The commercial refrigeration equipment market is estimated to be valued at US$ 55.89 Bn in 2023 and is expected to exhibit a CAGR of 4.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Commercial refrigeration equipment refers to machines and appliances used for commercial food storage and display. These include beverage coolers, refrigerated display cases, frozen food cabinets, ice machines etc. Commercial refrigeration equipment helps in extending the shelf life of perishable food items and beverages by slowing down bacterial growth and oxidation reactions. They are indispensable for restaurants, grocery stores, convenience stores, pubs, cafeterias and catering businesses.

Market key trends:

One of the major trends driving growth of the commercial refrigeration equipment market is rising food demand owing to rapid urbanization and changing food consumption patterns. According to projections, the global population will increase by 2 billion in the next 30 years, putting pressure on already strained agricultural systems and food supply chains. This is expected to drive demand for food storage and preservation equipment like commercial refrigerators and freezers. Furthermore, the number of restaurants, retail food outlets and supermarkets are increasing globally especially in emerging countries in line with growing spending power, Western influence and busy lifestyles. Retailers are expanding their frozen and chilled food section to cater to this growing demand which bodes well for the commercial refrigeration market. Lastly, technological advancements in energy efficiency, digital controls and smart connectivity features of commercial refrigeration systems are making them an attractive choice for food retailers.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is moderate as commercial refrigeration requires significant capital investments and technical expertise. New players also have to compete against established brands.

Bargaining power of buyers: The bargaining power of buyers is moderate to high as they have a wide array of products and brands to choose from based on their requirement. Buyers can negotiate on pricing and financing terms.

Bargaining power of suppliers: The bargaining power of suppliers is low to moderate as commercial refrigeration equipment requires components from multiple tier 1 and tier 2 suppliers globally. Suppliers have to maintain long term relationships.

Threat of new substitutes: The threat of new substitutes is low as there are limited product substitutes that can effectively perform commercial refrigeration functions.

Competitive rivalry: Intense due to presence of global and regional players.

SWOT Analysis

Strength: Wide product portfolio, global presence, technical expertise, strong brand recall.

Weakness: High R&D and capex requirements, supply chain disruptions.

Opportunity: Growth in food retail and food service industries, rising demand in emerging economies.

Threats: Volatility in raw material prices, trade barriers and regulations.

Key Takeaways

The global commercial refrigeration equipment market is expected to witness high growth, exhibiting CAGR of 4.7% over the forecast period, due to increasing food production and retail industry expansion globally. North America dominated the market in 2023 with a share of over 30%, led by the large food retail and food services sectors in the US and Canada.

The Asia Pacific region is expected to be the fastest growing market, expanding at a CAGR of around 6% during the forecast period. Rapid urbanization and rising disposable incomes are driving the demand for commercial refrigeration equipment in countries such as China, India, Indonesia and Vietnam.

Key players operating in the commercial refrigeration equipment market are United Technologies Corporation, Ingersoll-Rand plc, Johnson Controls Incorporated, Daikin Industries Limited, Dover Corporation, Hussmann Corporation, AHT Cooling Systems GmbH, Ali SpA, Illinois Tool Works Incorporated, Emerson Electric Company, Leer Incorporated, True Manufacturing Company Incorporated, and Whirlpool Corporation. These players are focusing on new product launches and partnerships to strengthen their market positions.

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