Commercial Catering Equipment Market Overview
The Commercial Catering Equipment Market size was valued at USD 13.86 million in 2025 and is expected to reach USD 23.16 million by 2033, growing at a CAGR of 5.87% from 2025 to 2033.
The commercial catering equipment market encompasses a wide array of appliances used in professional kitchens, including cooking equipment, refrigeration units, dishwashers, and food preparation tools, all of which play a vital role in food safety, hygiene compliance, and operational efficiency. As of 2023, cooking equipment accounts for approximately 35% of total installed units globally, driven by expanding foodservice infrastructure across developed and emerging markets. The refrigeration segment dominates in volume, with industrial-grade cold storage accounting for 60% of all commercial refrigeration units. In the Asia-Pacific region, over 543,000 units of commercial cooking appliances were shipped in 2023, led by China and India, which together contribute over 35% of installations within the region. North America commands about 34–35% of the global equipment footprint, with more than 749,000 foodservice establishments across the U.S. alone, as recorded in 2023.
Meanwhile, Europe holds roughly 30% of market share, where energy efficiency is a central buying criterion, as over 70% of new installations in this region meet strict energy-efficiency standards. Cloud kitchens—numbering over 450 in India—represent a rapidly growing subsegment, deploying modular equipment with a replacement cycle of 24 months or less. Institutional kitchens such as those in hospitals, schools, and correctional facilities account for more than 25% of equipment demand globally, with dishwashers making up 42.5% of the warewashing category, largely due to hygiene mandates. The demand for ENERGY STAR–certified products has grown sharply, with over 60% of new dishwashers and ovens sold in North America in 2023 qualifying for energy compliance labels. Technological innovations are reshaping kitchen layouts, with over 50% of operators in developed markets adopting IoT-enabled systems for asset tracking and predictive maintenance. The integration of robotic equipment in food preparation is also accelerating, supported by equipment capable of processing 2,000 meals per shift in automated quick-service environments. Regional disparities persist, with Middle East and Africa experiencing a 10–15% annual increase in equipment demand due to a surge in hotel and resort developments catering to over 60 million tourists in the first half of 2024 alone. Rising labor costs and stringent food safety regulations further fuel the transition to semi-automated and intelligent equipment systems, establishing commercial catering equipment as an indispensable backbone of the evolving global hospitality and institutional foodservice sectors.
Key Findings
Driver: Rising number of food-service establishments—with over 20% year-on-year growth in QSR openings in Asia‑Pacific.
Top Country/Region: North America leads with approximately 34–35% of global equipment installations.
Top Segment: Cooking equipment dominates the market, accounting for around 35% share in 2023.
Commercial Catering Equipment Market Trends
The commercial catering equipment market is experiencing dynamic shifts fueled by smart technology adoption, energy efficiency mandates, and the expansion of foodservice infrastructure worldwide. In 2023, over 50% of foodservice operators in North America integrated IoT-enabled appliances such as connected ovens, smart refrigerators, and automated beverage dispensers to streamline operations and reduce labor costs by up to 20%. Semi-automated warewashing equipment accounted for 42.5% of global installations, highlighting a clear trend toward labor-saving and hygiene-compliant solutions. Compact, multifunctional cooking appliances such as combi ovens and induction hobs gained significant traction, especially in urban restaurants and hotels, comprising 30% of new cooking equipment purchases. Cloud kitchens, a rising business model with over 450 units in India alone by 2022, are accelerating demand for space-efficient, modular equipment with rapid replacement cycles averaging 24 months. Sustainability is another defining trend, as more than 70% of new refrigeration units installed in Europe in 2023 complied with stringent energy efficiency regulations, while ENERGY STAR–rated dishwashers and cooking equipment constituted over 60% of all new purchases in North America. Institutional kitchens, including hospitals and educational facilities, accounted for more than 25% of total equipment demand, often driven by regulatory pressure for hygienic, stainless-steel solutions. Smart monitoring systems capable of real-time diagnostics and predictive maintenance are increasingly preferred, with adoption expected to rise across Asia-Pacific, where China and India already contribute over 35% of regional installations. These trends collectively indicate a shift toward automation, efficiency, and sustainable operation, positioning commercial catering equipment at the forefront of the global hospitality and foodservice transformation.
Commercial Catering Equipment Market Dynamics
DRIVER
Rising number of food service establishments.
