Commercial Refrigeration Market Set to Reach USD 52.3 Billion By 2032: Astute Analytica

Global commercial refrigeration market is driven by expanding food retail and foodservice industries, demanding energy-efficient, smart, and customizable solutions. Despite challenges like high costs and regulatory pressures, the market remains resilient, with North America leading as a mature market and Asia-Pacific showing rapid growth.

New Delhi, May 08, 2024 (GLOBE NEWSWIRE) — As per Astute Analytica, the global commercial refrigeration market to have been valued at US$ 33.0 billion in 2023 and is poised for significant growth, reaching a projected valuation of US$ 52.3 billion by 2032 at a CAGR of 5.27% for the forecast period between 2024 and 2032.

Commercial refrigeration accounts for 1% of global electricity consumption, advancements are being made. Modern models are 30% more energy-efficient, potentially saving U.S. businesses $3.7 billion over a decade. Efficient systems also reduce food waste by 20%. Beyond efficiency, commercial refrigeration is vital for food safety. They maintain precise temperatures (within 3°F) and rapid cooling. Supermarkets are one of the largest consumers of commercial refrigeration, with each store typically using more than 4,000 kWh of electricity per day. Upcoming changes in refrigerant regulations could significantly impact this sector, with over 68,000 supermarkets in the U.S. alone potentially affected. Looking beyond supermarkets, the service sector currently accounts for approximately 60% of the overall commercial refrigeration market demand.

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Innovation is shaping the future. Around 50% of food retailers plan to adopt eco-friendly solutions by 2025, with new DOE standards expected to improve efficiency by 30% by 2027. Technological advancements like digital temperature controls are becoming standard, and the market for repair and maintenance is expected to grow at 7.8% annually. While the upfront cost is higher, commercial refrigerators offer substantial long-term benefits in efficiency, durability, and operational cost reduction.

Key Findings in Commercial Refrigeration Market

Market Forecast (2032) US$ 52.3 billion
CAGR 5.27%
Largest Region (2023) North America (32.9%)
By Product Type Merchandising Refrigerators (23.9%)
By System Type Self-Contained (86%)
By Application  Food Service (30.7%)
By Capacity 50 to 100 cu. Ft (50.2%)
Top Trends
  • Growing demand for smart and connected refrigeration systems with remote monitoring and predictive maintenance capabilities.
  • Increasing adoption of energy-efficient and environmentally friendly refrigeration solutions.
  • Rising popularity of modular and customizable refrigeration units to cater to specific business needs.
Top Drivers
  • Expansion of food retail chains, supermarkets, and quick-service restaurants globally.
  • Increasing consumption of frozen foods, processed foods, and ready-to-eat meals.
  • Stringent food safety regulations and the need for proper refrigeration to maintain food quality.
Top Challenges
  • High initial investment costs for energy-efficient and advanced refrigeration systems.
  • Regulatory pressures to phase out hydrofluorocarbon (HFC) refrigerants due to environmental concerns.

Rise of Merchandising Refrigerators: A Perfect Storm for Market Domination with Over 23.9% Market Share

The commercial refrigeration market is experiencing a boom, driven by several factors that all point towards the dominance of the merchandise refrigerator segment. This growth is fueled by a number of trends, including the increasing number of supermarkets and hypermarkets (projected to reach 44,000 by 2025), a flourishing processed food market expected to hit $7.03 trillion by 2027, and a booming seafood industry reaching $193.9 billion by 2027. With supermarkets themselves growing in size (average floor space in the US reaching 45,000 square feet in 2022, a 30% increase in 20 years), the need for efficient and visually appealing refrigeration solutions is paramount.

This is where merchandise refrigerators take center stage in the global commercial refrigeration market. Compared to traditional models, they offer a significant advantage in storage capacity, holding up to 80% more products thanks to optimized shelving and design. This caters to the growing demand for chilled and frozen goods while maximizing valuable retail space. Merchandise refrigerators aren’t just about storage; they’re sales powerhouses. LED lighting increases product visibility by up to 30% compared to traditional models, making those tempting treats and ingredients all the more alluring to customers. Transparent doors further amplify this effect, with studies showing a sales increase of up to 25% compared to solid doors.

Today, merchandise refrigerators come in a wide range of sizes, from a compact 1 cubic foot unit to behemoths exceeding 80 cubic feet, allowing retailers to perfectly match their needs. Additionally, advancements in energy efficiency are a major selling point. The Energy Star program alone has saved businesses billions on energy costs, and energy-efficient models can translate to annual savings of $1,000 compared to standard units. This focus on sustainability is a win for both businesses and the environment.

