U.S. commercial refrigeration equipment demand to exceed $11 billion

U.S. demand for commercial refrigeration equipment is forecast to increase 3.1% per year through 2020 to $11.3 billion, moderating from the 2010-2015 period, when growth was bolstered by a rebound in sales after the economic recession.

03/22/2016


U.S. demand for commercial refrigeration equipment is forecast to increase 3.1% per year through 2020 to $11.3 billion, moderating from the 2010-2015 period, when growth was bolstered by a rebound in sales after the economic recession. Suppliers are expected to benefit from the scheduled 2020 phaseout of R-22 refrigerant, which will prompt commercial refrigeration equipment operators to either retrofit their equipment to use an acceptable alternative refrigerant (increasing demand for parts such as valves and filters), or to replace their existing equipment (boosting system sales). A number of alternative refrigerants can be used instead of R-22, and retrofitting is the less costly option for operators. However, installing new systems provides long-term cost savings due to an increase in energy efficiency. These and other trends are presented in Commercial Refrigeration Equipment, a new study from Freedonia Group, a Cleveland-based industry research firm.

Commercial refrigeration equipment sales growth will also be supported by more stringent minimum energy efficiency standards for certain products, most notably reach-in and walk-in refrigerators and freezers. "These standards will become effective on all reach-ins and walk-ins made after June 2017 and will result in many producers using higher quality and more expensive materials, which will raise average equipment prices and increase 2020 demand in value terms," said analyst Kyle Peters. Continued growth in food and beverage shipments will also boost demand gains for nearly all equipment types.

Transportation refrigeration systems comprise the largest share of commercial refrigeration equipment demand in the U.S., accounting for 23% of the 2015 total. However, these products will record the slowest rate of increase in demand through 2020 due to a significant slowdown in refrigerated truck and trailer fleet expansion activity following a period of robust gains between 2010 and 2015. Beverage refrigeration equipment and display cases will post the fastest sales increases through 2020. Beverage refrigeration equipment sales will be boosted by continued growth in the number of eating and drinking establishments and associated foodservice revenues. Display case demand gains will stem largely from the phaseout of R-22, as many older display case systems still use R-22 as the refrigerant.

US demand for commercial refrigeration equipment is forecast to increase 3.1 percent per year through 2020 to $11.3 billion, moderating from the 2010-2015 period, when growth was bolstered by a rebound in sales after the economic recession. Courtesy: The

Commercial Refrigeration Equipment (published March 2016, 257 pages) is available for $5300 from The Freedonia Group. 



Consulting-Specifying Engineer's Product of the Year (POY) contest is the premier award for new products in the HVAC, fire, electrical, and...
Consulting-Specifying Engineer magazine is dedicated to encouraging and recognizing the most talented young individuals...
The MEP Giants program lists the top mechanical, electrical, plumbing, and fire protection engineering firms in the United States.
2017 MEP Giants; Mergers and acquisitions report; ASHRAE 62.1; LEED v4 updates and tips; Understanding overcurrent protection
Integrating electrical and HVAC for energy efficiency; Mixed-use buildings; ASHRAE 90.4; Wireless fire alarms assessment and challenges
Integrated building networks, NFPA 99, recover waste heat, chilled water systems, Internet of Things, BAS controls
Transformers; Electrical system design; Selecting and sizing transformers; Grounded and ungrounded system design, Paralleling generator systems
Commissioning electrical systems; Designing emergency and standby generator systems; VFDs in high-performance buildings
Tying a microgrid to the smart grid; Paralleling generator systems; Previewing NEC 2017 changes
As brand protection manager for Eaton’s Electrical Sector, Tom Grace oversees counterfeit awareness...
Amara Rozgus is chief editor and content manager of Consulting-Specifier Engineer magazine.
IEEE power industry experts bring their combined experience in the electrical power industry...
Michael Heinsdorf, P.E., LEED AP, CDT is an Engineering Specification Writer at ARCOM MasterSpec.
Automation Engineer; Wood Group
System Integrator; Cross Integrated Systems Group
Fire & Life Safety Engineer; Technip USA Inc.
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me