The Global Market for Road Transport Refrigeration Equipment is Forecast to Reach US$11.4 Billion by 2024

Growing Importance of Food Cold Chain in Promoting Food Security to Spur Opportunities for Road Transport Refrigeration Equipment, According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size and demand forecasts on the global Road Transport Refrigeration Equipment market. The global market for Road Transport Refrigeration Equipment is forecast to reach US$11.4 billion by 2024, driven by rising investments in food cold chain infrastructure against the backdrop of its emergence as an integral prerequisite to achieve food security goals given its ability to reduce food wastages and losses.          

Against the backdrop of the growing importance of cold food chain, refrigerated road transport is poised to witness increased demand in line with the growth in inland and outbound food logistics. The coming years are forecast to witness refrigerated vehicle fleet expansion among food transport companies. Food needs to be transported multiple times between point of origin and point of use. Transport of harvest to processing plants and transport of processed foods to retail markets both provide business opportunities for refrigerated transport. Also poised to drive growth in the market is technology innovation in refrigeration and cold storage. Continuous developments in cold chain are therefore poised to benefit refrigerated cargo services for temperature sensitive perishable goods. For instance, development of affordable temperature sensors provides continuous visibility into the quality of refrigerated foods and effective operation of refrigerated systems; the ingress of internet of things (IoT) technology is enabling new value creation in cold chain management in terms of real-time food monitoring and temperature control, optimizing energy management and enhancing operational efficiency of food cold chain logistics; and innovative refrigeration technologies that help enhance cooling and freezing effectiveness in an energy efficient and environmental friendly manner.

All of these innovation and technology factors help result in cost reductions in the cold chain logistics sector, a single most important benefit directly driving the penetration and economic feasibility of cold chain retailing. Essentially an investment intensive business sector, food cold chain is now becoming increasingly affordable thanks to cost reducing innovations and the resulting increased adoption in developing countries where lack of cold chains have until now resulted in massive losses due to food spoilage. Growing stringency of food transportation safety regulations in light of the many food contamination incidents during transport is also expected to benefit upgrades and modernization of refrigerated vehicle fleets.

In addition to the food industry, the bio-pharma industry is also emerging into a lucrative end-user of cold chain transport. The importance of temperature controlled logistics in the pharmaceutical sector has been growing significantly over the last couple of years driven by the strong growth in biologics and biosimilar drugs. Biologics are defined as drugs manufactured or synthesized from biological sources like living organisms. Given that most biologics are manufactured using recombinant DNA technology, these drugs more sensitive to environmental conditions when compared to conventional drugs and therefore require careful temperature controlled storage and transport. The healthcare industry in developing countries like China and India is also generating opportunities for distribution of pharmaceuticals given the government’s policy led support to make vaccines and biologics more readily available and easily accessible in local markets. Given that a majority of vaccines require storage and distribution under refrigeration 2°C to 8°C, the immunization programs undertaken by governments in developing countries as part of the public health agenda is poised to benefit the biopharma cold chain landscape.  

As stated by the new market research report on Road Transport Refrigeration Equipment, the United States represents the largest market worldwide. Asia-Pacific is poised to emerge as the fastest growing market with a CAGR of 8.9% over the analysis period led by factors such as developing regional economies; growing population; increasing disposable incomes and subsequent rise in consumption of food and non-food products; developments in road infrastructure; dietary changes due to globalization of the food industry and the resulting increase in consumption of ready-to-eat processed, frozen and chilled foods; and development of cross-country and cross-continent highway networks and the resulting freeing up of goods movement among countries’ territories and borders. Of special note is the development of Asian Highway Network (AH), also known as the Great Asian Highway. AH is a joint collaborative development project undertaken by countries in Asia and Europe to develop road connectivity between countries.

Major players in the market include Chereau SAS, Ingersoll-Rand plc, FRIGOBLOCK Grosskopf GmbH, Thermo King Corporation, GAH Refrigeration Ltd, Great Dane, Hubbard Products Ltd., Lamberet SAS, Mitsubishi Heavy Industries Ltd., Morgan Corporation, Sainte Marie Constructions Isothermes S.M.C.I, Schmitz Cargobull AG, United Technologies Corporation, Carrier Transicold and Wabash National Corporation among others. 

The research report titled “Road Transport Refrigeration Equipment: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, mergers, acquisitions and other strategic industry activities of global companies.  The report provides market estimates and projections for all major geographic markets such as the USA, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia and Rest of Europe), Asia-Pacific (China and Rest of Asia-Pacific), Latin America and Rest of World.

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