Commercial Refrigeration Equipment Market Overview
The global commercial refrigeration equipment market was valued at $41,396.7 million in 2017 and is forecasted to witness a CAGR of 6.2%, during 2018–2023. Expansion of organized retail and rising demand for ready-to-eat food and beverages are the key factors driving the market growth.
On the basis of equipment type, the commercial refrigeration equipment market has been classified into transportation refrigeration equipment, display cases, walk-in coolers, beverage refrigeration, ice making machineries, parts, and other equipment; wherein “other equipment” includes vending machines, cryogenic equipment, and liquid chillier. Among these, walk-in coolers held the largest market share of 23% in terms of value in 2017.
NORTH AMERICA COMMERCIAL REFRIGERATION EQUIPMENT MARKET, BY APPLICATION, $M (2013 - 2023)
The walk-in coolers category has been further bifurcated into packaged unit, remote condensing unit, and remote plant. Amonag these, packaged unit dominated the commercial refrigeration equipment market for walk-in coolers during the historical period, and is expected to continue holding the largest share, globally, in the coming years. This is attributed to several convenience factors that this system offers, including simple installation and exclusion of external condensing unit. Moreover, the packaged unit involves single-time purchase and easy accessibility of parts. As a result, the demand for packaged unit type walk-in coolers is expected to grow during the forecast period.
On the basis of end-user, the commercial refrigeration equipment market has been categorized into supermarkets, hotels/restaurants and catering, hypermarkets, convenience stores, e-commerce, and others; wherein “others” category includes hospitals, educational institutions, large pharmaceutical stores, and medical and life sciences. Of these, supermarkets category is expected to continue to hold the largest market share during the forecast period. Supermarkets are energy-intensive type of commercial buildings and witness increasing concern regarding the impact of refrigerant leakage on the environment. Hence, to maintain energy efficiency, adoption of innovative and energy-saving equipment has been observed. This results in a growing demand for commercial refrigeration equipment in supermarkets, globally.
Based on application, the commercial refrigeration equipment market has been classified into food and beverage distribution, food and beverage retail, food service, and others; wherein “others” category includes pharmacy refrigeration, genetic preservation, and medical diagnostic applications. Food service refrigeration equipment are being widely used in hotels, restaurants, hospitals, educational institutions, and fast food joints to preserve and maintain food quality.
Commercial Refrigeration Equipment Market Dynamics
There has been a shift in technology in the recent years from fluorinated gases (F-gases) to natural refrigerants in the commercial refrigeration equipment market. As shift in technology, Carrier Corporation, has adopted this change at an early stage by using natural refrigerant, such as carbon dioxide in its MiniCO2OL series refrigeration equipment for small and medium scale retailers. The manufacturing cost of “MiniCO2OL” refrigerator series is less as compared to other similar F-gas refrigerant-based equipment. Moreover, ban on usage of F-gas started in early 90s; however, its complete elimination as a refrigerant from commercial refrigeration industry has not been possible yet.
Developed countries of Europe and North America are on the verge of completely removing F-gases from their commercial refrigeration equipment. The developing countries of Asia-Pacific are following F-gas regulations leniently, as the manufacturers in the region lag required technology to deal with stiff F-gas elimination regulation.
Brazil, Russia, India, China, and South Africa (BRICS), for instance, are still following the Kyoto Protocol, an extension of United Nations Framework Convention on Climate Change (UNFCCC) (an international environment treaty), which necessitates its members to reduce greenhouse gas emissions, according to United Nations Environment Programme (UNEP). However, with growing international pressure for adoption of Montreal Protocol, F-gases as refrigerant in commercial refrigeration equipment is expected to phase out in the developing countries in the coming years.
Technological advancements are expected to increase in the commercial refrigeration equipment market. The increasing demand for energy efficient systems are expected to reduce the power consumption level of the refrigerating equipment. As the trends follow the power consumption level of these systems are bound to reduce and the efficiency of these systems will also increase.
Additionally, technological advancements such as integration of internet of things (IoT) in commercial refrigerators will allow them to connect to the internet and transmit real-time data related to temperature changes. Also, in case of food spoilage, the smell detectors could alert the user to remove the item from the shelf. Demand for such efficient and technologically advanced commercial refrigerators are expected to provide future opportunities for players in the commercial refrigeration equipment market.
Moreover, increasing number of quick service restaurants is expected to pose opportunities for the market players, during the forecast period. The changing lifestyle of the new generation along with their fast-paced life is anticipated to drive the growth of fast service restaurants. This trend is expected to offer more opportunities in the developing countries such as India, due to increasing per capita income, more participation of women in the labor sector, and increasing urbanization. This is expected to create an influx of quick food service requirements which would be fulfilled by quick service restaurants, leading to increase the commercial refrigeration equipment market growth in the coming years.
Commercial Refrigeration Equipment Market Competitive Landscape
The commercial refrigeration equipment market was fragmented with top four companies, accounting for nearly 40.0% of the total market share in 2017. United Technologies Corporation was the largest player in terms of market share in the global market in 2017. For the remaining 60% share, there is a stiff competition amongst other companies including Johnson Controls International PLC, Daikin Industries Ltd., and Dover Corporation.
The high market share of United Technologies Corporation is attributed to the global presence of the company in over 80 countries including the U.S., the U.K., Argentina, Brazil, India, and China. Over the past few years, the brand image of United Technologies Corporation has grown significantly, owing to its superior power efficient refrigeration equipment and well-diversified post-sale services in all the regions.
Some of the other key players operating in the commercial refrigeration equipment market are Hussmann Corporation, AB Electrolux, Frigoglass S.A.I.C., AHT Cooling Systems GmbH, Ali Group S.p.A., and Illinois Tool Works Inc.