Commercial Refrigeration Equipment Market Report 2025 (Global Edition)

Market Dynamics of Commercial Refrigeration Equipment :

Key Drivers of the Commercial Refrigeration Equipment Market

• Investments in the Food and Beverage sector will drive the demand for commercial refrigeration equipment -

As one of the top industries across each region, the food and beverage refrigeration sector contributes the most to the global GDP each year. The business serves consumers with food products that are made from its raw farm commodities, which are produced on over 2 million farms. This boosts the rate of manufacturing and consumption of sales of commercial refrigeration equipment on a worldwide scale. In the equipment processing sector, foreign direct investment (FDI) climbed by 86% between April 2022 and September 2022, totalling USD 410.62 million, as opposed to USD 220.42 million in the same period in 2021. Such investment in the equipment and beverage sector supports the market's expansion on a worldwide scale. For instance, according to a report published by the parliament of India, between April 2014 and September 2021, the industry saw FDI equity investment of US$ 4.99 billion as a result of several significant efforts, including: Pradhan Mantri Kisan Sampada Yojana, Mega Equipment Parks Scheme, Integrated Cold Chain and Value Addition Infrastructure Scheme, Operation Greens, Creation of Backward and Forward Linkages Scheme, PM Formalisation of Micro Equipment Processing Enterprises, and Production Linked Incentive Scheme for Equipment Processing Industry

Source- https://loksabhadocs.nic.in/Refinput/New_Reference_Notes/English/18072022_100034_1021205175.pdf

• Increasing demand for frozen and processed food will result in greater demand for commercial refrigeration equipment -

To produce, process, and transport equipment to billions of households worldwide, the food processing industry needs tools and solutions that cover a wide range of activities, from farming to logistics. The global population continues to increase and dietary preferences are changing to reflect rising affluence and a shift toward value-added products, making this industry more and more significant. The shifting dietary patterns of the urban population are driving up demand for both fresh and processed fruits and vegetables worldwide. The demand for processed and fresh fruits and vegetables has increased as a result of rising disposable incomes in emerging economies. Around the world, frozen food products are progressively becoming a staple of everyday meals. For instance, according to the American Frozen Food Institute, a year-over-year increase of 21.7% was observed during the week ending August 23, up from the +19.5% gain that was recorded the previous week, as a result of both positive and negative developments pertaining to frozen food.

Source- https://affi.org/wp-content/uploads/2020/09/Retail-Market-Insights-8-31-20-Update.pdf

Thus, increasing demand for frozen and processed food will result in greater demand for commercial refrigeration equipment.

• Innovation in technology will drive the growth in the commercial refrigeration equipment market-

Innovative designs are being developed by market players in response to the growing demand for energy-efficient commercial refrigeration units, which is being driven by increased awareness of these units' cost-effectiveness and environmental qualities. For instance, Leading transport refrigeration producer Frigoblock, a division of Thermo King, tested and began delivering electric multi-temperature vehicles in February 2023. These vehicles are energy-efficient and are gaining popularity in the sector. 

Source- https://www.frigoblock.com/news/

The need for commercial refrigeration systems for the storage and delivery of frozen goods, processed food, and seafood has increased due to a significant increase in the global equipment trade. The need for the products is being further driven by ongoing developments and quick advancements in technology, such as ammonia absorption systems and liquid-vapor compression. To obtain a competitive edge in the market, a number of top manufacturers are concentrating on research and development efforts to improve the design and temperature control of their goods. Over the course of the forecast period, the refrigeration industry is likely to have plenty of growth prospects due to the growing requirement to regulate and monitor the conditions of a commercial kitchen. 
Goods with intelligent or automatic refrigeration controls are becoming extremely popular.
Thus, innovation in technology will drive the growth in the commercial refrigeration equipment market-

• Research and development for Energy Efficiency and Sustainability concerns will drive the market for commercial refrigeration equipment -

An important trend propelling the use of commercial refrigeration systems in the US is the increased emphasis on sustainability and energy efficiency. Companies are looking for refrigeration systems that are both energy-efficient and compliant with strict environmental laws. This tendency is seen in the combination of energy-efficient compressors, cutting-edge insulating materials, and environmentally friendly refrigerants. Businesses are coordinating their products to meet the increasing need for ecologically friendly solutions.

Manufacturers have been compelled to create alternatives due to climate concerns around high greenhouse gas pressure refrigerants, such as ozone depletion and global warming. Participants in the market have been encouraged to incorporate cutting-edge magnetic refrigeration systems into their products due to the growing demand for technology that can handle dangerous gas emissions. These technologies help reduce operating expenses by increasing refrigeration equipment's energy efficiency.
Businesses are increasingly opting for retrofitting and updating services instead of buying entirety new refrigeration systems. The purpose of this trend is to fulfil changing regulatory requirements, lower energy consumption, and improve the efficiency of currently in-use equipment. Businesses that offer retrofitting solutions are seeing a rise in business. They now provide reasonably priced options for companies wishing to update their refrigeration system without having to make a big capital expenditure.

