Commercial Refrigeration Equipment Market to Grow at 5.7% CAGR from 2015-2020
Market is being driven by the growth of the supermarket, hypermarket, and organized food retail chains
NEW YORK — The global commercial refrigeration equipment market was valued at $29.6 billion in 2014 and it is expected to reach $40.9 billion by 2020, according to a report from P&S Market Research. The firm forecasts the market to grow at a compound annual growth rate (CAGR) of 5.7 percent, in terms of value, from 2015 to 2020.
The commercial refrigeration market is being driven by the growth of the supermarket, hypermarket, and organized food retail chains. According to Institution of Mechanical Engineers, in the year 2014, 25 percent of total food production in developing countries was wasted mainly due to improper refrigeration. In Africa, about 50 percent of the food and vegetables are wasted due to the lack of commercial refrigeration equipment.
Based on type of equipment, beverage refrigeration equipment is expected to witness the fastest growth (7.2 percent CAGR) from 2015 to 2020. Display cases, walk-in coolers, and refrigeration for beverages together accounted for about 60 percent of the global commercial refrigeration equipment market in 2014. The significant growth in the number of supermarkets and hypermarkets in developing nations has boosted the demand for energy efficient refrigeration equipment in recent years. With supermarket refrigeration equipment accounting for about 60 percent of the total electricity consumption of supermarkets, saving energy and optimizing operating costs will remain one of the top concerns for the commercial refrigeration equipment players in the maturing market of Western countries. In addition, innovation in product design, refrigerants, and improvement in overall energy consumption have facilitated the introduction of advanced commercial refrigeration products, such as multi-deck display cabinets and open-front refrigeration cases, over the years.
The average floor space of major grocery and food retailers in North America has grown in recent years, which in turn facilitated the installation of new refrigeration equipment in these stores. The growth of the commercial refrigeration market in North America is largely expected to come from the replacement and repair of currently used equipment. The European commercial refrigeration equipment market is heading towards maturity and the growth is mainly expected from the emerging countries of Asia-Pacific. The Asia-Pacific commercial refrigeration equipment market is expected to witness the fastest growth (9.7 percent CAGR) globally, from 2015 to 2020.
The global commercial refrigeration equipment market is fragmented with the top four companies accounting for less than 40 percent of the total market in 2014. United Technologies Corp. (Carrier) was the largest player in terms of market share. Some of the other major players operating in the global commercial refrigeration equipment market include AB Electrolux, AHT Cooling Systems GmbH, Ali Group S.p.A., Daikin Industries Ltd., Dover Corp., Frigoglass S.A.I.C., Illinois Tool Works Inc., and Johnson Controls Inc.
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Publication date: 8/17/2015