Latin America Commercial Refrigeration Equipment Market Overview
The Latin American commercial refrigeration equipment market generated revenue of $1,766.0 million in 2017. The market is projected to advance at a CAGR of 4.5%, during the forecast period. Increasing demand for refrigeration from grocery stores, growing food and beverage industry, rising number of restaurant chains, and increasing imports of frozen meat products in the region are the key factors driving the market in the region.
LATAM COMMERCIAL REFRIGERATION EQUIPMENT MARKET, BY TYPE, $M (2013 - 2023)
Based on equipment type, walk-in coolers accounted for the largest share of over 24% in the Latin American commercial refrigeration equipment market in 2017. The adoption of the walk-in coolers is higher, owing to rising demand for energy efficient refrigeration systems and increasing demand from food and beverage industry. The growth of the equipment can also be attributed to regulations regarding energy conservation standards for walk-in cooler units in countries like Brazil and Mexico, which has resulted in the rising demand for energy efficient refrigeration systems. Additionally, the present international standards like ISO 50001 regarding energy saving for the systems are helping manufacturers to lower down the overall cost.
Based on ice-making machineries, ice cube machineries held the largest share in the Latin American commercial refrigeration equipment market in 2017. The market for ice cube machineries is expected to witness a CAGR of 8.0% during the forecast period. The increasing demand for ice cube machineries for preservation of meat and fish and increasing demand from beverage industry are the key factors driving the market growth in the region.
Based on application, food service category held the largest share in the Latin American commercial refrigeration equipment market in terms of value in 2017, followed by food and beverage distribution, and food and beverage retail. However, the market for food and beverage retail application is expected to estimate the highest CAGR, during 2018–2023; due to increasing food and beverage industry in Brazil and Argentina. Within food and beverage industry, meat category is exhibiting potential growth in the countries. Moreover, they witnessed large imports of frozen bovine animals and swine animal products in 2017.
Based on end-user, during the forecast period, the Latin American commercial refrigeration equipment market for e-commerce is expected to witness a CAGR of 7.4%, owing to rising number of e-commerce giants in the region such as WalMart, Alibaba, Amazon, and B2W Digital. Moreover, the changing purchasing trend from traditional retail sales to online sales of food and beverages such as ready-to-eat and frozen food items has been observed in the region. The change in buying pattern is leading to surge in demand for cold storage facilities, which further supports the market growth in the region.
Commercial Refrigeration Equipment Market Dynamics
One of the key trends in the Latin American commercial refrigeration equipment market is the use of natural refrigerants instead of synthetic refrigerants. Due to new regulations and greater environmental awareness in society, the uses of propane (R290) and CO2 have become more frequent. For refrigeration, propane is especially suited for smaller systems and built-in equipment, while CO2 is popular for engine rooms and remote cooling systems. When it comes to engine rooms and semi-hermetic compressors, CO2 is the preferred choice for manufacturers and supermarket chains for refrigeration, as it is a natural and highly-efficiency fluid solution.
The consumption of ready-to-eat products, beverages, and frozen food is increasing year-over-year in Latin America, which is further boosting the commercial refrigeration equipment market. Rising disposable income, along with increasing impact of western lifestyle has fueled the acceptance of such products among large middle-class consumers in the region.
The increased number of large stores has also forced small grocery retailers and unorganized restaurants to upgrade their infrastructure, with improved electronic appliances including commercial refrigeration equipment. Moreover, this changing trend toward the ready-to-eat food is also offering lucrative opportunities to new restaurants and retail outlets in Latin America, which would further support the commercial refrigeration equipment market growth.
Increasing number of quick service restaurants is expected to drive the Latin American commercial refrigeration equipment market, during the forecast period. With 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 opportunities especially in countries such as Brazil, Chile, and Mexico, due to increasing per capita income, rising participation of women in the work force, and increasing urbanization.
Commercial Refrigeration Equipment Market Competitive Landscape
The intensity of rivalry among players in the Latin American commercial refrigeration equipment market is moderate. Most of the major players are actively focusing on product launches to meet the growing demand in the emerging market. It was fragmented with top six companies accounting for more than 60% of the total market share in 2017. Electrolux AB was the largest player in the market owing to its widespread presence in regional countries including Mexico, Argentina, Brazil, and Chile.
Some of the key players operating in the Latin American commercial refrigeration equipment market are Daikin Industries Ltd., Metalfrio Solutions, Dover Corporation, United Technologies Corporation, Johnson Controls International PLC, Hussmann Corporation, AHT Cooling Systems GmbH, Lennox International Inc., and Illinois Tool Works Inc.