U.S. Global Commercial Refrigeration Markets Poised for Growth
Factors include more supermarkets, new refrigerant, and efficiency regs
Demand for commercial refrigeration equipment in the United States is forecast to rise 3.1 percent per year through 2020 to $11.3 billion, according to a report by Reportbuyer.
According to the report, US Commercial Refrigeration Industry, the growth between now and 2020 will be moderating somewhat compared to the 2010-2015 period, when growth was bolstered by a rebound in sales after the economic recession. Despite this slowdown, suppliers are expected to benefit from the phaseout of R-22 refrigerant scheduled to occur in 2020. The phaseout will prompt commercial refrigeration equipment operators to either retrofit their equipment to use an acceptable alternative refrigerant, which will increase parts demand, or to replace their existing equipment, which will boost system sales.
The report noted that a number of alternative refrigerants can be used instead of R- 22, and retrofitting is the least costly option for operators. However, installing new systems is more energy efficient. Certain HFC blends, HFOs, natural refrigerants, and hydrocarbons are among the currently acceptable alternatives and are seeing greater usage.
According to the report, commercial refrigeration equipment sales growth will also be aided by more stringent minimum energy efficiency standards for certain products, most notably reach-in and walk-in refrigerators and freezers. These standards will become effective on all products made after June 2017 and will result in many producers using more expensive materials, which will raise average equipment prices and increase 2020 demand in value terms. Continued growth in food and beverage shipments will also boost overall demand gains.
A separate report by Zion Market Research states that global demand for commercial refrigeration equipment market is expected to generate revenue of $61.44 billion by the end of 2021, growing at a compound annual growth rate (CAGR) of slightly greater than 9 percent between 2016 and 2021.
According to the report, global commercial refrigeration equipment market is primarily driven by the rising number of hypermarkets, specialty food stores, and supermarkets across the globe. Another major driving factor is changing food consumption trends and rising international food trade. However, environmental and energy efficiency regulations and increasing fuel costs are restraints that may limit the growth of the market. Nonetheless, consolidation of warehouses and growth of cold supply chains is likely to disclose the new avenues for commercial refrigeration equipment market in the near future, the report stated.
Publication date: 1/3/2017