Over 30% of Commercial Refrigeration Market Revenue Churned by Food Service

The commercial refrigeration industry sees over 30% of its revenue coming from the food service domain, and there’s a strong reason why. The food service industry itself is booming, with combined food sales from restaurants, cafes, fast-food chains, and catering services reaching a staggering $2.39 trillion in 2022. This growth is fueled by factors like a rise in full-service establishments ($463 billion in 2022) and limited-service establishments ($468 billion in 2022), along with the increasing popularity of quick-service restaurants (QSRs) and food trucks.

For these businesses, proper refrigeration is an absolute necessity. It ensures food safety, freshness, and quality – all factors that directly impact customer satisfaction. This translates to a significant market share for commercial refrigerators and freezers, which took home over 22% of the revenue in 2022. The travel and tourism industry also plays a role here, with its growth leading to the opening of more restaurants and food joints, further driving the demand for refrigeration equipment. But food service establishments in the commercial refrigeration market require more than just basic refrigerators. Specialized needs come into play, influencing the high revenue share from this sector. Compact refrigerators cater to grab-and-go options in convenience stores and gas stations, while chef bases combine prep space with refrigeration for efficient and safe food preparation. Additionally, rapid cooling equipment ensures food safety by quickly bringing down temperatures, eliminating the risk of bacterial growth.

Changing consumer lifestyles are another key factor. The growing demand for packaged and ready-to-eat meals necessitates proper refrigeration for storage and display. This trend, alongside a rise in urbanization, expanding middle class, and preference for organized retail spaces, is expected to keep the demand for packaged food high, further solidifying the importance of refrigeration in the food service industry.

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Goldilocks Zone of Commercial Refrigeration Market: 50-100 cu. ft. Capacity Captured Over 50% Market Revenue

For many businesses in the food service and retail industries, finding the right refrigerator size is a balancing act. Enter the 50-100 cubic foot commercial refrigerator – a versatile option that offers ample storage capacity without a hulking footprint. This sweet spot caters perfectly to a wide range of needs, and the numbers back it up. A single 50-100 cu. ft. unit can hold a significant amount of product, ranging from 1,500 to 3,000 pounds depending on configuration and food density. This is ideal for restaurants, cafes, and small grocery stores in the commercial refrigeration market, considering the U.S. alone boasts over 1 million restaurants, many of which rely on this size class for storing ingredients and prepared meals. Convenience stores, numbering over 150,000 nationwide (US), also find these refrigerators perfect for housing packaged beverages, grab-and-go sandwiches, and other chilled items.

It’s not just about raw storage power. This size segment excels in offering a balance between capacity and footprint – a crucial factor for businesses with limited space. A typical 50 cu. ft. model measures around 54″ x 32″ x 83″ (W x D x H), while a 100 cu. ft. unit comes in at roughly 81″ x 32″ x 83″. This makes them easily adaptable to most commercial kitchens and retail spaces. In fact, a survey revealed that 67% of foodservice operators prioritize “maximizing space” when purchasing equipment, making these mid-sized refrigerators highly attractive.

  • Adaptability Stays at top

The beauty of 50-100 cu. ft. refrigerators lies in their flexibility in the commercial refrigeration market. They come in various configurations and offer optional features to cater to specific needs. Solid or glass doors, adjustable shelving, worktop surfaces for food prep (chef bases), and even temperature ranges for refrigeration or freezing provide businesses with a high degree of customization. For instance, a restaurant might choose a 50 cu. ft. unit with solid doors for ingredient storage, while a convenience store might opt for a 100 cu. ft. model with glass doors to showcase their products. Some manufacturers even offer customization options like locks, casters, or digital controls, further increasing the appeal of this size range.

  • Energy Efficiency on Point

Manufacturers in the commercial refrigeration market haven’t overlooked the importance of energy efficiency, making significant strides in this area for 50-100 cu. ft. refrigerators. This is a major draw for businesses looking to reduce operating costs and environmental impact. ENERGY STAR certified models can slash energy costs by up to 40% compared to standard options. The high demand for energy-efficient solutions is evident, with over 60% of commercial refrigerators sold in the U.S. in 2023 holding this certification. New technologies like LED lighting, improved insulation, and advanced compressors significantly contribute to the efficiency gains in this popular size class.

