Covid-19 Outbreak Generates Growth Opportunities in Commercial Refrigerator Industries
Overview
The commercial refrigeration equipment market is expected to reach US$ 37,410.1 million, with strong demand particularly from the food sector. The corona virus pandemic is likely to have a marginal impact on the industry as applications in the health care and food & beverage sector sustain growth through the crisis period. On the other hand, disruptions in component and refrigerant supply chains will prove challenging to market players.
"Strict regulations associated controlling the environmental impact of harmful refrigerants that contribute to global warming are generating major growth opportunities to the worldwide commercial refrigeration equipment market, in terms of emission and performance standards, throughout the forecasting period," says the FMI study.
Important Takeaways
• Reach-in devices remain highly sought-after, driven largely by demand from the food service and hospitality industry.
• Food processing and production application are contributing significantly to revenues, owing to bias towards replacement and low maintenance practices.
• North America remains a major contributor to the global commercial refrigeration equipment market, with major infrastructure investments in retail and food service sectors.
Driving Factors
• Strict implementation of food quality and safety regulations in retail and food service businesses is a key influencer in market growth.
• Innovations in eco-friendly components and refrigerant chemicals are bolstering sales and adoption prospects.
Leading Constraints
•High installation cost of new refrigeration equipment is a major factor slowing down sales figures.
•Long life cycle and low replacement rates of commercial refrigeration equipment limits revenue streams.
The corona virus pandemic will have a moderate impact on the operations of the commercial refrigeration equipment industry, largely owing to disruptions in supply chains and restricted production of refrigerant chemicals and essential components. In addition, demand is also likely to be hit by closed food service businesses during the pandemic.
However, the industry is likely to benefit from strong demand in essential segments such as the food & beverage production and processing industries, the health care and pharmaceutical sector, and the logistics market, which will minimize losses during this period substantially, and aid a steady recovery.
Competition Landscape
Some of the leading players participating in the commercial refrigeration equipment market are AHT Cooling Systems GmbH, Daikin Industries Ltd., Electrolux AB, Carrier Corp., Whirlpool Corp., Dover Corp., Danfoss A/S, Hussman Corp., Illinois Tool Works Inc., and Innovative Display Works.
Players in the commercial refrigeration equipment are seeking strategic expansion and acquisition activities to widen portfolios and production capabilities in an intensely competitive market scenario.
For instance, Daikin Industries Ltd has announced its intentions to acquire AHT Cooling Systems GmbH for an 881 million Euro valuation. Keep Rite Refrigeration is in collaboration with Long view Economic Development Corp. for the expansion of a 57,000 sq. ft. production facility for US$4.5 million. Demark-based Tefcold has announced acquisition of refrigeration wholesaler Nosreti Velkoobchod to boost distribution in Czech and Slovakia.
The leading players in the commercial refrigeration market have also focused on product launch, partnership, and collaboration as a key strategy to gain significant market share globally.
Strategy
• Overall direction of development remains the same - The field of commercial refrigeration is still shifting towards building safe ecosystem, to efficiently maintain the refrigeration process and offer healthy and beneficial products to the mankind. Optimization of new technologies and the benefits gained from them, will reserve both the environment and the market offerings along with their strategic processes.
• How to react to corona virus can influence future 5 years in market status for manufacturers and brands. To keep cost as low as possible is a must. During unstable economy, business tend to keep sufficient cash flow and refuse to choose fancy or expensive machines purchasing. Therefore, it’s important for refrigerator manufacturers to choose cost-effective while of good quality component. Supplier like Tauras Tech LED Driver for refrigerated equipment lighting, provides you professional and customized led driver solution. They specialized in water proof LED driver / power supply for 22 years, vendor of Coca cola, Pepsi, Imbera, Metalfrio, Fogel, Xingxing, Panasonic and other international refrigerator brands.
Post time: Jan-23-2021