Commercial Refrigeration Market by Product Type, Refrigerant Type (HCFCs, HFCs, HFO, Isobutane, Propane, Ammonia, Carbon Dioxide), Application, End Use (Supermarkets & Hypermarkets, Hotels & Restaurants, Bakeries), & Region - Global Forecast to 2028
The commercial refrigeration market is projected to grow from USD 45.5 billion in 2023 to USD 60.5 billion by 2028, at a CAGR of 5.8%. The commercial refrigeration market has observed stable growth throughout the study period and is anticipated to continue with the same trend during the forecast period. Rapid urbanization and changing consumer lifestyles have increased the demand for convenience foods, fresh produce, and ready-to-eat meals. This, in turn, drives the need for efficient refrigeration solutions to store and transport these products which is expected to drive the growth of the market in the upcoming years.
Attractive Opportunities in the Commercial Refrigeration Market
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Market Dynamics:
Driver: High demand for frozen & processed food worldwide
Frozen food products are increasingly becoming an integral part of daily diets worldwide. The global demand for fresh and processed fruits and vegetables is increasing because of the changing food consumption habits of the urban population. Also, rapid urbanization in developing countries and rising living standards are fueling the demand for processed and packaged food, thereby leading to higher commercial refrigeration system sales, which is expected to propel the demand for the commercial refrigeration market during the forecast period.
Restraint: Stringent regulations against use of fluorocarbon refrigerants
Stringent regulations against fluorocarbon refrigerants have been implemented globally to address their harmful environmental effects, particularly their contribution to ozone depletion and climate change. These regulations aim to reduce the production, consumption, and emissions of hydrochlorofluorocarbons (HCFCs) and hydrofluorocarbons (HFCs), commonly used in refrigeration and air conditioning systems. Thus, regulations imposed on certain refrigerants are expected to hamper the growth of commercial refrigeration market.
Opportunity: Potential demand for carbon dioxide/ ammonia cascade refrigeration systems
Ammonia/ Carbon Dioxide (NH3/CO2) cascade refrigeration systems have been used for several years. Various advantages of NH3/CO2 cascade refrigeration systems include low operating costs (as these use less energy per ton of refrigeration than other systems), low capital costs and compliance costs, optimal food quality, and increased throughput for food and beverage processing. These factors further create opportunities in the commercial refrigeration market during forecast period.
Challenge: Few purification companies
Different grades of ammonia and CO2 can be used as refrigerants in commercial refrigeration. Purification companies are crucial in providing high-quality ammonia and carbon dioxide refrigerants that meet industry standards and regulations. They ensure that these refrigerants are properly processed, purified, and packaged for safe and efficient use in refrigeration systems. There are limited companies that produce refrigerant-grade ammonia and CO2. Thus, the presence of a few purification companies is a challenge to the growth of the commercial refrigeration market.
Commercial Refrigeration Market: Ecosystem
Prominent companies in this market include well-established, and financially stable manufacturers of commercial refrigeration systems. These companies have been operating in the market for several years and possess a diversified product portfolio and strong global sales and marketing networks. Prominent companies in this market include Daikin (Japan), Johnson Controls (US), Carrier (US), Dover (US), and Baltimore Aircoil Company (US).
Based on product type, the transportation refrigeration segment is projected to account for the largest share in 2023.
The transportation refrigeration segment is estimated to have the largest share of the global commercial refrigeration market in 2023. Commercial refrigeration systems for refrigerated transport are one of the essential links in the cold chain system for the distribution of food commodities. Refrigerated transport ensures that these food commodities maintain their quality and safety during transit across different climates and regions.
Based on refrigerant type, the fluorocarbons segment is projected to account for the largest share in 2023.>
The fluorocarbons segment is estimated to have the largest share of the global commercial refrigeration market in 2023. Fluorocarbon refrigerants, despite their negative environmental impact, continue to be prevalent in the market due to their established infrastructure, affordability, and availability. These refrigerants cater to applications in refrigerators (domestic, transport, and commercial) and large refrigerators (supermarkets/hypermarkets), which can be contribute to the commercial refrigeration market growth.
Based on application, the food service segment is projected to account for the largest share in 2023.
The food service segment is estimated to have the largest share of the global commercial refrigeration market in 2023. Commercial refrigeration plays a crucial role in the food service industry by ensuring the safe storage and display of perishable goods. Effective refrigeration solutions are essential in restaurants, cafes, hotels, or other food-related businesses to maintain the quality and safety of ingredients, prepared dishes, and beverages. With increasing consumer expectations and evolving industry standards, businesses continue to invest in advanced refrigeration solutions to meet the demands of a competitive and dynamic market.
Based on end use, the supermarkets & hypermarkets segment is projected to account for the largest share in 2023.
The supermarkets & hypermarkets segment is estimated to have the largest share of the global commercial refrigeration market in 2023. They are one of the key end users of the commercial refrigeration market. Changing food consumption trends and rising international food trade are the factors contributing to the market's growth.
