US Commercial Refrigeration Market Size Likely to Grow at a CAGR of 7.89% By 2033

As per the current market research conducted by the CMI Team, the US Commercial Refrigeration Market size is expected to record a CAGR of 7.89% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 12.63 Billion. By 2033, the valuation is anticipated to reach USD 25.02 Billion.

Commercial Refrigeration Market: Growth Factors and Dynamics

The US commercial refrigeration market presents significant growth opportunities due to several factors:

• Consumer Preference for Convenience: The fast-paced modern lifestyle has heightened the demand for convenient refrigeration solutions. Commercial refrigeration units, strategically placed in high-traffic areas like grocery stores, restaurants, and convenience stores, offer quick and accessible cooling and storage options for consumers and businesses, ensuring food safety and quality.

• Rising Popularity of Fresh and Ready-to-Eat Food: There is a notable rise in the popularity of fresh and ready-to-eat food, driven by a growing appreciation for healthy and convenient meal options. This trend is particularly pronounced among younger demographics, including millennials and Gen Z, who prefer fresh food with minimal preparation time. Commercial refrigeration plays a crucial role in maintaining the freshness and safety of these food items.

• Urbanization and Infrastructure Development: Rapid urbanization and infrastructure development in major cities create opportunities for commercial refrigeration units to cater to busy city dwellers and businesses needing efficient and reliable cooling solutions. This includes supermarkets, convenience stores, and food service establishments that require high-performing refrigeration systems to meet the demands of urban populations.

• Cost-Effectiveness: Commercial refrigeration units are a cost-effective solution for businesses, as they reduce food spoilage and waste, ensuring longer shelf life and freshness of perishable items. The investment in advanced refrigeration technologies can lead to significant cost savings in the long run, making it an attractive option for businesses of all sizes.

• Entrepreneurial Opportunities: The relatively low barriers to entry and the availability of prime locations for setting up refrigeration units attract aspiring entrepreneurs and businesses. This fosters innovation and creativity in refrigeration solutions and business models, such as pop-up cold storage units and mobile refrigeration services.

• Growing social media and Digital Marketing: Social media platforms have played a pivotal role in the success of businesses utilizing commercial refrigeration. Operators can use platforms like Instagram, Facebook, and Twitter to connect with customers, build brand awareness, and drive sales. Sharing images of fresh produce, ready-to-eat meals, and other refrigerated items helps attract and retain customers, creating a loyal and engaged customer base.

• Growing Popularity of Themed Refrigeration Solutions: The increasing popularity of themed refrigeration solutions, such as eco-friendly and energy-efficient units, caters to niche markets and creates opportunities for operators to offer unique and memorable experiences. These innovations align with consumer demand for sustainability and environmental responsibility.

Commercial Refrigeration Market: Partnership and Acquisitions

• In December 2023, Haier Smart Home entered into a stock purchase agreement with Carrier Global Corporation to acquire Carrier’s Commercial Refrigeration Business by acquiring 100% of the equity interest in Carolin Holdings B.V. Carrier, for a total consideration of approximately USD 640 million, which represents 11x 2022A P/E. The Transaction marks Haier Smart Home’s expansion from its existing household refrigeration business into the commercial refrigeration business, creating additional future growth opportunities. Carrier Commercial Refrigeration is a leading global commercial refrigeration solutions provider, with more than 4,000 employees, including over 2,000 service technicians in more than 10 countries worldwide.

• In December 2023, Carrier Global Corporation, a global leader in intelligent climate and energy solutions, entered into a definitive agreement to sell its global commercial refrigeration business to its decades-long joint venture partner Haier for an enterprise value of $775 million, including approximately $200 million of net pension liabilities. This represents about 16.5x 2023 expected EBITDA. This follows the agreement to sell Carrier’s Global Access Solutions business and marks another meaningful step forward in the company’s portfolio transformation. Definitive agreements are now in place to exit businesses representing about half the EBITDA Carrier is divesting.

• In January 2023, Liebherr Refrigerators and Freezers introduced multiple new products at the 2023 Kitchen & Bath Industry Show meeting industry needs with sustainable technology. The new refrigerators and freezers have been developed to achieve high levels of energy efficiency, longer service life and reduced food waste through BioFresh technology, which keeps food fresher for longer than ever before.

Report Scope

Commercial Refrigeration Market: COVID-19 Analysis

The COVID-19 pandemic has had a profound impact on the Commercial Refrigeration Market, presenting a blend of challenges and opportunities. Key effects include:

• Decreased Foot Traffic: Lockdowns and social distancing measures led to reduced foot traffic in traditional Commercial Refrigeration locations like business districts and events, resulting in lower customer volumes and sales.

• Event Cancellations: The cancellation of large gatherings such as festivals and concerts deprived Commercial Refrigerations of major revenue sources.

• Supply Chain Disruptions: Commercial Refrigeration operators faced challenges in sourcing ingredients and supplies consistently, leading to increased costs and limited menu options at times.

• Regulatory Adjustments: Adapting to new health and safety regulations necessitated additional costs and operational adjustments for Commercial Refrigeration operators.

• Surge in Takeout and Delivery: With indoor dining restrictions in place, there was a heightened demand for takeout and delivery services, benefiting mobile food providers like Commercial refrigerators. Many expanded their online ordering capabilities and partnered with delivery apps.

• Menu and Business Innovations: Commercial Refrigeration operators diversified their offerings to include family meal packs, DIY meal kits, and grocery items, catering to the evolving consumer preferences during the pandemic. Some introduced subscription models and loyalty programs to foster customer loyalty.

• Enhanced Digital Presence: Leveraging social media and online ordering systems, Commercial Refrigerations improved customer engagement and streamlined transactions, enhancing the overall customer experience.

• Product Diversification: By adapting to consumer needs and integrating technology, Commercial Refrigerations successfully diversified its product offerings and revenue streams, contributing to resilience amid pandemic challenges.

In summary, the COVID-19 pandemic brought both hardships and opportunities to the Commercial Refrigeration Market, prompting operators to innovate and adapt to changing circumstances.

List of the prominent players in the US Commercial Refrigeration Market:

• Carrier Commercial Refrigeration Inc.
• Danfoss
• Emerson Electric Co.
• Dover Corporation
• True Manufacturing Co. Inc.
• Hillphoenix Inc.
• Hussmann Corporation
• Johnson Controls Inc.
• Lennox International Inc.
• Evapco Inc.
• Güntner GmbH & Co. KG
• Ingersoll-Rand plc
• Baltimore Aircoil Company
• Rivacold America
• Rosenberg USA Inc
• Others

The US Commercial Refrigeration Market is segmented as follows:

By Product Type

• Refrigerators and Freezers
• Refrigerated Display Cases
• Beverage Refrigeration
• Ice Machines
• Others

By Application

• Food Service
• Food and Beverage Retail
• Healthcare
• Hotels and Hospitality
• Others

By Capacity

• Small Capacity
• Medium Capacity
• Large Capacity

By Technology

• Self-contained Refrigeration Units
• Remote Condensing Units
• Smart Refrigeration