Refrigeration Technology: A Global Forecast
The global refrigeration equipment market is expected to grow at a CAGR of 6.1% over the next few years, but growth is likely to be hampered by high initial costs and subsequent repair costs.
These are some of the findings of a new report by Bangalore, India-based market research specialist Business Research Co., “Commercial Refrigeration Equipment Global Market Report 2021: COVID-19 Impact and Recovery to 2030”.
The refrigeration equipment market grew at a slow rate of 1.9% CAGR from 2020 to 2021, reaching $60.4 billion, largely due to the impact of Covid.
“The growth is primarily due to companies reorganizing their operations and recovering from the impact of COVID-19, which had previously led to restrictive lockdown measures involving social distancing, remote working and shutdown. of business activities that have resulted in operational challenges,” according to the report.
Going forward, however, growth is expected to resume, averaging 6.1% CAGR to reach $76.6 billion in 2025.
“Growing consumer demand for frozen and chilled products is expected to drive the commercial refrigeration market,” according to the report. “The preference for frozen and chilled products has increased due to changing lifestyle, accelerated urbanization and the advantages offered by frozen products such as longer shelf life, convenience, reduced food prep and cleanup time.”
Frozen and chilled products stored in commercial refrigerators in supermarkets, hypermarkets and refrigerated trucks are likely to generate a higher need for commercial refrigeration equipment for storage, propelling the growth of the market.
This growth will, however, be tempered by the high costs of equipping, installing and repairing equipment, according to the report.
“For example, the total cost of the cold room, including installation, ranges from $3,000 to $9,000. On top of that, the average repair cost for commercial refrigeration equipment is between $100 and $325. This high cost of equipment, installation and maintenance is extremely unaffordable for small retailers who hire these services or opt for non-commercial variants, which hampers the growth of the commercial refrigeration equipment market.
According to the report, companies are focusing on integrating the latest technologies such as artificial intelligence, 5G and machine learning into commercial refrigeration equipment to reduce power consumption, improve preventive maintenance and improve the experience. customer.
As an example, Axiom Cloud and Turntide Technologies have collaborated to drive AI in commercial refrigeration, and Axiom will license divisions of its IoT infrastructure to Turntide to support Turntide’s mission to reduce 25% of global electricity consumption that are misused by existing engines.
Additionally, UTStarcom launched the goBox with China Mobile Group Zhejiang Company (Hangzhou), its first 5G-powered smart commercial refrigerator. With its smart vending machine, goBox has created a new way of shopping with an improved shopping experience, resulting in greater consumption per transaction. The device is enabled by a powerful system platform supported by 5G, mobile cloud and artificial intelligence.
Another refrigeration pioneer, Daikin Industries Ltd., a Japanese manufacturer of HVAC-R air conditioning systems, filtration systems and chemicals, through its subsidiary Daikin Europe NV, acquired AHT Cooling Systems GmbH. This acquisition allowed Daikin Industries to be a single supplier offering complete coordination of air conditioning and refrigeration products, as it added AHT Cooling Systems GmbH products and services related to air conditioning and commercial equipment.
It also strengthens the expansion of Daikin Industries in Europe and the natural refrigerants portfolio, as AHT Cooling Systems GmbH focuses on natural refrigerants such as propane-based equipment. AHT Cooling Systems GmbH is an Austrian supplier of refrigerator and freezer systems for retail and industry.