REFRIGERATED TRANSPORT MARKET ANALYSIS

The Refrigerated Transport Market size was valued at USD 112.90 Billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 7.4% from 2023 to 2030. Refrigerated transportation also called as reefer freight. It is a method for shipping freight that requires temperature-controlled vehicles. The vehicle is used for refrigerated transportation that stores the products at the desired temperature during the transportation process. Growing demand for efficient distribution of perishable goods such as dairy products, beverages, processed meat, poultry products, ice cream, fruits, and other edible products, which may perish in the normal environmental conditions is expected to be one of the major factors that is expected to fuel growth of the refrigerated transport market over the forecast period.

Refrigerated Transport Market: Regional Insights

On basis of region, the Refrigerated Transport Market is segmented into North America, Europe, Asia Pacific, Latin America, Middle East, and Africa. Over time, there has been saturation in both the North American and European countries, which, anticipated would experience steady growth during the forecast period. The market in the European region is primarily driven by increased international trade and a robust economic environment. During the forecast period, the online retail market and rising frozen food demand will provide growth opportunities for the major players. By 2021, the refrigerator transport market was dominated by the Asia-Pacific region. Due to industrialization and population growth, the developing countries in the Asia Pacific region are expanding quickly. Governments in the Asia-Pacific region may offer investments in order to provide developed and advanced transportation infrastructure. India, Japan, and China are the main nations making a significant contribution to the expansion of the market for refrigerated transport.

Figure 1. Refrigerated Transport Market Share (%), By Region, 2022

To learn more about this report, request sample copy

Refrigerated Transport Market Drivers:

Greater Demand for Frozen & Perishable Goods.

The consumption pattern and consumer perception of frozen foods are changing due to a number of factors, including the rise in female employment globally, the sudden impact of pandemics, and an increase in hectic lifestyles combined with the work-from-home culture. Frozen food sales are expected to increase, and opportunities for expansion can be found in developing markets like those in the Asia-Pacific region, Latin America, and Eastern Europe.

When climatic conditions affect crop productivity, frozen foods are preferred because they have a longer shelf life. Food producers work hard to offer consumers frozen food at reasonable prices, in addition to processed and packaged foods. By enhancing affordability and accessibility and preventing food loss, freezing techniques offer the ideal solution for moving food from the farmer's market to the supermarket. The demand for frozen foods is increasing as a result of the expansion of service industries like fast food chains, quick service restaurants, and hypermarkets.

Significant growth in the food and beverage industry

Due to the acceleration of globalization, which has resulted in an increase in trade and a rise in demand for frozen and packaged food around the world, the market for refrigerated transportation is gaining traction. The refrigerated transport market is anticipated to grow significantly as a result of the global cold chain industry's development, the introduction of cutting-edge freezing technology, and automated freezing systems built into carrier vehicles.

Increasing household demand for frozen food globally, rising demand for meat products (freezing preserves meat products from microbial contamination), and expanding food service industry are additional significant factors that are anticipated to support the growth of the refrigerated transport market. The growth of the refrigerated transport market is also anticipated to be aided by increased governmental concern over the safety of food and regulations on the production, processing, and transportation of frozen food. The market's expansion may be constrained by the high capital expenditure needed for refrigerated transport.

Refrigerated Transport Market Opportunities:

Utilization of Intermodal Transport to Save Fuel Cost.

The efficiency of the supply chain will increase as a result of service providers' search for new methods for choosing transport modes. The food and beverage industry is currently using intermodal transportation more and more frequently. Trucks, ships, and planes are just a few of the other modes of transportation used in intermodal transport, which mainly uses rail shipments to move perishable goods. In intermodal transport, reefer containers are also used. Due to the rising cost of fuel, cooled rail transportation is frequently used. Businesses have made sizable investments in rail infrastructure and related technology, according to the Association of American Railroads (AAR), Washington.

Refrigerated Transport Market Trends:

Increasing demand for Pharmaceutical Drug Transport

Because most pharmaceutical drugs are temperature-sensitive, it is necessary to store and transport them in a controlled environment to ensure their efficacy and safety. For proper temperature-controlled transportation methods, like Refrigerated transports, to be effective in preventing shipment losses, growing accidents and incidents are now necessary. A number of pharmaceutical companies have begun trading internationally in order to increase their revenue as a result of advancements in the technology of refrigerated transport and a decrease in shipping costs.

