Commercial Refrigeration Market

Commercial Refrigeration Market Size

The global commercial refrigeration market size was valued at USD 85.6 billion in 2024 and is expected to reach USD 161 billion by 2034, growing at a CAGR of 6.6% during 2025 to 2034, driven by the heightened need for energy-efficient cooling systems in supermarkets, restaurants, and convenience stores. Environmental Protection Agency (EPA) states commercial refrigeration systems represent roughly 40% of energy consumption in supermarkets over the United States. This has resulted in the development of new refrigeration systems that are efficient and cost-effective. Also, the increased demand for frozen and processed food globally is also propelling the demand for high-quality refrigeration systems.

Newer industry standards that limit the use of refrigerants with low-global-warming-potential (GWP) and energy-efficient technologies also compel the use of advanced refrigeration systems. Moreover, other smart refrigerating techniques IoT monitoring and remote temperature control are becoming popular among companies seeking advanced energy management solutions that aid in compliance with sustainability procedures.

The growth of the food retail and food sector is another important driver of growth for the commercial refrigeration market. There has been significant growth in the number of supermarkets, hypermarkets, quick-service restaurants, and cloud kitchens, which increases the need for commercial refrigeration systems. In turn, manufacturers are employing new cooling techniques such as transcritical CO? systems, magnetic refrigeration, and advanced insulation to improve energy use and lower costs. The change to environmentally friendly refrigerants like hydrocarbons and ammonia is also increasing due to the worries related to climate change and eco-friendly initiatives.

Moreover, government policies and grants advocating for the use of energy-efficient refrigeration equipment are prompting many businesses to change their refrigeration systems, further driving growth in the commercial refrigeration equipment market.

Commercial Refrigeration Market Trends

• Refrigeration units are more efficient as companies such as Whirlpool increase the use of advanced insulation materials like SlimTech. This new material is composed of special powders and porous materials which helps improve energy efficiency. Their innovation allows for greater interior storage space (25% more) while reducing exterior walls’ thickness by two-thirds.
  
• The movement towards low-global-warming-potential (GWP) refrigerants such as natural CO?, hydrocarbons, and ammonia, is gaining traction. This development is in line with harsher environmental policies and increased focus on sustainability.
  
• More industries are adopting IoT-enabled Refrigeration Systems that provide real-time monitoring and automated temperature control, as well as advanced energy management features. Such systems assist businesses in managing the balance between energy consumption and cooling efficiency.
  
• Governments all over the world are adopting new guidelines which regulate energy consumption at a higher level than in the past, prompting businesses to turn to more eco-friendly and energy-efficient refrigeration solutions. These policies direct the pace of innovation in the commercial refrigeration equipment market, as new product design and materials are created to meet these strong guidelines.
  

Commercial Refrigeration Market Analysis

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Based on Product Type, the commercial refrigeration equipment market is segmented into transportation refrigeration equipment, refrigerated display cabinets, beverage coolers, ice machines, vending machines, refrigerators, freezers, and condensing units, other components. The refrigerated display cabinets segment dominated the commercial refrigeration equipment market in 2024, generating a revenue USD 37.2 billion, and is expected to reach more than USD 66 billion by 2034.

• According to JARN, refrigerated display cabinets comprised 50.4% of the commercial refrigeration market in 2021 which captures their importance in food storage and marketing at retail outlets.
• With the increase of energy costs, there is more focus on energy-efficient refrigerated display cabinets. To achieve lower energy consumption and still cooling performance, the cabinets have been fitted with LED lights, advanced insulation materials, and energy-saving compressors.
  
• Refrigerated display cabinets with internet of things features are becoming more common as it enables retailers to manage temperature, humidity, and even energy usage from remote locations. This makes operations more efficient, minimizes waste, and enhances food safety.
  
• A wide range of refrigerated display cabinets are now available with advanced design features such as adjustable shelving, sliding doors, and customized dimensions which provide better accommodation of different products and space optimization in retail outlets.
  

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Based on applications, the commercial refrigeration equipment market is classified into food service, food & beverage retail, food & beverage production, food & beverage distribution. Food & beverage retail segment dominated the market in 2024, with a share of 43.8% and is expected to reach USD 73.2 billion by 2034.

• The food and beverage retail segment is one of the most important industries of growth in the commercial refrigeration market. A drastic shift in consumer preferences towards freshly made, frozen, and prepared food escalated the requirement for dependable refrigeration systems.
  
• The proliferation of specialized food retailers and supermarket chains boosts the demand for refrigeration equipment, particularly for display refrigerators for fresh produce, dairy products, and frozen foods.
  
• With the implementation of newer food safety regulations, refrigeration systems that prevent the spoilage of food products by maintaining exact temperature control, are required. There is an adoption of advanced refrigeration systems to meet these needs.
  
• There is an increase in the number of convenience stores, Cloud Kitchens, and Quick Service Restaurants (QSR), which also fuels the demand for refrigerated units. These outlets require adequate refrigeration systems to have perishable products ready for sale.
  

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The U.S. dominated the North America commercial refrigeration market with a revenue of around USD 23.5 billion in 2024 and is expected to reach around USD 45.8 billion by 2034.