The growing number of food-service outlets is the primary catalyst. Asia‑Pacific witnessed a 20% year-over-year increase in QSR openings. In the U.S., restaurant sales totaled USD 799 billion in 2021, supporting equipment deployment. Cloud kitchen operations alone added 450 new sites across India in recent years. These expanded networks require high-capacity cooking ranges, fryers, combi ovens, and refrigeration units. As a result, cooking equipment accounts for roughly 35% of all installed units. Institutional kitchens across healthcare and education sectors further drive demand, making up over 25% of units. Combined, these factors are pushing annual equipment sales into USD 11–12 billion territory for commercial cooking equipment alone.
RESTRAINT
High upfront cost of advanced equipment.
The upfront price of advanced or smart catering equipment restricts adoption, especially in low-income regions. In 2024, only 30% of emerging-market operators could afford IoT-enabled ovens, compared to over 70% in developed regions. Equipment such as combi ovens, high-capacity dishwashers, and stainless-steel refrigeration systems often exceed USD 20,000–50,000 per unit. In countries like Nigeria and parts of Latin America, real purchasing power remains below 60% of that in Western Europe. This price barrier slows the replacement cycle, which averages 5–7 years for premium units versus 3–4 years for basic ones. Rising raw-material costs—up by 10–15% in 2024—have also pushed equipment prices higher.
OPPORTUNITY
Adoption of smart, energy-efficient equipment.
The transition to smart, energy-conserving appliances presents a strong growth avenue. U.S. data shows more than 50% of food-service operators added automated dispensers in 2023. Smart refrigeration systems with IoT monitoring now represent 15–20% of total fridge installations. The global IoT market hit USD 1,022.6 billion in 2024, driving spillover into kitchen floors. Energy-star appliances have gained 60–70% preference in North American and European tenders. Demand for modular, space-saving systems is growing—Asia‑Pacific leads with 450+ cloud kitchens, most deploying compact combination units. Further, hygiene-driven purchases of warewashers and prep tables are rising by 10–15% annually.
CHALLENGE
Rising operational and maintenance expenses.
While technology can optimize operations, equipment maintenance remains costly. North American operators spend an estimated 15–20% of annual budget on preventive service contracts for smart ovens and refrigeration. In developing regions, parts and service availability is limited, raising maintenance periods by 25–30% compared to industrialized nations. Energy prices increased by roughly 30% in parts of Europe during 2023, affecting total cost of ownership. Institutional kitchens report up to 40% higher water and energy usage when operating standard models instead of high-efficiency alternatives.
Commercial Catering Equipment Market Segmentation
The commercial catering equipment market is segmented by type—Cooking Equipment, Refrigeration, Food Preparation Equipment, Dishwashers—and by application in Hotels, Restaurants, Catering Services, and Institutional Kitchens. Each type adapts to unique volume, hygiene and space requirements, while applications reflect distinct purchasing patterns based on operational scale and food safety regulations.
By Type
- Cooking Equipment: held a 35% share of installed units in 2023. These include ovens, ranges, fryers and steamers. Global market value for cooking equipment was approximately USD 13.7 billion in 2023. Ranges represent the top sub-segment, with combined ovens and induction cooktops deployed in 30% of new hotel and restaurant setups.
- Refrigeration: comprised the largest share of kitchen appliances in 2023. Industrial-grade units form 60% of commercial fridge purchases. Asia-Pacific’s demand, led by China and India, contributed to more than 35% of global installs. Units are priced between USD 5,000–25,000, with smart and energy-efficient models making up over 70% in North America and Europe.
- Food Preparation Equipment: mixers, slicers, blenders—accounted for about 20% of equipment volume in 2023. Institutional and catering kitchens drove 40% of buys, spending up to USD 10,000 per setup. Schools and hospitals invest in stainless steel prep tables in over 80% of new installations to meet hygiene mandates.
- Dishwashers: form 42.5% of the semi-automated warewashing equipment segment. Demand for high-capacity conveyor dishwashers rose by 15% in 2023, driven by stricter sanitization laws in hospitality and healthcare. U.S. operators invested USD 1,000–15,000 per unit, with ENERGY STAR–rated models making up 60% of purchases.
By Application
- Hotels: Account for a significant share of high-capacity equipment purchases globally. In 2023, over 60% of new hotel kitchens installed combi ovens, blast chillers, and automated dishwashers. Preference for stainless-steel, energy-efficient appliances is especially strong in Europe and the Middle East. High-volume buffet operations and 24/7 room service drive demand for durable, multifunctional equipment.
