Commercial Refrigeration Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Application (Food Service, Food & Beverages Production, Food & Beverages Retail), By End User (Supermarkets/Hypermarkets, Hotels & Restaurants, Bakeries), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 44.86 Billion
CAGR (2026-2031)	6.41%
Fastest Growing Segment	Food & Beverages Retail
Largest Market	North America
Market Size (2031)	USD 65.13 Billion

Market Overview

The Global Commercial Refrigeration Market will grow from USD 44.86 Billion in 2025 to USD 65.13 Billion by 2031 at a 6.41% CAGR. Commercial refrigeration encompasses cooling systems such as walk-in freezers and display cases utilized in retail and foodservice sectors to preserve perishables. The market is primarily driven by the expanding global food industry and the rising consumption of processed goods, which necessitate robust cold chain infrastructure. According to the National Restaurant Association, in 2025, the restaurant industry is projected to reach $1.5 trillion in sales, signaling a robust demand for equipment modernization and expanded storage capacity. This growth trajectory is further supported by the proliferation of supermarkets in emerging economies, where efficient preservation technologies are essential to ensure food safety and minimize waste.

A significant challenge impeding market expansion is the stringent regulatory environment regarding refrigerant emissions. Manufacturers must navigate complex mandates to phase out high-global warming potential hydrofluorocarbons in favor of eco-friendly alternatives. This transition demands substantial investment in research and re-engineering, resulting in higher equipment costs. Such financial burdens can deter small enterprises from upgrading their infrastructure, thereby creating a barrier to widespread adoption and slowing overall market growth.

Key Market Drivers

The Rapid Expansion of the Food Service and Quick Service Restaurant Industry is a primary catalyst propelling market demand as retailers aggressively upgrade infrastructure to accommodate shifting consumer preferences. This sector is witnessing a substantial increase in physical footprints and a strategic pivot toward high-margin perishable goods, which necessitates robust and reliable cold chain solutions. Major retail entities are capitalizing on this trend by scaling their operations to meet local demand for fresh and convenient meal options. According to Aldi, March 2024, in a corporate press release, the company plans to add 800 stores nationwide by the end of 2028, a significant expansion that underscores the massive equipment procurement requirements fueling the market. This physical growth is further complemented by the intensification of in-store food offerings that require precise temperature management. According to the National Association of Convenience Stores, April 2025, in the State of the Industry Report of 2024 Data, foodservice sales accounted for 27.7% of in-store sales at convenience stores in 2024, demonstrating the critical role of refrigeration in supporting profitable inventory categories.

Stricter Government Regulations Mandating Energy-Efficient and Low-GWP Solutions are simultaneously reshaping the technological landscape by forcing a transition away from traditional hydrofluorocarbons. Regulatory bodies are enforcing rigorous standards to curb environmental impact, compelling manufacturers to innovate and end-users to retrofit aging assets with sustainable alternatives like CO2 and ammonia systems. This legislative pressure drives the adoption of advanced units designed to minimize carbon footprints while maintaining optimal performance. According to the U.S. Environmental Protection Agency, September 2024, in the GreenChill Certified Store Achievements report, 61% of GreenChill Certified Stores used a refrigerant with a Global Warming Potential of less than 150 in 2024, reflecting the accelerated industry shift towards eco-compliant cooling technologies to mitigate regulatory risks and operating costs.

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Key Market Challenges

The stringent regulatory environment regarding refrigerant emissions constitutes a substantial impediment to the expansion of the commercial refrigeration market. Manufacturers face immense pressure to transition away from high-global warming potential hydrofluorocarbons toward eco-friendly alternatives, a shift that necessitates significant capital expenditure on research and re-engineering. This compliance burden forces manufacturers to increase equipment prices, which disproportionately affects small and medium-sized enterprises with limited capital. Consequently, these businesses often delay necessary infrastructure upgrades, thereby stalling the broader adoption of modern cooling technologies and slowing overall market velocity.

This regulatory pressure is further intensified by the disconnect between operational realities and new compliance standards. According to the National Grocers Association, in 2025, industry data indicated that the typical food-retail refrigeration system leaks approximately 25% of its refrigerant annually, yet regulators set a restrictive repair threshold of 20%. Such disparities between regulatory mandates and technical feasibility create operational uncertainties that discourage investment. As retailers grapple with these difficult thresholds, the diversion of funds toward compliance management rather than capacity expansion directly constrains the sector's growth trajectory.

Key Market Trends

The Implementation of Variable Speed Inverter Compressor Technology is becoming a critical standard for optimizing thermal stability and energy consumption. Unlike traditional fixed-speed compressors that cycle abruptly, inverter-driven systems continuously modulate motor speed to match precise cooling loads, thereby reducing temperature fluctuations that compromise food quality. This technology significantly lowers operational costs by eliminating the energy spikes associated with frequent start-stop cycles. According to Copeland, February 2025, in the 'Copeland Expands Variable Speed Integrated Solution Portfolio' press release, their latest variable-speed integrated solution for refrigeration systems can achieve up to 30% energy savings, highlighting the substantial efficiency advantages driving the adoption of this technology.

