Refrigerated transport is a method of carrying goods using temperature-controlled trucks. The transportation trucks include an in-built refrigeration system that keeps the products chilled at a constant temperature throughout the shipping procedure.
Global Refrigerated Road Transport Market- Regional Insights
The presence of emerging economies in the region, such as India and China, and the Asia Pacific is anticipated to experience significant expansion in the global refrigerated road transport market throughout the forecast period. The refrigerated road transport market in APAC is anticipated to increase as a result of China's position as the globe's top trader of food items. The expansion of the region's frozen food consumer base, rising disposable income, and increasing governmental investment in Asian nations' logistics and transportation sectors are all anticipated to have a significant impact on the market's expansion in APAC. The refrigerated road transport market is anticipated to benefit from the increased use of e-commerce by the food industry in APAC.
Figure 1. Global Refrigerated Road Transport Market Share (%), By Region, 2022
Global Refrigerated Road Transport Market- Impact of Coronavirus (COVID-19) Pandemic
The COVID-19 epidemic has had a negative effect on the market for refrigerated road transportation. This is primarily because of global government laws that have had a significant impact on mobility, such as lockdowns and social segregation.
The majority of transports take the form of stranded ships on board ships, unloaded at various locations, or sitting in various ports and berths, downstream and impounded. The COVID-19 regulations also significantly impacted these markets.
Additionally, the pandemic has put companies in the global transportation and logistics sectors under financial strain due to cash flow, unemployment, fewer contracts, and other issues, which has led to a significant decline in global trade volume and a reduction in employee salaries.
Global Refrigerated Road Transport Market- Drivers
Increasing demand for frozen perishable commodities
Frozen foods are becoming more popular due to their longer shelf life; they are preferred when weather conditions affect agricultural yield. Food makers try to supply consumers with processed, economical frozen, and packaged foods. Freezing techniques are an excellent way to transfer food from the farmer's market to the supermarket while enhancing affordability and accessibility and reducing food waste. The expansion of service sectors such as quick-service restaurants, fast-food chains, and hypermarkets boosts demand for frozen foods.
Rise in the Demand for electric road transport refrigeration
Electric road transport refrigeration units (eTRUs) are gaining market momentum in the goods movement industry as a cost-effective alternative to diesel-powered transport refrigeration units (TRUs). Customer demand for more efficient, lower-maintenance solutions together with engine
Idling laws that restrict diesel-mode operation at loading docks, staging areas, or rest stops, are driving eTRU adoption.
Global Refrigerated Road Transport Market- Opportunities
Rising demand for refrigerated road transportation
The growing demand for the road mode of transportation owing to the minimal low cost associated with it is predicted to boost the Refrigerated Transport Market. Moreover, bakery and confectionery are also anticipated to be an attractive segment in the forecast period, as bread is one of the most commonly consumed items worldwide and refrigeration is necessary for production, maintaining uniformity, reducing spoilage, and preserving the product.
Refrigerated Road Transport Market Report Coverage
|Base Year:||2022||Market Size in 2023:||US$ 19.05 Bn|
|Historical Data for:||2017 to 2021||Forecast Period:||2023 to 2030|
|Forecast Period 2023 to 2030 CAGR:||6.38 %||2030 Value Projection:||US$ 29.37 Bn|
China International Marine Containers Ltd., Daikin Industries, Ltd., Ingersoll-Rand PLC, Hyundai Motor Company, Lamberet SAS, Singamas Container Holdings Limited, Schmitz Cargobull AG, United Technologies Corporation (Carrier Corporation), Utility Trailer Manufacturing Company, and Wabash National Corporation.
|Restraints & Challenges:||
Demand for frozen food in households, escalating demand for meat products
The increase in household demand for frozen food around the world, rising demand for meat products (freezing preserves meat products against microbial contamination), and expanding food service industry are driving the growth of the refrigerated road transport market Further anticipated growth drivers for the refrigerated transport industry include increased governmental concern over food safety and rules governing the production, processing, and transportation of frozen food. However, the substantial capital expenditure needed for refrigerated transport may limit the market's expansion.1
Global Refrigerated Road Transport Market- Trends
Rise in the demand for pharmaceutical drugs transport
The majority of pharmaceutical medications are temperature-sensitive, thus they must be transported and maintained in a regulated environment to ensure their safety and efficacy. In order to prevent shipment losses, proper temperature-controlled transportation techniques, such as refrigerated road transports, are now necessary due to an increase in accidents and occurrences. 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 road transport and a decrease in shipping costs.