Thus, research and development for Energy Efficiency and Sustainability concerns leading to innovative products will drive the market for commercial refrigeration equipment.

• The rise of E-Commerce will lead to a greater demand for commercial refrigeration equipment-

The adoption of commercial refrigeration equipment is directly impacted by the expansion of eCommerce and the rising need for effective cold chain logistics. The increasing number of people who purchase groceries online has increased the need for sophisticated refrigeration systems. For instance, according to the National Bureau of Economic Research, In May 2020, sales of groceries purchased online set a new high, rising 450% from August 2019. 

Source- https://www.nber.org/system/files/working_papers/w28639/w28639.pdf

This need is further highlighted by the requirement for temperature-controlled perishable commodities transportation. Businesses are coordinating their product lines to meet the needs of the growing cold chain logistics market. They are incorporating measures that guarantee the integrity of goods while they are being stored and transported.
Over time, there has been a notable increase in the need for necessities like food and groceries. E-commerce platforms are growing as a result of the surge in demand for necessities.
Thus, the rise of E-Commerce will lead to a greater demand for commercial refrigeration equipment.

Restraints of the Commercial Refrigeration Equipment Market

• The high cost of purchase and installation of commercial refrigeration equipment will restrict the market growth. -

The adoption of expensive refrigeration systems across a range of industries is hampered by the high initial cost and ongoing upkeep of such massive equipment. 
Commercial refrigeration systems are utilized in high-load applications, and due to this, they are subject to stringent regulations.
Commercial-grade refrigerants, which are created in accordance with government requirements to limit carbon emissions and greenhouse gas impact, are used in commercial refrigeration systems. Additionally, because commercial refrigerators and freezers are designed to fit in large locations, the price of the equipment varies depending on size and use. This is because the equipment is used in commercial settings. As a result, purchasing expensive refrigeration systems requires a substantial initial expenditure, and maintaining such massive equipment becomes a barrier to the adoption of systems across numerous industries.
The price of purchasing and setting up refrigeration systems might differ significantly based on the type, size, and complexity of the required equipment. Small enterprises, who might not have the funds to buy the equipment altogether, may find the first outlay particularly frightening. Operating the refrigeration equipment may incur additional costs for energy and continuous maintenance and repairs in addition to the initial cost. These costs can mount up over time and may further discourage some enterprises.

Thus, the primary cause of the slow rate of growth is the initial high expense of purchasing and setting up cutting-edge commercial refrigeration equipment. Businesses realize the long-term advantages of lower operating expenses and energy savings, but the initial outlay may be exorbitant.
Therefore, the high cost of purchase and installation of commercial refrigeration equipment will restrict market growth. 

• Stringent Regulations will impede market growth-

Sulfur-based refrigerants have a negative impact on the ozone layer. Governments from several nations are enforcing laws to restrict the use of fluorocarbon refrigerants in recognition of this.
It has been agreed upon to gradually phase out the usage of HFCs and HCFCs by placing restrictions on their use.

The expansion of the commercial refrigerant equipment industry is being hindered by regulations established by the Montreal Protocol on specific refrigerants, such as R22. This protocol's primary goal is to reduce the ozone layer's deterioration as a result of refrigerant gas use. Countries have committed to gradually phase out the use of fluorinated refrigerant gases, which deplete the ozone layer, under the terms of this agreement.
Thus, the strict government rules and regulations will obstruct market growth. 

Impact of COVID-19 on the Commercial Refrigeration Equipment Market

The market for commercial refrigeration was interrupted globally in the first and second quarters of 2020 by the abrupt onset of the COVID-19 pandemic. As a result, retail chains began to enfold throughout the sector, posing difficult challenges for the distribution of goods to final consumers. As a result, the margins of the companies producing freezers and commercial refrigerators for different uses shrank.

Conversely, there was a sharp increase in demand for commercial freezers and refrigerators due to the need to prevent prescriptions and medications from spoiling. In addition, the post-pandemic need for frozen food meals increased demand for this technology in both developed and developing nations. From that point on, pharmaceutical companies and supply networks in the medical industry began to prioritize the demand for this technology for the storage of medicinal supplies.
 

Our study will explain complete manufacturing process along with major raw materials required to manufacture end-product. This report helps to make effective decisions determining product position and will assist you to understand opportunities and threats around the globe.

The Global Commercial Refrigeration Equipment Market is witnessing significant growth in the near future.

In 2023, the Refrigerator & Freezer segment accounted for noticeable share of global Commercial Refrigeration Equipment Market and is projected to experience significant growth in the near future.

The Food & Beverage segment is expected to expand at the significant CAGR retaining position throughout the forecast period.

Some of the key companies Standex International Corporation , Daikin Industries Ltd. and others are focusing on its strategy building model to strengthen its product portfolio and expand its business in the global market.

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