Commercial & Industrial Refrigeration Market 2024 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2030

INTRODUCTION

Refrigeration and cooling are the major needs for both commercial and industrial segments. Commercial refrigeration involves the use of refrigeration, cooling, and freezing purposes and it is widely used in schools, offices, hospitals, supermarkets, retail shops, etc. Industrial refrigeration involves almost the same performance-related types of equipment but is built for doing heavy-duty tasks as industries operate on large scales in manufacturing, power plants, chemical, and petrochemical, etc.

MARKET OVERVIEW

The global commercial refrigeration equipment market is currently valued at USD 39.11 billion, and market is expected to reach USD 53.53 billion by 2030, with a growth of CAGR of 5.1%. Similarly, the industrial refrigeration systems market is currently valued at USD 20.48 billion and is expected to reach USD 29.2 billion at a CAGR of 5.3%. Industrial refrigeration systems are an essential part of industries as they help preserve food processing and transport medical items at low temperatures.

GROWTH DRIVERS

The quality of preserved and packaged foods is maintained by refrigeration and the market is becoming popular among consumers, with a market of approximately USD 764 million, the market trend is indicating growth in the refrigeration segment. From harvesting to reaching the consumer's hands, refrigeration ensures slowing down microbial growth and food is fresh for a longer period, hence the quality is maintained.

Refrigerated storage, also known as cold storage, is widely used in the pharmaceutical industry for vaccines (COVID-19 outbreak) where drug substances that degrade at room temperature are stored at cool storage conditions, which are defined as 8°C to 15° C. 

Loss of refrigeration may not only cause high monetary losses but may also cause undesired production and supply chain disturbances or increase the business risk exposure through the loss of a buffer (safety) stock.

Commercial refrigeration is being extensively used in restaurants as they use cold storage, air coolers, air conditioners, etc to enhance dining service and quality experience. Most of the foods consumed daily are perishable such as meats, seafood, fruits, vegetables, etc. and the same applies in the food/ grocery delivery industry.

HVAC (heating, ventilation, and air conditioning) systems emerge as indispensable tools that play a pivotal role in ensuring safety & efficiency. The extraction and refining processes in the oil and gas industry generate substantial amounts of heat. Without efficient cooling systems, the equipment can overheat, leading to malfunctions, breakdowns, and even catastrophic failures. HVAC systems play a critical role in dissipating excess heat, maintaining optimal operational temperatures, and prolonging the lifespan of machinery.

There are lot of research and development going for more advancement for less to make it environmentally sustainable so that there is less emission of toxic gases which will contribute to the industry growth.

Ammonia is a natural coolant, according to WELLCH Refrigeration Limited ammonia has zero emission ozone depletion potential (ODP) which makes it an environment-friendly option, providing a greener and excellent alternative to synthetic refrigerants and an environment-sustainable option for industrial refrigeration.

MARKET SEGMENTATION

·         By Product type (Commercial & Industrial) - Freezers, refrigerators, compressors, condensers, HVAC systems, coolants (ammonia)

·         By Applications - Food & Beverage, Pharmaceutical, Logistics, Retail, Hospitality.

·         By Region - North America, Europe, Asia Pacific, the Middle East and Africa, and South America.

Refrigeration Market Product Type Segment Review

The refrigeration industry is experiencing significant growth, driven by the rising demand for refrigeration solutions across various sectors. Among these, transportation, food delivery, restaurants and bar services, food processing, retail shops, and floral markets are some of the primary contributors to this growth. The market can be segmented based on the type of refrigeration systems, which include chillers, freezers, refrigerators, and more.

Moreover, the industrial refrigeration market is also expanding rapidly, especially in industries such as pharmaceutical, chemical, manufacturing, and petrochemical. These industries require compressors, HVAC systems, and condensers for cooling and refrigeration purposes, making it necessary to install them. As a result, the need for refrigeration solutions is expected to continue to grow in the coming years.

Refrigeration Market Application Segment Review

Refrigeration technology has been a game-changer for multiple industries. Not only is it widely used to preserve and protect products, ranging from food and medicine to electronics and chemicals, but its benefits are also crucial in maintaining product quality and safety.

 From retail shops to cold chain supply and infrastructure, and from food delivery services to various types of restaurants, refrigeration technology is used extensively across different industries. Home appliances and transportation also heavily rely on this technology.

 The processing and preserving industries are perhaps the most significant beneficiaries of refrigeration technology, it increases the shelf life of several products. Refrigeration technology has become an integral part of various industries, and its role in preserving and protecting products is critical for ensuring their quality and safety.

Refrigeration Market Regional Analysis

In 2022, the Asia Pacific region dominated the refrigerant market, both in terms of value and volume. It is projected that this trend will continue, as the region is expected to maintain the highest compound annual growth rate. Refrigerant has become a popular choice in the Asia Pacific market, due to its ability to prolong the shelf life of food by preventing bacterial development and ensuring hygiene. As a result, it has established a strong presence in the region over the years.

The North American region is experiencing a rise in government initiatives aimed at promoting sustainable practices in food manufacturing. One of these initiatives is the Significant New Alternatives Policy (SNAP), which encourages the use of environment-friendly refrigerant solutions by food manufacturers. In addition to SNAP, there is also an ACT that has been implemented to encourage the use of industrial refrigerant solutions in the region. The goal of this ACT is to reduce food wastage by ensuring that food is stored safely and sustainably. Manufacturers that adopt sustainable practices and use environment-friendly refrigerant solutions are more likely to attract customers who are concerned about the environmental impact of their food choices.

In Europe, there has been an increase in the purchase of household appliances such as freezers, vapor compressor refrigerators, and integrated vapor compressor refrigerators. The revenue generated from these purchases has grown compared to the previous year. User penetration is expected to increase by the forecasted period. Additionally, since the population is more concentrated in urban regions, people are spending more on lifestyle changes, which is fueling the growth of the market.

The refrigeration market is experiencing significant growth in the Middle East and Africa regions. This is due to the increasing hospitality rate in the Middle East, where the food industry is thriving. In Africa, regional projections predict strong growth in the retail and beverage sector, driven by the food retail industry, medium-sized grocery stores or supermarkets, and restaurants, particularly in commercial refrigeration.

South America's consumption of ready-to-eat products, beverages, and frozen food is increasing year over year, which is further boosting the commercial refrigeration equipment market. The increased number of large stores, small grocery retail stores, and small quick service cafes and restaurants are upgrading their infrastructure with improved electronic appliances including refrigeration, air conditioners, and freezers.

Key Challenges

The release of harmful gases (CFCs and HCFCs) is serious environmental concern. Ensuring quality of work, it is crucial to maintaining proper temperature levels according to the demand and heavy-duty types of equipment are costly to install and maintain.

Commercial and Industrial Refrigeration competitive Landscape and Key players:

The competitive landscape of the commercial and industrial refrigeration is shaped by several factors, including:

Companies that formed strategic partnerships with major supermarket chains to provide customized refrigeration solutions will have increased sales and will foster long-term relationships with end users.

Companies with major contracts will have stable revenue streams and brand recognition.

Companies focused on expanding their market presence in an emerging economy will receive more contracts and witness potential growth.

A strong track record of after-sales-service and support, enhances customer satisfaction resulting in growth of the company.

Global Key Players

·         Carrier Commercial Refrigeration

·         Haier

·         Hoshizaki International

·         Johnson Controls International Plc

·         GEA Group Aktiengesellschaft

·         Daikin Industries, Ltd.

·         Danfoss

·         Voltas

·         Panasonic

·         Ugur Cooling

·         Arneg

·         Frigoglass

·         AHT Cooling Systems