- Restaurants: Represent the largest volume segment in terms of equipment units purchased. As of 2023, the U.S. alone hosted more than 749,000 foodservice establishments. Quick-service restaurants (QSRs) are key buyers of compact fryers, refrigerated prep tables, and espresso machines. Speed, consistency, and low maintenance are prioritized in this segment.
- Catering Services: Comprise approximately 20% of global equipment installations as of 2023. Demand centers on portability and modularity—mobile cooklines, folding prep stations, and stackable dish units. Growing in Asia-Pacific due to a rise in corporate and event-based catering services. Equipment must meet standards for efficiency in offsite or temporary setups.
- Institutional Kitchens: Include hospitals, schools, correctional facilities, and military dining services. Contribute over 25% of total application-based demand globally. Industrial dishwashers alone consume up to 40% of kitchen equipment budgets in healthcare settings. Focus on hygiene, stainless steel construction, and compliance with strict food safety regulations.
Commercial Catering Equipment Market Regional Outlook
Globally, regional adoption of commercial catering equipment varies based on foodservice industry development, regulation, tourism, and infrastructure investment, with each region showing specific numerical milestones in 2023–2024.
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North America
particularly the U.S. and Canada, commercial catering equipment installations account for approximately 35% of global volume in 2023. The U.S. alone had over 749,000 food-service establishments as of 2023, a year-over-year increase of 5.7%, driving high demand for cooking equipment and refrigeration units. ENERGY STAR–rated appliances represent 60% of new dishwasher and fryer purchases in the region. Distribution of foodservice equipment dealers saw $15.65 billion in sales across top 100 dealers in 2023, up from $14.54 billion in 2022.
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Europe
accounts for around 30% of installed equipment worldwide. The region shows strong preference for stainless-steel prep tables, which are installed in over 80% of new kitchens due to strict hygiene laws. Smart ovens with Wi‑Fi and automated cleaning are installed in 50%+ of new hospitality projects. Energy efficiency is crucial: 70% of new refrigeration units meet efficiency standards, driven by regulatory mandates.
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Asia-Pacific
leads in volume with 543,000 units of commercial cooking equipment shipped in 2023, projected to exceed 1.1 million units by 2030. China and India are responsible for over 35% of regional installations. The region featured 450 cloud kitchens in India as of 2022, which together run modular cooking lines 24 months before replacement. Hotel openings rose 20% year-over-year in 2023–2024 in ASEAN nations, fueling demand for refrigeration and fryers.
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Middle East & Africa
installations are growing alongside hospitality sector expansion. The region hosted 60 million international tourists in H1 2024, prompting a 10–15% annual rise in kitchen equipment purchases. Institutional kitchens—military, hospitals—account for 25%+ of demand due to centralization of meal services. High-end products (stainless steel prep tables, conveyor dishwashers) represent 30–40% of new equipment spending, particularly in GCC countries.
List of Top Commercial Catering Equipment Companies
- ITW Food Equipment Group (USA)
- Middleby Corporation (USA)
- Ali Group S.p.A. (Italy)
- Welbilt
- (USA)
- The Vollrath Company
- LLC (USA)
- Duke Manufacturing Co. (USA)
- Henny Penny Corporation (USA)
- Rational AG (Germany)
- Alto-Shaam
- (USA)
- Electrolux Professional (Sweden)
ITW Food Equipment Group (USA): Holds around 8–10% global market share, with over 200 manufacturing patents in combi ovens and warewashing solutions.
Middleby Corporation (USA): Captures approximately 9–11% share, shipping over 150,000 units annually across cooking and beverage categories.
Investment Analysis and Opportunities
The commercial catering equipment market is attracting substantial investment due to expanding foodservice infrastructure, rising energy efficiency demands, and the rapid evolution of smart kitchen technologies. In 2023, more than 450 cloud kitchens were operating across India alone, each requiring compact, high-performance cooking and refrigeration units, with typical investment per site ranging between USD 15,000–25,000 for equipment setup. Energy-efficiency retrofits are gaining momentum, especially in North America and Europe, where over 60% of new commercial ovens, refrigerators, and dishwashers sold in 2023 were ENERGY STAR–certified. Government-backed rebates and subsidies cover up to 30% of equipment cost, encouraging operators to upgrade legacy systems. Smart equipment adoption is also accelerating, with over 50% of commercial foodservice outlets in developed markets using IoT-enabled devices for predictive maintenance, reducing operational costs by 15–20% annually.
Institutional kitchens—representing over 25% of global demand—continue to draw funding for modernization, with several countries launching school and hospital kitchen renovation projects exceeding USD 100 million in public-sector investment. The rise of automation has also sparked private equity interest, with over USD 300 million raised globally in 2023 for robotics and AI-driven kitchen startups. Mergers and acquisitions are reshaping the competitive landscape, including Ali Group’s acquisition of Welbilt for approximately USD 3.5 billion, expanding its presence across North America, Europe, and Asia-Pacific. Growing emphasis on hygiene, labor savings, and modularity is prompting investment in robotic cooking arms, self-cleaning dishwashers, and digital inventory monitoring systems. With operators seeking high-efficiency, low-footprint solutions to address rising labor costs and regulatory scrutiny, the market presents robust investment opportunities across both developed and emerging economies.
New Product Development
New product development in the commercial catering equipment market is being driven by the need for automation, sustainability, space efficiency, and precision in high-volume foodservice environments. In 2024, Atosa USA introduced an automated seasoning and packaging station capable of handling over 2,000 servings per shift, reducing labor requirements by 25% and seasoning waste by 30%, making it ideal for QSRs and large cloud kitchens. Rational AG enhanced its combi oven lineup with the iCareSystem, which automatically dispenses solid-dose cleaner tablets, saving up to 1,500 man-hours annually in cleaning tasks while ensuring 100% hygiene compliance. Broaster Company launched the E-Series 24G pressure fryer, equipped with dual-lift heads and high-capacity vats, enabling over 1,000 meals per hour, suited for large institutional kitchens. Franke’s release of the Mytico Due espresso machine added a new level of customization to beverage service, featuring iQFlow and Autosteam S3, maintaining temperature and consistency across 1,500 daily drinks, helping operators deliver quality with reduced barista dependency.
Additionally, advancements in robotics led to the unveiling of YORI, a dual-arm AI cooking robot designed for precise ingredient handling, with pouring and stirring accuracy within ±1 mm, capable of preparing 200 dishes daily in pilot kitchens. Many of these new products incorporate touchscreen interfaces, remote diagnostics, and cloud-based performance monitoring, aligning with the growing preference for connected commercial kitchens. Compact, multifunctional appliances also dominate product pipelines, particularly for urban restaurants and mobile catering units where space optimization is crucial. Overall, manufacturers are prioritizing innovation that reduces operational costs, enhances speed and safety, and meets evolving hygiene standards, positioning new-generation equipment as essential assets in modern commercial kitchens.
Five Recent Developments
- Ali Group acquires Welbilt Inc. in July 2022, strengthening its global portfolio and adding over 150 equipment models to its platforms.
- Lincat launches Invoq ovens in April 2024, featuring configurable heating zones aimed at reducing cooking cycle times by 15–20%.
- Atosa USA unveils Auto-Seasoning & Packaging Station (2024), automating fry seasoning and packing—serving 2,000 units/shift.
- Broaster Company debuts E-Series 24G pressure fryer (2024), offering dual-lift frying heads and high-volume outputs over 1,000 meals/hour.
- Franke introduces Mytico Due espresso machine (2024), featuring precise temperature control and steam for consistent drink quality across 1,500 daily units.
Report Coverage of Commercial Catering Equipment Market
The commercial catering equipment market report provides an in-depth analysis of equipment types, including cooking equipment, refrigeration units, food preparation tools, and dishwashers, which collectively represent a significant share of installations across foodservice operations globally. The study evaluates application segments such as hotels, restaurants, catering services, and institutional kitchens, where institutional kitchens alone account for over 25% of demand due to centralized foodservice operations in hospitals and schools. The report outlines regional dynamics, highlighting North America with approximately 35% of global installations and Asia-Pacific’s shipment volume exceeding 543,000 cooking units in 2023. Market trends such as the adoption of ENERGY STAR–certified appliances, now constituting over 60% of new purchases in North America and Europe, and the rise of semi-automated warewashing systems, which held a 42.5% market share in 2023, are critically examined. The scope includes technological innovations like IoT integration in over 50% of U.S. and EU kitchens, robotic automation, and self-cleaning ovens, while investment trends cover multi-million-dollar retrofitting programs and mergers such as Ali Group’s acquisition of Welbilt valued at USD 3.5 billion. The report is based on a combination of primary interviews with 50+ operators and secondary data validated through sales registries and dealer networks. Historical data from 2019 to 2023 is coupled with forecasts through 2030, offering granular insights on equipment lifecycle, unit volumes, pricing trends, innovation benchmarks, and regional expansion strategies.
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