Commercial Refrigeration Market Outlook
The global commercial refrigeration market size was USD 31.99 Billion in 2022 and is likely to reach USD 46.73 Billion by 2031, expanding at a CAGR of 4.3 % during 2023–2031. The market growth is attributed to the rising demand for packaged food and increasing number of hypermarkets and supermarkets.
Increasing number of hypermarkets and supermarkets is expected to boost the demand for commercial refrigeration. Hypermarkets and supermarkets need refrigeration systems to store frozen foods, vegetables, milk, meat, dairy, and other grocery items in low-temperature environments to extend their shelf life by reducing bacterial growth, which encourages their adoption in hypermarkets and supermarkets.
Commercial refrigeration removes surplus heat from a space, item, or material to maintain a temperature lower than its surroundings. It is used by restaurants and hotels, hospitals, retail pharmacies, supermarkets/hypermarkets, convenience stores, quick service restaurants, and others for preserving items such as vegetables, fruits, meat, medicine, and others. Deep freezers, commercial kitchen refrigeration, bottle coolers, storage water coolers, medical refrigeration, and others are some of the products of commercial refrigeration.
If packaged food is not refrigerated at the correct temperature, it can cause bacterial growth, thereby reducing the shelf life of these foods. Thus, rising demand for packaged food is projected to drive the market. Refrigerators are needed to keep packaged food safe by maintaining the temperature and inhibiting bacterial growth. Refrigerators reduce the moisture and temperature, which reduces the bacterial growth in packaged food. This encourages hotels, retail shops, restaurants, and hypermarkets to adopt commercial refrigeration.
The COVID-19 pandemic hampered the demand for commercial refrigeration. The abrupt rise in COVID-19 infection compelled governments all around the world to impose lockdowns and suspensions of all non-emergency activities and outlets such as restaurants, hotels, bars, and others, which hindered the market, as commercial refrigeration is widely installed in these spaces to protect food items from bacteria.
Moreover, the rise in infection motivated people to avoid chilled and frozen products such as cooldrinks, ice creams, and others, impeding the market, as commercial refrigeration is required to store frozen items.
Impact of Artificial Intelligence (AI) on Commercial Refrigeration
Introduction of artificial intelligence in commercial refrigeration creates immense opportunities in the market. AI-powered commercial refrigeration systems inform users about the expiry date of food, food quality, and the amount of food stored in the refrigerator. It can alert users with warning messages about the maintenance or service date of the refrigerator. AI-powered commercial refrigeration systems alert the user about leakages in refrigerators during extremely hot climates.
Commercial Refrigeration Market Dynamics
Major Drivers
Growing urbanization around the world is expected to boost the demand for commercial refrigeration. Urbanization led to an increase in the number of commercial spaces such as malls, restaurants, hospitals, convenience stores, hotels, offices, and cafes, which is estimated to enhance the adoption of commercial refrigeration, as they are utilized by commercial spaces to keep the food safe from bacterial growth and increase their shelf life. For instance,
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According to the World Bank, 56% of the global population, which is 4.4 billion, lives in cities, and the number is expected to double by 2050.
Rising demand for frozen food among youth is projected to drive the market. Frozen foods are typically placed in hypermarkets/supermarkets, restaurants, and other places that require a refrigeration system to slow down the chemical and biological processes in foods, which deteriorates the quality of frozen food. Thus, increasing adoption of frozen food is propelling the demand for commercial refrigeration.
Existing Restraints
High cost associated with commercial refrigeration systems is anticipated to restrict the market. Commercial refrigeration systems are costly, as they are made up of high-quality materials and large size and require regular maintenance owing to increased wear and tear. Moreover, commercial refrigeration systems are large in size, thus requiring additional space, which encourages small and mid-retail owners to lessen their adoption. This hampers the commercial refrigeration market.
Emerging Opportunities
Increasing food safety regulation creates an immense opportunity in the market. Food safety regulations are encouraging retail shop owners to adopt commercial refrigeration systems to keep the food safe from bacteria. Moreover, rising investments in R&D activities by major market players to develop and introduce commercial refrigerators for medical use creates lucrative opportunities in the market. For instance,
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On February 11, 2021, Blue Star, an India-based multinational company, specialized in air conditioning systems, commercial refrigeration, and MEP launched a range of commercial refrigeration products for storing vaccines. These refrigerators can maintain a desired temperature even without power for up to 48 hours, ensuring less spoilage of vaccines.
Scope of the Commercial Refrigeration Market Report
The report on the market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Commercial Refrigeration Market- Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Products (Deep Freezers, Commercial Kitchen Refrigeration, Bottle Coolers, Storage Water Coolers, Medical Refrigeration, Chest Refrigeration, and Others) and End-user (Full-Service Restaurants and Hotels, Hospitals, Retail Pharmacies, Supermarket/Hypermarkets, Convenience Stores, Quick Service Restaurants, and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa.
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Ali Group S.r.l. a Socio Unico; AB Electrolux; Blue Star Limited; Carrier; DAIKIN INDUSTRIES, Ltd.; Dover Corporation; Frigoglass; Haier Group; Illinois Tool Works Inc.; Johnson Controls; Lennox International Inc; Panasonic Corporation; SAMSUNG; Thermo Fisher Scientific Inc.; United Technologies Corporation; and Whirlpool Corporation
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Commercial Refrigeration Market Segment Insights
Product Segment Analysis
Based on product, the commercial refrigeration market is segregated into deep freezers, commercial kitchen refrigeration, bottle coolers, storage water coolers, medical refrigeration, chest refrigeration, and others. The chest refrigeration segment held a large share of the market in 2022 due to energy-efficient product, less expensive in maintenance, and large storage capacity.
