Refrigerated Transport Market - Insights
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.
Global refrigerated transport market was valued at US$ 15.8 billion in 2018 and is expected to exhibit a CAGR of 6.32% over the forecast period (2019-2027), and expected to reach US$ 27.21 billion by 2027. 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.
Increasing demand for high quality and safety of food from customers across the globe is expected to drive growth of the market
Increasing prevalence of foodborne diseases is expected to boost growth of the market, as refrigerators are used to increase shelf life of food and maintains optimal quality of food, in order to reduce the possibilities of bacterial growth. High prevalence of various foodborne diseases and disorders such as abdominal pain, vomiting, and diarrhea are expected to propel demand of refrigerated transport for food distribution, globally, in order to maintain safety of food products. For instance, according to the World Health Organization (WHO), consumption of contaminated food items can cause over 200 diseases ranging from diarrhea to cancer. Moreover, foodborne diseases is one of the leading cause of deaths at the global level. Furthermore, according to the World Health Organization (WHO) in December 2015, globally, around 1 out of 10 people suffered from various diseases post-consumption of contaminated food, leading to around 420,000 deaths, annually.
This factor is expected to propel the demand for refrigerators in various stages such as food manufacturing, distribution or supply over the forecast period, which in turn is expected to drive growth of the refrigerated transport market globally. Hence, increasing need to preserve food, in order to meet customer demand is expected to drive growth for the refrigerated transportation market over the forecast period.
Figure 1. Global Refrigerated Transport Market Value Share (%), by Technology, 2018
Source: Coherent Market Insights Analysis, 2018
Air blown evaporators held dominant position in 2018 in the global refrigerated transport market.
On the basis of technology, the market is segmented into vapor compression systems, air blown evaporators, and eutectic devices. Amongst technology, air blown evaporators segment accounted for the largest share of 46% in 2018, and it is expected to reach to 46.5% by 2027.
Moreover, the eutectic devices refrigerated transport segment accounted for second largest market share of around 29.6% in 2018, and it is expected to reach 31.8% market share in 2027.
Figure 2. Global Refrigerated Transport Market Value Share (%), by Region, (2018)
Source: Coherent Market Insights Analysis, 2018
Among region, Europe refrigerated transport market size accounted for the largest share with around 35.2% in 2018, and is expected to retain its dominance over the forecast period. This is attributed to increasing demand for frozen foods in Europe, which is expected to drive growth of the market. Moreover, Germany, the U.K., and France have the highest demand for frozen foods. For instance, according to Coherent Market Insights’ analysis, Germany, the U.K., and France together accounted for a share of 54% in the Europe frozen food market in 2015. Moreover, according to the same source in 2015, around 5.8 million tons of frozen fruit and vegetables, 3.3 tons of ice cream and frozen desserts, 1.1 million tons of processed meat, 1 million tons of ready meals, and other frozen products were sold in Europe.
Therefore, increasing demand for frozen foods is expected to rise demand for cold supply chain, which in turn is expected to boost growth of the market for refrigerated transport in Europe over the forecast period.
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.