US Commercial Refrigeration to Grow at 3.2% CAGR to 2025
There is growing demand for frozen and chilled products, expansion of cold chain capacity, technological advancements
VALLEY COTTAGE, N.Y. — The U.S. commercial refrigeration systems market is projected to expand at a healthy compound annual growth rate (CAGR) of 3.2 percent in terms of value through 2025, according to a report from Future Market Insights.
Commercial refrigeration systems are mainly used in hypermarkets, supermarkets, convenience stores, warehouses and distribution centers, the foodservice industry, and food and beverage production units. These systems include products such as ice machines, vending machines, beverage refrigeration equipment, refrigerated display cases, trailers, trucks, containers, and walk-in and reach-in refrigerators.
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 significant opportunities for commercial refrigeration systems manufacturers, distributors, and HVACR contractors.
The U.S. commercial refrigeration systems market is segmented on the basis of application and product type. By application, the market is segmented into foodservice, food and beverage distribution, food and beverage retail, and food and beverage production. On the basis of product type, the market is classified into transportation refrigeration systems, refrigerators and freezers, beverage refrigeration equipment, refrigerated display cases, ice machines, and refrigerated vending machines.
By application, the foodservice segment accounted for the highest share of 30 percent in terms of value in the U.S. market in 2014. This segment is expected to remain dominant in the market over the forecast period. By product type, the transportation refrigeration systems segment is projected to expand at the highest CAGR of 5.5 percent during the forecast period due to the expansion of cold chain capacity in the U.S. By region, the 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.
Key trends identified in the U.S. commercial refrigeration systems market include the rapid adoption of the Internet of Things (IoT), compatible commercial refrigeration systems for enhancing system output, government initiatives supporting utilization of eco-friendly refrigerants, and continued advancements in energy-efficient products. However, the declining replacement rate of commercial refrigeration equipment and stringent government regulations could pose a major challenge for tier 2 and 3 players.
According to the report, customization holds the key for tier 2 and tier 3 players in order to further penetrate the market and create a competitive threat for tier 1 suppliers. Meanwhile, key players are strengthening their market positions through both organic and inorganic growth.
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Publication date: 10/24/2016