Refrigerated Transport Market, Global Forecast 2023-2028, Industry Trends, Growth, Insight, Impact of Inflation, Company Analysis

Refrigerated Transport Market, Global Forecast 2023-2028, Industry Trends, Growth, Insight, Impact of Inflation, Company Analysis

Refrigerated Transport Market will reach US$ 25.88 Billion in 2028, according to Renub Research. Refrigerated transport is an essential link in new supply chains. Refrigerated transportation (or reefer freight) is a shipping method requiring special, temperature-controlled vehicles. The vehicle transporting the shipped products has a built-in refrigeration system that keeps products at a desired temperature throughout the transportation process.

The use of refrigerator transport is to ship perishable goods like fruits, vegetables, frozen foods, and other chemicals that are temperature sensitive. The high prevalence of various foodborne diseases and disorders, such as abdominal pain, vomiting, and diarrhea, are expected to propel the demand for refrigerated transport for food distribution globally to maintain the safety of food products.

According to the World Health Organization (WHO), consuming contaminated food can cause over 200 diseases ranging from diarrhea to cancer. Moreover, foodborne illnesses are one of the leading causes of death at the global level, which adds to the demand for reefer transport. According to this research report, Worldwide Reefer Transport Market was at US$ 17.86 Billion in 2022.

Refrigerated Transport Industry to expand at a CAGR of 6.37% from 2023 to 2028

The high demand for home delivery services and growth in the food service and food processing sectors will add to the surge of the market for Refrigerated transport in the upcoming period. The advancements in refrigerated transport technology have improved food safety and reduced food waste, energy usage, and a low environmental influence.

Moreover, refrigerated vehicle manufacturers are operating on designing technologies to minimize their ecological effects, such as carbon footprint and noise pollution. An increasing number of refrigerated warehouses and growth in the pharmaceutical sector will drive the industry's development. In addition, the rise in the processed food sector will boost the industry's growth.

Chilled Food Market is expected to register a High Growth Rate

Global Reefer Transport Market by product is segmented into Chilled Food and Frozen Food. Chilled food provides convenience and facilitates high-speed cooking, which is a significant factor empowering the growth of the global chilled processed food market. In addition, the disposable incomes of consumers, accompanied by the ever-increasing population, have led to an increased demand for chilled processed food which significantly boosts the rapid growth of the chilled processed food market.

Furthermore, chilled processed foods impart consumer satisfaction by keeping up the desired quality and standards of food. The above is another remarkable factor anticipated to open new market space for the global chilled processed food market. However, the expensive cooling system cost is affecting the growth of the global chilled processed food market.

Sea Mode of Transport is Predicted to grow due to the Availability of Low-Cost

The Global Reefer Transport Market is categorized into Road, Sea, and Air based on Transport Mode. Sea is to be the fastest-growing among various modes of transportation for refrigerated transport due to the low cost associated with ocean shipments. Being an affordable and efficient overseas mode of shipment, the transport method mentioned above has vast scope for future growth.

However, the road transport mode has supremacy over the market share. This mode is measured to be less expensive and preferably by transporter to export various consumable goods from a very long distance. Moreover, the road transport segment may provide several benefits like door-to-door service, flexibility, and employment, and also useful for short distances, which is a critical factor for fueling the market's growth. It also has fewer wealth expenditures and a lesser risk of mutilation while moving from one place to another.

Eutectic Device Market Share is expected to witness a surge in the Coming Years

By Technology, the Global Reefer Transport Market can be divided into Air Blown Evaporators, Eutectic Devices, and Vapor Compressor Systems. A eutectic device is suitable for short transportation, where there are regular stops and door openings during distribution; road transport vehicles use it. It consists of hollow tubes, beams, or plates filled with a eutectic solution.

This solution stores energy and produces a cooling effect when it is necessary to maintain the refrigerated temperature. As eutectic solutions can store energy, there is no need for fuel or energy to charge the eutectic device at the delivery time. The factors mentioned above are propelling the growth of the eutectic device market.

Fish, Meat, and Seafood will hold the dominant Market Share in Reefer Transport Industry Worldwide

Global Reefer Transport, based on end-user, is divided into; Fruits & Vegetables, Fruit pulp & Concentrates, Dairy Products, Fish, Meat & Seafood, Processed Food, Pharmaceuticals, Bakery & Confectionary, and others. Dairy Products are an attractive segment for the future, as milk is one of the most commonly consumed items globally, and refrigeration is necessary to manufacture, maintain uniformity, prevent spoilage, and preserve the product.

