Prices are forecast to rise at a faster rate than the previous three-year period as demand for industrial refrigerators grows due to increased business capacities.
Los Angeles, CA (PRWEB) November 24, 2013
Industrial refrigerators have a buyer power score of 3.4 out of 5. This score reflects moderate pricing trends and low market risks. Overall, pricing trends have a moderate effect on buyer power. Industrial refrigerators are used extensively in the food processing, food service and medical industries. The improving economy has bolstered many of the demand drivers that encourage business in these sectors. For example, the value of nonresidential private construction and the trade-weighted index have both increased in the three years to 2013. As a result, industrial refrigerator prices have increased moderately in the three years to 2013 and will continue to do so in the three years to 2016. “Industrial refrigerator purchasing costs can be lowered by regular maintenance, which extends their useful life and greatly reduces the need to purchase new units,” says IBISWorld procurement analyst Kiera Outlaw.
Buyers also benefit from low market risks. Most industrial refrigerator suppliers are well-established diversified global corporations that derive revenue from many products aside from industrial refrigerators. Some of the larger manufacturing companies that operate in this market include Lennox International, Hussmann Corporation and United Technologies Corporation. “Diversified revenue streams help ensure that these companies have low financial risks,” adds Outlaw. “However, suppliers also have moderate supply chain risks because industrial refrigerator production is dependent on critical inputs, such as steel.”
The low market share concentration among suppliers supports buyer power; however, the industrial refrigerator market has experienced some merger and acquisition activity during the past three-year period as companies seek economies of scale and resources for overseas expansion. There are few substitutes for industrial refrigerators, which reduces buyer power. Industrial refrigerators are necessary to keep products below a certain temperature as required by the specific nature of the product. To this end, there is little in the way of substitutes for the refrigeration process. For more information, visit IBISWorld’s Industrial Refrigerators procurement research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of industrial refrigerators. This report covers a variety of industrial refrigerators, including walk-in, cabinet and bakery cabinet, under-counter and counter refrigerators. The report also covers blast chillers, combined refrigerator freezers and refrigerant. Industrial refrigerators are used in a number of industries, including food processing, food service, hotels and accommodation, and transportation industries. Industrial refrigerators are primarily sold by heating and air conditioning equipment manufacturers and refrigeration equipment wholesalers. This report excludes other industrial refrigeration equipment, such as industrial freezers and icemakers.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Vendor Financial Benchmarks
Buying Lead Time
Key RFP Elements
Buyer Power Factors
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.