Commercial Refrigeration Market

Global Commercial Refrigeration Market Size (2024 to 2032)

The size of the global commercial refrigeration market size was valued at USD 36.55 billion in 2023. The global market size is expected to reach USD 57.18 billion by 2032 from USD 38.41 billion in 2024. The market's promising CAGR for the predicted period is 5.1%.

MARKET DRIVERS

The growing demand for packaged food and the rise in food safety regulations contribute to the growth of the commercial refrigeration market.

The increase in demand for frozen & chilled products among consumers associated with the changes in lifestyle, rapid urbanization and an increasing number of hypermarkets and supermarkets majorly propel the growth of the commercial refrigeration market. In addition, creating the popularity of the products through online portals and growing disposable income in both developed and developing countries is likely to propel the growth rate of the commercial refrigeration market.  

Technology advancements in the commercial refrigeration market have revolutionized. Energy-efficient systems reduce operating costs and environmental impact, prompting the replacement of older equipment. Digital controls provide precise temperature regulation and real-time monitoring, ensuring product quality and safety. Smart refrigeration solutions leverage IoT and data analytics for remote monitoring, predictive maintenance, and energy optimization, enhancing efficiency and reducing downtime. These innovations not only align with sustainability goals but also fuelling the market’s growth rate.

The commercial refrigeration market is thriving in response to the food service industry by encompassing restaurants, fast-food chains, and catering services, which is a reason behind the surging demand for commercial refrigeration equipment. With a relentless need to store and maintain the freshness of perishable food products, market participants in this sector are increasingly reliant on advanced refrigeration solutions. These systems ensure food safety, extend shelf life, and uphold quality standards, aligning perfectly for storage. As the food service industry continues to expand, the commercial refrigeration market trend is witnessing a steady rise, making it an essential component in supporting this thriving sector.

MARKET RESTRAINTS

The need for frequent maintenance of refrigerators is one of the major restraints affecting the growth of the commercial refrigeration market. Potential technical issues arising due to lack of proper maintenance are also impeding the commercial refrigeration market High cost and pricing dynamics pose a significant restraint in the commercial refrigeration market. Along with this, a growing number of technical issues are slightly hindering the growth of the market. Commercial refrigeration needs frequent maintenance according to the usage. The maintenance cost for this refrigeration is comparatively very high, which small-scale industries cannot afford, which is acting as a barrier to the market growth rate.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Commercial Refrigeration Market By Type

The commercial kitchen refrigeration segment holds the largest share of the global market during the forecast period 2024 to 2032.

Commercial kitchens in restaurants, hotels, and catering establishments require a wide range of refrigeration equipment to store and preserve perishable food items. These establishments depend heavily on refrigerators, freezers, and walk-in coolers to maintain food safety and quality. Also, stringent food safety regulations and the need to meet customer expectations for freshness and taste drive the consistent demand for commercial kitchen refrigeration solutions. The constant innovation in energy-efficient and space-saving refrigeration systems also contributes to the market's growth. Given the central role of commercial kitchen refrigeration in the food service industry, it holds a significant share in the market.

The deep freezers segment is anticipated to account for the second-largest share of the worldwide market in the coming years. Deep freezers are particularly used in sectors like supermarkets, convenience stores, and ice cream Parlors. The need for frozen food storage, ice cream preservation, and quick access to frozen products keeps deep freezers in demand.

The storage water coolers segment is expected to capture a substantial share of the global commercial refrigeration market during the forecast period. Storage water coolers are vital for maintaining a constant supply of cold water in various settings, including offices, educational institutions, and public places. Their role in providing access to chilled drinking water and their energy-efficient designs contribute to their presence in the market.

The medical refrigeration segment is estimated to showcase a notable CAGR during the forecast period. Medical refrigeration holds a specialized but crucial place in the market, serving healthcare facilities, laboratories, and pharmacies. These refrigeration units are designed to store medications, vaccines, blood samples, and sensitive medical supplies at precise temperatures, ensuring their efficacy and safety.

The chest refrigeration segment is predicted to witness a healthy CAGR in the coming years. Chest refrigeration represents a category of refrigeration units known for their capacity to store a large volume of products efficiently. These units are often used in grocery stores and supermarkets to display and store frozen and refrigerated items.

Global Commercial Refrigeration Market By End-Users

The supermarket/hypermarket segment had the leading share of the global commercial refrigeration market in 2022 and the domination of the segment is likely to continue during the forecast period.

The supermarket/hypermarket dominates the market due to its comprehensive range of commercial refrigeration solutions to store and display a vast array of perishable products, including fresh produce, dairy, meat, and frozen goods. The need to ensure food safety, quality, and attractiveness to customers drives a continuous demand for refrigeration equipment.

