Rising demand for food and refrigeration systems in retail outlets, hotels, restaurants, and hospitality drives commercial refrigeration equipment market growth
The rising consumer base in developing economies, rise in disposable incomes, rapidly changing food-consumption trends, and growing demand for food and refrigeration systems in retail stores, hotels, and restaurants is fuelling the growth of the global industry.
The global market size for commercial refrigeration equipment was $30.94 billion for 2015 and is predicted to register a compound annual growth rate (CAGR) of 5.6% during the forecast period. The enormous growth of the hospitality segment and heavy demand for ready-to-eat food is predicted to enhance the demand for commercial refrigeration equipment. This type of equipment consumes less power, which is why it is used in hospitality. Further, the equipment can store perishable food items at suitable temperatures for healthy use, its use is in heavy demand for storing ready-to-eat food products.
The growing amount of supermarkets, hypermarkets, and specialty-food stores is predicted to enhance industry growth during the forecast timeframe. Rising trade of frozen-food products among the nations, due to rapidly changing consumption trends, has resulted in enhanced demand for the global industry. The rate of power consumption of commercial refrigeration devices is constantly improving and is predicted to improve further, owing to favorable government policies and product development. But strict regulation by the European Union and U.S. Environmental Protection Agency toward use of natural refrigerant over fluorochemicals gas refrigerant is a key inhibitor to the growth of the global commercial refrigeration equipment market. Also, growing fuel prices, Kyoto and Montreal protocols, and launches of power-inefficient products are a few of the factors hindering the growth of the industry.
The rising consumer base in developing economies, rise in disposable incomes, rapidly changing food-consumption trends, and growing demand for food and refrigeration systems in retail stores, hotels, and restaurants is fueling the growth of the global industry.
The global commercial refrigeration equipment industry's product segment includes beverage refrigerators, commercial refrigeration device components, transport refrigeration devices, refrigerators and freezers, and other equipment like ice machines, compressor racks, liquid chillers, and display cases.
In 2014, the "other equipment" category dominated the industry by claiming a maximum revenue share of the global industry. Growth can be credited to a growing demand for refrigerated display cases in retail provision stores.
The transportation refrigeration device category is predicted to rapidly grow during the forecast period due to large-scale capital investment. It is predicted to register a CAGR of 6.8% during the forecast period. The beverage refrigerator category is predicted to experience substantial growth due to the increasing amount of hotels and restaurants.
The global commercial refrigeration equipment market's applications segment includes food service, food and beverage distribution, food and beverage production, and food and beverage retail.
Food service contributed maximum revenue share and led the global industry for 2014. The category is predicted to dominate the global industry during the forecast timeframe. Rising demand for fast foods and growing expenditure on frozen foods due to rapid urbanization is predicted to propel future growth.
Food and beverage production is predicted to register CAGR of 6.6% during the forecast period, owing to current technological innovations like remote-monitoring devices that help identify system pressure, refrigeration leaks, and high liquid levels.
The growing global food trade is creating heavy demand for storing processed foods, frozen foods, and seafood. This is predicted to propel the growth of food and beverage distribution.
Food service is also predicted to grow rapidly during the forecast period, owing to its large-scale application in restaurants, supermarkets, and convenience stores where food is served.
The global industry is broken into key geographical regions that include North America, Asia-Pacific (APAC), Europe, Latin America, and Middle East-Africa (MEA).
APAC is predicted to dominate the global commercial refrigeration equipment market during the forecast period in terms of revenue. The growth is credited to factors like an increase in per-capita income and maximum gains in fixed capital-investment spending.
The U.S. commercial refrigeration equipment market is the biggest in North America, contributing maximum share for 2015. Growing capital investment and huge spending on nonresidential construction activities in the U.S. are the factors contributing to the growth of the industry. North America is predicted to lead the global industry during the forecast period due to factors like an enhanced macroeconomic overview, increasing consumer spending on food, and a rising number of restaurants and hotels.
Key industry players are entering into mergers and acquisitions and forming strategic alliances and joint ventures to expand their business and gain competitive advantage. They are introducing new products in the market and investing heavily in research and development activities to gain maximum industry share and earn maximum return on investments.
Leading market participants supporting the growth of the global commercial refrigeration equipment market include:
- United Technologies Corp.
- Metalfrio Solutions SA
- Daikin Industries Ltd.
- Ingersoll Rand PLC
- Danfoss A/S
- Illinois Tool Works Inc.
- Whirlpool Corp.
- Electrolux AB
- Dover Corp.
- Hussmann Corp.
- Haier Inc.
- Beverage-Air Corp.
- Johnson Controls
- AHT Cooling Systems GmbH
-This article originally appeared on Global Market Insights. Global Market Insights is a CFE Media content partner.