In 2019, the global commercial refrigeration equipment market attained a value of $24.6 billion and is predicted to progress at a CAGR of 3.0% between 2020 and 2030 to reach a revenue of $33.9 billion by 2030. The rising requirement for ready-to-eat products and the rapid growth of the organized food retail sector are the prominent factors driving the progress of the market.
In many countries, the organized food retail sector that includes hypermarkets, supermarkets, and organized restaurant chains and outlets, has grown massively over the last few years. In countries such as India, Brazil, and China, due to the rising urbanization, the growth of the organized food retail sector has been incredibly fast. For example, in China, the urban population is predicted to increase from 782 million to nearly 1.4 billion from 2016 to 2025.
Similarly, India would witness its urban population grow from 438 million to nearly 1.4 billion from 2016 to 2023-end. The surge in the population would boost the demand for food products, which would, in turn, fuel the procurement of refrigeration systems in hypermarkets, food processing plants, mid-sized grocery stores, and tier-I and tier-II restaurants. Depending on product, the commercial refrigeration equipment market is divided into walk-in coolers, beverage refrigeration equipment, display showcases, and ice merchandisers & ice vending equipment.
Out of these, the walk-in coolers category recorded the highest growth in the market in the past and is predicted to exhibit rapid expansion in the future years as well. This would mainly be because of the burgeoning requirement for personalized walk-in coolers and the extensive research and development (R&D) activities being conducted by the market players for developing refrigerants having low-global-warming-potential (GWP). Furthermore, market players are developing walk-in coolers that have a higher efficiency than the conventionally used ones.
Based on application, the commercial refrigeration equipment market is categorized into food service, food & beverage production, food & beverage retail, large pharmaceutical stores, and educational institutions. Amongst these, the foodservice category will record the highest growth in the market in the future, primarily because of the increasing number of restaurant chains and the surging implementation of favorable government policies regarding the adoption of sustainable refrigeration solutions in fast food joints, hospitals, restaurants, and educational institutions.
Globally, the commercial refrigeration equipment market would exhibit the highest CAGR in the Asia-Pacific (APAC) region in the upcoming years. This is credited to the soaring population levels and the rising purchasing power of people in the region. Moreover, the setting up of several global refrigeration equipment manufacturing companies in the APAC countries, on account of the rapid growth of the quick-service restaurant sector and food chains, is propelling the advancement of the market in the region.
Hence, it can be said without any hesitation that the market would demonstrate huge expansion all over the world in the coming years, primarily because of the rising requirement for food items, increasing popularity of fast foods and ready-to-eat products, and expanding organized food retail sector around the world.