The food processing industry segment holds the second-largest share of the commercial refrigeration market during the forecast period. Food processing facilities rely heavily on refrigeration to maintain the freshness and safety of ingredients, intermediate products, and finished goods.

The hospital segment is expected to occupy a notable share of the global market during the forecast period. Hospitals represent another crucial end-user category in the commercial refrigeration market. These healthcare facilities rely on refrigeration to store vaccines, medications, blood samples, and sensitive medical supplies at precise temperatures.

The full-service restaurants and hotels segment is projected to account for a prominent share of the global market during the forecast period. Full-service restaurants and hotels require various types of commercial refrigeration equipment for their kitchens, bars, and storage areas. The need to maintain food quality, adhere to food safety regulations, and cater to guest preferences keeps this category in demand.

The retail pharmacies segment is estimated to hold a considerable share of the worldwide market during the forecast period. Retail pharmacies rely on refrigeration to store temperature-sensitive medications and vaccines. The growing emphasis on patient safety and the expanding pharmaceutical industry contributes to the demand for specialized refrigeration solutions in this sector.

The quick-service restaurants segment is expected to register a healthy CAGR in the coming years. Quick Service Restaurants require refrigeration equipment to store ingredients and prepared foods, ensuring fast and efficient service. The fast-food industry's growth and the need for quick and accessible food options contribute to the market's demand in this category.

REGIONAL ANALYSIS

North America dominates the commercial refrigeration market due to the increasing number of restaurants, supermarkets, convenience stores, and cold storage facilities.

The Asia-Pacific holds the second largest market share with the rising adoption of modern retail formats. Countries like China and India are majorly contributing the largest shares of the market. Increasing disposable income and quick adoption of innovative technologies are prompting the growth rate of the market.

Europe's commercial refrigeration market is likely to hit a promising growth rate during the forecast period, driven by a thriving hospitality and retail sector.

In the Middle East and Africa, the commercial refrigeration market is gradually expanding as economic development and urbanization contribute to higher demand for refrigerated storage and display solutions. The region's thriving hospitality industry and the growth of the cold chain logistics sector further propel the market's growth.

Latin America also plays a notable role in the commercial refrigeration market, with a focus on catering to the food service and retail sectors.

The region's consumers value product freshness and quality, driving the demand for refrigerated display cases and storage solutions. Latin America's emerging economies and a growing middle class contribute to the expansion of modern retail formats, further boosting the market's growth.

KEY MARKET PLAYERS

Illinois Tool Works Inc. (I.T.W.), Johnson Controls International Plc, United Technologies Corporation, Daikin Industries Ltd., Dover Corporation, Ali Group Srl, Frigoglass S.A.I.C., AB Electrolux, Panasonic Corporation and Haier Electronics Group Co., Ltd are some of the major players in the global commercial refrigeration market.

RECENT HAPPENINGS IN THE MARKET

• In 2022, Emerson launched digital solutions for commercial refrigeration, enabling remote monitoring and predictive maintenance. The company developed refrigeration technologies that use low-global warming potential (GWP) refrigerants.

• In 2022, Carrier launched new energy-efficient refrigeration systems and updated its product portfolio to comply with environmental regulations. The company focused on sustainability initiatives, including reducing the carbon footprint of its products.

• In 2022, Daikin introduced advanced refrigeration systems with improved energy efficiency and environmental performance. The company expanded its presence in emerging markets, catering to the growing demand for commercial refrigeration.
• In 2023, Dover's Refrigeration & Food Equipment division continued to innovate in refrigerated display cases and cold storage solutions. The division emphasized sustainable design and energy-efficient technologies.
• In 2023, Hillphoenix introduced next-generation refrigerated display cases with enhanced energy efficiency and improved merchandising capabilities. The company collaborated with retailers to design sustainable and eco-friendly refrigeration solutions.

DETAILED SEGMENTATION OF THE GLOBAL COMMERCIAL REFRIGERATION MARKET INCLUDED IN THIS REPORT

This research report on the global commercial refrigeration market has been segmented & sub-segmented based on the product type, end-users, refrigeration type, and region.

By Type

• Deep Freezers
• Bottle Coolers
• Storage Water Coolers
• Commercial Kitchen Refrigeration
• Medical Refrigeration
• Chest Refrigeration
• Other Types

By End-Users

• Full-Service Restaurants & Hotels
• Food Processing Industry
• Hospitals
• Retail Pharmacies
• Supermarkets or Hypermarkets
• Convenience Stores
• Quick Service Restaurants
• Other Types of End-Users

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa