Hypermarkets
• Hotels & Restaurants
• Convenience Stores
• Bakeries

Based on the region, the commercial refrigeration market has been segmented as follows:

• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Indonesia
  • Malaysia
  • Thailand
  • Singapore
  • Rest of Asia Pacific
• Europe
  • Germany
  • Italy
  • France
  • UK
  • Spain
  • Rest of Europe
• North America
  • US
  • Canada
  • Mexico
• Middle East & Africa
  • Saudi Arabia
  • Turkey
  • Egypt
  • Rest of Middle East & Africa
• South America
  • Brazil
  • Argentina
  • Chile
  • Rest of South America

Recent Developments

• In July 2023, Advansor, a Dover Company, launched two new energy and space-saving CO2 climate solutions for supermarkets: Low Superheat and Value Pack Light. With an ultra-compact profile, these systems show up to 30% energy savings compared to older systems.
• In June 2023, Johnson Controls, the global leader in smart, healthy, and sustainable buildings, acquired M&M Carnot, a provider of natural refrigeration solutions with ultra-low global warming potential (GWP). This acquisition helps customers meet their sustainability goals while meeting and exceeding environmental regulations.

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