US demand for commercial refrigeration equipment is projected to increase over 5 percent annually through 2002 to $6.5 billion.
Strongest growth is expected in the foodservice market, where demand is forecast to increase 5.5 percent annually to $1.4 billion in 2002. Despite a slowing macroeconomy, end users in this sector, particularly major fast service chains, are expected to undertake expansion efforts in order to satisfy increasing demand from consumers who are too busy to cook meals at home. Additional demand will occur as food vendors continue to move into nontraditional locations such as gas stations, kiosks and convenience stores.
Transportation refrigeration equipment accounted for the largest percentage of total shipment value in 1997. Shipments will benefit from rising levels of international food trade and increasing US consumption of produce. Growth in this segment will be constrained by the large stock of late model, non-CFC refrigeration units. Shipment levels could be further dampened if the international crises in Asia and Latin America are prolonged. Shipments of cryogenic equipment will post the strongest gains. Rising levels of capital investment in the scientific community, most notably in medicine, will fuel demand for blood storage and other cryogenic equipment. In addition, the use of cryogenic equipment in other applications, such as metal treatment and desktop computers, will provide growth opportunities.
The food distribution sector comprised the largest single commercial refrigeration market in 1997, with over 27 percent of total demand. This sector is expected to experience the slowest growth of any market through 2002, as demand for transportation equipment will be offset by slowing investment in warehouse refrigeration equipment such as walk-in freezers and coolers.
Commercial Refrigeration Equipment (published 1/99, 168 pages) is available for $3300 from The Freedonia Group, Inc., 767 Beta Drive, Cleveland, OH 44143-2326. For further details, please contact Corinne Gangloff by phone 440.684.9600, fax 646.0484 or e-mail firstname.lastname@example.org. Full text is also available online through commercial database companies and the www.freedoniagroup.com Web site.
Please attribute information from this news release to The Freedonia Group, Inc. (Cleveland, OH) and include, if possible, the price of the report. We would also appreciate (at your convenience) a copy of the article or publication in which we appear.
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|Comment:||US demand for commercial refrigeration equipment is projected to increase over 5 percent annually through 2002 to $6.5 billion.|
|Publication:||Research Studies - Freedonia Group|
|Date:||Jan 1, 1999|
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