The commercial refrigeration industry is entering a transformative era as we step into 2025. Evolving consumer demands, stricter regulations, and advancements in technology are driving significant changes across the sector. In India, the commercial refrigeration equipment market is projected to grow at a compound annual growth rate (CAGR) of 6.8% from 2024 to 2030, reaching revenue of US$2,110 million by 2030. Hence, the critical role of commercial and industrial refrigerators in preserving food quality is undeniable. Let’s delve into some of the most prominent trends that are poised to redefine the industry in the coming years.
1. Energy Efficiency: A Core Imperative
Energy efficiency is no longer a luxury but a necessity in the global push for sustainability. Indian regulatory bodies are tightening energy standards, compelling solution providers to innovate. From variable speed compressors to 100mm high insulation, cutting-edge products are reducing energy consumption while maintaining cooling efficiency. To cater to this demand, the market now offers Reach-in Freezers with Inverter Technology Compressors. These innovative reach-ins contribute to reduced carbon footprints, helping businesses align with sustainability goals and regulations.
Programmes such as the Bureau of Energy Efficiency (BEE) star labelling for energy performance are setting benchmarks for energy-efficient products. With electricity costs climbing, these innovations will help businesses lower operational expenses while complying with stringent regulations.
2. Rise of Natural Refrigerants: Sustainability in Every Breath
The shift towards environmentally friendly refrigerants, such as R290, CO2, and ammonia is accelerating. These natural refrigerants have minimal global warming potential and comply with international protocols like the Kigali Amendment. In addition to enhancing energy efficiency, adopting these refrigerants will help food and beverage businesses project a strong commitment to environmental stewardship—a valuable branding opportunity.
3. Integration of IoT and AI: Smart Refrigeration Technology
The integration of IoT and AI in refrigeration technology is transforming the industry by enabling real-time monitoring, predictive maintenance, and energy optimisation. However, this progress comes with challenges. A significant issue is the fragmentation of platforms, as many systems fail to provide a unified solution for managing various smart technologies. This lack of integration complicates operations, especially when dealing with a broad temperature range from +20°C to -86°C, where maintaining precise control is critical. Additionally, the use of communication technologies like Zigbee, LoRa, and BLE (Bluetooth Low Energy) adds further complexity.
Zigbee, while cost-effective and suitable for one-to-many communication, faces limitations such as high energy consumption and reduced battery life. LoRa offers excellent range, making it ideal for larger facilities, but its technology remains in its early stages, with limited sensor availability. BLE, though reliable in many scenarios, struggles with obstructions like walls, which can hinder its performance. Despite these challenges, BLE is emerging as a preferred choice for smart refrigeration systems, with its reliability and growing demand pointing toward broader adoption in the future. These advancements, coupled with the industry's push for more integrated and efficient solutions, are expected to drive innovation in the years ahead.
4. Customisation for Diverse Business: Custom Cooling, Redefined
Gone are the days of one-size-fits-all solutions. And in 2025, we expect to see a rise in experiential outlets, cloud kitchens and dark stores. I feel, the commercial refrigeration industry will witness an increase in demand for customised equipment tailored to specific sectors such as hospitality, e-commerce and quick commerce.
Additionally, farm-to-table and locally sourced food movements will drive demand for specialised refrigeration systems, particularly in display cases and wine establishments.
I also feel modular refrigeration systems will see a rise as well. They not only offer flexibility and scalability, allowing businesses to adapt their cooling capacities to changing needs. With simplified maintenance and reduced downtime, these systems are increasingly becoming an attractive option for facilities anticipating growth.
5. Next-Gen Refrigeration: Raising the Bar on Food Safety Standards
Ensuring food safety is a non-negotiable priority. And it will continue to take precedence in 2025. Advanced refrigeration systems with precise temperature control, automated defrosting, and built-in alarms are setting new standards in the food and beverage industry. Innovations like next-generation blast freezers and hands-free juicers are enhancing hygiene and operational efficiency.
Hotels and food service establishments are also seeking systems that aid in food recycling and composting.
6. Navigating Quality Control Orders: Refrigeration Meets Regulation
In India, the surge in quality control orders (QCOs) by the government underscores the importance of compliance. Inspections by the Bureau of Indian Standards (BIS) have made certifications mandatory for several products. These regulations are shaping the development and adoption of advanced refrigeration systems. We hope to see a rising trend of ancillary industries that can provide with the compliant parts for various products.
So, I have a solid belief that the commercial refrigeration industry is set for significant transformation in 2025, driven by innovations in energy efficiency, natural refrigerants, IoT, and AI.
As stakeholders adapt to evolving trends, they must embrace sustainability, customisation, and collaboration to remain competitive. By investing in these technologies, businesses can not only meet today’s demands but also prepare for future challenges—shaping a smarter, greener, and more efficient future for the industry.
(The author is director, Elanpro)