11 July 2024
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A typical cold room with shelving
Stephen Visvalingham of Isowall Consulting explains why the cold room panel market is also an important sector of the wider commercial refrigeration market.
The cold room panel market represents a growing part of both, with a greater technical emphasis due to its focus on insulation value and ongoing storage of perishable products. The features of the market can be summarised as follows:
- Panels are thicker due to the need for insulation value and sell for a higher price
- Due to ‘technical specification’ panels have a higher sales value
- Due to specification selling, higher pricing is accepted
- Sales are often in a ‘project basis’ rather than a material basis
- Specialist Installers, experienced in the cold room or refrigeration market, are utilised
- Being food related, the market is less affected by general economic conditions
The market is divided into smaller commercial cold rooms and larger Industrial cold rooms or warehouses. Globally the food industry continues to expand and refrigerated food stuffs are regularly shipped around the world. Often the supply source of frozen or chilled product is in excess of 8000 km from the end market. Cold storage becomes a necessary service for both supplier and client and the cold chain between them.
Isowall estimates global growth in 2023 to be +3.0% in this market and in Europe to be +2.0%. Growth in 2024 is anticipated to be +2.03% in the EU and +3.08% in the rest of Europe excluding Russia. These rates suggest total output in the two markets will exceed 12 million square metres in 2024.
Isowall’s forecast to 2028 and individual country growth rates and volumes is available in the 2024 Forecast Report. Not all markets will grow at this overall rate and some will grow faster and offer real opportunities for expansion.
Some analysts have been downbeat regarding the next five year forecasts. This, however, is not the 1970s as the strong US Dollar and Euro, the financial strength of institutions, a higher but sustainable oil price and monetary policy that is credible suggest low but stable growth and that inflation will be controlled without a significant recession.
Trends and changes on the market are reviewed and discussed in detail, including technical changes, machinery changes and the raft of testing and approvals that are likely to be demanded by 2028. Government legislation and the requirement of health and hygiene certification will see the extension of EU regulation to new markets. Its enforcement will be greater.
For a full understanding of the opportunities and challenges of the cold room market, this report provides a unique opportunity to view a dynamic refrigeration and insulation market where opportunities are available beyond the insulated panel market.
