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The refrigerated transportation market size report predicts the market to increase by USD 39.15 billion at a CAGR of 7.81% between 2023 and 2028. The growth of the market depends on several factors, such as the rising consumption of frozen food, growing consumer awareness and preference for fresh, high-quality products, and the expansion of international trade and globalization of supply chains. The increasing demand for frozen food highlights a shift towards convenience and longer shelf life. Simultaneously, consumers' heightened awareness and preference for fresh and premium products drive demand for higher standards in food quality and safety. Additionally, the expansion of international trade and globalization of supply chains enhances the availability and variety of products, fostering market growth by connecting diverse markets and optimizing supply logistics.
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The market is essential for temperature-controlled logistics, ensuring the safe delivery of temperature-sensitive cargo. Key components include cold chain transportation methods such as refrigerated trucks, reefer trucks, reefer containers, and refrigerated rail transport. This market is vital for perishable goods logistics, including fresh food logistics, seafood transportation, and the pharmaceutical cold chain within healthcare logistics. Innovations in transport refrigeration and refrigerated transport solutions address refrigerated transport challenges and improve cold chain logistics optimization. Adherence to refrigerated transport regulations and refrigerated transport standards is crucial. Continuous advancements in refrigerated transport innovations are driving efficiency in chilled transportation, frozen transportation, and refrigerated shipping. Our researchers studied the data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.
The rising consumption of frozen food is the key driver for the growth of the market. Owing to the rising consumption of refrigerated foods such as dairy products and frozen foods the market is growing. The sales of frozen foods are rising because of the convenience they offer consumers in terms of easy and instant cooking.
Moreover, consumers perceive frozen food as an alternative option to fresh, home-cooked, and canned food. The convenience offered by ready-to-eat meals increases the consumption of frozen food. Factors such as busy lifestyles are attracting consumers to opt for frozen food. Furthermore, rapid urbanization is also driving the growth of the market. Therefore, the demand for frozen food, coupled with efficient Refrigerated Road Transportation, will drive the market during the forecast period. Refrigerated road transportation plays a crucial role in maintaining the quality and safety of frozen food products during transit, ensuring they reach consumers in optimal condition. This logistical support enables suppliers and retailers to meet the increasing consumer demand for frozen food products efficiently, contributing to market expansion amidst evolving consumption patterns and urban development trends.
Electrified trailer technologies is the primary trend in the market. Temperature-controlled trailers mostly depend upon dedicated diesel engines, but attraction toward increased efficiency and sustainability has resulted in the prevalence of solutions such as electrification, including hybridization, solar power, and optimizing of the incumbent technology. Carrier Transicold is a recently launched solution by the UK, the first fully autonomous, all-electric engineless trailer system.
Furthermore, electrified trailer technologies not only reduce emissions but also reduce noise pollution. For example, the operating noise of an eCool-equipped, refrigerated trailer is below 60 dB. Electrification technologies are capable of refrigerated van applications suitable for supermarket home deliveries to multi-wheel tractor units. In addition, in 2020, Tesco PLC added 30 new zero-emission electric vans with the new Thermo King E-200 refrigeration units to its fleet. Such factors are expected to increase the adoption of refrigeration transportation which will drive refrigerated transportation market growth during the forecast period.
Rising fuel costs and energy consumption associated with refrigeration systems is the major challenge for the market. Owing to rising fuel prices and energy consumption, the market faces significant challenges Energy-intensive refrigeration systems are needed to maintain perishable items at an appropriate temperature while transported. The rising cost of electricity and fuel directly affects operational costs, which reduces profit margins for companies.
Furthermore, a factor that affects the environment is increased energy use raises additional issues. To reduce energy usage and lower the carbon footprint of these operations, companies are concentrating on energy-efficient technology, alternative fuels, and enhanced insulation materials to overcome this challenge. Hence, increasing fuel costs and energy consumption associated with refrigeration systems is a significant challenge that can hinder the growth of the market during the forecast period.
The land segment will account for a major share of the market's growth during the forecast period. Land transportation is widely used for carrying perishable commodities such as food and medications under temperature control. Refrigerated trucks and trailers ensure the freshness of products while transporting them. The factors such as adaptability, accessibility, and dependability enable direct delivery from manufacturing facilities to distribution centers or retail locations.
The land segment was valued at USD 59.47 billion. in 2018. Land-based refrigerated transportation continues to be an essential component in the global supply chain for perishable products. For instance, players like Knight-Swift Transportation to offer refrigerated transportation through the land are investing significantly. Such factors are expected to make the land a preferred mode of transportation for refrigerated transportation, which, in turn, is expected to drive the growth of the market in focus during the forecast period.
Based on application, the market has been segmented into chilled food and frozen food. The chilled food ?segment will account for the largest share of this segment.? Fruits and vegetables are kept at a fixed temperature to retain freshness. The critical requirements for chilled food products are good quality and microbiological safety at the point of consumption. The ready-to-eat meals offer convenience which encourages consumers to chilled food consumption. However, due to the utilization of refrigerated shipping to preserve quality and freshness, buyers have to pay higher prices. Hence, such factors will increase the adoption in chilled food transportation applications, which is expected to drive the growth of the market during the forecast period.
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North America is estimated to contribute 39% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. Factors such as expanding food and pharmaceutical industries driving this growth, as is the rising demand for temperature-controlled shipping services. China, India, Japan, South Korea, and Australia are among the APAC countries that are increasing in the construction of cold chain infrastructure and technological improvements. Major manufacturers in the region such as Carrier and Daikin are working on several factors such as boosting their fleet sizes, increasing energy efficiency, and enhancing the visibility and tracking capabilities of the cold chain. Owing to all these factors, refrigerated transportation market demand is set to grow during the forecast period.
Companies 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.
Birkett Freight Solutions: The company offers refrigerated transportation services for meat, produce, processed foods, beverage, and ingredients.
COSCO SHIPPING Holdings Co. Ltd.: The company offers refrigerated transportation products such as Direct drive units, and Monoblock diesel units through its subsidiary Zanotti.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Technavio's refrigerated transportation market research report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The refrigerated transportation market analysis report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market is pivotal for the refrigerated supply chain, ensuring the integrity of refrigerated cargo throughout cold storage logistics and refrigerated warehousing. Temperature-controlled distribution relies on refrigerated containers and refrigerated logistics providers for effective cold chain management. Refrigerated freight services, including frozen food transport, dairy transportation, and meat transportation, drive food safety in transportation. The use of refrigerated air transport and refrigerated cargo ships is essential for global reach. Advances in refrigerated logistics technology and refrigerated logistics trends focus on cold chain monitoring and temperature monitoring systems. High-quality refrigeration equipment supports the Perishable goods handling through controlled atmosphere transport, ensuring the safety and quality of goods in transit.
Market Scope |
|
Report Coverage |
Details |
Page number |
160 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.81% |
Market growth 2024-2028 |
USD 39.15 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.24 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 39% |
Key countries |
US, China, UK, Japan, and Canada |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Allen Lund Co., Bernard KRONE Holding SE and Co. KG, Birkett Freight Solutions, Carrier Global Corp., COSCO SHIPPING Holdings Co. Ltd., Daikin Industries Ltd., Envirotainer AB, Great Dane LLC, Hapag Lloyd AG, Hyundai Motor Co., Knight Swift Transportation Holdings Inc., LAMBERET SAS, Rinac India Ltd., Sartorius AG, Schmitz Cargobull AG, Sdiptech AB, Singamas Container Holdings Ltd., Tata Motors Ltd., Utility Trailer Manufacturing Co., and Wabash National Corp. |
Market dynamics |
Parent market analysis, Refrigerated transportation market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Refrigerated transportation market worth and condition analysis for forecast period |
Customization purview |
If our refrigerated transportation market trends report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Mode of Transportation
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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