LONDON — The global commercial refrigeration market was valued at $34.43 billion in 2015 and is likely to reach $45.06 billion by 2020, reaching a compound annual growth rate (CAGR) of 5.53 percent during the forecast period, according to a report from Technavio.
The growth in the market is due to the changing lifestyles of the population in developing economies and replacement demand from developed economies like North America. The remanufacture of refrigerated display cases also drives the market for commercial refrigeration equipment. The emergence and acceptance of e-commerce in countries like China and Australia also impact the market for commercial refrigeration equipment. The market is expected to grow with the walk-in cooler segment capturing the major market share. The market is being driven by emerging economies and is expected to be led by Asia Pacific, followed by Europe and North America during the forecast period.
The top four emerging trends driving the global commercial refrigeration market according to Technavio research analysts are:
• Growing mergers and acquisitions (M&A)
• Growth of e-commerce in emerging markets
• Technological advances
• Environmental mandates
GROWING M&A
The global commercial refrigeration market comprises an array of international and regional vendors such as Carrier, Daikin, Danfoss, and ITW. These vendors compete intensely among each other to gain greater market shares. Several strategic alliances and M&As are in the pipeline during the forecast period. Major market players have started to forge strategic alliances with small, regional, and large companies to increase their market shares.
GROWTH OF E-COMMERCE IN EMERGING MARKETS
The penetration of e-commerce is increasing in emerging economies, which is expected to boost the sales and growth of commercial refrigerators in these regions. E-commerce is well suited for stocking and offering more product selections. The e-commerce sector has the highest growth potential in Asia Pacific and the Middle East and Africa. The emerging markets will be the key segments of the growing e-groceries sector. This will increase the demand for warehouses and cold storages.
The growth of cold storage due to the development of e-commerce and e-groceries will boost the commercial refrigeration market in emerging markets. Retailers in India are launching online grocery services, as half a billion Indians are smartphone users. The development of online e-commerce is caused by the growing consumer preference for online shopping over supermarkets and the hypermarkets.
TECHNOLOGICAL ADVANCES
The global commercial refrigeration market is at a growth stage and is experiencing rapid technological advances like temperature and operation controls in refrigerators. This technology uses a single digital controller for features like automated defrost, anti-short cycling, and temperature control. Before, each of these features required their own controlling device.
The refrigerator systems deployed in supermarkets use approximately 3,500 pounds of refrigerant and leak 18-22 percent of their refrigerant charge each year. These refrigerant leaks contribute to global warming and incur additional costs for vendors. To overcome these features, vendors have introduced green direct expansion technology, which manages the maintenance of these refrigeration systems, increasing cost-effectiveness, and reducing the impact on the environment.
ENVIRONMENTAL MANDATES
Environmental regulations on commercial refrigerants play a key role in the commercial refrigeration market. R-22 is set to be completely phased out by 2020. Although all new commercial refrigeration equipment purchased after 2010 utilizes alternative refrigerants, most existing equipment, especially refrigerated display cases and liquid chillers, uses R-22.
Publication date: 12/7/2016
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