Commercial Refrigeration Equipment Market Key Growth Factors and Industry Analysis 2022
Posted: Oct 12, 2017
commercial refrigeration equipment market to see strong growth as traditional refrigerators are to be replaced by new refrigeration equipment, Asia Pacific leads commercial refrigeration equipment market, increasing international food trade rises commercial refrigeration equipment market
The competition for gaining market share in commercial refrigeration equipment manufacturing is very intense. In 2014, Frigo Glass, Hoshizaki International, Manitowoc Company, Inc., and United Technologies Corporation were the leading manufacturers of commercial refrigeration equipment, with a collective share in value of 21.6%.
A large number of globally prominent players hold almost comparable shares in commercial refrigeration equipment and this locks them all in a highly competitive environment where there are also a large number of regional players.
According to the latest publication by Transparency Market Research, the heavy competition is due to the high dependence of commercial refrigeration equipment manufacturers on commercial alliances within commercial manufacturers of HVAC and regional retail chain operators.
The global market for commercial refrigeration equipment is expected to progress at a CAGR of 9.1% within a forecast period from 2015 to 2022, in terms of revenue. The revenue is expected to reach US$39.44 bn by the end of 2016 and US$66.88 bn by the end of 2022.
APAC Scope for International Food Trade Grows, Spurs Demand for Commercial Refrigeration Equipment
Asia Pacific has not only been the leading region to generate revenue in commercial refrigeration equipment, but also the region showing the leading CAGR of 12.0% from 2015 to 2022. By the end of 2022, Asia Pacific is expected to accrue a revenue of US$29.06 bn in commercial refrigeration equipment.
The transportation product segment for commercial refrigeration equipment is expected to be the leading one in terms of demand. It is expected to progress at a CAGR of 11.2% from 2015 to 2022.
A collective product segment that the report refers to as ‘Others’ is expected to dominate the market in 2022, with a projected revenue generation of US$25.36 bn. This segment comprises cryogenic equipment, liquid chillers, ice machines, refrigerated display cases, egg refrigerators, compressor racks, dairy coolers, and few other lesser used equipment.
Food Trade Soars, Seafood and Horticulture Demand Creates Greater Scope of Commercial Refrigeration Equipment Manufacture
"A combination of growing disposable income in emerging economies and the shift in eating trends towards healthier options is the cause of the high rate of food trade that we are seeing today," states a TMR analyst. He adds, "The total amount of seafood and processed food consumed across the world has increased greatly over the past years and will continue to do so. This is driving the makers of commercial refrigeration equipment towards producing a larger quantity of high quality goods.
Developed economies are more open to food imports while emerging economies are in a position to export more seafood and processed food, thereby driving the need for more commercial refrigeration equipment.
High energy Consumption of Commercial Refrigeration Equipment Deters Smaller Retailers
A key disadvantage that manufacturers of commercial refrigeration equipment need to get over is high amounts of energy consumed by these units. Increasingly stringent environment protection and energy conservation standards will be a big challenge for these players.
Additionally, they have to face the increasing use of alternative cooling methods, such as temperature-controlled food packs.
"There is still much that can be done by commercial refrigeration equipment manufacturers, such as the introduction of solar powered refrigerators, the use of smart refrigeration tech for remotely monitoring and controlling the equipment, and the very important need to consolidate warehouse chains," states the TMR analyst.
Transparency Market Research (Tmr) is a market intelligence company, providing global business information reports and services.