CLEVELAND – Demand for transport refrigeration systems is expected to increase in 2020, largely propelled by e-commerce.
According to a new study the outbreak of COVID-19 is expected to have a mixed effect on commercial refrigeration equipment in 2020, with the overall impact expected to be a slight decline compared to 2019.
Equipment sold to the foodservice industry will drop, with losses partially offset by continued sales of refrigerated transportation systems and equipment used by food and beverage retailers.
Demand for transportation refrigeration systems is projected to increase 3.6 percent per year through 2024 to $3.1 billion thanks largely to rising investment in e-commerce infrastructure, with online sales of groceries showing above-average growth.
E-commerce will be an especially important factor to the transportation refrigeration market over the next decade, largely due the development of distribution hubs. Significant investment is occurring as companies seek to establish infrastructure to enable same-day delivery of food and beverages directly to the consumer.
Trailer refrigeration and shipping container refrigeration equipment will account for the largest absolute sales increases.
The study, “Commercial Refrigeration Equipment” was published by The Freedonia Group in April 2020.