Global Commercial Refrigeration Equipment

Global Commercial Refrigeration Equipment

Global demand for commercial refrigeration equipment is forecast to increase 5.4% per year to $52.9 billion in 2028. In real terms, growth is expected to accelerate due to:

• rising personal incomes, allowing for increased consumer spending on frozen and refrigerated products
• advances in manufacturing activity, particularly food and beverage and pharmaceutical production
• the construction of new stores, restaurants, shopping centers, airports, hotels, resorts, research facilities and other nonresidential buildings that employ refrigeration equipment

In addition, market value will be supported by the ongoing shift to higher value, more advanced models in order to meet new technical standards and environmental regulations.

Nearly 70% of Gains to be Concentrated in the Asia/Pacific Region & North AmericaThe Asia/Pacific region and North America are expected to account for 37% and 32% of new global commercial refrigeration equipment demand through 2028, respectively:

• Demand in the Asia/Pacific region will be driven by China, which is expected to account for nearly half of Asia/Pacific market gains through 2028 as the country’s output of food and beverages and pharmaceuticals grows at a healthy pace. The region will also see above average growth among a number of developing refrigeration equipment markets, such as India and Indonesia.
• Gains in North America will be driven by the US, where an improved outlook for nonresidential building construction will boost demand for refrigeration equipment in hotels, restaurants, educational buildings, and healthcare facilities.

The Commercial Refrigeration Equipment Market to be Heavily Impacted by New Regulations

Many countries are expected to adopt new technical standards, safety rules, and environmental regulations by 2028. These new standards will support technological innovation, in turn raising equipment prices while also spurring product sales. Because refrigeration machinery has a major impact on the environment, the adoption of new environmental regulations will continue apace:

• The EU adopted the new F-gas Regulation (EU) 2024/573 in February 2024. Building on its predecessors, the regulation was designed to phase out hydrofluorocarbons (HFCs), which are used in some refrigerants. Additionally, the EU is also looking at phasing out per- and polyfluoroalkyl substances (PFAS) which are used in some refrigerants. A proposal on a phase out is likely in the near term.
• The American Innovation and Manufacturing Act of 2020, administered by the US Environmental Protection Agency (EPA), aims to reduce the production and consumption of hydrofluorocarbons (HFCs) by 85% by 2036. As part of these regulations, manufacturers are transitioning to alternative refrigerants.

This Freedonia industry analyzes the more than $40 billion global commercial refrigeration equipment market. It presents historical supply and demand data (2013, 2018, and 2023) and forecasts (2028 and 2023), as well as annual data for the 2020-2027 period. Commercial refrigeration equipment demand by product (display cases, reach-in and walk-in refrigerators and freezers, beverage refrigeration equipment, ice machines, refrigerated vending machines, other commercial refrigeration equipment, and replacement parts) is presented in value terms. The study also presents product demand by market (food and beverage retail, foodservice, food production, and other markets). The study also evaluates company market share and competitive analysis on industry competitors, including Ali Group, Daikin Industries, Dover, Epta, Haier Group, Hoshizaki, Panasonic, and Sanden Retail Systems. It also presents market share data by product and region. Data are provided in US dollars.