Latin America Commercial Refrigeration Equipment Market: Snapshot
The market for commercial refrigeration equipment in Latin America is highly dynamic and derives much of its growth from the growing need for energy efficient equipment, continual advancements in refrigeration technologies, and the expanding tourism sector in the region.
The increasing implementation of several regional environmental and energy regulations, such as Energy Efficiency Program for Latin America and the Caribbean (PALCEE) and Regional Energy Information System (SIER), by Latin America Energy Organization (OLADE) is also expected to boost this regional market substantially. Furthermore, the demand for new and more units, boosted by the economic growth and the augmenting consumerism, is likely to support this market over the forthcoming years.
The Latin America market for commercial refrigeration equipment is characterized by the increasing demand for new product installations against the replacement demand observed in developed markets in Europe and North America. In 2016, the total opportunity in this market stood at US$927.4 mn. Progressing at a CAGR of 6.50% between 2017 and 2025, the market expects to attain a value of US$1,619.0 mn by the end of 2025.
Brazil to Continue Leading Latin America Commercial Refrigeration Equipment Market
The Latin America market for commercial refrigeration equipment is spread across Brazil, Mexico, Argentina, Chile, and the Rest of Latin America. Among these, Brazil has surfaced the key contributor to this regional market. With a share of 38%, Brazil led the overall market in 2016 and is anticipated to continue as the dominant domestic market for commercial refrigeration equipment in Latin America.
With Brazil being a prominent exporter of fruit juices, soy beans, fresh and frozen chicken, poultry meat, meat preparations, and oil cakes, the exuberant export of perishables from this country has been driving the adoption of commercial refrigeration equipment here. The growing demand for stored and refrigerated food items, thanks to the rise of the country’s travel and tourism industry, is likely to boost the Brazil commercial refrigeration equipment market in the near future.
Brazil is closely followed by Mexico in terms of the uptake of commercial refrigeration equipment, thanks to the significant growth of the processed and packaged food industry in this country. The presence of a robust food processing industry with renowned Mexican brands such as Bimbo, Lala, Gruma, and Herdez, with a well-distributed network across Latin America, reflects greatly on the usage of commercial refrigeration equipment in this country, leading to a phenomenal growth of this Mexican market over the next few years. The augmenting demand for ready-to-eat and frozen foods is also expected to propel the commercial refrigeration equipment in this country in the years to come.
Demand for Refrigerators and Freezers to Remain Strong in Latin America
Transportation refrigeration equipment, refrigerator and freezer, beverage refrigeration, and commercial refrigeration equipment parts are the main products available in the Latin America market for commercial refrigeration equipment. Refrigerators and freezers witness a higher demand from end users. In 2016, this segment led the market with a share of 37.4% and is projected to continue doing so over the forthcoming years.
Food services, food and beverage retail, food and beverage distribution, and food and beverage production are the prime application areas of commercial refrigeration equipment in Latin America. The demand for these refrigeration devices has been greater from the food and services segment. Analysts anticipate this scenario to remain same in the near future.
Lennox International Inc., Hussmann International Inc., United Technologies Corp., Daikin Industries Ltd., Dover Corp., Illinois Tool Works Inc., Beverage-Air Corp., and Metalfrio Solutions SA are the key manufacturers of commercial refrigerator equipment in Latin America.
Latin America Commercial Refrigeration Equipment Market: Overview
There has been a tremendous increase in agricultural and food exports and imports globally. Growth in production, consumption, and trade of perishable, processed, and packaged food items has driven the need to design and manufacture efficient and effective refrigeration equipment for the commercial sector. Refrigeration is one effective method to store and transport perishable food items across and within nations. Rise in income level has raised the spending capacity in economically developed as well as developing nations. Level of income in an economy has a huge impact on the spending capacity of the population on consumption of processed and packaged food items. Export of meat demands the need for effective transportation refrigeration equipment. Appropriate refrigeration equipment play a vital role in preventing food wastage due to spoilage during storage and transportation.
Production, storage, and transportation of perishable food items require appropriate refrigeration equipment and the rise in food trade has increased the demand for refrigeration equipment in the commercial sector significantly. The rise in income levels of an economy also boosts the spending capacity of the population on leisure travel. To meet the accommodation and meals of travelling population, the hospitality industry has witnessed a tremendous growth. This industry also keeps pace with the changing food consumption patterns due to huge penetration of stored, processed, and packaged food in the food industry. Out of which arises the need to equip the restaurants and food storage areas with efficient and energy saving refrigeration and storage equipment. Hotel industry relies largely on refrigeration in order to maintain food supply. The Increasing number of restaurants also is a vital reason to drive the demand for efficient commercial refrigeration equipment.
Latin America Commercial Refrigeration Equipment Market: Segmentation
This research report provides an in-depth analysis of the commercial refrigeration equipment market in Latin America based on product type, application, refrigerant type, and country. On the basis of product type the commercial refrigeration equipment market in Latin America is segmented into transportation refrigeration equipment, refrigerator and freezer, beverage refrigeration, commercial refrigeration equipment parts, and others. On the basis of application the commercial refrigeration equipment market in Latin America is segment into food services, food and beverage retail, food and beverage distribution, food and beverage production, and others. On the basis of refrigerant type the commercial refrigeration equipment market in Latin America is segmented into fluorocarbons, inorganic, hydrocarbon/Natural.
The report segments the Latin American commercial refrigeration equipment market by country into Brazil, Mexico, Argentina, Chile, and Rest of Latin America. It also encompasses the key factors by country in the commercial refrigeration equipment market in Latin America. It further offers analysis of the factors that drive and restrain the growth of commercial refrigeration equipment market in Latin America. It discusses the prevailing market trends and prospective growth opportunities in the commercial refrigeration and equipment market country wise and segment wise. It provides market estimates and forecasts for all the segments in terms of revenue (in US$ Mn). Also provided in the report is the competitive landscape of the major players in the Latin American commercial refrigeration equipment market.
Companies Mentioned in the Report
The major players profiled in the report include Metalfrio Solutions SA, Beverage-Air Corporation, Illinois Tool Works, Inc., Dover Corporation, Daikin Industries, Ltd., United Technologies Corporation - (Climate, Controls and Security Unit), Hussmann International, Inc., Lennox International Inc. The company profiles offer a descriptive overview of the companies with respect to the company details, company description, SWOT analysis, revenue and regional market share, and strategic overview. The report also offers a competitive landscape of these players for the year 2016.
The Latin America commercial refrigeration equipment market is segmented as below:
By Product Type
- Transportation Refrigeration Equipment
- Refrigerator and Freezer
- Beverage Refrigeration
- Commercial refrigeration equipment parts
- Food Services
- Food and Beverage retail
- Food and Beverage distribution
- Food and Beverage Production
By Refrigerant Type
- Rest of Latin America