Factors such as the rapid urbanization and growth in the food and beverage industry are expected to drive the Asia-Pacific (APAC) commercial refrigeration equipment market at a 9.3% CAGR during 2018–2023 (forecast period). The market generated revenue of $14.3 billion in 2017, and it is expected to reach $24.4 billion by 2023. The market is witnessing a shift to natural refrigerants from fluorinated refrigerants due to the increasing focus of governments on lowering the emission of greenhouse gases and rising global warming concerns.

One of the primary factors propelling the APAC commercial refrigeration equipment market prosperity is the rapid urbanization. This has led to a substantial increase in the number of modern retail stores and supermarkets. For instance, the Chinese urban population is projected to reach about 1.4 billion by 2025, whereas the Indian urban population is likely to reach around 1.4 billion by 2023. This is driving the demand for processed food and beverages, which are being offered by supermarkets.

Moreover, the expanding food and beverage industry is another key factor that boosts the growth of the APAC commercial refrigeration equipment market. The demand for commercial refrigeration systems is increasing due to the rising need for the refrigeration of drinks and food, especially perishable items, such as fruits and vegetables, meats, and dairy products. Moreover, the expansion of the modern food retail sector and rising dining-out activities are driving the food service sector, which, in turn, is fueling the demand for refrigeration systems to preserve the food and reduce wastage.

The equipment type segment of the market is categorized into beverage refrigeration equipment, display cases, walk-in coolers, transportation refrigeration equipment, parts, ice-making machinery, and other equipment. Among these, the walk-in coolers category held the largest revenue share in 2017. This is ascribed to the rising number of supermarkets and hypermarkets due to the surging purchasing power of consumers and growing consumption of frozen food. The ice-making machinery category will witness the fastest volume growth during the forecast period owing to the increasing number of cafes, bars, and food outlets.

Furthermore, the end user segment of the APAC commercial refrigeration equipment market is classified into hotels/restaurants & catering, hypermarkets, e-commerce, supermarkets, convenience stores, and others. Of these, the e-commerce category is projected to record the highest CAGR during the forecast period, in terms of revenue. This can be ascribed to the ease of accessibility and rising trend of buying food and beverages online. On the other hand, the hotels/restaurants & catering category accounted for the largest share in 2017 in the market.

On the basis of country, China led the APAC commercial refrigeration equipment market in 2017, and it is projected to dominate the market in the coming years too. This is ascribed to the growing food and beverage sector due to the rising disposable income and increasing number of supermarkets. As per the Ministry of Commerce of the People’s Republic of China, the number of supermarkets is rising at an 11.5% year-over-year (Y-o-Y) growth rate. Additionally, there has been a rising import of seafood, milk products, and alcoholic beverages into China from other countries.

Thus, the rising consumption of food and beverages in the region is projected to drive the requirement for commercial refrigeration equipment during the forecast period.