Published On: December 2022
The process of commercial refrigeration involves extracting extra heat from a source or a material and transferring it to the surroundings to maintain a temperature lower than the environment. By maintaining a temperature between 30 and 40 degrees Celsius and extending the shelf life of the products, commercial refrigeration equipment is used to preserve food such as vegetables, fruits, meat, and other comparable things. Due to replacing current equipment with energy-efficient and sustainable technology equipment, a bigger share of the commercial refrigeration equipment market is expected to be accounted for in the near future.
According to the commercial refrigeration equipment market outlook, the market will reach a value of USD 17.2 billion by 2030, at a CAGR of 7.2% from 2022 to 2030.
Changing Lifestyles and Choices by People Contributing to Commercial Refrigeration Technique
One of the key reasons propelling the growth of the commercial refrigeration equipment market is the increase in demand for frozen and processed food on a global scale. The market is growing quickly because of the rising demand for frozen food refrigeration brought on by the significant expansion of the international food trade and the booming tourism & hospitality industries. The quick advancements in technologies like liquid-vapor compression and ammonia absorption systems and the growing inclination of end users for takeout meals also influence the commercial refrigeration equipment market growth. Additionally, the commercial refrigeration equipment market benefits from lifestyle changes, a rise in disposable income, the number of health-conscious consumers, and rising food prices.
The market participants would benefit from the increased demand to efficiently control and monitor the atmosphere of a commercial kitchen.
Demand for commercial refrigeration equipment is increasing as consumer lifestyles improve, and the food and healthcare sectors prosper. Additionally, factors affecting the commercial refrigeration equipment market growth include a growing cold chain, lengthening product shelf lives, a growth in fast-service restaurants, rising demand for frozen and chilled goods, and speedy urbanization.
On the other hand, improvements in the efficiency of refrigeration systems with the use of natural refrigerants and growing demand for bakery goods, frozen foods, and packaged foods further create new opportunities in the sector of commercial refrigeration equipment. Additionally, this sector is expected to rise due to the organized retail sector's quick expansion, including an increase in supermarkets and hypermarkets. According to the commercial refrigeration equipment market analysis, the European commercial refrigeration equipment market growth is hampered by the high installation costs for commercial refrigerators and the declining replacement rates for commercial refrigeration equipment. On the other hand, more quick-service restaurants and technological developments are predicted to create a wide range of prospects for industry expansion.
Covid-19 Had A Dual Effect on Refrigeration Techniques
Nearly every industry has been affected by the COVID-19 pandemic, and the market for commercial refrigeration equipment was no exception. The crisis, which had led to stringent containment measures like remote work, industry closures, and other commercial activities producing operational issues and social estrangement, is mostly to blame for the fall. In reality, there has been a disturbance throughout the supply chain, which had a detrimental effect on the size of the global market for commercial refrigeration equipment.
Due to stringent government regulations, the COVID-19 pandemic had a catastrophic effect on the hospitality sector, forcing several well-known hotels and eateries to close. The pandemic significantly impacted the need for commercial refrigeration equipment. But the hospitality sector is pleased with the surge of travelers following the outbreak. Commercial refrigeration units are more in demand as more tourists stay in hotels and eat in restaurants, according to the commercial refrigeration equipment market analysis.
But not just the Covid led to hampering the refrigeration industry. Strict laws prohibiting the use of fluorocarbon refrigerants too contributed to its slow growth. Since the ozone layer is badly affected by fluorocarbon refrigerants, governments in many nations worldwide are enacting legislation to restrict the use of fluorocarbon refrigerants. They have decided to limit the intake of HFCS and HCFCs to phase out their use.
The market for commercial refrigerant equipment is struggling to expand because of rules that the Montreal Protocol has placed on specific refrigerants, such as R22. This protocol's primary objective is to reduce harm to the ozone layer brought on by the usage of refrigerant gases. Under this convention, countries have agreed to stop using ozone-depleting fluorinated refrigerant gases gradually.