Emerging Trends in Commercial and Industrial Refrigeration Technology
What will be the global and Russian refrigeration equipment markets in the next 5–10 years?
The global commercial and industrial refrigeration equipment market, currently valued at $115 billion, is poised for substantial growth. Industry projections indicate a surge of nearly $15 billion by 2028, driven by an average annual growth rate of approximately 7%. In the next 5-10 years, what factors will propel this expansion? Let's examine the key drivers of market growth.
Current trends in the global and Russian refrigeration equipment market
The global commercial and industrial refrigeration equipment market endured a challenging period between 2020 and 2022, marked by significant disruptions. The COVID-19 pandemic and subsequent economic challenges curtailed retail expansion and modernization projects, leading to a sharp decline in equipment demand. However, the industry demonstrated resilience, gradually recovering in 2021 and overcoming geopolitical headwinds in late 2022.
North America has historically dominated the refrigeration market, with a substantial share approaching $20 billion. Nevertheless, the rapidly expanding Asia-Pacific region is closing the gap, driven by robust economic growth and increasing food consumption. Analysts predict Asia-Pacific will overtake North America as the market leader within the next five to seven years, fueled by a projected 43% growth by 2028. Local manufacturers in the region are contributing to this surge by offering competitively priced, high-quality products.
The European refrigeration market, valued at approximately $10 billion, has experienced a gradual decline. Economic hardships across several countries between 2020 and 2022 contributed to a slight decrease in overall demand. However, specific segments, such as refrigerated cabinets, demonstrated modest growth during this period.
Market Drivers and Trends
Commercial and industrial product storage equipment remains the primary market driver both globally and within Russia. While the surge in demand for medical and vaccine storage equipment during 2020-2021 temporarily impacted this sector, it has since solidified its position. The critical role of commercial and industrial refrigerators in preserving food quality is undeniable.
A notable trend in both global and Russian markets over the past four years is the increasing demand for compact refrigeration solutions tailored to small shops. This shift is largely attributed to the growing popularity of urban planning concepts like polycentricity and the "fifteen-minute city," which prioritize local infrastructure. Consequently, large-scale retail establishments are witnessing a decline, while small convenience stores are on the rise. Additionally, the burgeoning ready-to-eat food and delivery services sector is fueling demand for refrigeration equipment.
The Russian refrigeration equipment market is undergoing a transformation marked by a gradual decrease in import reliance. While imports accounted for approximately 30% of the market in 2019, this figure has reduced to around 20% today. The market landscape has also evolved, with Chinese, Turkish, and Belarusian manufacturers replacing European and Japanese suppliers.
Emerging Trends in the Refrigeration Equipment Market
Energy efficiency is set to be a defining characteristic of the refrigeration equipment market in the coming years. As electricity costs continue to climb, the demand for high-efficiency products, certified to meet stringent standards, will intensify. Carbon dioxide refrigeration systems exemplify this trend.
Environmental sustainability is inextricably linked to energy efficiency. Tightening environmental regulations are driving manufacturers to develop products with minimal environmental impact throughout their lifecycle, from production to disposal.
The integration of artificial intelligence (AI) into refrigeration equipment is a transformative trend. By enabling seamless integration with facility management systems, AI enhances control and responsiveness to unexpected events. The rise of "smart" shops, operating with minimal human intervention, will further propel the market. This necessitates advancements in both AI and IoT technologies.
Concurrently, the expanding frozen food and ready-to-eat sectors will drive increased demand for refrigeration equipment across both commercial and industrial applications, including shops, markets, warehouses, and dark stores.
Why Attend AIRVent?
Navigating today's rapidly evolving marketplace requires a deep understanding of current and emerging trends. The refrigeration equipment industry is no different. AIRVent, the International Exhibition of equipment, technologies, and services for ventilation, air-conditioning, and refrigeration, offers a unique platform to stay ahead of the curve. Gain invaluable insights from industry leaders, explore the latest innovations, and identify new business opportunities at this essential industry event.
AIRVent has established itself as a pivotal platform for the refrigeration industry. The 2024 edition showcased the event’s significance with an impressive turnout of 120 exhibitors and 7,523 industry professionals from Russia and 14 other countries. Notably, 43% of attendees expressed specific interest in commercial and industrial refrigeration equipment.
This event offers unparalleled opportunities for networking, lead generation, and customer acquisition. With over two-thirds of attendees in managerial roles and a strong purchase intent (71%), AIRVent is the ideal platform to showcase your commercial and industrial refrigeration solutions.
Join us at the 3rd AIRVent International Exhibition from February 4-7, 2025, at Crocus Expo IEC in Moscow to connect with a targeted audience and drive business growth.