Rising awareness among consumers
The expanding consumer awareness of healthy eating habits, as well as the wide availability of diverse items, are driving up demand for the use of these transportation vehicles. The transport trucks have an extremely important function of transporting various items to corners and nooks of the country. The local government and businesses find it incredibly helpful to use these refrigerated transports because they help provide higher income when the things supplied are fresh. The utilization of a mode of transport is critical for businesses.
Global Refrigerated Road Transport Market- Restraints
Continuously changing climate
The market's growth is hampered by continuously shifting climate change that affects transportation infrastructure and skilled labor in established economies. The ability to maintain product integrity when transporting perishable goods and the lack of standards and processes are significant barriers to the expansion of the refrigerated road transport market. The integration of multi-temperature systems in trucks and trailers, intermodal transportation to save fuel costs, and technological advances in refrigeration systems and equipment all present promising growth prospects.
Lack of transport infrastructure support in emerging markets and skilled resources in developed markets
Developing markets such as Asia Pacific and Latin America lack efficient transit infrastructure and are poorly connected. The transportation infrastructure in industrialized countries such as the United States and the United Kingdom is efficient; nonetheless, the main challenge for refrigerated transport is a lack of competent labor. To maintain refrigerated transport equipment, competent technicians and mechanics are required. Efficient technicians can assist limit maintenance costs in overall operating costs and reduce the time it takes to carry perishable commodities to retail. The skilled labor shortage has an impact on the productivity and profitability of the refrigerated road transport business.
Figure 2. Global Refrigerated Road Transport Market Share (%), By Segment, 2022
Global Refrigerated Road Transport Market- Segmentation
The Global Refrigerated Road Transport Market report is segmented into transportation mode, cooling type, technology, and region
Based on transportation, the market is segmented into LCV, MHCV, and HCV
Based on cooling type, the market is segmented into chilled and frozen
Based on technology, the market is segmented into cryogenic systems, vapor compression system
Global Refrigerated Road Transport Market: Key Developments
In November 2020, Omega Seiki Mobility Pvt Ltd an end-to-end mobility solutions provider, announced its partnership with Transport Air-Conditioning and Refrigeration (TRANS ACNR), a company specializing in the manufacturing of bus air-conditioning system and drive trains to develop chilled containerized electric vehicles powered by lithium-ion batteries.
In January 2021, Lineage Logistics, a cold-storage warehouse company, said in a news release that it has acquired Cryo-Trans, a refrigerated railcar company, in a deal that provides the merged corporation significant inroads into the food and beverage supply chain.
In January 2021, Daimler India Commercial Vehicles (DICV), the manufacturer of the BharatBenz brand of commercial vehicles, has introduced a specialized reefer (refrigerated) truck to transport (covid-19) vaccinations securely across India.
In January 2021, Tata Motors has unveiled a new line of refrigerated vehicles to help with the nationwide Covid-19 vaccination push. According to the firm, the new vehicles are outfitted with specialized transporting equipment.
Global Refrigerated Road Transport Market: Key Companies Insights
Global Refrigerated Road Transport Market is highly competitive, owing to the increasing launch of new technologies due to ongoing R&D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies, in order to expand their presence on regional as well as global basis.
Key players operating in the Global Refrigerated Road Transport Market are China International Marine Containers Ltd., Daikin Industries, Ltd., Ingersoll-Rand PLC, Hyundai Motor Company, Lamberet SAS, Singamas Container Holdings Limited, Schmitz Cargobull AG, United Technologies Corporation (Carrier Corporation), Utility Trailer Manufacturing Company, and Wabash National Corporation.
*Definition: Refrigerated road transport refers to the transportation of temperature-sensitive goods in specialized trucks or trailers that are equipped with refrigeration units and temperature sensors to maintain the required temperature and humidity conditions during transportation. This mode of transportation is essential for industries such as food and pharmaceuticals, where the quality and safety of goods during transportation are critical. The use of reefer transport allows these industries to transport perishable goods over long distances and across international borders, opening up new markets for these goods. It requires specialized equipment and expertise to ensure that the goods arrive at their destination in the same condition as they were when they were loaded.
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