Competitive Pricing and Global Appeal Captures Attention of Buyers

The 50-100 cu. ft. segment of the commercial refrigeration market is a highly competitive, with numerous manufacturers offering models at various price points. This benefits buyers by providing a range of options to fit any budget. Prices start around $2,000 for 50 cu. ft. models and can reach under $5,000 for 100 cu. ft. units. While a significant investment, the storage capacity offers substantial value. The wide price range and numerous brands make it easier for businesses to find a model that meets their specific needs and budget. For comparison, a small under-counter refrigerator might cost around $1,000, while a large walk-in cooler can easily exceed $10,000. The 50-100 cu. ft. range offers a compelling middle ground.

As the food service and retail industries expand globally, particularly in developing countries, the demand for 50-100 cu. ft. commercial refrigerators is surging.

North America: A Leader in Commercial Refrigeration Market

North America, particularly the United States, is the most mature market for commercial refrigeration. This dominance is fueled by a large and established food retail and foodservice industry. The region boasts a whopping 32.9% share of the global commercial refrigeration market in 2023, largely due to the presence of major supermarket chains like Walmart and Costco. This maturity is further reflected in the high penetration of refrigeration equipment across various sectors. The U.S. takes the top spot globally in market share for commercial refrigeration systems, with the Food & Beverage Retail segment leading the way in North America. Supermarkets, convenience stores, and grocery chains are major drivers of demand for a wide range of refrigeration equipment.

As a mature market, replacement and upgrade needs play a significant role. A sizeable portion of the demand in the commercial refrigeration market comes from businesses looking to refresh or expand their existing refrigeration systems. The ever-growing floor space of supermarkets and hypermarkets creates opportunities for these retailers to install larger capacity refrigerators, further fueling replacement demand.

North America is also a breeding ground for leading commercial refrigeration manufacturers like Carrier, Hussmann, and Dover. Their strong presence signifies a competitive and mature marketplace. This maturity extends to regulations and standards, with stringent energy efficiency requirements set by the U.S. Department of Energy (DOE) and the promotion of energy-efficient models through the Environmental Protection Agency’s (EPA) ENERGY STAR program.

Technology adoption is another hallmark of a mature market, and North America is at the forefront. Businesses are increasingly embracing smart and connected refrigeration systems that offer remote monitoring, predictive maintenance, and energy optimization features. This focus on advanced technologies sets North America apart from developing markets. The region’s stable economic conditions, well-developed infrastructure, and high per capita income provide a fertile ground for the commercial refrigeration market to flourish. The well-established cold chain infrastructure, encompassing cold storage facilities and refrigerated transportation, further reinforces the market’s maturity.

Global Commercial Refrigeration Market Leaders

  • AHT Cooling Systems GmbH
  • Beverage-Air Corporation (Ali S.p.A)
  • Daikin Industries, Ltd.
  • Electrolux AB
  • Haier Inc.
  • Hoshizaki Corporation
  • Hussmann Corporation
  • Lennox International Inc.
  • Panasonic Corporation
  • Whirlpool Corporation
  • Fujimak Corporation
  • Illinois Tool Works Inc. (ITW)
  • Ingersoll-Rand PLC
  • Other Prominent players

Key Segmentation:

By Product Type

  • Reach-In Refrigeration
  • Merchandising Refrigerators
  • Prep Refrigeration
  • Bar Refrigeration
  • Refrigerated Display Cases
  • Commercial Ice Machines
  • Commercial Ice Cream Freezers
  • Commercial Blast Chillers
  • Others

By System Type

  • Self-contained
  • Remotely Operated

By Capacity

  • Less than 50 cu. Ft
  • 50 to 100 cu. Ft
  • More than 100 cu. Ft

By Application

  • Food Service
  • Food & Beverage Retail
  • Food & Beverage Distribution/Transportation
  • Food & Beverage Production
  • Others

By Region

  • North America
  • Europe
  • Asia Pacific
  • Middle East & Africa (MEA)
  • South America

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About Astute Analytica

Astute Analytica is a global analytics and advisory company which has built a solid reputation in a short period, thanks to the tangible outcomes we have delivered to our clients. We pride ourselves in generating unparalleled, in depth and uncannily accurate estimates and projections for our very demanding clients spread across different verticals. We have a long list of satisfied and repeat clients from a wide spectrum including technology, healthcare, chemicals, semiconductors, FMCG, and many more. These happy customers come to us from all across the Globe. They are able to make well calibrated decisions and leverage highly lucrative opportunities while surmounting the fierce challenges all because we analyze for them the complex business environment, segment wise existing and emerging possibilities, technology formations, growth estimates, and even the strategic choices available. In short, a complete package. All this is possible because we have a highly qualified, competent, and experienced team of professionals comprising of business analysts, economists, consultants, and technology experts. In our list of priorities, you-our patron-come at the top. You can be sure of best cost-effective, value-added package from us, should you decide to engage with us.

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