U.S. Commercial Refrigeration Systems Market Trends and Forecast Report 2015-2025

Abstract

This article studies the U.S. commercial refrigeration system market during the forecast period 2015-2025, offering insights on key drivers, restrains, and trends that are, and in future will, shaping the market. Demand for commercial refrigeration systems in the U.S. has witnessed steady growth, owing to gradual saturation and long replacement cycles. Unlike in developing countries, where opportunities abound for use of commercial refrigerators, the U.S. market is characterised by shift to highly advanced systems – those that make room for the next big transformational wave of Internet of Things (IoT). While manufacturers can look to make steady gains, launching innovative, IoT compatible products will be the crucial for success.

Introduction

Commercial refrigeration systems are widely used to prevent the spoilage of food and beverage products. They are widely used in hypermarkets, supermarkets, food & beverage production centres, warehouses, and distribution centres. Some common refrigeration equipment that’s currently in use includes refrigerated display cases, vending machines, ice machines, walk-in refrigerators. As a high percentage of food products is spoiled during the transportation, mobile refrigeration systems, including trucks and trailers are witnessing high demand.

State of the US Commercial Refrigeration Systems Market

The U.S. commercial refrigeration systems market was estimated to be valued at $5.73 billion in 2015, and it is expected to witness a y-o-y growth rate of 3.2% to reach $5.92 billion by 2016. During the forecast period 2015-2025, the US commercial refrigeration systems market is expected to increase at 3.1% CAGR.

Demand for commercial refrigeration equipment in the U.S. is expected to be driven by the food and beverage industry. Government rebates for energy-efficient products, strengthening of the cold chain capacity, and year-on-year increasing demand for frozen products will be chiefly responsible for fuelling the growth of the market.

Commercial refrigerator manufacturers are boosting their R&D efforts to launch innovative products in the market. The IoT transformation is expected to have a massive impact on the commercial refrigeration landscape, as it will enable greater control over spoilage, tracking, and real-time monitoring. Key stakeholders in the commercial refrigeration market are aware of the importance of adopting IoT, and in the future, a range of next-generation commercial refrigerators are expected to be launched in the market.

The key end-use application sectors for commercial refrigeration systems in the US can be categorised into,

Demand for commercial refrigeration systems in strongest in the foodservice segment. This segment accounted for nearly 30% revenue share of the overall U.S. commercial refrigeration systems market in 2015. Valued at $1.70 billion in 2015, this segment is expected to account for the bulk of the demand for commercial refrigeration equipment in the future.

Commercial equipment available in the market can be broadly categorised as,

• Trailer refrigeration system
• Truck refrigeration system
• Walk-in refrigerators and freezers
• Reach-in refrigerators and freezers
• Drinking fountain
• Soda fountain
• Beverage cooling and dispensing equipment
• Beer dispensing equipment
• Refrigerated display cases
• Ice machines
• Refrigerated vending machines

Increasing per capita food consumption and mushrooming foodservice restaurants are the key driving factors for commercial refrigeration systems in the U.S. Of particular significance is ice machines and beer dispensing equipment – these two products are expected to witness healthy growth rate during the forecast period 2015-2025.

Food and beverage manufacturers are focusing on enhancing their refrigeration setup during the transportation period. Owing to this, demand for trailer and truck refrigeration systems is expected to increase at a robust rate. The transportation refrigeration segment is expected to increase at 5.5% CAGR during 2015-20205, significantly higher than the 3.1% CAGR of the overall market.

Key regions in the U.S. where commercial refrigerators are anticipated to witness high demand are Arizona, California, Florid, Georgia, Utah, and Texas. High density of hypermarkets/supermarkets and convenience stores, combined with the flourishing restaurant industry is expected to fuel demand for commercial refrigeration equipment in these states.

Leading players in the US commercial refrigeration systems market include Lennox International Inc., Daikin Industries, Ltd., Dover Corporation, Manitowoc Company, Inc., Ingersoll-Rand Plc, Emerson Electric Co. Whirlpool Corporation, Standex International Corporation, United Technologies, Hussmann Corporation, and Illinois Tool Works Inc.

Majority of key players in the US commercial refrigeration systems market are focusing on acquiring HVAC contractors to bolster their position in the market. Tier 1 players have an advantage over Tier 2 and Tier 3 players and the latter need to focus on customising their end-products to penetrate into the market.

Conclusion

Demand for commercial refrigeration solutions in the U.S. will continue to grow steadily in the next decade. Technological advancement, which have always been a key factor in shaping up the market, will assume greater significance in the future, owing to widespread adoption of IoT and smart technology. Refrigeration system manufacturers need to invest in their R&D facilities and focus on enhancing computability with IoT. Instead of viewing IoT as a challenge, businesses need to be nimble and make the most of available opportunities.

The information presented in this review is based on the report, “Commercial Refrigeration Systems Market: Global Industry Analysis and Opportunity Assessment 2015-2025.” A free sample of this report can be requested at http://www.futuremarketinsights.com/reports/sample/rep-us-1305