Chest refrigerators are majorly adopted by hypermarkets/supermarkets, retail stores, restaurants, and others, as they can store immense amounts of products such as milk, curd, butter, raw meat frozen food, ice cream, and processed food.
The medical refrigeration segment is projected to grow at a rapid pace in the coming years owing to increasing demand for blood transfusion diagnostics. Blood transfusion requires a refrigerator to maintain the oxygen-carrying ability of the blood and regular domestic refrigerators are inadequate for keeping them safe, which is expected to boost the demand for medical commercial refrigerators.
Moreover, medical refrigeration is widely adopted by hospitals, clinics, retail pharmacies, research institutes, and others to maintain exact temperatures to control, avoid contamination, and keep the contents such as vaccines, medicines, and other medical supplies safe.
End-user Segment Analysis
In terms of end-users, the global market is categorized as full-service restaurants and hotels, hospitals, retail pharmacies, supermarkets/hypermarkets, convenience stores, quick-service restaurants, and others. The supermarkets/hypermarkets segment accounted for a major share of the market in 2022 due to its ability to offer an extensive product range, low-priced products, and good customer service.
Supermarkets/hypermarkets commonly use commercial refrigeration systems to keep perishable products such as meat, poultry, fish, dairy products, vegetables, and others safe during display.
The full-service restaurants and hotels segment is anticipated to grow at a quick pace during the forecast period owing to growing urbanization, and a rising number of working individuals. Urbanization is encouraging individuals to start their businesses such as full-service restaurants and hotels to provide a relaxed atmosphere, and personalized service to the consumers.
Full-service restaurants and hotels offer a wide range of menu options due to which they require commercial refrigerators to keep vegetables, frozen foods, meat, dairy products, and others safe from bacteria.
Regional Outlook
Based on region, the commercial refrigeration market is divided into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America dominated the market in 2022 due to increasing working population and the presence of established market players such as United Technologies Corporation, Illinois Tool Works Inc., Whirlpool Corporation, and Johnson Controls.
Moreover, increasing number of supermarkets and grocery store businesses in the region is propelling the need for commercial refrigeration, as this refrigeration system is utilized in grocery stores and supermarkets to keep vegetables and other perishable items safe from bacteria. For instance,
The market in Asia Pacific is anticipated to expand at a high CAGR during the forecast period owing to the increasing employment rate, growing disposable income, and improving economic conditions. Moreover, the growth of the hotel industry in the region is expected to boost the demand for commercial refrigeration, as hotels keep refrigeration to offer quality and healthy food to the guests.
Commercial refrigeration help hotels to keep the vegetables, meat, and other perishable item safe and healthy, which increases their adoption in hotels. For instance,
Segments
The commercial refrigeration market has been segmented on the basis of
Product
- Deep Freezers
- Commercial Kitchen Refrigeration
- Bottle Coolers
- Storage Water Coolers
- Medical Refrigeration
- Chest Refrigeration
- Others
End-user
- Full-Service Restaurants and Hotels
- Hospitals
- Retail Pharmacies
- Supermarkets/Hypermarkets
- Convenience Stores
- Quick Service Restaurants
- Others
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Ali Group S.r.l. a Socio Unico
- AB Electrolux
- Blue Star Limited
- Carrier
- DAIKIN INDUSTRIES, Ltd.
- Dover Corporation
- Frigoglass
- Haier Group
- Illinois Tool Works Inc.
- Johnson Controls
- Lennox International Inc
- Panasonic Corporation
- SAMSUNG
- United Technologies Corporation
- Thermo Fisher Scientific Inc.
- Whirlpool Corporation
Competitive Landscape
Key players competing in the global market are Ali Group S.r.l. a Socio Unico; AB Electrolux; Blue Star Limited; Carrier; DAIKIN INDUSTRIES, Ltd.; Dover Corporation; Frigoglass; Haier Group; Illinois Tool Works Inc.; Johnson Controls; Lennox International Inc; Panasonic Corporation; SAMSUNG; Thermo Fisher Scientific Inc.; United Technologies Corporation; and Whirlpool Corporation.
These companies adopted development strategies including collaboration, product launches, mergers, acquisitions, partnerships, and production expansion to expand their consumer base worldwide. For instance,
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On August 16, 2023, Thermo Fisher Scientific Inc. a US-based supplier of life sciences solutions, laboratory, pharmaceutical, and biotechnology services launched TSG Series refrigerators for secure storage of critical vaccines and pharmaceuticals within laboratory, pharmacy, and clinical settings. These refrigerators are poised to mitigate risks associated with temperature fluctuations, ensuring the potency, and effectiveness of medical products.
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On March 7, 2023, Blue Star an India-based multinational company specialized in air conditioning systems, commercial refrigeration, and MEP introduced a novel range of deep freezers with extra storage and higher cooling capacity for commercial users.
The range of deep freezers are manufactured at Blue Star’s new state-of-the-art Wada Plant and embedded with superior technologies for highly efficient performance including technologies that provide extra cooling and high heat transfer for efficient cooling, among others.
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