Biologics, cellular therapies, vaccines, and blood products are in higher demand and need temperature-controlled storage and transportation containers.

Refrigerated Transport Market Restraints:

Transportation Infrastructure Is Being Impacted By Climate Change.

Floods and droughts, which have a significant effect on transportation, are becoming more frequent and stronger, as are storms and winds. Lack of transportation infrastructure support in developing markets and the presence of finished goods in an established market. Meanwhile, because food products require constant temperatures during transportation, refrigeration has replaced traditional delivery methods that could be harmed by weather.

High Capital Investment & Energy Costs.

Ensuring food quality and safety by avoiding premature expiration, decay, and spoilage is a top priority for producers, retailers, and consumers in the food industry. It has become essential for service providers to make investments in cutting-edge vehicles, system technologies, and cold storage facilities. Energy costs are particularly high in North America and Europe, which is why they are a growing concern for cold chain providers. Traditional fluorescent lighting is used in refrigerated storage facilities, and it must be on all year round per legal requirements. Since the need for refrigerated vehicles in cold chains, particularly in North America and Europe, has grown over the past few years, rising fuel prices and effective fuel consumption management are some of the other major concerns for cold chain providers.

Figure 2. Refrigerated Transport Market, By Technology

To learn more about this report, request sample copy

Refrigerated Transport Market Segmentation:

Refrigerated Transport Market, by Transport Type [Refrigerated Road Transport (Refrigerated Light Commercial Vehicles (LCV), Refrigerated Medium & Heavy Commercial Vehicles (MHCV), and Refrigerated Heavy Commercial Vehicles (HCV), Refrigerated Sea Transport, Refrigerated Rail Transport, and Refrigerated Air Transport)], by Technology (Vapor Compression Systems, Air Blown Evaporators, and Eutectic Devices), by Temperature (Single Temperature and Multi-temperature), by Application (Chilled Food Products (Milk, Bakery & Confectionery Products, Dairy Products, Beverages, and Fresh Fruits & Vegetables) and Frozen Food Products (Ice Cream, Frozen Dairy Products, Processed Meat, Fish & Sea Food, and Bakery Products))

Refrigerated Transport Market: Key Developments

For instance, in March 2022, with the introduction of Utility Connect, United Technologies Corporation collaborated with Phillips Connect. Utility's custom wiring harness, which has been redesigned to function with the Phillips Connect Smart7 nosebox, is the foundation of the Utility Connect system. Utility saw the benefits of offering the best, corrosion-free harnesses that would seamlessly and dependably connect to a variety of sensors for the lifetime of the trailer early on.

For instance, In January 2022, Through a new partnership with ConMet, Carrier Corporation increased its electrification capabilities by incorporating wheel-based power generation, which harvests energy that would otherwise be lost during braking events. By making electric options available for trailer, truck, and light commercial vehicle customers before the end of 2022, the alliance also helps Carrier's broader zero-emission transport refrigeration solutions meet upcoming emissions regulations.

For instance In October 2021, a strategic alliance has been announced by Trailer Dynamics GmbH and trailer producer Krone. The development of an electrified trailer that is production-ready and significantly reduces the diesel and CO2 emissions of diesel semitrailer tractors while extending the range of BEV semitrailer tractors is the shared objective.

In February 2021, for small to medium-sized vans and trucks, Ingersoll Rand produced fully electric refrigeration units. The e200 is the ideal all-electric option for trucks that are powered by engines and electricity because it combines control, convenience, use, and reliability in a special way. The e200 offers an appealing solution for final mile deliveries and urban environments by combining control and convenience with low noise and reduced weight.

Refrigerated Transport Market: Key Companies Insights

Some of the major players operating in the refrigerated transport market include China International Marine Containers (Group) Ltd., Daikin Industries, Ltd., Great Dane Trailers, Inc., HYUNDAI Translead, Ingersoll-Rand PLC (Thermo King), Lamberet SAS, Mitsubishi Heavy Industries, Ltd., Schmitz Cargobull AG, Singamas Container Holdings Limited, United Technologies Corporation (Carrier Corporation), Utility Trailer Manufacturing Company, Wabash National Corporation, and Vehicle Works Bernard Krone Gmbh & Co. KG.

*Definition: The term "refrigerated transport" describes the use of shipping containers and trucks for temperature-controlled freight. These vehicles have an integrated cooling system that keeps the desired temperature constant during transportation