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Jan 4, 2013 10:18 AM

Global demand for commercial  refrigeration equipment is forecast to rise 4.6 percent per year through 2016  to $32.5 billion, an acceleration from the 2006-2011 pace, according to World  Commercial Refrigeration Equipment, a new study from The Freedonia Group,  Inc., a Cleveland-based industry market research firm.   

Demand will benefit from strong  growth in a number of the world’s larger developing nations, particularly in  Asia, as China and India will continue to be the fastest-growing national  markets for commercial refrigeration equipment.  The US market, which  suffered during the 2007-2009 recession, will recover and post substantially  stronger growth in demand, although gains will slightly trail the world  average. These and other trends are presented in

China was by far the fastest  growing world market for commercial refrigeration products between 2001 and  2011, posting double-digit annual growth rates and quadrupling in size over  those 10 years.  As economic growth in the country slows, demand growth  for commercial refrigeration products will decelerate, but will remain the  fastest in the world.  India, despite its massive size, remains a  relatively small market for commercial refrigeration equipment, with per capita  demand ranking among the smallest in the world.  However, heavy investment  in electrical infrastructure and rising incomes will create strong potential  for growth, and demand gains for these products in India will be the second  fastest in the world. 

The US is the world’s largest  market for these products, and will account for nearly a quarter of global  sales growth through 2016.  Gains will result from an improved  macroeconomic outlook, as rising consumer spending encourages food industry  participants to expand the number of retail outlets and restaurants.  In  addition, food industry participants will be more willing to make equipment  upgrades that had been deferred due to a weak economy.  Japan was the  third largest market for commercial refrigeration equipment in 2011, but has  declined in size since 2006, reflecting both poor economic conditions and the  maturity of the market.  Demand for commercial refrigeration products in  Japan is forecast to return to positive growth through 2016, but gains will be  significantly slower than the world average.