Commercial Refrigeration Equipment industry analysis in North America

Commercial Refrigeration Equipment Industry Outlook (2023 to 2033)

The North America commercial refrigeration equipment industry size is projected to surpass a valuation of US$ 24,118.8 million by 2033. As per the analysis, the industry of commercial refrigeration equipment in North America is likely to record a CAGR of 4.1% through 2033, with a current valuation of US$ 16,072.9 million in 2023.

Attributes	Key Insights
Commercial Refrigeration Equipment Industry Size (2022)	US$ 15,502.0 million
Estimated Commercial Refrigeration Equipment Industry Size (2023)	US$ 16,072.9 million
Projected Commercial Refrigeration Equipment Industry Revenue (2033)	US$ 24,118.8 million
Value CAGR (2023 to 2033)	4.1%

Key Industry Highlights

• Industry to Expand Nearly 1.5X through 2033

The sales of commercial refrigeration equipment industry in North America are predicted to increase around 1.5X through 2033, amid a 2.2 % increase in expected CAGR compared to the historical one. This is due to the increasing demand for frozen and chilled products among consumers due to changes in lifestyle and rapid urbanization. Sales of commercial refrigeration equipment are likely to rise due to the expansion of food retail chains, especially in tier I and tier II cities in developing areas. Over the forecast period, an increase in food and beverage production, along with the development of cold chain capacities to ensure efficient storage and minimize food waste, is expected to boost demand for commercial refrigeration equipment industry in North America. By 2033, the total Industry revenue is set to reach US$ 24,118.8 million.

• Modular and Scalable Solutions Ensure Long-term Growth and Evolution

Companies can capitalize on the increased need for modular and scalable solutions. Several businesses are increasingly looking for versatile and adaptable refrigeration systems that can meet their changing demands. This potential entails the design and industry of refrigeration equipment that is modular and scalable, allowing for modification and extension based on unique needs. The flexible and scalable methodology enables organizations to perform cost-effective updates. Clients can invest in particular modules or additions as needed, avoiding significant financial outlays associated with system replacement. This cost-effectiveness appeals to enterprises looking for cost-effective solutions

Historical Performance of North America Commercial Refrigeration Equipment Industry (2018 to 2022) Vs. Future Outlook (2023 to 2033)

Historical CAGR (2018 to 2022)	1.9%
Forecast CAGR (2023 to 2033)	4.1%

The demand of commercial refrigeration equipment industry in North America expanded at a 1.9% CAGR from 2018 to 2022. North America's food sector has grown significantly, owing to factors such as population expansion, changing consumer tastes, and increased demand for packaged and perishable food items. As a result of this expansion, there is a greater demand for efficient and innovative commercial refrigeration systems throughout the food supply chain, from production to distribution to retail.

Businesses are adopting inventive and efficient systems due to ongoing improvements in refrigeration technology. The integration of IoT (Internet of Things), smart controls, and energy-efficient components enhances refrigeration equipment performance. This has also created potential for remote monitoring and predictive maintenance. Specialized refrigeration systems for storing and shipping perishable items are becoming more necessary due to the expansion of e-commerce, particularly in the food and pharmaceutical industries. Infrastructure investments in the refrigeration equipment industry in North America are likely to surge due to the growth of online grocery shopping and direct-to-consumer delivery services.

Over the forecast period, the sales of the commercial refrigeration equipment industry in North America are anticipated to a valuation of US$ 24,118.8 million by 2033. This is due to a combination of several factors, including increasing demand for downstream products, technological advancements in production processes, and a shift toward sustainability. Innovation in commercial refrigeration systems is likely to be fueled by ongoing initiatives to increase energy efficiency and conform to changing regulatory requirements. In order to save operating expenses and meet sustainability targets, businesses will keep making investments in energy-efficient technology. The industry will probably continue to see a transition away from conventional synthetic refrigerants and toward natural refrigerants. Regulations intended to lessen refrigeration systems' capacity to contribute to global warming and environmental concerns are the driving forces behind this shift.