Based on region, North America region is projected to be the second largest region for commercial refrigeration market during the forecast period
North America is one of the largest exporters and importers of perishable food, meat, and seafood globally and the largest importer of fruits & vegetables, making it a significant market for cold stores. North America also has a high demand for frozen desserts due to diverse tastes, preferences, and quality. Hence, retail outlet infrastructure, which includes refrigerated storage and refrigerated transport, is growing in the North American market, thereby driving the demand for commercial refrigeration systems in the region.
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Key Market Players
Daikin (Japan), Johnson Controls (US), Carrier (US), Dover (US), Baltimore Aircoil Company (US), Blue Star Limited (India), De Rigo Refrigeration (Italy), Fogel (Guatemala), Hussmann (US), Imbera (Mexico), KMW (Germany), Mayekawa Mfg. Co., Ltd. (Japan), Runte (China), SCM Frigo (Italy), True (US), Viessmann (Germany), Voltas (India), and others are among the major players leading the market through their innovative offerings, enhanced production capacities, and efficient distribution channels.
Read More: Commercial Refrigeration Companies
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Get online access to the report on the World's First Market Intelligence Cloud
- Easy to Download Historical Data & Forecast Numbers
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- Research Analyst Access for customization & queries
- Competitor Analysis with Interactive dashboard
- Latest News, Updates & Trend analysis
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Report Metric |
Details |
|
Market Size Available for Years |
2017 to 2028 |
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Base Year Considered |
2022 |
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Forecast Period |
2023–2028 |
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Forecast Units |
Value (USD Million/Billion) |
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Segments Covered |
Product Type, Refrigerant Type, Application, End Use, and Region |
|
Geographies Covered |
Europe, Asia Pacific, North America, South America, and the Middle East & Africa |
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Companies Covered |
The major market players include Daikin (Japan), Johnson Controls (US), Carrier (US), Dover (US), Baltimore Aircoil Company (US), Blue Star Limited (India), De Rigo Refrigeration (Italy), Fogel (Guatemala), Hussmann (US), Imbera (Mexico), KMW (Germany), Mayekawa Mfg. Co., Ltd. (Japan), Runte (China), SCM Frigo (Italy), True (US), Viessmann (Germany), Voltas (India), and others. |
This research report categorizes the commercial refrigeration market based on product type, refrigerant type, application, end use, and region.
Based on product type, the commercial refrigeration market has been segmented as follows:
- Refrigerator & Freezer
- Transportation Refrigeration
- Refrigerated Display Case
- Beverage Refrigeration
- Ice Cream Merchandiser
- Refrigerated Vending Machine
Based on refrigerant type, the commercial refrigeration market has been segmented as follows:
- Fluorocarbons
- Hydrocarbons
- Inorganics
Based on application, the commercial refrigeration market has been segmented as follows:
- Food Service
- Food & Beverage Production
- Food & Beverage Distribution
- Food & Beverage Retail
- Others
Based on end use, the commercial refrigeration market has been segmented as follows:
- Supermarkets & Hypermarkets
- Hotels & Restaurants
- Convenience Stores
- Bakeries
Based on the region, the commercial refrigeration market has been segmented as follows:
-
Asia Pacific
- China
- Japan
- India
- South Korea
- Indonesia
- Malaysia
- Thailand
- Singapore
- Rest of Asia Pacific
-
Europe
- Germany
- Italy
- France
- UK
- Spain
- Rest of Europe
-
North America
- US
- Canada
- Mexico
-
Middle East & Africa
- Saudi Arabia
- Turkey
- Egypt
- Rest of Middle East & Africa
-
South America
- Brazil
- Argentina
- Chile
- Rest of South America
Recent Developments
- In July 2023, Advansor, a Dover Company, launched two new energy and space-saving CO2 climate solutions for supermarkets: Low Superheat and Value Pack Light. With an ultra-compact profile, these systems show up to 30% energy savings compared to older systems.
- In June 2023, Johnson Controls, the global leader in smart, healthy, and sustainable buildings, acquired M&M Carnot, a provider of natural refrigeration solutions with ultra-low global warming potential (GWP). This acquisition helps customers meet their sustainability goals while meeting and exceeding environmental regulations.
Frequently Asked Questions (FAQ):
What are the key drivers for the commercial refrigeration market?
Improving consumer lifestyle & flourishing food industry, rising demand for cold chain logistics, technological advancements in the refrigeration industry, and high demand for frozen & processed food worldwide are the major driving factors for commercial refrigeration market.
Which region is expected to register the highest CAGR in the commercial refrigeration market during forecast period?
The commercial refrigeration market in South America is estimated to register the highest CAGR during forecast period. South America has emerged as a manufacturing hub and foreign investment destination. The availability of skilled labor at economical cost has made the region a preferred destination for manufacturing companies. Brazil is among the fastest–growing economies in the region.
What is the major end use of commercial refrigeration?
The supermarkets & hypermarkets segment is the major end use of commercial refrigeration. It is projected to grow due to the rise in demand for frozen food products.
Who are the major manufacturers of commercial refrigeration systems?
The key players operating in the market include Daikin (Japan), Johnson Controls (US), Carrier (US), Dover (US), and Baltimore Aircoil Company (US).
