Regardless of destination or segmentation on the basis of their application, sales of commercial refrigeration systems will continue to grow worldwide.
By Dan Orehov
One of the current key trends in the segment of commercial refrigeration systems in customization depending on the demand of the user. For example, according to the latest report by Future Market Insights (FMI), expanding food chain, mostly in tier II and tier I cities in developing regions is significantly driving growth in this area. Customization also refers to the destination of said systems, retail or foodservice, i.e. grocery stores, supermarkets, convenience stores and on the other side of the spectrum, restaurants, hotels, cafeterias etc.
The global commercial refrigeration system market is also segmented on the basis of refrigerant types that arehydro chlorofluorocarbon (HCFC), hydro fluorocarbon (HFC), hydrocarbon (HC), inorganic which includes ammonia and carbon dioxide.
“The refrigerants markets which are used in refrigeration systems are expected to grow at a CAGR of 5 to 7% and fuel the growth of global refrigeration system market but the use of some refrigerants is leading to greenhouse effect and is giving way to the use of green refrigerants,” FMI explains.
Regional breakdown
Overall, the global commercial refrigeration system market is estimated to grow almost two fold during the forecast period and register double digit CAGR. North America is the market in terms of revenue share, followed by APAC and Europe. Growth in the food and service industry and changing consumer preferences for dining food in North America is driving growth in commercial refrigeration system market domestically. In Europe, however, the growing interest in frozen food will encourage growth of such systems, especially in retail.
“The market is witnessing an increase in the use of solar powered systems and this technology is anticipated to play a major role in addressing energy scarcity issues. Utilization of advanced refrigerants and energy efficient systems are some of the upcoming trends in global commercial refrigeration system market. More use of commercial refrigeration system in horticulture process and sea food exports is expected to fuel the demand on the market,” according to FMI.
US Commercial Refrigeration Systems to Grow 3.2% by 2025
Growing demand for frozen and chilled products, expansion of cold chain capacity, technological advancements in commercial refrigeration systems and rebates on energy-efficient products and practices are some of the major underlying factors anticipated to fuel growth of the U.S. commercial refrigeration systems market between 2016 and 2025.
“This is forecast to create unprecedented opportunities for commercial refrigeration system manufacturers, distributors and HVAC contractors”, according to market research company Future Market Insights.
Key trends identified in the U.S. commercial refrigeration systems market include rapid adoption of Internet of Things (IoT), compatible commercial refrigeration systems for enhancing system output, government initiatives to support utilization of eco-friendly refrigerants and continued advancements in energy-efficient products. However, declining replacement rate of commercial refrigeration equipment and stringent government regulations could pose major challenge for tier II & III players.
Market Segmentation
The U.S. commercial refrigeration systems market is projected to expand at a healthy CAGR of 3.2% during the forecast period, according to data by FMI. The foodservice segment accounted for the highest share of 30% in terms of value in the U.S. commercial refrigeration systems market in 2014. This segment is expected to remain dominant in the market over the forecast period. Ice machines segment and beer dispensing equipment sub-segment are projected to play an important role in the foodservice industry, due to various factors such as increasing per capita food consumption and rising number of foodservice restaurants in the country.
“The US Southeast region represents the largest market potential, followed by the Middle-east and Far West regions. California, Texas and Florida represent a huge potential for refrigerated systems due to high density of restaurants and convenience stores in these states. Other high-growth markets include Arizona, Georgia and Utah due to rapid growth in the restaurant industry in these states,” said FMI.
According to their report, by product type, the transportation refrigeration systems segment is projected to expand at the highest CAGR of 5.5% during the forecast period due to expansion of cold chain capacity in the U.S. It is observed that customization holds the key for tier 2 and tier 3 players in order to further penetrate into the market, thus creating a competitive threat for tier 1 suppliers in the market. Meanwhile, key players are strengthening their market positions through both organic and inorganic growth. Also, acquisition of HVAC contractors is leading to the addition of a new customer base for commercial refrigeration systems manufacturers.
