The latest research into the refrigerated display cases (RDC) market has nearly doubled the growth prediction of the sector for the next couple of years.
Just a couple of months ago, US-based research firm Global Industry Analysts predicted the global market would reach US$10.4bn by 2026. However, now rival company Allied Market Research has forecasted the sector will garner US$20.8bn by the end of 2022, registering a CAGR of 9.8%.
According to Allied Market Research, in terms of revenue, Europe dominates the global RDC market, with revenue share of around 32% in 2015, owing to the presence of an established food and beverage retail sector. Ongoing developments, urbanisation, change in food habits and increasing standards of living have promoted the use of refrigerated display cases in Asia-Pacific, which is expected to grow at the fastest rate to 2022.
The market is expected to grow at a notable pace over the next 5-6 years, says the research firm, owing to factors such as expanding organised retail sector including supermarkets and hypermarkets, changing food preferences of people, evolving lifestyles and increasing disposable incomes. Moreover, a plethora of new developments in the small scale food and retail sector, and inclination towards food safety concerns, are expected to boost the demand for RDCs in the near future.
Owing to emission of greenhouse gases like CFCs and HFCs in existing RDCs, various changes are now being adopted with regards to compressor design, specifically in North American and European countries. For instance, 2015 F-gas regulations in Europe has boosted the demand for replacement and retrofitted cases, says Allied.
Within the latest report, the RDC market is segmented by product type and product design. Plug-in and remote RDC are the two key product types available in the market, of which the former enjoys a higher adoption. In 2015, the plug-in RDC segment constituted over 70% of the total market revenue, with an anticipated CAGR of 10.1% from 2016 – 2022. Plug-in RDCs are said to be space and energy efficient, compared to remote RDCs. Moreover, initial capital investment requirements for installation for these product types are lower than remote RDCs.
Vertical RDCs dominate the market in the product design segment, constituting around three-fifths of the market revenue in 2015. The segment is estimated to exhibit the fastest growth during the forecast period. With widespread growth in small and medium sized retail outlets, the demand for Vertical RDCs has witnessed a substantial increase. Horizontal RDCs are expected to exhibit a notable growth trend during the forecast period, says Allied, owing to their growing demand in organised large size retail food stores. Hybrid RDCs, which have dual temperature control system have been gaining adoption, especially with increasing demand from cafes and quick service restaurants.
Allied analysed that some of the leading players in the global market include Metalfrio Solutions, Lennox International, Dover Corporation, Illinois Tool Works, Hussmann Corp, AHT Cooling Systems GmbH, Epta S.p.a Refrigeration, Frigoglass, Hoshizaki International, and ISA Italy.
Product launches and mergers and acquisitions have emerged as prominent strategies adopted by the leading players, according to Allied. Currently, these companies are focusing on development of energy efficient and eco-friendly RDCs.