Key Factors Propelling Growth Through 2033

• Growing Demand for Ready-to-Eat Products and Expanding Retail Outlets

The demand for ready-to-eat products is growing in the United States and Canada due to the convenience and time-saving attributes of these products. The rise in the popularity of on-the-go food items, including snacks and mini-meals, reflects the demand for portable and accessible dining choices. Consumers increasingly seek healthy, ready-to-eat food options that align with their wellness goals. The demand for ready-meal products is surging in countries such as the United States, and the rising number of nuclear families and longer working hours in the region are the primary factors responsible for the increase in the consumption of ready-to-eat food products. Canadian retailers continue to rely on imported foods to fill their shelves and help introduce new and innovative products.

• Rapid Growth of the F&B Industry Coupled with the Expanding Warehouse and Logistics/ Cold Supply Chain Facilities

An increase in food and beverage production, along with an expansion of cold chain capacities to ensure efficient storage and minimize wastage of food, is expected to boost demand for commercial refrigeration equipment in North America over the forecast period. According to the Food and Agricultural Organization of the United Nations (FAO), in 2021, food and beverages worth US$ 931 million were wasted across the globe. North American countries are strengthening their cold supply chain infrastructure to minimize food and beverage waste.

According to the 2020 GCCA Global Cold Storage Capacity Report, the total capacity of refrigerated warehouses worldwide was 719 million cubic meters in 2020, which is 16.7% greater than the capacity reported in 2018. The increase in reported capacity since 2018 was largely from North America. The United States, at 156 million cubic meters, was the single top country industry, followed by India at 150 million cubic meters and China at 131 million cubic meters.

Key Factors that Can Restrain Industry Growth

• Stringent Government Regulations Regarding the Use of Natural Refrigerants Over Fluorochemical-based Refrigerants

Stringent government regulations regarding natural refrigerants over fluorochemical-based refrigerants that are widely used in commercial refrigeration systems in North America are a significant challenge. This specifically poses a huge challenge for small and medium commercial refrigeration equipment industry players. Natural refrigerants have a lower global warming potential (GWP) than fluorochemical-based refrigerants, making them a more environmentally friendly option. However, the adoption of natural refrigerants requires significant investment in equipment and infrastructure, which can be a challenge for small and medium players in the industry.

The American Innovation and Manufacturing Act (AIM Act) directs the Environmental Protection Agency (EPA) to regulate the transition to alternative refrigerants by phasing down the production and consumption of HFC refrigerants. The federal government has committed to reducing HFC emissions by 85% in Canada by 2036. The Canadian government has also established a regulatory framework to phase down the use of HFCs and other high-GWP refrigerants. The framework includes regulations to prohibit importing and manufacturing certain HFCs and other high-GWP refrigerants and regulations to establish minimum energy performance standards for commercial refrigeration equipment.

Comparative View of Adjacent Industrys to North American Commercial Refrigeration Equipment Industry

This section compares the commercial refrigeration equipment industry and the refrigeration and air conditioning compressor industry. As per the analysis, the North American commercial refrigeration equipment industry is likely to be impacted by the peer or tangential industry in the industrial automation division. The high usage of refrigeration equipment in several applications (like pharma, medical, and food) can eventually create growth prospects for the mentioned industries. The rising emphasis on sustainability is likely to boost the adoption of natural refrigerants. The focus on reducing the carbon footprints across various industries is likely to influence the growth across these industries.

Commercial Refrigeration Equipment Industry:

Attributes	North America Commercial Refrigeration Equipment Industry
CAGR (2023 to 2033)	4.1%
Industry Value (2023)	US$ 16,072.9 million
Growth Factor	Increasing demand for frozen and chilled products among consumers due to changes in lifestyle and rapid urbanization.
Key Trend	Shift toward the adoption of natural refrigerants, such as hydrocarbons and carbon dioxide.

