United States.
U.S. demand for commercial refrigeration equipment is forecast to rise 3.1% a year through 2020 to $11.3 billion, moderating from the 2010-2015 period, when growth was driven by a rebound in sales after the economic downturn, according to a new study by Freedonia Group.
Suppliers are expected to benefit from the planned 2020 phase-out of R-22 refrigerant, which will prompt commercial refrigeration equipment operators to either retrofit their equipment to use an acceptable alternative refrigerant (increasing demand for parts such as valves and filters), or replace their existing equipment (increasing system sales). A number of alternative refrigerants can be used instead of R-22, and retrofit is the least expensive option for operators. However, installing new systems provides long-term cost savings due to an increase in energy efficiency.
Refrigerated transportation systems comprise the largest share of the demand for commercial refrigeration equipment in the U.S., accounting for 23% of the 2015 total. However, these products recorded the slowest rate of demand growth through 2020 due to a significant slowdown in expansion activity and the refrigerated trailer truck fleet after a period of solid earnings between 2010 and 2015.
Beverage refrigeration equipment and display cases will set the fastest sales increases through 2020. Sales of beverage refrigeration equipment will be driven by continued growth in the number of food and beverage establishments and associated food service revenues. The demand for showcases will largely stem from the phasing out of R-22s, as many older display case systems still use R-22 as a refrigerant.
