Growing at a moderate rate, the global commercial refrigeration equipment market had a size of $39,157.0 million in 2016. The commercial refrigeration equipment market is expected to witness high growth in the developing countries of Asia-Pacific and Latin America. The rapid urbanization along with the expansion of supermarkets, hypermarkets, and food retail chains in the developing countries, such as India, China, and Brazil, is expected to increase the demand of commercial refrigeration equipment during the forecast period.
GLOBAL COMMERCIAL REFRIGERATION EQUIPMENT MARKET, BY END-USER, $M (2013 – 2022)
Surging urbanization in developing countries has been leading to the development of organized retail. This is consequently driving the demand for commercial refrigeration equipment globally. The energy consumption rating of commercial refrigeration equipment is continuously improving over the years, and it is expected to improve further with supportive government regulations and product innovation.
The demand of commercial refrigeration equipment market in the developed areas is almost at its saturation state, owing to the lack of expansion opportunity for the commercial refrigeration equipment end users in these regions. With moderate or gradual population growth in most of the developed markets, the growth of commercial refrigeration equipment is mainly expected from the replacement units, which is mostly attributed to the government regulations towards safe refrigerant and continuously improving power consumption rating of the commercial refrigeration equipment.
The consumption of ready to eat products, beverages and frozen foods has increased considerably in emerging countries, over the past few years. The growth in disposable income, along with the increasing impact of western lifestyle has fueled the acceptance of such products among the large middle-class consumers of developing countries. The changed food consumption trend is being supported by rapid expansion of supermarkets, hypermarkets, and food and restaurant chains around the world. The increased number of such stores has also forced small grocery retailers and unorganized restaurants to upgrade their infrastructure, with the changed market scenario. The growth for the commercial refrigeration equipment market is largely gained by opening of the new retail outlets around the world.
In coming years, the participation of women in the Asia-Pacific labor market is expected to increase and this would result in considerable demand of frozen food and ready-to-eat foods in the region.
The energy efficiency of commercial refrigeration has improved considerably, during the last five years. The innovations in product design, refrigerant, and improvement in overall energy consumption facilitated the introduction of the advanced and innovative commercial refrigeration products (such as multi deck display cabinets and open-front refrigeration cases) over the years. Apart from superior energy efficiency, these products also feature better temperature stability and superior visual design, due to the exclusion of doors. Open front display cases are used widely for brand promotion and attractive display of consumer products, mostly in supermarket and hypermarket retail.
According to a report published in the U.S. Department of Energy (DoE) in 2012, the refrigeration equipment accounts for about 4% to 6% of the total power consumption in all commercial buildings. In the U.S., significant effort towards energy efficiency is also supported by the government of developed markets. The U.S. DoE and European Union have come up with stringent regulations, towards energy efficiency of the commercial refrigeration equipment.
With supermarket refrigeration equipment accounting for about 60% of the total electricity consumption of supermarkets, saving energy and optimizing operating cost will remain one of the top priorities for the commercial refrigeration equipment players in the maturing markets of western countries.
The governments worldwide have taken up the concern of ozone layer depletion very seriously. Globally, government has adopted stringent regulations towards the use of fluorochemicals as a refrigerant. The technology has changed in recent years from ‘F’ gas to natural refrigerant. The major players, such as ‘Carrier Corporation’ have adopted this change the earliest by using natural refrigerant, such as carbon dioxide in ‘MiniCO2OL’ series of commercial refrigeration equipment, for the small and medium scale retailers.
In the recent past, product launch and client win has been the major recent activities in the global commercial refrigeration equipment market. The entry barriers in the commercial refrigeration equipment market are medium. The large economy of scale for commercial refrigeration manufacturing, along with the stiff government regulation towards the use of environment and health friendly refrigerants, are acting as major technological barrier for the new entrants. The continuously upgrading power rating standards is also one of the major entry barriers in the global commercial refrigeration equipment market. However, the low-cost product designs and easy access to distribution, attributed to the fragmented market structure of lower end products, minimizes the entry barriers for new entrants. The medium impact of brand image and easy access to the necessary inputs in developing countries are helping new entrants in the global commercial refrigeration equipment market.
The global commercial refrigeration equipment market is fragmented, where United Technologies Corporation (UTC) is the market leader. Some of the other major competitors in the commercial refrigeration equipment market include Johnson Controls, Daikin Industries, Dover Corporation, Hussmann Corporation, AB Electrolux, Frigoglass S.A.I.C., AHT Cooling Systems GmbH, Ali Group S.p.A., and Illinois Tool Works Inc.
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