Urbanisation drives refrigeration demand

The global refrigeration market projected growth 
by product.The global refrigeration market projected growth by product.

According to research firm, Technavio, the global commercial refrigeration market is likely to reach US$ 45.06bn by 2020, growing at a CAGR of 5.53% during 2015-2020.

The report on the market outlook from 2016 to 2020 details that in 2015 the sector was worth US$34.43bn and that the growth in the market is due to the changing lifestyles of the population in developing economies and the replacement demand from developed economies like North America.

Abhay Sinha, a lead analyst from Technavio said: “The world has been witnessing rapid urbanisation in recent years. This expansion in urbanised population is introducing new lifestyle habits and developing preferences for international cuisines. The urbanised population is demanding more ready-to-eat packaged foods.”

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The re-manufacture of refrigerated display cases is also driving the market for commercial refrigeration equipment. The emergence and acceptance of e-commerce in countries like China and Australia will also impact demand.
The market is expected to grow in the future, with the walk-in cooler segment capturing the major market share. Driven by emerging economies, the sector is expected to be led by APAC, followed by Europe and North America during the forecast period.

Key international and regional refrigeration vendors include Carrier, Daikin, Danfoss, and ITW. They compete intensely among each other to gain greater market shares. Several strategic alliances and mergers and acquisitions are in the pipeline during the forecast period, according to Technavio. Major market players have started to forge strategic alliances with small, regional, and large companies to increase their market shares.

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, and this sector has the highest growth potential in APAC 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 storages due to the development of e-commerce and e-groceries will boost the commercial refrigeration market in emerging markets.

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 digital controller to control features like automated defrost, anti-short cycling and temperature control. Earlier, these features were not available in one controller, as a thermostat was needed for temperature control, a separate defrost controller for defrosting, and a relay for anti-short cycling.

Sinha asserted: “Environmental regulations on commercial refrigerants play a key role in the commercial refrigeration market. HFCs, known as R-22 are recommended to be completely phased out by 2020 in stages. These refrigerants contain chlorine, which depletes the ozone layer. Although all commercial refrigeration equipment purchased after 2010 utilises alternative refrigerants, most equipment installed before 2020, especially refrigerated display cases and liquid chillers, use R-22.”

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