Demand for commercial refrigeration equipment in the US is forecast to increase 4.6 percent per year to $9.4 billion in 2016. Growth will result from improvements in capital investment and nonresidential construction expenditures. In addition, a positive outlook for the broader US economy will encourage end users such as fleet operators and retailers to both expand existing operations and replace aging equipment. Food industry efforts to reduce operating costs, a byproduct of narrow profit margins, will create opportunities for suppliers of energy efficient equipment.
Transportation refrigeration to remain largest segment
Transportation refrigeration equipment will remain the largest commercial refrigeration equipment type, benefiting from the positive outlook for capital investment. In addition, product innovations such as hybrid electric systems and products that utilize natural refrigerants like carbon dioxide will stimulate sales. Ice machines will also record above average growth due to increased construction of hotels and motels, which are major end users of this equipment. Additionally, ice machines will benefit from the rising number of foodservice establishments and from technical innovations like remote monitoring.
New equipment sales to outpace aftermarket
Gains in all markets will benefit from users' desire to increase efficiency due to the narrow profit margins throughout the food industry. Aftermarket sales of commercial refrigeration equipment -- repairs and replacements -- accounted for 73 percent of demand in 2011 and will continue to comprise the majority of demand. Gains, however, will lag those of new equipment due to expansion efforts by food industry participants.
Food, beverage distribution to be fastest growing market
Food and beverage distribution in the US is expected to post the most rapid growth of any commercial refrigeration equipment market through 2016, increasing at a yearly rate of 5.9 percent. Gains in the distribution market will result from increased spending on equipment by fleet operators. Foodservice will remain the largest market for commercial refrigeration equipment as US consumers continue to spend around one-half of their food budgets outside the home. Food production will continue to benefit from increased trade in food and beverages, as well as from expansions and renovations of food production facilities. Advances in the retail market will come from a rising number of food stores. In addition, the average amount of floor space at food retail establishments will increase, creating new sales opportunities for commercial refrigeration equipment.
US shipments to grow 4% annually through 2016
Shipments of commercial refrigeration equipment from US facilities are projected to grow 4.0 percent per annum through 2016 to $8.6 billion. Competition from imports will cause growth in shipments to lag demand gains. The US has become a net importer of commercial refrigeration equipment, as many of the leading manufacturers have moved production facilities overseas to reduce labor costs, reflecting a trend in the broader heating, ventilating, and air conditioning (HVAC) industry.
This upcoming industry study presents historical demand data (2001, 2006 and 2011) plus forecasts for 2016 and 2021 by market and product. The study also considers market environment factors, evaluates company market share, and profiles 39 industry competitors, including Dover, Hussmann, Ingersoll-Rand, Lennox, Manitowoc and United Technologies.
TABLE OF CONTENTS
I. EXECUTIVE SUMMARY 1
II. MARKET ENVIRONMENT 4
General 4Macroeconomic Environment 4Personal Income & Expenditure Trends 8Nonresidential Building Construction 11Office & Commercial Construction 13Institutional Construction 13Industrial Construction 14Transportation & Other Construction 14Retail Sales 15Food & Beverage Industry Trends 19Pricing 22Historical Market Trends 23Regulatory & Environmental Issues 25Technology 29World Commercial Refrigeration Equipment Trends 30US Foreign Trade 32Exports 33Imports 35
III. MARKETS 37
General 37New vs. Aftermarket 41Foodservice 42Foodservice Industry Overview 43Commercial Refrigeration Equipment Demand 46Food & Beverage Retail 49Food & Beverage Retail Overview 49Commercial Refrigeration Equipment Demand 51Food & Beverage Distribution 53Food & Beverage Distribution Industry Overview 54Commercial Refrigeration Equipment Demand 55Food & Beverage Production 57Food & Beverage Production Overview 58Commercial Refrigeration Equipment Demand 60Other 62
IV. PRODUCTS 65
General 65Transportation Refrigeration Systems 67Shipping Container Systems 71Trailer Refrigeration 73Truck Refrigeration Systems 75Refrigerators & Freezers 76Reach-In Refrigerators & Freezers 78Walk-In Refrigerators & Freezers 80Beverage Refrigeration Equipment 82Soda Fountain Equipment 84Drinking Fountains 87Beverage Cooling & Dispensing Equipment 88Beer Dispensing Equipment 90Display Cases 91Normal Temperature Display Cases 94Low Temperature Display Cases 97Ice Machines 100Refrigerated Vending Machines 102Other 105Cryogenic Equipment 106Liquid Chillers 108All Other Commercial Refrigeration Equipment 112Refrigeration Equipment Parts 114
V. INDUSTRY STRUCTURE 116
General 116Market Share 118Product Development & Manufacturing 122Marketing & Distribution 124Mergers & Acquisitions 125Cooperative Agreements 128Company Profiles 129Air Products and Chemicals Incorporated 130Alliance Compressors, see Emerson Electric,Ingersoll-Rand and LennoxAmerican Foodservice, see StandexBally Refrigerated Boxes Incorporated 131Beverage-Air, see United TechnologiesCarlyle Compressor, see United TechnologiesCarrier, see United TechnologiesCoin Acceptors Incorporated 133Crane Company 135Daikin Industries Limited 137Delfield, see ManitowocDover Corporation 139Dunham-Bush Holding Berhad 142Elkay Manufacturing Company 143Embraco North America, see WhirlpoolEmerson Electric Company 145Empresa Brasileira de Compressores, see WhirlpoolFederal Industries, see StandexFES Systems, see GEA GroupGEA Group AG 149Grindmaster-Cecilware Corporation 152Hartford Compressors, see Dunham-BushHill PHOENIX, see DoverHoshizaki Electric Company Limited 154Hussmann International Incorporated 156Ice-O-Matic, see ScotsmanIllinois Tool Works Incorporated 158IMI plc 160Ingersoll-Rand plc 162International Cold Storage, see United TechnologiesJohnson Controls Incorporated 165Kairak, see Illinois Tool WorksKool Star, see StandexKysor/Warren, see LennoxLeer Incorporated 167Lennox International Incorporated 169Manitowoc Company Incorporated 172Master-Bilt Products, see StandexMasterflux, see TecumsehMcQuay International, see DaikinMetalfrio Solutions SA 178Mueller (Paul) Company 181Nor-Lake, see StandexOasis International Incorporated 183Panasonic Corporation 186Parker-Hannifin Corporation 188Perlick Corporation 189Polar King International Incorporated 191Praxair Incorporated 192PROCON Products, see StandexRoyal Vendors, see Coin AcceptorsSan Joaquin Valley Dairy Equipment, see GEA GroupSanden Corporation 194SANYO, see PanasonicScotsman Industries Incorporated 196Source Refrigeration & HVAC Incorporated 198SPX Corporation 199Standex International Corporation 201Taylor, see United TechnologiesTecumseh Products Company 206Thermo Fisher Scientific Incorporated 208Thermo King, see Ingersoll-RandTrane, see Ingersoll-RandTraulsen, see Illinois Tool WorksTrue Manufacturing Company Incorporated 211Unified Brands, see DoverUnited Technologies Corporation 213Whirlpool Corporation 218Zero Zone Incorporated 219Other Companies Mentioned in Study 221
LIST OF TABLES
SECTION I -- EXECUTIVE SUMMARY
Summary Table 3
SECTION II -- MARKET ENVIRONMENT
1 Macroeconomic Indicators 8
2 Personal Consumption Expenditures 11
3 Nonresidential Building Construction Expenditures 12