What is the total CAGR expected to record for the commercial refrigeration market during 2023-2028?
The market is expected to record a CAGR of 5.8% from 2023-2028. .
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The study involved four major activities in estimating the current market size of commercial refrigeration. Exhaustive secondary research was done to collect information on the market, the peer market, and the parent market. The next step was to validate these findings, assumptions, and sizes with industry experts across the value chain of commercial refrigeration through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. After that, market breakdown and data triangulation were used to estimate the size of the segments and sub-segments of the market.
Secondary Research
The research methodology used to estimate and forecast the access control market begins with capturing data on revenues of key vendors in the market through secondary research. BusinessWeek, Factiva, World Bank, and Industry Journals, such as Hoovers, Bloomberg BusinessWeek, Factiva, World Bank, and Industry Journals, were referred to for identifying and collecting information for this study. These secondary sources included annual reports, press releases & investor presentations of companies; white papers; certified publications; articles by recognized authors; notifications by regulatory bodies; trade directories; and databases. Vendor offerings have also been taken into consideration to determine market segmentation.
Primary Research
The commercial refrigeration market comprises several stakeholders, such as such as raw material manufacturers, traders, distributors, and suppliers of commercial refrigeration equipment, commercial refrigeration manufacturers, and regulatory organizations in the supply chain. Various primary sources from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information. Primary sources from the supply side included industry experts such as Chief Executive Officers (CEOs), vice presidents, marketing directors, technology and innovation directors, and related key executives from various key companies and organizations operating in the commercial refrigeration market. Primary sources from the demand side included directors, marketing heads, and purchase managers from various sourcing industries. Following is the breakdown of the primary respondents:
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Market Size Estimation
Both the top-down and bottom-up approaches were used to estimate and validate the total size of the commercial refrigeration market. These methods were also used extensively to determine the size of various sub-segments in the market. The research methodology used to estimate the market size included the following:
- The key players were identified through extensive primary and secondary research.
- The value chain and market size of the commercial refrigeration market, in terms of value, were determined through primary and secondary research.
- All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources.
- All possible parameters that affect the market covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
- The research included the study of reports, reviews, and newsletters of top market players, along with extensive interviews for opinions from key leaders, such as CEOs, directors, and marketing executives.
Global Commercial Refrigeration Market Size: Bottom-Up Approach
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Global Commercial Refrigeration Market Size: Top-Down Approach
Data Triangulation
After arriving at the overall market size using the market size estimation processes as explained above, the market was split into several segments and sub-segments. To complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment, the data triangulation and market breakdown procedures were employed, wherever applicable. The data was triangulated by studying various factors and trends from both the demand and supply sides in the refrigeration sector.
Market definition
Commercial refrigeration refers to the specialized field of refrigeration systems and equipment designed for commercial and industrial settings to store and preserve perishable goods and maintain specific temperature requirements. These refrigeration systems are employed in various businesses and industries, including supermarkets, grocery stores, convenience stores, restaurants, hotels, hospitals, pharmaceutical companies, and food processing facilities.
Commercial refrigeration systems work by establishing a regulated environment that inhibits the growth of bacteria, yeast, and mould. This increases the shelf life of perishable goods. It helps to reduce waste, and ensure that businesses can store and display their goods in optimal conditions. Commercial refrigeration systems encompass a wide range of equipment, including display cases, walk-in coolers & freezers, reach-in refrigerators & freezers, refrigerated prep tables, beverage coolers, ice machines, and refrigeration systems.
Key Stakeholders
- Raw material manufacturers
- Traders, distributors, and suppliers of commercial refrigeration equipment
- Manufacturers of commercial refrigeration systems
- Regulatory Bodies and Government Agencies
- Research & Development (R&D) Institutions
- End-use Industries
- Consulting Firms, Trade Associations, and Industry Bodies
- Investment Banks and Private Equity Firms
Report Objectives:
- To analyze and forecast the market size of commercial refrigeration in terms of value
- To provide detailed information regarding the major factors (drivers, restraints, challenges, and opportunities) influencing the regional market
- To analyze and forecast the global commercial refrigeration market on the basis of product type, refrigerant type, application, end use, and region
- To analyze the opportunities in the market for stakeholders and provide details of a competitive landscape for market leaders
- To forecast the size of various market segments based on five major regions: North America, Europe, Asia Pacific, South America, and the Middle East & Africa, along with their respective key countries
- To track and analyze the competitive developments, such as new product launches, acquisitions, agreements, contracts, joint ventures, partnerships, investments, and expansions, in the market
- To strategically profile the key players and comprehensively analyze their market shares and core competencies
Available Customizations:
With the given market data, MarketsandMarkets offers customizations according to the client-specific needs.
The following customization options are available for the report:
- Additional country-level analysis of the commercial refrigeration market
- Profiling of additional market players (up to 5)
Product Analysis
- Product matrix, which gives a detailed comparison of the product portfolio of each company.
Growth opportunities and latent adjacency in Commercial Refrigeration Market