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The global commercial refrigeration equipment market was valued at $41.3 billion in 2017, and it is expected to register a CAGR of 6.2% during the forecast period (2018–2023), reaching $59.0 billion by 2023.
Asia-Pacific (APAC) held the largest revenue share in the market, and it is expected to be the fastest growing market for commercial refrigeration equipment during the forecast period. This can be mainly attributed to the surging urbanization rate, coupled with the rising demand for maintaining the quality of food in the region.
Forces Governing the Global Commercial Refrigeration Equipment Market
The increasing use of display refrigerators is a major trend being observed in the commercial refrigeration equipment market. Supermarkets/hypermarkets are using these types of refrigerators to showcase their products in a better way to their customers. Display refrigerators offer consumers the ability to see the products before picking them, which helps in overcoming the problems associated with traditional opaque-door refrigerators. The latter type of refrigerators is easy to clean as well as provide a better appeal to the buyers. Moreover, these are more convenient and efficient for shoppers, as they do not necessarily have to open the door to choose the products.
The development of organized retail is a major factor driving the growth of the commercial refrigeration equipment market across the globe. In developing countries, such as India, China, and Brazil, urban consumers have a high purchasing power than those in rural areas. Further, in recent years, the governments in these countries have increased their budgets for the development of the urban areas. For instance, the urban population in China is expected to reach around 1.4 billion by 2025, from 782 million in 2016. Similarly, the Indian urban population is expected to reach around 1.4 billion by the end of 2023, from 438 million in 2016. Hence, the swift urbanization is expected to boost the demand for refrigeration equipment in the food retail industry, particularly in hypermarkets, restaurants, and grocery stores, during the forecast period.
The increasing number of technological advancements is a key opportunity for the commercial refrigeration equipment market players. Due to the surging demand for energy-efficient systems across the globe, power consumption of the refrigeration equipment is expected to be brought down in the coming years. Moreover, the integration of internet of things (IoT) in commercial refrigerators, which would connect them to the internet and help in transmitting real-time data such as temperature change, would help in keeping food and beverages at the required temperature.
Commercial Refrigeration Equipment Market Segmentation Analysis
Beverage refrigeration is expected to be fastest growing category during the forecast period. This can be attributed to the increasing technological advancements in beverage refrigeration equipment type, and increasing demand for cooling of beer, wine, and other beverages across the globe.
The packaged unit category held the largest revenue share in the commercial refrigeration equipment market in 2017. This is ascribed to the several advantages of these types of walk-in coolers, including the exclusion of an external condensing unit and simple installation. Owing to this, the demand for packaged unit-type walk-in coolers is increasing in the market.
The food service application held the largest share in 2017, due to the increasing deployment of food service refrigeration equipment at hotels, restaurants, hospitals, and other settings, for ensuring easy availability of food and beverages to consumers.
Geographical Analysis of the Commercial Refrigeration Equipment Market
Globally, APAC generated the highest revenue in the market in 2017, and it is expected to be the fastest growing market during the forecast period. This can be attributed to the increasing industrialization rate in developing countries, such as India and China. Moreover, lucrative opportunities for foreign investments, coupled with the growing population, are the key factor driving the commercial refrigeration equipment market.
Recent Strategic Developments of Major Commercial Refrigeration Equipment Market Players
The commercial refrigeration equipment market is fragmented in nature. United Technologies Corporation and Johnson Controls International Plc are the two major players offering a broad range of commercial refrigeration equipment. Besides, AB Electrolux, Frigoglass S.A.I.C, Dover Corporation, Daikin Industries Ltd., AHT Cooling Systems GmbH, Ali Group S.r.l. a Socio Unico, Illinois Tool Works Inc., and Hussmann Corporation are other companies operating in the market. In recent years, the major players in the global commercial refrigeration equipment market have taken several strategic measures, such as product launches, partnerships, and mergers & acquisitions, to improve their position. For instance, in March 2018, AB Electrolux entered into a joint venture with Midea Group, an electrical appliance manufacturer, to introduce the AEG brand to Chinese customers. The venture helping Electrolux leverage the fast-growing retail market in China and support the company’s its growth in the country.
Moreover, in May 2018, Carrier Corporation, part of United Technologies Corporation, introduced the new Citimax 280 and 400 Series transport refrigeration units in China. The refrigeration solutions have been developed to ensure the freshness of fresh food and frozen goods during transportation. The introduction of the product in China helps the company tap the country’s growing market for commercial refrigeration equipment.
Market Size Breakdown by Segment
The commercial refrigeration equipment market report offers comprehensive market segmentation analysis along with market estimation for the period 2013–2023.
Based on Equipment Type
Based on Application
Based on End-User
Key Questions Answered in the Report