UNITED STATES REFRIGERATED TRUCKING MARKET - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

UNITED STATES REFRIGERATED TRUCKING MARKET - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The US refrigerated trucking market is expected to witness moderate growth over the forecast period, due to high fluctuations in the refrigerated trucking rates and an ongoing truck driver shortage. The market is characterized by the presence of local players, who are trying to acquire significant market share by merger and acquisitions.

Key Highlights

• The US cold storage warehouse space is currently in the second place, after India. According to the industry sources, the average occupancy rate across the US cold storage warehouse industry is 85%, which is driven by the increased meat supplies and the trade disputes. In 2017, more than 2.5 billion pounds of meat was stockpiled in American refrigerated warehouses across the country.
• Agriculture is one of the major end users of the refrigerated trucking industry in the United States. The growth in agriculture products and increasing trade have led to the agriculture industry's growing dependence on this industry.

Key Market TrendsDriver Shortage Restraining the United States Refrigerated Trucking Market

Driver shortage remains to be one of the key challenges for trucking companies across the world, and the refrigerated trucking industry is no exception. The reefer truck industry is unique in many ways, when compared to its counterparts in the truckload and less-than-truckload segments, but how the sector is going to address this problem is going to be the key.

The rapid decline in the number of technicians and mechanics is another critical concern.

Many solutions are being considered for driver recruiting and retention for decades, but the overall success of the trucking industry remains elusive. In industry reports, truckload carriers report annual turnover numbers in excess of 100%. On the other hand, the tank truck side has around 30% turnover, which varies based on region and service modes.

Despite the advantages, such as high driver wages and opportunities to spend more time at home, the problem of driver shortage still persists in the reefer trucking sector.

There are many elements, like new equipment, advanced technology, safety support, respect, and appreciation, which create a highly-attractive work experience, but the most important one is a competitive compensation package.

In order to boost driver retention, some carriers are offering salary programs versus pay by the mile, guaranteed bonuses, team bonuses, and guaranteed annual increases. Everyone in the distribution chain needs to work together to smooth out the disparities between perception and reality, when it comes to recruiting drivers.

Strong Demand from the Healthcare and Pharmaceuticals Industries

The medicines or pharmaceuticals products are usually transported in a refrigerated or insulated truck.

There was a significant growth in the pharmaceutical market in North America during the period 2005-2015, with a growth rate of around 10%.

For instance, the sales of generic drugs in the United States were estimated at approximately USD 70 billion in 2016, which was almost a quarter of the global market. The major reforms in the healthcare sector have created a way for new medicines to enter the market.

The increased production of these temperature-sensitive pharmaceutical products creates opportunities for temperature-controlled transportation services.

There are federal rules and regulations regarding the warehousing, shipment, and distribution of pharmaceuticals. These rules are set by the Food and Drug Administration to meet the increasing safety standards. Most of the technology providers are innovating new systems for the safe handling of temperature-sensitive biological products, and a significant number of patents have been registered in the US patent and trademark office.

Technological innovations in these fields have led to the creation of more products that need temperature-controlled environments to maintain their integrity and effectiveness.

Competitive Landscape

The United States refrigerated trucking market is a highly fragmented market with many local players. Some of the player are trying to gain a higher market share by acquiring or merging with others players. The market is expected to move toward consolidation by the end of the forecast period.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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