Global Commercial Refrigeration Equipment Market - 2022-2029
The global commercial refrigeration equipment market size was worth US$ XX million in 2021 and is estimated to reach US$ XX million by 2029, growing at a CAGR of XX% during the forecast period (2022-2029).
Commercial refrigeration equipment refers to a mechanical refrigeration system used to store and display perishable goods such as fruits, vegetables, meat and poultry in various places such as restaurants and grocery stores. The commercial refrigeration equipment consists of a compressor, condenser and evaporator. The compressor is driven by electric power and compresses a low-temperature, low-pressure refrigerant into high-temperature, high-pressure gas.
The condenser changes the state of the gas into liquid through heat exchange. The evaporator is positioned in the refrigerated area and uses a thermostatically controlled expansion valve to convert the liquid refrigerant into a low-pressure, low-temperature gas. The cycle is repeated until the desired temperature is obtained.
The demand for commercial refrigeration equipment systems is driven primarily by the increasing global consumption of frozen foods due to modern lifestyle choices. The rising health concerns of long-term consumption of frozen foods represent a key challenge for the growth of this market.
Increasing global consumption of frozen foods
Modern lifestyles, increased disposable incomes, strong economic growth and globalization have caused changes in food habits globally. Trends indicate an increasing demand among consumers for quick and easy meals, especially among the emerging markets of Asia-Pacific, Middle-East & Africa. Ready-to-eat meals primarily fulfill the demand along with local and global quick-service restaurant chains such as KFC and Mcdonald's. Ready-to-eat meals are typically flash-frozen and only require heating to serve.
Quick service restaurants rely on batches of pre-cooked frozen food that can be just heated to ensure prompt service. Global trade has ensured the availability of a wide variety of choices for the average consumer. The most exotic fruits, vegetables, seafood and meats from around the world are available in local grocery supermarkets due to commercial refrigeration systems. The ever-increasing consumption of frozen foods will drive the growth trends for the global commercial refrigeration equipment market.
Health concerns about the consumption of frozen foods
Modern lifestyles and increased disposable incomes have seen a big rise in the global consumption of frozen foods. However, most frozen foods are processed and contain high sodium, trans fats, saturated fats and added sugar. The consumption of unhealthy processed frozen foods leads to health complications such as diabetes and heart disease. The World Health Organization (WHO) estimates heart disease as the leading cause of death globally, with nearly 17.9 million deaths in 2019.
It has also raised concerns about the alarming increase in the rates of diabetes, especially in the developing world. The health effects of frozen food consumption are gaining widespread attention and are prompting a global debate about modern lifestyle choices. The increasing health concerns about the consumption of frozen foods will be a key challenge for the growth of the global commercial refrigeration equipment market since the frozen food industry is the single largest user of this market.
COVID-19 impact analysis
The manufacturing industry experienced sharp declines in production and sales in 2020 due to the COVID-19 pandemic. Governments worldwide imposed lockdowns and other movement restrictions to curb the pandemic. Manufacturers had to suspend operations temporarily. Production resumed with certain restrictions after lifting initial lockdowns in late 2020, although demand is not expected to surpass pre-pandemic levels before 2021.
The COVID-19 pandemics caused knock-on effects on the global supply chains. It has created shortages of essential components for the commercial refrigeration equipment industry. The shortages have resulted in long lead times and reduced production rates, even after the complete lifting of pandemic-related restrictions. Even as end-use applications saw encouraging growth, the industry has struggled to meet demand. The pandemic will not majorly impact the long-term growth of the commercial refrigeration equipment market since the consumption of frozen foods will continue to increase in the coming years.
The commercial refrigeration equipment market is segmented into system, refrigerant, product, application and region. The global refrigeration equipment market is segmented into hotels and restaurants, supermarkets and hypermarkets, convenience stores and bakeries based on application. Supermarkets and hypermarkets are leading in this segment as the largest use of commercial refrigeration equipment is to display fresh fruits, vegetables, meat, seafood and other perishable food items.
Asia-Pacific is leading in the global commercial refrigeration equipment market primarily due to the demand generated by major emerging markets like China, India, Malaysia, Thailand and Indonesia and developed markets such as Japan and South Korea.
The sustained high economic growth experienced by this region has led to increased disposable incomes and the adoption of modern lifestyle practices. It has generated a huge demand for ready-to-eat meals and fast-food restaurants. All the major international fast-food brands, such as KFC, McDonald’s, Subway, Pizza Hut, etc., have a presence in this region and are rapidly scaling up operations.
The Asia-Pacific is also home to some of the largest frozen food producers, many of which are located in China, Japan and South Korea. The above factors make the Asia-Pacific region the dominant region for the global commercial refrigeration equipment market. The market share of the Asia-Pacific will only increase in the coming years.
The global commercial refrigeration equipment market is highly competitive due to the availability of a wide variety of proprietary refrigeration systems for different commercial applications. Some of the major players in the market are Carrier, Daikin Industries Ltd., Danfoss, Daikin Industries, Johnson Controls, Bitzer, Haier Inc., Emerson Electric Co., KCR Inc. and Heatcraft Worldwide Refrigeration. The major players in the commercial refrigeration equipment market adopt several growth strategies such as new product launches, collaborations, joint ventures and collaborations, contributing to growth in the global industry.
Overview: Carrier is a major engineering company with interests in refrigeration, air-conditioning, fire security systems and home appliances. The company was founded in 1915 by engineer Willis Carrier, considered the father of modern air-conditioning and is headquartered in Palm Beach Gardens, Florida, U.S.
Monaxis NC/NCH is a multi-deck refrigeration display for fresh fruits and vegetables. It utilizes refrigeration such as R744, R134A and R404A and has an operating range of 0-12℃. The case is made of stainless steel.
In late 2021, Carrier announced the completion of installation and certification of a commercial refrigeration system for the kitchens of the athlete village for the Winter Olympic Games Beijing 2022. The project was completed under a joint venture with Haier Inc.
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Visualize the composition of the commercial refrigeration equipment market segmentation by system, product, refrigerant, application and region, highlighting the critical commercial assets and players.
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The global commercial refrigeration equipment market report would provide access to an approx.: 65 market data tables, 70 figures and 207 pages
Target Audience 2022
Refrigeration equipment manufacturers
Grocery and food retailers
Frozen food companies
Industry Investors/Investment Bankers
Education & Research Institutes
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