Global Refrigerated Road Transportation Market - 2023-2030

Market Overview

The Global Refrigerated Road Transportation Market reached US$ 26.9 billion in 2022 and is expected to reach US$ 39.0 billion by 2030 growing with a CAGR of 4.8% during the forecast period 2023-2030.

The global refrigerated road transportation market is primarily driven by a rise in the demand for perishable packed food in the market globally. The growing population coupled with the rising disposable income is positively impacting the sales and demand of packed food which is often perishable. The demand for this perishable packed food in the supermarket is enabling refrigerator trucks to deliver them fast in the cities to cater to the demand.

Frozen food holds the highest share of more than 40.3% in the global refrigerated road transportation market followed by chilled food, seafood, chemicals and medicines, bakery products and others. Shifting dietary habits, increased urbanization and the rise of e-commerce have led to changes in food consumption patterns and hence improving the segment's market. Furthermore, consumers are demanding a wider variety of perishable goods, including imported and exotic products, which require efficient and reliable refrigerated transportation services.

Market Dynamics

Extensive Demand For Cold Storage Pharmaceutical Drugs

The pharmaceutical industry is witnessing significant growth, with an increasing number of temperature-sensitive drugs and vaccines being developed and distributed. The transportation of these pharmaceutical products requires precise temperature control to maintain their efficacy. Refrigerated road transportation plays a crucial role in ensuring the integrity and safety of these temperature-sensitive medical supplies.

Companies are also investing in the industry to overcome the pharmaceutical industry demand. For instance, on January 27, 2021, eight new items, including six new trucks and two new buses, were added to the BharatBenz line of commercial vehicles by Daimler India Commercial Vehicles (DICV). BharatBenz has virtually doubled its market share and expanded its network to 250 touchpoints across India since the beginning of BS-VI car sales in April 2020.

Furthermore, six new trucks, including the BSafe Express (reefer truck for vaccine transportation), 1917R, 4228R Tanker, 1015R+, 42T M-Cab, and 2828 Construction Vehicle, were unveiled by the firm in 2021. Two additional BharatBenz buses will also soon be on the road. These have a wide-body 1017 model with up to 50 seats and a parabolic suspension-equipped 1624 chassis.

Growing Global Trade

Global trade has witnessed a substantial increase in the import and export of perishable goods such as fruits, vegetables, meat, seafood, dairy products, and pharmaceuticals. These products require temperature-controlled transportation to maintain their quality and freshness. For instance, according to the report, the total value of global trade hit a record high of US$ 28.5 trillion in 2021. That is an increase of 25.1% over 2020 and an increase of 13.2% over 2019 before the COVID-19 pandemic.

While the first half of 2021 saw most of the year's rise in global commerce, development persisted in the second. Following a third quarter that saw trade growth rise again, this time by about US$ 200 billion, bringing total goods trade to a new high of US$ 5.8 trillion. The growth in global trade has directly contributed to the demand for refrigerated road transportation services to ensure the efficient and timely delivery of these perishable goods across borders.

Environmental Concerns

Environmental concerns are posing challenges to the global refrigerated road transportation market due to the environmental impact associated with the operation of refrigeration units and vehicles. Refrigerated road transportation relies on refrigeration units powered by fossil fuel-based energy sources, resulting in the release of greenhouse gas emissions, primarily carbon dioxide (CO2). These emissions contribute to climate change and global warming.

As the world focuses on reducing carbon footprints and mitigating climate change, there is growing pressure to address the environmental impact of the transportation sector, including refrigerated road transportation. Furthermore, the refrigerated road transportation industry generates waste, including packaging materials, cooling agents, and food spoilage. Proper waste management and disposal practices are essential to minimize the environmental footprint.

COVID-19 Impact Analysis

The pandemic altered consumer behavior and demand patterns. With the closure of restaurants, hotels, and catering services, there was a decline in the demand for perishable products from the food service sector. On the other hand, there was a surge in demand from retail channels, including grocery stores and online platforms, as consumers stocked up on essential goods. The shift in demand patterns necessitated adjustments in refrigerated road transportation operations.

Furthermore, the pandemic accelerated the growth of e-commerce, including online grocery shopping. With people staying at home and opting for contactless delivery, there was an increased reliance on refrigerated road transportation for the safe and timely delivery of perishable goods ordered online. The market witnessed a surge in demand for last-mile delivery services, necessitating adjustments in fleet capacity and route optimization.

Segment Analysis

The global refrigerated road transportation market is segmented based on vehicle, technology, application and region.

Rising Demand For Cost Effective Transporation From Food Delivery, Pharmaceuticals, Catering, And Floral Industries

The light commercial vehicles segment dominates the global refrigerated road transportation market due to their cost-effectiveness. LCVs are generally more cost-effective compared to heavy-duty trucks or specialized refrigerated vehicles. They have lower upfront costs, maintenance expenses, and fuel consumption, making them an attractive option for small to medium-sized businesses that require refrigerated transportation on a smaller scale. LCVs offer a balance between transportation capabilities and affordability, making them a preferred choice for many companies.

Furthermore, LCVs are designed to be fuel-efficient, resulting in lower operating costs compared to larger vehicles. They typically have smaller engines and lighter weight, which contributes to improved fuel economy. Lower fuel consumption translates into cost savings over the vehicle's lifetime, especially considering the fuel-intensive nature of refrigerated transportation.

Geographical Analysis

Asia-Pacific's Growing Population, Rising Disposable Incomes And Investments In Cold Chain Infrastructure

Rapid urbanization in countries like China, India, and Southeast Asian nations has resulted in changing lifestyles and consumption patterns. China holds the highest share of the region due to consumers increasingly relying on convenience foods, ready-to-eat meals, and fresh produce, driving the need for efficient and reliable refrigerated road transportation to ensure the delivery of high-quality perishable goods.

Furthermore, the Asia-Pacific is characterized by extensive regional trade and supply chain integration. Countries like China, Japan, South Korea, and ASEAN nations have established strong trade relationships and supply chain networks. Refrigerated road transportation plays a crucial role in facilitating the movement of perishable goods across borders, supporting the region's trade growth and economic integration.

Competitive Landscape

The major global players include: Carrier Transicold, GAH Refrigeration, Culina, Swift Transportation, Bay and Bay Transportation, DB Schenker, CRST International, Frost Trucking, Great Dane and Hanson Logistics.

Why Purchase the Report?

• To visualize the global refrigerated road transportation market segmentation based on vehicle, application, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of refrigerated road transportation market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global refrigerated road transportation market report would provide approximately 61 tables, 58 figures and 209 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies