Refrigerated Truck Rental Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, UK, Canada, Germany - Size and Forecast 2024-2028

Refrigerated Truck Rental Market Size 2024-2028 

The refrigerated truck rental market size is forecast to increase by USD 2.19 billion at a CAGR of 4.83% between 2023 and 2028.

• The market is experiencing significant growth due to several key factors. Strict food safety regulations in the cold chain sector necessitate the use of reliable and efficient refrigerated trucks for logistics operations. The boom in e-commerce across developing economies is creating new opportunities for refrigerated truck rentals, as these vehicles are essential for ensuring the timely and safe delivery of temperature-sensitive goods. Furthermore, the emergence of truck-sharing models is reducing the upfront costs for businesses, making it an attractive option for those with occasional refrigerated transportation needs. However, the high maintenance costs associated with these vehicles can be a challenge for market growth. Additionally, the increasing focus on sustainable transportation and vehicle emissions regulations may lead to the adoption of alternative fuel vehicles in the future.

What will be the Size of the Market During the Forecast Period?

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• The market is a significant segment within the freight transport industry, catering to the specific needs of businesses dealing with temperature-sensitive products. This market plays a crucial role in ensuring the timely and safe delivery of perishable goods, including fresh food products, frozen food products, plant products, essential commodities, and other sensitive goods. The temperature-controlled environment provided by refrigerated trucks is essential for maintaining the quality and freshness of these goods during transit. In today's market, the cold chain sector has gained significant importance due to the rise of online shopping and door-to-door delivery services.

• Retail e-commerce platforms have increasingly relied on logistics services that offer rental refrigerated trucks to ensure the efficient and effective transportation of their perishable inventory. The market offers flexibility and convenience to businesses by providing multi-temperature compartment trucks. These trucks can accommodate various temperature requirements, ensuring that different types of perishable goods are transported under the appropriate conditions. The cold chain industry has seen a rise in demand for these trucks due to their ability to maintain the required temperature ranges for various temperature-sensitive products. The logistics services that provide rental refrigerated trucks have adopted mobile app-based ordering systems, making it easier for businesses to rent trucks on-demand.

How is this market segmented and which is the largest segment?

The market research 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.

• Type
  • Long term
  • Short term
• Geography
  • North America
    • Canada
    • US
  • Europe
    • Germany
    • UK
  • APAC
    • China
  • South America
  • Middle East and Africa

By Type Insights

• The long term segment is estimated to witness significant growth during the forecast period.

In the cold chain sector, cold chain logistics plays a vital role in ensuring the safe and efficient transportation of temperature-sensitive goods. One cost-effective solution for businesses in need of refrigerated transportation is the use of refrigerated truck rentals. By opting for long-term rental agreements, businesses can avoid the substantial upfront costs associated with purchasing a refrigerated truck. Instead, they can allocate their funds toward other critical business investments. Moreover, the e-commerce sector's growth has led to an increased demand for sustainable transportation solutions, including refrigerated trucks. With vehicle emissions regulations becoming increasingly stringent, rental companies invest in maintaining their fleets to meet these standards.

This reduces the burden on individual businesses, as they do not have to worry about the high maintenance costs that come with owning a refrigerated truck. Long-term rental agreements offer predictable monthly expenses, allowing businesses to budget effectively. Furthermore, rental companies offer maintenance management services, ensuring that the trucks are always in good working condition. This not only saves businesses time and resources but also reduces the risk of unexpected breakdowns and delays. In conclusion, refrigerated truck rentals offer a financially sound solution for businesses in the cold chain sector. They provide access to reliable and efficient transportation without the need for a significant upfront investment.

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The long term segment was valued at USD 3.98 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

• APAC is estimated to contribute 29% 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.

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The market plays a crucial role in the transportation of perishable goods within the refrigerated chain industry in the United States. Reefer trucks, available in light, medium, and heavy varieties, are essential for the transportation of temperature-sensitive goods such as food products and pharmaceuticals. Public infrastructure, including roads and highways, enables the efficient movement of these trucks across the country. Refrigerated pharmaceutical transport is a significant application of refrigerated trucks, ensuring the integrity of temperature-sensitive medicines during transit. The market for refrigerated trucks offers flexibility to businesses, allowing them to rent trucks as needed instead of investing in their fleet. The demand for refrigerated trucks is driven by the increasing consumption of perishable goods and the growing need for efficient and reliable transportation solutions.

Market Dynamics

Our researchers analyzed the data with 2023 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.

What are the key market drivers leading to the rise in the adoption of the Refrigerated Truck Rental Market?

Stringent food safety regulations is the key driver of the market.

• The market experiences steady growth due to stringent food safety regulations requiring temperature control for transporting perishable goods. The regulations such as the Food Safety Modernization Act (FSMA) mandate the use of advanced temperature-controlled transport solutions. This need for compliance drives businesses to rent refrigerated trucks instead of purchasing their fleets, offering cost savings and flexibility.

• Additionally, the expansion of e-commerce and the increase in demand for temperature-sensitive goods, including processed food products and temperature-sensitive beverages, contribute to market growth. Technological advancements in refrigeration systems, such as spiral compressors, further enhance the appeal of refrigerated truck rentals.

What are the market trends shaping the Refrigerated Truck Rental Market?

Boost in e-commerce across developing economies providing a platform for refrigerated truck rentals is the upcoming trend in the market.

• In today's business landscape, the demand for refrigerated trucking solutions has grown significantly due to the increasing popularity of e-commerce and temperature-sensitive product delivery in developing economies. The rise of online grocery shopping and food delivery services necessitates a dependable cold chain logistics system to ensure the safe and efficient transportation of perishable goods.

• The expanding Internet penetration, digital payment methods, and consumer preference for convenience in these regions are fueling the growth of e-commerce platforms. To meet the logistical demands of these businesses without the need for substantial capital investment, refrigerated truck rentals have become an attractive alternative. This rental model offers flexibility, scalability, and cost-effectiveness, enabling companies to adapt to market fluctuations and seasonal variations. Temperature-controlled freight transport is crucial for ensuring the quality and freshness of plant products and essential commodities, making refrigerated truck rentals an indispensable component of the global supply chain.

What challenges does the Refrigerated Truck Rental Market face during the growth?

The emergence of truck sharing is a key challenge affecting the market growth.

• Refrigerated truck-sharing is an innovative solution for businesses and individuals requiring temperature-controlled transportation for sensitive goods. This arrangement allows truck owners with refrigeration systems to rent out their multi-temperature compartments to those with short-term needs for transporting frozen food or other perishable items. By sharing resources, the truck-sharing model increases overall efficiency in the transport network, reducing the need for fleet operators to purchase additional refrigerated trucks for occasional peak demands.

• This sharing economy concept significantly decreases transport costs and increases the utilization rate of existing fleets and infrastructure. Moreover, the integration of GPS and navigation systems in refrigerated trucks ensures accurate temperature monitoring and sustainable refrigeration practices, minimizing the carbon footprint of the transportation sector.

Exclusive Customer Landscape

The market forecasting 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 market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Carrier Global Corp.
• Fraikin
• Hertz Global Holdings Inc.
• Innocool India Pvt. Ltd.
• Penske Truck Leasing Co. LP
• Petit Forestier
• Polar Leasing Inc.
• ReeferTek USA Corp.
• Ryder System Inc.
• U-Cool Refrigeration LLC
• Divine Cooling System
• Enterprise Holdings Inc.
• Keep It Cold
• CSTK
• RTR Truck Rentals

Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Research Analyst Overview

Refrigerated truck rental plays a crucial role in the freight transport industry, providing temperature-controlled environments for transporting temperature-sensitive products. These refrigeration solutions are essential for the cold chain sector, particularly for perishable goods such as fresh food products, frozen food products, and pharmaceuticals. The rental of refrigerated trucks comes in various types, including light, medium, and heavy trucks, catering to different transportation needs. Additionally, features like temperature monitoring, GPS systems, and navigation systems enhance the efficiency and sustainability of refrigerated truck rental services, automatic climate control, reducing carbon footprint, and ensuring timely deliveries.  The e-commerce sector's expansion has led to an increased demand for door-to-door delivery, further boosting the market. The rental of these trucks allows businesses to transport their temperature-sensitive goods efficiently without the need to invest in their fleet.

Furthermore, the cold chain logistics industry relies heavily on these trucks to maintain the integrity of essential commodities, ensuring they reach their destination in optimal condition. High maintenance costs are a significant challenge in the market, requiring effective maintenance management to minimize downtime. The use of advanced refrigeration systems, such as those with spiral compressors, and temperature monitoring technology, helps reduce maintenance costs and improve efficiency. The rental of refrigerated trucks is also essential for sustainable transportation and adhering to vehicle emissions regulations. With the increasing focus on reducing carbon footprint, the rental of refrigerated trucks offers a more eco-friendly alternative to owning and operating a fleet. Multi-temperature compartments in refrigerated trucks cater to the diverse needs of different temperature-sensitive goods, including fresh food products, processed food products, and pharmaceuticals. The use of GPS systems and navigation systems in these trucks ensures efficient and accurate delivery, making the rental of refrigerated trucks an indispensable part of the logistics services industry.

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What are the Key Data Covered in this Market Research and Growth Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market  and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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