The Shift Toward Modular and Compact Refrigeration Designs for Small-Format Retail is simultaneously reshaping equipment form factors to accommodate the constraints of urban environments. As retailers prioritize high-density city locations with limited floor space, there is an increasing preference for plug-and-play units that deliver high cooling capacity without the extensive footprint of traditional central rack systems. These modular solutions allow for flexible store layouts and faster installation times, directly addressing the logistical challenges of expanding into metropolitan areas. According to Dover Corporation, January 2025, in the 'Advansor Launches Three New CO2 Climate Solutions' press release, more than 5,000 units of the compact ValuePack range have been produced, underscoring the rapid industrial uptake of space-efficient refrigeration technologies.

Segmental Insights

The Food & Beverages Retail segment currently represents the fastest-growing area within the Global Commercial Refrigeration Market, driven principally by the worldwide expansion of supermarkets, hypermarkets, and convenience stores. This growth is accelerated by rising consumer demand for frozen and chilled perishable goods, which necessitates reliable cold storage infrastructure to ensure inventory safety. Furthermore, stringent regulations regarding energy efficiency and refrigerant emissions, enforced by authorities such as the United States Environmental Protection Agency, are compelling retailers to upgrade to compliant systems. This regulatory pressure combined with retail infrastructure development creates sustained demand for modern refrigeration units.

Regional Insights

North America maintains a leading position in the Global Commercial Refrigeration Market, primarily supported by a mature and highly organized food retail sector. The region's extensive network of supermarkets and foodservice chains ensures steady demand for cold storage solutions. This dominance is reinforced by stringent regulatory frameworks mandated by the United States Department of Energy, which require adherence to rigorous energy efficiency standards. Additionally, the Environmental Protection Agency enforces the transition to compliant refrigerant technologies, compelling businesses to replace older units. These combined factors drive the continuous modernization of refrigeration infrastructure across the United States and Canada.

Recent Developments

• In October 2024, Haier Smart Home completed the acquisition of the commercial refrigeration business of Carrier Global Corporation. The transaction, valued at an enterprise value of approximately $775 million, included the transfer of more than 4,000 employees and established brands such as Profroid, Celsior, and Green & Cool to the buyer. This strategic acquisition allowed the company to expand its reach beyond household appliances into the food retail and cold storage sectors. The deal was intended to create a comprehensive solution provider capable of delivering alternative and sustainable refrigeration technologies to a broader global clientele.
• In September 2024, Advansor introduced a new range of enclosures for its CO2 climate solutions, targeting supermarkets and industrial cooling applications. The new enclosure design allowed the entire heating and cooling rack, including all modules, to be mounted inside a factory-built unit. This innovation was developed to facilitate faster on-site installation and provide flexibility for placing equipment outdoors, thereby freeing up valuable indoor floor space for retailers. The enclosures were offered in multiple sizes to accommodate different rack configurations and featured active cooling technology to ensure reliable operation in warm climates.
• In March 2024, Bitzer announced the expansion of its component portfolio with new compressor models optimized for hydrocarbon refrigerants. The company introduced new versions of its Orbit scroll compressors designed specifically for R290 (propane) and a redesigned CSHP compact screw compressor suitable for both R290 and R600a (isobutane). These products were developed to meet the growing demand for sustainable applications in air conditioning and refrigeration. The new Orbit Pro series featured expanded operating limits and was showcased at the Mostra Convegno Expocomfort trade fair, highlighting the manufacturer's commitment to delivering future-proof, low-GWP solutions for the industry.
• In January 2024, Hussmann launched a new portfolio called Evolve Technologies to advance the adoption of sustainable refrigeration solutions using non-synthetic refrigerants. The initiative focused on enabling technologies for R-744 (CO2) and R-290 (propane) systems, which utilize fluids with low global warming potential. As part of this strategic move, the company expanded its manufacturing capacity for transcritical CO2 refrigeration systems at its facility in Suwanee, Georgia. The launch aimed to support retailers in navigating complex regulatory requirements while reducing their carbon footprint through energy-efficient, nature-based cooling technologies designed for various commercial settings.

Key Market Players

• Carrier Global Corporation
• Daikin Industries, Ltd.
• Emerson Electric Co.
• Johnson Controls International plc
• Lennox International Inc.
• Trane Technologies plc
• Hussmann Corporation
• Dover Corporation
• Frigoglass Services Single Member S.A.
• Panasonic Corporation

By Application	By End User	By Region
Food Service Food & Beverages Production Food & Beverages Retail	Supermarkets/Hypermarkets Hotels & Restaurants Bakeries	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Commercial Refrigeration Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Commercial Refrigeration Market, By Application:

• Food Service
• Food & Beverages Production
• Food & Beverages Retail

• Commercial Refrigeration Market, By End User:

• Supermarkets/Hypermarkets
• Hotels & Restaurants
• Bakeries

• Commercial Refrigeration Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE