REFRIGERATED TRAILER MARKET ANALYSIS

A refrigerated truck or refrigerated trailer, is a truck designed to transport perishable goods at a specific temperature. These trailers are typically used to transport food cargo. Refrigerated trailers are available in two different temperature ranges, a negative temperature range for transporting frozen food and a positive temperature range for transporting refrigerated food. In addition, different refrigeration trailers are available based on parameters such as load capacity, pallet capacity, length and number of beds. Refrigerated trailers are used to transport perishables such as fish, meat, vegetables, fruits, flowers, dairy and poultry products. Additionally, it is used to transport specialty pharmaceuticals that require a specific temperature range.

Refrigerated trailers play a vital role in the transportation of perishables, ensuring product freshness and quality throughout the supply chain. Specially designed to maintain a specific temperature range, these trailers are suitable for both frozen and refrigerated food. With its versatility in payload, pallet capacity, deck length and number, it accommodates a wide variety of cargo types and streamlines logistics operations.

In the food industry, refrigerated trailers play an important role in transporting a wide variety of perishable goods such as fish, meat, vegetables, fruit, flowers, dairy products, and poultry. It is also used to transport specialty drugs and pharmaceuticals that require precise temperature control to maintain potency. The refrigerated trailer market has experienced significant growth with the growing demand for fresh and frozen products in the global market. Additionally, advances in refrigeration technology have created more energy efficient and environmentally friendly solutions, further driving the adoption of refrigerated trailers in the transportation industry.

Global Refrigerated Trailers Market- Regional Analysis

Asia Pacific held a dominant position in the global Refrigerated Trailers market in 2022, followed by the North America and Europe region.

Figure 1. Global Refrigerated Trailer Market Share (%), By Region, 2021

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Asia Pacific held a dominant position in the global Refrigerated Trailers market in 2022, owing to increasing demand for increased demand in sea food.

Asia-Pacific is expected to drive the growth of the refrigerated trailer market during the forecast period, mainly due to its high population concentration. Within the region, China and India are the major countries with significant demand for refrigerated trailers. Together, he accounts for more than 40% of the world's storage capacity, and that number is expected to grow in the coming years. This growth is due to the need to meet high demand for COVID-19 vaccines and other medicines that require refrigerated storage. In addition, increasing demand for groceries is also driving the expansion of refrigerated warehouses in the region. The refrigerated trailer market is also showing significant growth in North America and Europe. Each region has an established cold chain infrastructure backed by strict food safety and quality regulations. The demand for refrigerated trailers in these regions is driven by a flourishing food and beverage industry and the need to transport perishables efficiently. Investments are made in reliable and efficient cold storage logistics to ensure smooth transportation and storage of temperature sensitive products. As demand for refrigerated trailers continues to grow, companies are focusing on expanding refrigerated storage capacity, thereby contributing to the growth of the overall market.

Global Refrigerated Trailer Market- Segmentation

Product Type segment is expected to dominant the global Refrigerated Trailers market during the forecast period.

The refrigerated trailer market is segmented by product type and end-use industry. In terms of product type, the market is divided into two major segments frozen and chilled.

The frozen segment of the refrigerated trailer market deals with trailers designed to transport frozen goods. These trailers maintain cryogenic temperatures, preserving the quality and freshness of frozen foods, ice cream, frozen desserts and other products. These are essential to meet the growing demand for frozen food in various regions. Chilled segment:

The chilled segment of the refrigerated trailer market focuses on trailers intended for the transportation of refrigerated goods. These trailers maintain higher temperatures than refrigerated trailers, preserving the freshness of produce such as fresh fruit, vegetables, dairy, and beverages. Cold storage areas are essential to meet the growing demand for perishables that require temperature-controlled transportation.

The refrigerated trailer market is further segmented by end-use industry.

This dairy segment deals with the transportation of dairy products such as milk, cheese, yogurt and butter, which require specific temperature conditions to maintain their quality.

The fruit and vegetables deals with the transportation of fresh fruits and vegetables and ensures that they are kept in optimal condition during transportation.

The Meat and Seafood sub-segment focuses on the transportation of perishable foods such as meat, poultry and seafood that require precise temperature control to prevent spoilage.

This others segment includes transportation of temperature-sensitive products such as pharmaceuticals, vaccines, baked goods and other perishables that require special storage and transportation conditions.

Figure 2. Global Refrigerated Trailer Market Value (US$ Mn) Analysis and Forecast, By Product Type, 2022

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Global Refrigerated Trailer market was valued at US$ 4,200 Million in 2022 and is expected to reach US$ 6.4 Bn by 2030, exhibiting a CAGR of 5.5% between 2023 and 2030.

Global Refrigerated Trailer Market- Key Competitors

Major players operating in the global Refrigerated Trailer market include Kogel Trailer GmbH & Co. KG, Wabash National Commercial Trailer Products, Randon Implementos, Great Dane Trailers, Inc., Gray & Adams Ltd., Utility Trailer Manufacturing Company, Hyundai Translead, Montracon Ltd., Schmitz Cargobull AG, Lamberet Refrigerated SAAS, and Fahrzeugwerk Bernard KRONE GmbH.

Global Refrigerated Trailer Market- Recent Developments

1. In July 18, 2023, ConMet eMobility, a division of Amsted Industries, is a global supplier of wheel hubs, and they have achieved a significant milestone by partnering with Penske Logistics, a leading provider of supply chain and logistics solutions. Penske Logistics has successfully deployed the first zero-emission refrigerated tractor-trailer by pairing an nMotion TR 160-45 equipped reefer trailer with a Freightliner eCascadia electric semi-truck. This innovative combination allows for emissions-free refrigerated transport by integrating an all-electric tractor with a reefer trailer cooled through an electric standby TRU, powered by energy generated from in-wheel electric motors. The advanced in-wheel PreSet Plus eHub technology within the nMotion system generates power for the reefer during vehicle motion, ensuring that perishable cargo remains appropriately chilled throughout the transportation process.
2. In October 2022, Thermo King, a provider of transport temperature control solutions, successfully conducted initial testing of its evolve electric trailer in collaboration with retail giants Walmart and Loblaws, along with Martin Brower, a supply chain solutions provider. Over a period of more than 2,500 hours, the battery-powered refrigerated trailer unit demonstrated outstanding performance, delivering top-notch climate control to preserve the freshness of food and other products. Notably, Thermo King's electric trailer technology produces zero direct emissions, making it a valuable tool in the effort to reduce carbon emissions within the cold chain industry.
3. In June 2020, Thermo King, a provider of transportation temperature control solutions, has announced the launch of the Advancer, a reinterpreted trailer cooling unit. Initially offered for the European, Middle East, Latin American and Asia Pacific markets, the product series offers a new design architecture for bold new standards in performance, thermal control and fleet connectivity.

Global Refrigerated Trailer Market- Driver

Surging demand for packaged meat and seafood globally

The surging global demand for packaged meat and seafood has become a major catalyst driving the refrigerated trailer market. Changing consumer preferences, favoring convenience and pre-prepared products, have led to a heightened necessity for efficient transportation of perishable items like meat and seafood across long distances without compromising their freshness and quality. Refrigerated trailers play a pivotal role in maintaining optimal temperatures throughout the entire supply chain, spanning from production facilities to distribution centers and retail outlets. Furthermore, the rapid growth of e-commerce and online grocery shopping has further bolstered the need for refrigerated trailers to ensure timely and secure delivery of perishable goods directly to consumers' homes. This rising demand presents lucrative opportunities for refrigerated trailer manufacturers to expand their product offerings and cater to the evolving needs of the packaged meat and seafood industries.

Global growth in cold chain infrastructure is driving the expansion of the refrigerated trailer market

The global expansion of cold chain infrastructure is a crucial driver propelling the growth of the refrigerated trailer market. The cold chain represents a temperature-controlled supply chain responsible for storing and transporting perishable goods, including food, pharmaceuticals, and chemicals, to preserve their quality and safety. As countries undergo development and urbanization, there is a rising demand for improved cold chain infrastructure to cater to the increasing need for perishable products. This expansion entails the establishment of new refrigerated warehouses, cold storage facilities, and temperature-controlled transportation systems, with refrigerated trailers playing a pivotal role in the process. The escalating focus on food safety and quality standards further fuels the demand for an efficient cold chain network, leading to increased requirements for refrigerated trailers that can ensure product integrity during transit. As the global cold chain capacity expands, the refrigerated trailer market is poised for substantial growth, presenting opportunities for technological advancements and market penetration.

Global Refrigerated Trailer Market- Restraint

Rising operating costs of trucking and proximity of transportation destinations are likely to hamper the global refrigerated trailer market during the forecast period

The global refrigerated trailer market is expected to face challenges during the forecast period due to increasing trucking operational costs and the proximity of transportation destinations. Rising fuel prices, maintenance expenses, and labour costs contribute to higher operational expenditures for trucking companies, impacting their profit margins. Moreover, the proximity of transportation destinations can result in shorter hauls, making it less cost-effective to use refrigerated trailers for relatively shorter distances. In such cases, alternative transportation methods like insulated trucks or refrigerated vans may be preferred. Additionally, advancements in last-mile delivery solutions could further limit the demand for refrigerated trailers in certain regions. To mitigate these restraints, manufacturers may need to focus on developing more fuel-efficient and cost-effective refrigerated trailer models or explore alternative logistics strategies to meet evolving market demands.

Global Refrigerated Trailer Market- Opportunity

Growing utilization of online grocery shopping apps.

The increased use of apps for online grocery shopping presents a significant opportunity for the refrigerated trailer market. As consumers increasingly opt for the convenience of ordering groceries online, the demand for efficient and reliable transportation of perishable goods also surges. Refrigerated trailers play a crucial role in ensuring the safe and timely delivery of temperature-sensitive products to customers' doorsteps. With the growing popularity of online grocery apps, there is a need for refrigerated trailers that can seamlessly integrate into the supply chain to support the last-mile delivery process. These trailers must maintain precise temperature control and offer real-time monitoring capabilities to ensure the freshness and quality of perishable items during transit. As online grocery shopping continues to thrive, refrigerated trailer manufacturers have an opportunity to innovate and provide technologically advanced solutions that cater to the specific requirements of this evolving market segment.

Global Refrigerated Trailer Market- Impact of COVID-19:

The Covid-19 pandemic had a mixed impact on the refrigerated trailer market. Initially, there was a surge in demand for refrigerated trailers as panic buying and stockpiling led to increased transportation needs for perishable goods and essential items. Additionally, the pandemic accelerated the demand for temperature-controlled transportation of pharmaceuticals and vaccines, further bolstering the market.

However, the refrigerated trailer market also faced challenges during the pandemic. Supply chain disruptions, lockdowns, and travel restrictions affected logistics operations, causing delays in the transportation of goods and hindering market growth. Moreover, the closure of restaurants, hotels, and other foodservice establishments led to reduced demand for perishable goods, impacting the utilization of refrigerated trailers in certain sectors.

As the global economy gradually recovers and supply chains stabilize, the refrigerated trailer market is expected to rebound. The continued importance of cold chain logistics for food safety and pharmaceutical distribution, along with the growing demand for online grocery shopping, is likely to drive sustained growth in the market post-pandemic. 

*Definition: A refrigerated or 'reefer' trailer is equipped with a front-mounted refrigeration unit that can regulate the load's temperature based on the ambient conditions. This specialized trailer enables the transportation of temperature-sensitive goods over extended distances, providing a controlled environment for the cargo.