Global Truck Refrigeration Unit Market 2024-2031

Global Truck Refrigeration Unit Market 2024-2031

Global Truck Refrigeration Unit Market Size, Share & Trends Analysis Report by Type (Small Truck Refrigeration Unit, Medium Truck Refrigeration Unit, and Large Truck Refrigeration Unit), and by Application (Food & Beverages, Pharmaceuticals, Chemical Industry, Plants/Flowers, and Others) Forecast Period (2024-2031)

Global truck refrigeration unit market is anticipated to grow at a CAGR of 7.7% during the forecast period (2024-2031). Truck refrigeration units are control devices that regulate the temperature of trailers, allowing them to cool down or warm up when turned on or off, preserving perishable products such as frozen fruits, seafood, meats, dairy, and vegetables.

Market Dynamics

Increasing demand for frozen food in transportation needs

Increased transportation of perishable items is required owing to a rise in sales of frozen foods, and TRUs are essential to maintain product integrity and safety all through transportation. In April 2022, according to the American Frozen Food Institute (AFFI), the sales of frozen foods increased by 8.6% in 2022 to $72.2 billion, or $72.8 billion overall.Frozen food dollar sales gained $19.4 billion between 2018 and 2022, indicating the pandemic's influence on the category's expansion. Comparing pre-pandemic levels to frozen processed meat, frozen snacks, and seafood, double-digit increases in unit sales were observed. The largest rise in net sales was observed in frozen processed meat, which reached $4.9 billion in 2022. Seafood and frozen snacks witnessed rises of 12.4% and 25.5%, respectively.

Influence of Food Waste on the Sector

Analyzing the influence of fruit and vegetable waste in the supply chain on both the economy and the environment propels market growth. According to the National Institute of Health (gov.) in June 2022, approximately 40-50% of global fruit and vegetable production is lost or wasted throughout the supply chain, resulting in significant resource wastage, greenhouse gas emissions, and economic losses. The fresh fruit and vegetable sector is particularly susceptible to wastage due to its perishable nature, sensitivity to storage and transportation conditions, seasonal availability, and consumer demand for aesthetical products. These factors contribute to high losses, especially when marketing options for less visually appealing produce are limited.

Market Segmentation

Our in-depth analysis of the global truck refrigeration unit market includes the following segments by type and application:

Based on type, the market is sub-segmented into small truck refrigeration units, medium truck refrigeration units, and large truck refrigeration units.

Based on application, the market is bifurcated into food & beverages, pharmaceuticals, chemical industry, plants/flowers, and others.

o Others include biomedical transport and frozen goods transport.

Pharmaceuticals is Projected to Emerge as the Largest Segment

Based on the application, the truck refrigeration unit market is sub-segmented into food & beverages, pharmaceuticals, chemical industry, plants/flowers, and others. Among these, the pharmaceuticals sub-segment is expected to hold the largest share of the market. The primary factor supporting the segment's growth includes the increasing demand for globalization of the pharmaceutical industry and the expansion of global distribution networks across the globe drives the market growth. For instance, in October 2020, Thermo King expanded its portfolio of temporary storage solutions that can meet the unique requirements of global pharmaceutical companies developing COVID-19 vaccines. Pharmaceutical companies in final-stage clinical trials require strict temperature controls to protect their products.

Food & Beverages Sub-segment to Hold a Considerable Market Share

The expansion of cold chain logistics in the food and beverage sector, with an emphasis on infrastructure, transportation, and storage facility investments. As a result, there is a growing demand for solutions for vehicles and accordingly, companies are launching new and innovative monitoring solutions to meet this growing demand. For instance, in October 2022, Motive launched a Reefer Monitoring solution for refrigerated vehicles and trailers. The new service lowers expenses associated with reefer operations and enables fleets that handle food and beverages to comply effectively with the standards of the Food Safety Modernization Act (FSMA).

Regional Outlook

The global truck refrigeration unit market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America).

Demand for Regulatory Requirements in Asia-Pacific Economies

The regulatory requirements for food transportation and storage are driving the adoption of temperature-controlled units (TRUs) with control systems and data logging capabilities. According to the Economics of India, in December 2023, a report, brick-and-mortar food and grocery retailers are expected to experience a revenue growth of 14-15% next fiscal year, despite facing increased competition from e-commerce platforms. Last year, the segment witnessed a significant growth of 30%, and the projected growth for the next fiscal year indicates three years of consecutive strong growth. However, the operating margins for retailers in the discretionary segment are expected to remain range-bound at 6%-6.5% due to inflationary pressures, down from 6.9% last fiscal year.

North America Holds Major Market Share

Among all the regions, North America holds a significant share owing to the growing demand for growing expansion of regulatory bodies that enforce rigorous standards for food transportation and storage to guarantee food safety and prevent contamination. As a result, there is a growing demand for food security, and accordingly, government agencies are launching new and innovative solutions to meet this growing demand.

According to the National Institute of Health (gov.) in February 2022, the global population is expected to reach approximately 9.5 billion people by 2050 and 11 billion by 2100. This rapid increase in population poses a significant challenge to food security, especially in countries that are facing problems in this area. Additionally, highly developed countries struggle with issues of food overproduction and waste, which can have negative effects on both health and the economy.

Market Players Outlook

The major companies serving the global truck refrigeration unit market include Carrier Global Corp., GAH (Refrigeration) Ltd., Mitsubishi Heavy Industries Thermal Systems, Ltd., Thermo King Corp. Webasto SE, and others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers, and acquisitions to stay competitive in the market. For instance, in July 2023, Dupré Logistics acquired Interstate Transport, The acquisition expanded its service offerings in Florida and east coast operations and carrier network, aimed to broaden its service portfolio, and increase its presence in the US food and beverage logistics sector.

The Report Covers

Market value data analysis of 2023 and forecast to 2031.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the global truck refrigeration unit market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market-entry and market expansion strategies.

Competitive strategies by identifying ‘who-stands-where’ in the market.