Commercial Refrigeration Market Expected to Reach $56.2 Billion by 2035

According to a new report published by Allied Market Research, titled, “Commercial Refrigeration Market," The commercial refrigeration market size was valued at $29.6 billion in 2023, and is estimated to reach $56.2 billion by 2035, growing at a CAGR of 5.6% from 2024 to 2035.

Commercial refrigeration equipment is a device used in the commercial sector to preserve food items and beverages such as vegetables, fruits, meat, beer, and other similar products by maintaining a specific temperature. This helps increase the shelf life of the product, making it suitable for purchase for a longer duration. Most commercial refrigeration systems are designed to reduce temperature over a period, while there is some refrigeration equipment that is specifically designed to reduce the temperature of food from around 90°C to as low as 30°C, in a short time. The quick change in temperature helps constrain bacterial growth and maintain the freshness of food items for a prolonged period.

The growth of the global market for commercial refrigeration is driven by increase in demand for frozen & chilled products among consumers due to changes in lifestyle and rapid urbanization. Moreover, the development of the organized retail sector coupled with increase in the number of hypermarkets and supermarkets boosts the growth of the market. However, problems such as the need for frequent maintenance and potential technical issues arising due to lack of proper maintenance hamper the market growth. Contrarily, advancements in commercial refrigerators such as integration of artificial intelligence (AI) coupled with rise in the trend of automation of equipment and upsurge in the number of food outlets & quick service restaurants especially in emerging economies are anticipated to provide potential opportunities for the commercial refrigeration market growth. All these commercial refrigeration market trends are creating commercial refrigeration market opportunities. 

According to commercial refrigeration market analysis, the market is analyzed on the basis of product, end user, and region. By product type, the market is divided into deep freezers, bottle coolers, storage water coolers, commercial kitchen refrigeration, medical refrigeration, chest refrigeration, and others. The others segment includes ice cubes, bottled water dispenser, visi coolers, refrigerated display cases, and beer dispensers. The chest refrigeration segment was the highest contributor to the global market. However, the medical refrigeration segment is expected to grow at the fastest CAGR of 6.3% during the forecast period, reaching $5,567.5 million by 2035. This is attributed to the rapid expansion of retail pharmacies across the globe.

On the basis of end user, it is classified into full-service restaurant & hotels, food processing industry, hospitals, retail pharmacies, supermarket/hypermarket, convenience stores, quick service restaurants, and others. The others segment comprises catering services, institutional catering, event services, bakery, bars and pubs. By end user, the supermarket/hypermarket segment accounted for the maximum commercial refrigeration market share in 2023 and is expected to remain dominant during the forecast period. However, the retail pharmacies segment is expected to experience rapid growth with a CAGR of 6.7% from 2024 to 2035. This is attributed to increased revenue from hospitals over the past few years, owing to rise in geriatric population and the need for medical care.

Region-wise, the commercial refrigeration industry is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Increase in commercial refrigeration market demand in Asia-Pacific and LAMEA is expected in the near future, owing to rapid industrialization and the implementation of automation in these regions. Moreover, rise in the number of food outlets coupled with the expansion of retail pharmacies and experience centers such as supermarkets and hypermarkets are expected to provide lucrative opportunities for the growth of the global market.

Asia-Pacific accounted for 43.7% of the market share of the total commercial refrigeration market in 2023 and is expected to remain dominant during the forecast period, with major growth expected in China and India. Furthermore, rise in the number of full-service restaurants & quick service restaurants and increase in the adoption of frozen food & confectioneries acts as the major driving forces of the commercial refrigeration market.

The key players profiled in the commercial refrigeration market report include United Technologies Corporation, Daikin Industries Ltd., Illinois Tool Works Inc. (ITW), Johnson Controls International Plc, Dover Corporation, AB Electrolux, Panasonic Corporation, Ali Group S.r.l., Frigoglass S.A.I.C., and Haier Electronics Group Co., Ltd.

KEY FINDINGS OF STUDY

• On the basis of product type, the others segment is the fastest-growing segment with a 6.4% CAGR.
• On the basis of end user, the supermarket and hypermarket segment was the largest in the market in 2023.
• Region-wise, Asia-Pacific was the highest revenue contributor to the market in 2023.