Global Commercial Refrigeration System Industry:

Attributes	Global Commercial Refrigeration System Industry
CAGR (2023 to 2033)	4.8%
Industry Value (2023)	US$ 52,311.7 Million
Growth Factor	Expansion of licensed and franchised locations for quick-service eateries.
Key Trend	Shift towards modular and customized solutions to meet the specific needs of different industries and applications.

Refrigeration and Air Conditioning Compressors Industry:

Attributes	Refrigeration and Air Conditioning Compressors Industry
CAGR (2023 to 2033)	3%
Industry Value (2023)	US$ 35.1 billion
Growth Factor	The rapid expansion of the food & beverage industry and growth in the frozen food export business are driving global refrigeration and air conditioning compressors.
Key Trend	Increasing demand for energy-efficient, preserving perishable goods, and reducing operating costs are driving the industry growth.

Country-wise Insights

The table below shows the estimated growth rates of the countries in North America.

Countries	Projected Commercial Refrigeration Equipment CAGR (2023 to 2033)
Canada	5.3%
United States	3.5%

Expanding Freezers & Refrigerators Fueling Demand in the United States

The United States commercial refrigeration equipment industry size is projected to reach US$ 17,058.8 million by 2033. Over the assessment period, demand for Commercial Refrigeration Equipment in the United States is set to rise at 3.5% CAGR. The diverse industrial applications of commercial refrigeration equipment in the United States contribute to the significant growth of the Industry. Food & beverages, pharma & medical will likely create opportunities for Industry players. These industries have stringent quality standards and regulations, necessitating the use of commercial refrigeration equipment to ensure product quality, safety, and compliance.

Canada's Growing Food and Beverage Industry to Spur Expansion for Manufacturers

The commercial refrigeration equipment industry size in Canada is anticipated to reach US$ 5,334.6 million by 2033. Over the forecast period, Commercial Refrigeration Equipment demand in the country is set to increase at a robust CAGR of 5.3%. The country's rapidly expanding food and beverage sector, which includes a wide range of establishments such as grocery shops, restaurants, and food distribution centers, creates a steady demand for sophisticated refrigeration systems. Manufacturers can benefit from this by developing goods emphasizing energy efficiency, adapting to changing consumer tastes and meeting the industry's changing demands. Canadian commitment toward environmental sustainability is one of the main motivators for producers of commercial refrigeration equipment in that nation. Because of its strong emphasis on sustainability, firms can flourish in Canada by creating and promoting eco-friendly products.

Category-wise Insights

Multipurpose Usage of Refrigeration Fuels Demand for Freezers & Refrigerators

Segment	Freezers & Refrigerators (Product Type)
Value Share (2023)	29.64%

The demand for freezers and refrigerators remains robust across various industries due to their unparalleled versatility and broad applicability. These essential appliances play a pivotal role in preserving the freshness and quality of perishable goods, making them indispensable in the food and healthcare sectors. Compliance with health and safety regulations often necessitates the use of reliable freezers and refrigerators to maintain specific temperature conditions, ensuring the safety and integrity of stored products. These appliances are fundamental in households, providing a convenient means of storing and preserving a diverse range of food items.

While specialized refrigeration equipment, such as beverage refrigerators, transportation refrigerators, glass door merchandisers, display cases, beverage dispensers, refrigerated vending machines, ice machines, and ice cream machines, cater to specific needs, freezers, and refrigerators continue to be the cornerstone of the refrigeration industry. The demand for general-purpose refrigeration solutions positions freezers and refrigerators as the backbone of diverse sectors, meeting storage and preservation needs across the board.

Demand for Commercial Refrigeration Equipment to Remain High for Food Services

Segment	Food Services (Application)
Value Share (2023)	43.3%

Evolving consumer preferences, the expansion of retail chains, and a focus on visually appealing displays contribute to the sustained growth in this segment. Retailers, responding to consumer demands for fresh products, invest in advanced refrigeration solutions to ensure food safety, comply with regulations, and enhance the merchandising of perishables. While food services, production, and distribution remain crucial components of the industry, the dynamic landscape of retail, with its emphasis on presentation and compliance, propels the higher growth rate in commercial refrigeration for the food and beverage retail sector.