• The U.S. is a key country in the commercial refrigeration equipment market. According to the U.S. Department of Commerce, there were 42,708 food and beverage processing plants in the country as of 2022. The huge number of processing facilities increases the need for refrigeration solutions, especially in supermarkets, convenience stores, and food service outlets.
  
• China's expanding retail industry and growing food processing industry make it one of the largest markets for commercial refrigeration. Supermarkets and hypermarkets, as well as Quick Service Restaurants (QSR), drive the country's need for refrigeration solutions.
  
• The developed food processing industry in Germany, alongside the high need for refrigeration in food retail outlets such as supermarkets and hypermarkets, are some of the factors behind Germany’s market leadership in commercial refrigeration within Europe.
  
• The commercial refrigeration equipment market of Saudi Arabia is in the development stage due to the retail and food service sector growth attributable to the high population and demand for fresh and frozen foods.
  

Commercial Refrigeration Market Share

• The commercial refrigeration equipment market is fragmented with top 5 players including Haier, Hussmann Corporation, Daikin Industries Ltd., Danfoss A/S, Johnson Controls held a share of about 20-25% in 2024.
  
• In April 2021, Haier launched a new line of refrigerators with a smart display that make setting the temperature and different modes simple. Product innovation and strategic alliances are the focus of Haier.
  
• Hussmann launched energy saving refrigeration units for commercial food service in late 2023. These systems are equipped with variable-speed compressors and intelligent control systems that can reduce energy use by 25%. Hussmann focuses on R&D spending and solutions designed for the consumers.
  
• With a strong focus on research and development, Daikin Industries Ltd. is able to remain competitive by offering innovative refrigeration solutions. The company has a worldwide presence, and a broad range of products designed for different commercial refrigeration requirements.
  
• Danfoss A/S focuses on sustainable refrigeration technologies and environmentally responsible energy products, keeping in mind global environmental efforts. The company strengthens its market position and broadens its technological assets by establishing strategic partnerships and making acquisitions.
  
• Johnson Controls is focused on smart and connected systems which feature advanced technologies in the company's refrigeration solutions. Due to the company's focus on digitalization and IoT integration, it is regarded as a leader in commercial refrigeration.
  
• Companies operating in the commercial refrigeration market are using varying approaches to retain their competitive advantage. These include innovative new products, joint ventures, or increasing spending on research and development. It is becoming common for manufacturers to implement the design of energy-efficient and environment-friendly refrigeration systems to meet consumer demands, as well as comply with strict environmental laws. Moreover, companies are applying new technologies like the Internet of Things (IoT) and smart controls for better product functionality and efficiency. Another important strategy is increasing partnership, therefore expanding new territories and acquiring existing markets. Companies are working with retailers and distributors to improve their market visibility and capture new markets. For instance, some manufacturers have formed agreements with retail chains to provide specially designed refrigeration equipment for clients who have particular demands. This allows companies to improve their competitiveness as well as their revenues.
  
• In June 2023, Johnson Controls acquired M&M Carnot, a leading sustainable industrial refrigeration solutions provider. This acquisition strategically strengthens Johnson Controls’ industrial refrigeration business unit by adding advanced sustainable refrigeration technologies. With M&M Carnot's innovative solutions, Johnson Controls aims to strengthen its green refrigeration systems capabilities, empowering customers to reduce their environmental impact and improve energy efficiency during industrial activities.
  

Commercial Refrigeration Market Companies

Major players operating in the commercial refrigeration industry include:

• AB Electrolux
• Bitzer
• Daikin Industries Ltd.
• Danfoss A/S
• Emerson Electric
• GEA Group AG (GEA)
• Haier Gro
• Hussmann Corporation
• Illinois Tool Works Inc
• Johnson Controls
  

Commercial Refrigeration Market News

• In October 2024, Daikin Applied acquired Varitec Solutions to expand energy-efficient HVAC and refrigeration services for commercial buildings in the Southwestern region of the U.S.
  
• In January 2024, Beitzer renewed their agreement with Beijer Ref to support commercial refrigeration clients and encourage the use of natural refrigerants and the phasing out of CO? emissions.
  
• In December 2023, Carrier sold its global commercial refrigeration business to Haier for USD 775 million, increasing Haier's market share in the industry.
  
• In March 2023, Danfoss bought BOCK GmbH to add to its portfolio of energy-efficient refrigeration solutions and broaden the scope of sustainable refrigeration solutions worldwide.
  
• In February 2023, Emerson presented integrated commercial refrigeration and HVAC systems with a focus on environmental conservation and food safety.
  

The commercial refrigeration market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Billion) and volume (Million Units) from 2018 to 2034, for the following segments:

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Market, By Product Type

• Transportation Refrigeration Equipment
• Refrigerated Display Cabinets
• Beverage Coolers
• Ice Machines
• Vending Machines
• Refrigerators, Freezers, and Condensing Units
• Other Components

Market, By Application

• Food Service
• Food & Beverage Retail
• Food & Beverage Production
• Food & Beverage Distribution

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Singapore
  • Malaysia
  • Australia 
• Latin America
  • Brazil
  • Mexico 
• MEA
  • Saudi Arabia
  • UAE
  • South Africa