The U.S. commercial refrigeration systems market is projected to expand at a healthy CAGR of 3.2% in terms of value by 2025.
Growing demand for frozen and chilled products, expansion of cold chain capacity, technological advancements in commercial refrigeration systems and rebates for 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 systems manufacturers, distributors and HVAC contractors, according to a report by Future Market Insights.
“By application, 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. By product type, 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. By region, 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,” according to the report.
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.