Refrigerators Market Overview
Refrigerators are widely used in residential and commercial markets to maintain a sustained low-temperature environment for food or other products like biological samples. Huge demand and positive drivers have led to a substantial growth in the refrigerators market. However, several changes are expected in the market due to the Covid-19 crisis.
Refrigerators are used residentially in homes, as well as commercially in the healthcare sector, biomedical sciences sector, food processing and storage sector, transport sector, hospitality sector, retail sector, etc. The plethora of sectors and purposes for which refrigerators are used results in the need for several different types of refrigerators that can cater to specific requirements.
Refrigerators are hence usually classified on the basis of their volume and cooling capacities. Another method of classifying refrigerators is by the number of doors, namely single-door, double-door, three-door and multi-door refrigerators. It may be further categorised by door types, such as top freezer, bottom freezer, French doors or side-by-side doors.
Drivers of the Refrigerators Market
The key drivers for refrigerators in the residential segment include overall population growth, rapid urbanisation, increasing purchasing power, rising number of nuclear families and single person households, and a general desire for technological upgrades with respect to daily-use appliances in homes.
In the commercial segment, the food processing and storage industry is driving the refrigerators market as the demand for processed foods has increased rapidly. Similarly, the hospitality sector has also shown a substantial increase in demand for refrigerators, mainly led by fast-mushrooming bars, ice cream parlours and restaurants.
Easy availability of loans by individuals and companies for purchase of high-end refrigerators is also driving the market and reducing hesitance caused due to cost-sensitivity. However, this trend is likely to undergo changes in the post-Covid-19 scenario and private and public banks and lending companies are likely to practice different behaviours.
Trends in the Refrigerators Market
Growing concerns over the environment and energy consumption by governments and the general population alike have led to an increased demand for eco-friendly and low-energy consuming refrigerators. Manufacturers have thus focussed R&D and innovations along these lines. Energy and eco-sensitive technological upgrades have hence also driven the market.
Correspondingly, technologies such as improved defrosting and insulation features, high-efficiency compressors, and use of materials such as glass (instead of plastic) and non-ozone depleting materials have also found traction in the refrigerators market.
Digitisation and automation are also ongoing trends in the refrigerators market.The focus on R&D and technology has also brought down prices while increasing features of refrigerators. This trend has created a dichotomy between competitive pricing and advancing features that manufacturers need to navigate on account of the fierce competitive landscape.
Impact of Covid-19
The residential segment of the refrigerators market will be affected due to reduced disposable incomes in the aftermath of the Covid-19 crisis and a corresponding focus on affordable and durable refrigerator purchases.
However, the commercial segment will be more acutely affected as several sectors that had hitherto shown high demand for refrigerators like the hospitality, retail and transport sectors are likely to be hard hit by the pandemic’s economic ramifications. At the same time, certain commercial segments like the healthcare and biomedical sectors may see a rise in demand for refrigerators. Manufacturers and vendors will thus be inclined to reorient their market strategies.
The Asia-Pacific regional segment has dominated the refrigerators market in recent years. This is commensurate with the region’s increasing economic profile, standard of living and demand for infrastructure. However, this region may also bear the brunt of Covid-19 pandemic’s economic fallout.
The North American region has been the other large refrigerators market segment, followed by Europe. However, these segments differ from the Asia-Pacific segment in several qualitative aspects and are more technology and innovation-driven.
The Middle-East, Africa, Latin America and Oceania segments are relatively smaller, but still huge in absolute terms given the cumulative size of the refrigerators market. They also remain important for manufacturers since they are almost entirely import dependent.
Though small and local players in the global refrigerators market have not been able to enjoy much of the market share due to the technological edge required in manufacturing refrigerators, the competition landscape is highly fragmented.
This is since several established companies have steadily forayed into the market.The refrigerators market has been a lucrative market since several decades and most of the large electrical companies have sought to enter and expand their market share.
Key players in the market include Samsung,
- Daikin and Meiling.
Regions and Countries Analyzed in the Report
- North America (U.S., Canada)
- Latin America (Mexico, Brazil, Rest of LATAM)
- Europe (Germany, U.K., France, Italy, Spain, Poland, Russia, Rest of Europe)
- East Asia (China, Japan, South Korea)
- South Asia (India, Thailand, Malaysia, Vietnam, Indonesia)
- Oceania (Australia, New Zealand)
- Middle East & Africa (GCC Countries, Turkey, Northern Africa, South Africa)