COMMERCIAL REFRIGERATION EQUIPMENT MARKET ANALYSIS

Market Challenges And Opportunities

Commercial Refrigerant Equipment Market – Drivers

Growing Food Production: 

As food production increases, there is an increasing need for better storage and refrigeration solutions - ultimately driving growth in this market. The increase in the supply of food and frozen eatables requires appropriate freezers and storage facilities as well. This means Refrigerant Equipment shall be needed to cater to the growing demand. The perishable nature of food means that it needs to be preserved so that it lasts for a longer period of time. Refrigeration slows down the growth of bacteria and yeast, thereby increasing the shelf life of food items. The frozen food market is gaining popularity due to the abovementioned benefits. The global frozen food market was worth USD 273.20 billion in 2020 and is expected to grow at a CAGR of 5.98% between 2023 and 2030, going from US$ 311.80 billion in 2023 to US$ 472.20 billion in 2030.

Technological Advancements

The refrigeration sector has seen an improvement in performance due to the implementation of automated systems, resulting in reduced operational costs and greater productivity. The addition of automation and reduction in the dependency of manual labor shall improve the cost efficiency as well as the quality of the products. Frigo Plus is a trading company, dealing in cooling and refrigeration equipment. They also provide comprehensive automation systems for the operation of refrigeration plants. In a refrigeration plant, compressors, liquid levels in pressure vessels, system temperatures and pressures, liquid pumps, and so on are all controlled by PLC. These PLCs can be installed across the plant to guarantee the wellbeing of the parts and ideal working circumstances which converts into inconvenience free running of the framework and energy utilization streamlining.

Rise in Refrigerant Equipment Establishments

The commercial refrigeration equipment industry is experiencing rapid growth due to an increasing need for refrigeration systems. For an increasing number of establishments, food storage, and preservation become more critical than ever before. This is in order to maintain a competitive advantage and ensure quick delivery of products as compared to the other players in the market. Also, newer establishments being set up are adopting the latest trends and technologies for storing food items, which is an important driving factor for refrigerant equipment.

Significant Investments in Research and Development

Businesses are investing heavily in R&D to develop innovative refrigeration systems, which is helping the commercial refrigeration equipment companies industry expand their market share. Research and Development into product development as well as new product generation are leading to sustainable refrigeration solutions being introduced to the pre-existing market.

Commercial Refrigerant Equipment Market – Restraints

Temperature Regulation Issues

There might be a fault with the thermostat which regulates the temperature. In addition, your refrigerator equipment could also have dirty fans, a faulty compressor, refrigerant leaks, or limited airflow. This may lead to failure of the device while it is functioning at a specific supermarket or any other location. This means proper maintenance as well as AMC contracts may be needed for the smooth functioning of the refrigeration equipment.

Voltage Fluctuations and Wiring issues

If the power switch is on and there are no unattached power plugs, you may have to use a voltage detector to check the wall outlet and ground wires to eliminate the possibility of any problem with the wiring. Any form of excess voltage may lead to short circuiting or burning of the fuse which will damage the equipment. It is essential to ensure the voltage input and the voltage requirements of the refrigeration equipment is matching in order to avoid such failures and damages. One can check to see if there are any issues with the ground or wall outlet wires with a voltage detector. Any issues with the wiring must be addressed right away. The majority of manufacturers will void the warranty of the equipment if the refrigerator requires repair, so do not use extension cords.

Commercial Refrigerant Equipment Market – Opportunity

Rise in FMCG Storage Needs

Fast-Moving Consumer Goods or FMCG continues to influence markets across the globe. Consumers want cheap and easy products including pre-packaged food and beverages. As a result, demand for self-serve commercial refrigeration will continue to grow. From major grocery chains to fast-food restaurants and corner stores to hotel lobbies, the FMCG trend will increase demand for cold storage. Trends in refrigeration therefore will need to focus on easy access, high-efficiency cold storage that optimizes space, accommodates more inventory and makes it easy for customers to access the products they want. The India Government's Department of Commerce, Ministry of Commerce, and Industry established the India Brand Equity Foundation (IBEF), a trust. The primary objective of IBEF is to spread the word about Indian goods and services and to promote and raise international awareness of the Made in India label in international markets. To achieve this goal, IBEF collaborates closely with industry and government stakeholders. According to ibef.org, as of December 2022, the FMCG market was worth US$ 56.8 billion. From 2021 to 2027, the FMCG market is expected to see a CAGR of 27.9%, reaching nearly US$ 615.87 billion. In 2022, the rural segment of India contributed more than 35% of the total annual sales of FMCG, while the urban segment contributed 65%. Good harvest; in FY24, the government is expected to spend money to help rural demand recover. Last fiscal year, the industry's revenues increased by 8.5% and volume increased by 2.5%. In the January-June time of 2022, the area saw esteem development of around 8.4% by virtue of cost climbs because of inflationary tensions. In Q2, CY22, the FMCG area timed a worth development of 10.9% Y-o-Y — higher than the 6% Y-o-Y esteem development seen in Q1.

Eco-Friendly Refrigerants Development

Growing concern about the environment is also increasing demand for eco-friendly solutions right across the industry. This includes refrigeration which is infamous for contributing to ozone depletion due to the use of refrigerants containing hydrofluorocarbon (HFC).  As a result, natural refrigerants designed to combat climate change like ammonia or CO2 will soon become the norm. An increase in these sustainable options is a must as businesses continue to find ways to meet customer expectations, while also meeting their own environmentally friendly mandates. Lower global warming potential (GWP) will soon become a standard requirement across more provinces, states and countries.

Rise in On-The-Go Refrigeration Needs

Increasing global importing and exporting has subsequently increased demand for on-the-go refrigeration such as cooled van containers and shipping units. Long distance cold storage shipping capabilities will help support the growing international food trade, bringing a more diverse selection to consumers via restaurants as well as grocers. Foodie culture contributes to this demand as more people have become home cooks due to the pandemic. An interest in exotic flavors and ingredients will continue to push demand for foods that cannot be produced locally and affordably.