Competitive Landscape

The North America commercial refrigeration equipment industry is fragmented, with leading players accounting for about 25% -30 % of the share. Daikin Industries Ltd., Dover Corporation, Panasonic Corporation, Illinois Tool Works Inc., Carrier Corporation (UTC Climate), Danfoss A/S, Blue Star Limited, Standex International Corporation, Electrolux AB, GEA Group AG, Hoshizaki Corporation, Whirlpool Corporation, Innovative DisplayWorks, etc. are the leading manufacturers and suppliers of Commercial Refrigeration Equipment listed in the report.

Key companies invest in continuous research to produce new products and increase their production capacity to meet end-user demand. They are also inclined toward adopting strategies, including acquisitions, partnerships, mergers, and facility expansions, to strengthen their footprint.

Recent Developments

• In October 2023, FEROR showcased their upcoming commercial refrigeration equipment at the NACS Show 2023.
• In September 2023, Carrier Commercial Refrigeration launched refrigeration-as-a-service for the food retail industry in collaboration with Relayr.
• In 2019, Daikin Industries Ltd. acquired AHT, an Austrian refrigerating and freezing showcase manufacturer. The acquisition was worth 579 million Euros.

Commercial Refrigeration Equipment Industry Research Scope

Attribute	Details
Estimated Industry Size (2023)	US$ 16,072.9 million
Projected Industry Size (2033)	US$ 24,118.8 million
Anticipated Growth Rate (2023 to 2033)	4.1%
Historical Data	2018 to 2022
Forecast Period	2023 to 2033
Quantitative Units	Value (US$ million) and Volume (‘000 Units)
Report Coverage	Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis
Industry Segments Covered	Product Type Application Country
Key Countries Covered	United States Canada
Key Companies Profiled	Daikin Industries Ltd. Dover Corporation Panasonic Corporation Illinois Tool Works Inc Carrier Corporation (UTC Climate) Danfoss A/S Blue Star Limited Standex International Corporation Electrolux AB GEA Group AG Hoshizaki Corporation Whirlpool Corporation Innovative DisplayWorks Structural Concepts Corporation Frigoglass SA

Commercial Refrigeration Equipment Industry Segmentation

By Product Type:

• Beverage Refrigerator
  • Drinking Fountain
  • Soda Fountain
  • Beer Dispensing Equipment
  • Beverage Coolers
• Freezers & Refrigerators
  • Freezer & Chillers
    • Blast Chiller/Stock Freezers
    • Contact Freezers
  • Refrigerators
    • Walk-in-Refrigerators
    • Reach-in Refrigerators
• Transportation Refrigerators
  • Trailers
  • Trucks
  • Shipping Containers
• Glass Door Merchandizers
  • Hinged Door
  • Sliding Door
• Display Cases
  • Ice Cream Cabinets
  • Bakery/Deli Display
• Beverage Dispensers
• Refrigerated Vending Machine
• Ice Machine
• Ice Cream Machine

By Application:

• Food Services
• Food & Beverage Retail
• Food & Beverage Production
• Food & Beverage Distribution

By Country:

• United States
• Canada

Frequently Asked Questions

At What Rate is the Demand Anticipated to Rise through 2033?

The demand for North America commercial refrigeration equipment industry is anticipated to rise at 4.1% CAGR.

What is the Expected Industry Size by 2033?

The North America commercial refrigeration equipment industry size is set to reach US$ 24,118.8 million by 2033.

What are the Different Types of Commercial Refrigeration Equipment?

Different types of commercial refrigeration equipment include beverage refrigerators, freezers & refrigerators, transportation refrigerators, and others.

What are the Common Issues in the Commercial Refrigeration Equipment Industry?

Common issues in the commercial refrigeration equipment industry include energy inefficiency, maintenance costs, and compliance with environmental regulations.

Which Application Segment is Expected to Lead the Industry?

Food Services is expected to lead the industry during the forecast period.