Fish, seafood, and Meat have a shorter lifespan if not stored at a suitable temperature. Therefore, the products, as mentioned earlier, are frozen till the time of use. Blast freezing can freeze vast amounts of fresh fish, Meat, and seafood, increasing freshness and product shelf life.

Asia-Pacific Region is Projected to have a Surging Growth rate in the Coming Years

There was division and underfunding in the Asia Pacific refrigerated transport market about a decade ago. However, the industrial revolution in the region developed in a rise in population with busier lifestyles sloped towards convenience food products with an expanded shelf-life, thereby propelling the use of refrigerated transport in the food industry.

Various emerging economies are attempting to facilitate improvements in refrigerated transport through regulations and subsidies. For instance, the government is providing the Reefer Vehicles Scheme under India's National Mission on Food Processing (NMFP). The scheme points to providing financial assistance to purchase standalone reefer vehicles and mobile pre-cooling vans (reefer unit and reefer cabinet permanently mounted on the truck) to transport perishable commodities.

However, Europe comprised the highest market share due to augmenting global trade and a robust economic environment predominantly driving the market in the region. In addition, an increase in demand for frozen food and the online retail market hold growth opportunities for the key players during the forecast period. Furthermore, the rise in imports of perishable commodities such as vegetables and fruits in the region is another major factor contributing to the demand for refrigerated warehousing. Moreover, the advanced packaging system has improved the shelf life of food products.

COVID-19 Impact on Refrigerated Transport Industry

The COVID-19 pandemic has had a consequential effect on the refrigerated transport business. The market for the product has undergone rigorous shocks across various end-use markets, global supply chains were disconcerting, and the competing rank of manufacturers or producers has testified to a change. The deficiency of demand has fast-tracked the global chilled and frozen food sector into an oversupply state. Transportation constraints are a direct and immediate effect, and once the critical social distancing ends, things returned to normal conditions.

However, post-lockdown, it has been observed that governments worldwide have eased covid restrictions, resulting in a positive impact on refrigerated transport. Therefore, we expect that the industry to grow significantly in the upcoming years.

Key Players Analysis:

Some key players competing in the global market are General Mills, CONAGRA BRANDS, Kraft Heinz, Associated British Foods Plc., Knight-Swift Transportation, Daikin Industries, Krone Commercial Vehicle Group, and FedEx Corporation.

In March 2021, Carrier Transicold accelerated and advanced its electrification proficiency through a new strategic partnership with Portuguese technology Company AddVoltopen_innew. The agreement enabled Carrier to broadly utilize AddVolt's proven, engine-agnostic Technology to develop innovative sustainable transport refrigeration solutions for European customers.

Renub Research report titled “Refrigerated Transport Market Global Forecast by Product (Chilled, Frozen), Mode of Transport (Road, Sea, Air), Technology (Air Blown Evaporators, Eutectic Devices, and Vapor Compressor Systems) End Users (Fruits & Vegetable, Fruit Pulp & Concentrates, Dairy Products, Fish, Meat and Seafood, Processed Food, Pharmaceuticals, Bakery & Confectionary, Others), Region (North America, Europe, Asia Pacific, and Rest of the World), Company Analysis (General Mills, CONAGRA BRANDS, Kraft Heinz, Associated British Foods Plc., Knight-Swift Transportation, Daikin Industries, Krone Commercial Vehicle Group, and FedEx Corporation.)"" provides a detailed analysis of Worldwide Reefer Transport Industry.

Products - Market breakup from 2 Viewpoints:

1. Chilled
2. Frozen

Mode of Transport – Market breakup from 3 Viewpoints:

1. Road Transport
2. Sea Transport
3. Air Transport

Technology – Market breakup from 3 viewpoints:

1. Air Blown Evaporators
2. Eutectic Devices
3. Vapor Compressor Systems

End Users – Market breakup of 8 Sectors

1. Fruits & Vegetable
2. Fruit pulp & Concentrates
3. Dairy Products
4. Fish, Meat and Seafood
5. Processed Food
6. Pharmaceuticals
7. Bakery & Confectionary
8. Others

Region – Market breakup of 5 Regions

1. North America
2. Europe
3. Asia Pacific
4. Rest of the world

Company have been covered from 3 Viewpoints:

•    Overview
•    Recent Development
•    Revenue

Company Analysis:

1. General Mills
2. CONAGRA BRANDS
3. Kraft Heinz
4. Associated British Foods Plc.
5. Knight-Swift Transportation
6. Daikin Industries
7. Krone Commercial Vehicle Group
8. FedEx Corporation