U.S. Commercial Refrigeration Equipment Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

U.S. Commercial Refrigeration Equipment Market Trends and Growth Drivers

Technological Advancement in Commercial Refrigeration Equipment Is Key Trend

• Various sectors are dependent on commercial refrigeration equipment, including food processing, pharmaceuticals, and logistics, for ensuring the preservation of perishable goods.
• Various modern technologies are being added to this equipment to improve its operation.
• With the help of IoT, the real-time monitoring of data on temperature, energy consumption, and equipment health becomes easier.
• This data helps in energy optimization, overall performance improvement, and predictive maintenance of the equipment.
• Furthermore, the adoption of cold storage facilities and heat pump technologies, which facilitate the dual working of heating and cooling processes, is a key trend.

Growth of the Food Service Industry Is Driving Market Growth

• The food service industry in the U.S. is growing at a rapid pace due to the ongoing digitalization in supply chain management.
• As per the USDA, the industry was valued at USD 1.16 trillion in 2021 and USD 1.34 trillion in 2022, surpassing the pre-pandemic levels.
• The need for commercial refrigeration equipment in the country is being driven by the increase in the demand for frozen and processed foods because of people's urban lifestyles and their focus on time-saving.
• Furthermore, the increasing number of supermarkets and hypermarkets is driving the demand for equipment for storing and displaying food, beverages, and other perishable items.

 Harmful Gases Used in Commercial Refrigeration Equipment Act as a Challenge to Market Growth

• Several harmful greenhouse gases are used in commercial refrigeration systems, which can negatively affect the environment.
• Most of the commercial refrigeration system uses greenhouse gases such as hydrofluorocarbon. More heat is trapped by hydrofluorocarbons than by carbon dioxide, which is the cause of ozone depletion and a contributing factor to global warming.
• In addition, in order to carry out specific parts of the American Innovation and Manufacturing Act, which was passed on December 27, 2020, the U.S. Environmental Protection Agency is releasing regulations. The use of hydrofluorocarbons is limited by this rulemaking to particular industries or subindustries.

U.S. Commercial Refrigeration Equipment Market Analysis

Product Type Analysis

• Walk-in coolers will hold the largest market share, of 45%, in 2024, due to their larger space and the fact that they allow people to simply walk in to retrieve items.
• They maintain the freshness of edible items for a longer period and are widely used in restaurants, cafes, bars, clubs, and resorts.
• Beverage refrigeration equipment is expected to grow at the highest CAGR, of 6.7%, during the forecast period. They are specialized refrigerators and coolers that store various beverages at specific temperatures and display them clearly through the glass.
• The rising inclination of consumers toward beverages to be consumed on the go is a key reason for its increasing popularity.

The product types analyzed in this report are:

• Walk-In Coolers (Largest Category)
• Beverage Refrigeration Equipment (Fastest-Growing Category)
• Display Showcases
• Ice Merchandizers & Ice Vending Equipment
• Others

Distribution Channel Analysis

• Hypermarkets/supermarkets will hold the largest market share, in 2024, because they provide good quality and a wide variety of products.
• There are a large number of hypermarkets in the country that provide commercial refrigeration equipment.
• The online category is expected to grow at the highest CAGR, of 6.8%, during the forecast period because e-commerce provides a variety of products on one platform with home delivery options.

The distribution channels analyzed in this report are:

• Specialty Stores
• Hypermarkets/Supermarkets (Largest Category)
• Online (Fastest-Growing Category)

Application Analysis

• The food service category will hold the largest market share, of 40%, in 2024.
• This is due to the increasingly busy lifestyle of the country's population, which demands on-the-go food service for consumption of the food.
• Additionally, new restaurants and bar chains in the U.S. will further drive the need for commercial refrigeration systems.
• The food and beverage retail industry are expected to grow at the highest CAGR, during the forecast period due to the rise in the middle-class population of the country which is driving the demand for a wider variety of food and beverage products.
• Commercial refrigeration equipment is necessary for food and beverage distributors to store, transport, and exhibit their products.

The applications analyzed in this report are:

• Food Service (Largest Category)
• Food & Beverage Production
• Food & Beverage Retail (Fastest-Growing Category)
• Others

End User Analysis

• Convenience stores will hold the largest market share, in 2024 because they provide customers with a quick and easy way to shop for their everyday needs in one place.
• The hypermarket/supermarkets category is expected to grow at a CAGR of 7.0% during the forecast period.
• U.S. is a diverse country with a wide range of consumer preferences. Supermarkets and hypermarkets offer a wide range of products to meet the needs of their consumers.

The end users analyzed in this report are:

• Hospitality
• Hypermarkets/Supermarkets (Fastest-Growing Category)
• Departmental Stores
• Healthcare
• Offices & Buildings
• Convenience Stores (Largest Category)
• Others

Geographical Analysis

• The Northeast region holds the largest market share, of 55%, in 2024, and is expected to grow at the highest CAGR, of 7.2%, over the forecast period.
• However, the northeastern region of the U.S.A. is the financial hub for the country and acquires most of the population.
• The Northeast region includes states such as New York, New Jersey, and Pennsylvania, which consist of numerous bars, pubs, restaurants, and cafes. This propels the refrigeration equipment market in this region.
• Additionally, consumers are shifting towards fresh and local food products, which increases the need for cold storage solutions.

The regions analyzed in this report are:

• Northeast (Largest and Fastest-Growing Region)
• Midwest
• West
• South

U.S. Commercial Refrigeration Equipment Market Share

• The commercial refrigeration equipment market is consolidated, as most of the market share is held by a few large-scale vendors.
• These large players are focusing on the R&D of their products and diversifying their product portfolios to compete in the market, as small players are also trying to establish themselves.
• Larger players would have the ability to invest in greener refrigerants and energy-efficient systems with smart technologies.
• Furthermore, companies are striving hard to provide compressors that are low-GWP refrigerant-compliant and energy-efficient.

U.S. Commercial Refrigeration Equipment Market News

• In May 2024, Carrier Commercial Refrigeration expanded its line of CO2 refrigeration system into North America. Carrier Commercial Refrigeration will provide CO2 compressor racks and heat pumps for refrigeration systems, and the company plans to offer condensing units in the coming months.
• In May 2024, G&D Chillers introduced a new (R290) commercial and industrial chiller in the U.S.
• In September 2023, the propane (R290) commercial refrigeration cabinet IDA S by Lithuanian manufacturer Freor was shown at the National Association of Convenience Stores (NACS) 2023 Exposition in Atlanta, Georgia.
• In February 2024, Danfoss launched a new six-cylinder compressor, HGX56 CO2 T, which offers an optimal design solution for commercial and industrial refrigeration, especially for big industrial heat pumps, ice arenas, and cold storage.