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The refrigerated road transportation market is estimated to grow at a CAGR of 6.46% between 2022 and 2027. The size of the market is forecast to increase by USD 3,582.64 million. The growth of the market depends on several factors, including the rising initiatives to promote the cold chain, the growth in demand for reefer containers from the pharmaceutical industry, and the increasing number of trade corridors.
This report extensively covers market segmentation by type (refrigerated trailers and refrigerated vans), application (chilled food and frozen food), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Technavio categorizes the global refrigerated road transportation market as a part of the global trucking market within the global transportation market. The parent global trucking market covers companies engaged in goods and passenger land transportation, including vehicle rental and taxi companies. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The rising initiatives to promote cold chain are notably driving the market growth, although factors such as losses due to temperature excursion may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Refrigerated Road Transportation Market Driver
The rising initiatives to promote the cold chain are the key factor driving global refrigerated road transportation market growth. The cold chain market in countries such as Brazil, China, India, and South Africa was in the nascent stage during 2005-2015. International regulatory bodies and governments across the world have introduced various regulations that focus on food and drug safety, which promotes the growth of the cold chain.
Many laws and regulations were formulated for strictly controlling and supervising cold-chain pharmaceutical production and management. The above factors are prompting many pharmaceutical manufacturers to shift their focus to the use of cold chain solutions such as refrigerated road transportation for maintaining the purity of their products. Thus the global market in focus is expected to witness high growth during the forecast period.
Key Refrigerated Road Transportation Market Trend
The advances in refrigerator monitoring systems is the primary trend in the global refrigerated road transportation market. A smart refrigerator monitoring system is an intelligent technology that enables users to control their refrigerated cabinets remotely using a smartphone, tablet, or desktop. Traditional refrigerator monitoring systems only allow users to change the temperature or check the status of the refrigerator using the built-in control panel or switch.
However, a smart refrigerator monitoring system gives consumers user-friendly, efficient, and accessible control over traditional refrigerator monitoring systems. This helps in reducing the total turnaround time and prevents companies from incurring huge losses due to unplanned maintenance. Moreover, the benefits of refrigerator monitoring systems are encouraging users to adopt these systems for maximizing control for high efficiency, reducing operating costs, and extending equipment life. Hence, the advent of refrigerator monitoring systems will encourage several vendors to provide in-built refrigerator monitoring systems during the forecast period.
Key Refrigerated Road Transportation Market Challenge
The loss due to temperature excursion is a major challenge to the global refrigerated road transportation market growth. Refrigerated and temperature-controlled transport services are often supplied by a third-party logistics service provider that specializes in cold storage transportation. Temperature excursion is one of the major concerns for refrigerated road transportation service providers as it requires high investments. For example, the biopharma industry loses approximately $35 billion annually as a result of failures in temperature-controlled logistics, according to IQVIA Institute for Human Data Science.
Apart from this, the cost of replacing the faulty equipment, which is the primary cause of temperature tripping, is also high. Temperature excursion can also lead to damage to logistics costs because most refrigerated cargoes (especially pharmaceutical products) are highly temperature-sensitive in nature. A slight variation in temperature can cause product adulteration. The adulterated products cannot be sold in the market, which, in turn, affects the profitability of both manufacturers and refrigerated road transportation service providers. Other expenses, such as labor costs, will also reduce the profit margins of these service providers, which impacts the growth of the market.
Key Refrigerated Road Transportation Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Refrigerated Road Transportation Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
bayandbay.com - The company offers refrigerated transportation services which are designed to carry out frozen and pharmaceutical products. Also, this segment offers refrigerated trucking, dry tank, flatbed/open deck, LTL services.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the refrigerated trailers segment will be significant during the forecast period. Refrigerated trailers are usually used to transfer food and beverages at controlled temperatures for a long distance, primarily from one city to another. The temperatures may vary depending on the food product that is being transported. The food items that are usually transported in refrigerated trailers are frozen food, confectioneries, and dairy products.
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The refrigerated trailers segment was valued at USD 3,446.07 million in 2017 and continue to grow by 2021. Dairy products, such as cheese, butter, spreadable fats, cream, drinkable yogurt, dairy-based and soy-based desserts, quark, soymilk and soy drinks, milk, and yogurt, are highly perishable, and the nutritional composition of these products make them an ideal medium for microbial growth. Hence, these products require a low-temperature environment during transportation. This will drive the demand for refrigerated trailers.
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APAC is estimated to contribute 46% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The consumer healthcare industry in APAC increased significantly primarily due to increasing investments from both government and private sectors for the improvement of healthcare infrastructure. In addition, the growing foreign investments and ease of access to healthcare insurance in most Asian countries are expected to boost the growth of the consumer healthcare market in APAC. The high growth is expected because of the enhanced healthcare facilities, coupled with the increased investments by governments and non-governmental organizations (NGOs) for improving public health standards. These factors will increase the demand for refrigerated road transportation during the forecast period.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. COVID-19 led to an upsurge in the demand for APAC. Moreover, in Q1 of 2021, vaccines were introduced in the region, which led to the reopening of the supply chain. The removal of lockdown restrictions led to the reopening of the food manufacturing units. Hence, these factors are likely to boost the potential growth of the transportation sector in the region, thereby negatively impacting the market in focus. Therefore, the global refrigerated road transportation market is expected to witness high growth during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by Type (Refrigerated trailers and Refrigerated vans), Application (Chilled food and Frozen food), and Geography (APAC, North America, Europe, South America, and Middle East and Africa).
Refrigerated Road Transportation Market Scope |
|
Report Coverage |
Details |
Page number |
165 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.46% |
Market growth 2023-2027 |
USD 3,582.64 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.01 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 46% |
Key countries |
US, Canada, China, Japan, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Bay and Bay Transportation, C H Robinson Worldwide Inc., Carrier Global Corp., CMA CGM Group, CRST The Transportation Solution Inc., Daikin Industries Ltd., DB Schenker, Deutsche Post AG, FedEx Corp., GAH (Refrigeration) Ltd., Great Dane LLC, Knight Swift Transportation Holdings Inc., Mike Frost Trucking Inc., Unternehmensgruppe Theo Muller, WEL Companies Inc., West Coast Carriers, Witte Bros Exchange Inc., XPO Logistics Inc., and AP Moller Maersk AS |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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