Refrigerated Road Transportation Market Overview
The Global Refrigerated Road Transportation Market reached USD 26.9 billion in 2022 and is expected to reach USD 39.0 billion by 2030 growing with a CAGR of 4.8% during the forecast period 2023-2030. The growth is due to growing population and urbanization, rising disposable income, expansion of e-commerce, infrastructure strengths, and regulatory frameworks that impact the demand for refrigerated road transportation services.
Furthermore, the market size is influenced by factors such as the expansion of the cold chain industry, increasing demand for perishable goods, and globalization of trade. The market is expected to continue growing due to the rising demand for temperature-controlled logistics services. The global refrigerated road transportation market has experienced steady growth due to increasing consumer demand, changing food consumption patterns and stringent food safety regulations. Asia-Pacific holds the highest share of more than 50% at the global level. China and India are among the fastest-growing countries covering nearly 2/3rd at the regional level.
Refrigerated Road Transportation Market Summary and Scope
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Metrics |
Details |
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CAGR |
4.8% |
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Size Available for Years |
2021-2030 |
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Forecast Period |
2023-2030 |
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Data Availability |
Value (USD ) |
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Segments Covered |
Vehicle, Technology, Application and Region |
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Regions Covered |
North America, Europe, Asia-Pacific, South America and Middle East & Africa |
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Fastest Growing Region |
Asia-Pacific |
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Largest Region |
Asia-Pacific |
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Report Insights Covered |
Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Equipment Type Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
Refrigerated Road Transportation Market Dynamics and Trends
Increasing Demand for Perishable Goods
The rising demand for perishable goods, including fresh produce, dairy products, meat, seafood, pharmaceuticals, and other temperature-sensitive products, is a significant driver of the refrigerated road transportation market. For instance, according to a global survey of customers and sellers conducted by IDC (International Data Company) for Precima, a retail analytics company, close to half or more of all consumers now purchase perishables such as meat, fruit, and dairy products online. One-third of consumers predicted they would spend more than 40% of their grocery spending online in a year.
Companies are also investing in the business due to expanding demand for the perishable goods industry. For instance, on May 10, 2023, DALLAS– Aurora Innovation, Inc, a U.S.-based self-driving vehicle technology company, and Hirschbach Motor Lines, Inc., a growing refrigerated trucking company, announced to begin a commercial pilot in May 2023 to test and safely deploy autonomous trucking for refrigerated cargo between Dallas and Houston.
Growth of the E-commerce Industry
The rapid expansion of the e-commerce industry has significantly impacted the global refrigerated road transportation market. Online platforms selling food and beverage rely on refrigerated transportation to fulfill orders and ensure the safe and timely delivery of temperature-sensitive products to customers' doorsteps. Research from 2021 found that 53% of American consumers expect to keep using online grocery pickup or delivery, a movement that was originally fueled by COVID-19 concerns and is now driven by consumers' need for convenience.
By 2025, online sales will account for between 15% and 20% of total sales in the food and beverage sector globally, a tenfold increase from 2016. According to the same study, millennials account for 49% of all online grocery purchases; this percentage is only predicted to rise as younger customer groups mature. Thus, the growing demand for online shopping has created huge growth prospects for the refrigerated road transportation market in the forecast period.
Environmental Concerns
Refrigerated road transportation contributes to carbon emissions and environmental impact due to the energy consumption of refrigeration units and transportation vehicles. With increasing awareness and focus on sustainability, there is a growing need to address the environmental footprint of the cold chain logistics industry. Thus, governments and regulatory bodies are implementing stricter environmental regulations to curb emissions and promote sustainability.
These regulations may include emission standards, fuel efficiency requirements, and the adoption of cleaner technologies. Compliance with these regulations can increase operating costs and pose challenges for refrigerated road transportation companies that need to invest in eco-friendly equipment and practices to meet environmental standards.
Refrigerated Road Transportation Market Segmentation Analysis
The global refrigerated road transportation market is segmented based on vehicle, technology, application and region.
Rising Demand For Flexible And Versatile Transportation From Food Delivery, Pharmaceuticals, Catering, And Floral Industries
The light Commercial Vehicle (LCV) segment holds a major share of more than 2/3rd of the global refrigerated road transportation market predominantly due to its flexibility and versatility. They come in various sizes and configurations, ranging from small vans to larger trucks, offering a wide range of options to suit different transportation needs. The flexibility allows LCVs to cater to a diverse range of businesses and industries requiring refrigerated transportation, such as food delivery, pharmaceuticals, catering, and floral industries.
Furthermore, to overcome the growing demand for LCV, companies are also investing in boosting the segmental growth of the market. For instance, on January 26, 2022, Carrier announced to expand its electrification capabilities through a new partnership with ConMet adding wheel-based power generation that captures energy that would be wasted during braking events. With the introduction of electric choices for trailer, truck and light commercial vehicle customers by the end of 2022, the agreement further promotes Carrier's more extensive zero-emission transport refrigeration solutions, which will aid in meeting forthcoming emissions rules.
Refrigerated Road Transportation Market Geographical Share
Asia-Pacific’s Growing Population, Rising Disposable Incomes And Investments In Cold Chain Infrastructure
Asia-Pacific has a significant and growing refrigerated road transportation market covering more than half of the share due to the growing population and rising disposable incomes, leading to increased demand for perishable goods, including fresh produce, dairy products, meat, seafood, and pharmaceuticals. The region's robust economic growth and expanding middle class contribute to the expansion of the refrigerated road transportation sector.
The region has witnessed significant investments in cold chain infrastructure to support the growing demand for refrigerated transportation. Governments and industry players are focusing on developing temperature-controlled storage facilities, refrigerated warehouses, and logistics networks to maintain the quality and safety of perishable goods throughout the supply chain. The infrastructure development further drives the demand for refrigerated road transportation.
Refrigerated Road Transportation Companies
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.
COVID-19 Impact on Refrigerated Road Transportation Market
COVID Impact
The refrigerated road transportation market played a crucial role in the distribution of COVID-19 vaccines. The transport of temperature-sensitive vaccines required specialized cold chain logistics to maintain the integrity and efficacy of the vaccines. However, the industry faced the challenge of ensuring the availability of refrigerated transport capacity, compliance with strict temperature requirements, and seamless coordination among stakeholders involved in the vaccine supply chain.
As the pandemic situation evolves and restrictions ease, the refrigerated road transportation market is gradually recovering. Companies are adapting to the new normal by implementing technology-driven solutions, optimizing routes, and adopting agile supply chain strategies. The market is expected to witness growth as consumer demand rebounds and the focus on safe and efficient cold chain logistics remains high.
Ukraine-Russia War Impact
The conflict has the potential to disrupt trade routes and transportation networks in the region. Border closures, checkpoints, and restrictions on movement can impede the flow of goods, including perishable items. It resulted in delays, increased transportation costs, and logistical challenges for refrigerated road transportation companies operating in the affected areas.
Furthermore, in areas directly impacted by the conflict, infrastructure, including roads, bridges, and transportation facilities, suffered damage or destruction. The disruption limits the accessibility and efficiency of refrigerated road transportation, making it challenging to transport perishable goods to and from affected regions.
AI Impact
AI has shown a significant impact on the market by enabling real-time monitoring of refrigerated vehicles and cargo conditions. IoT sensors integrated with AI algorithms can continuously monitor temperature, humidity, and other relevant parameters. It allows for the proactive identification of any anomalies or deviations from the desired conditions, enabling prompt corrective actions to prevent spoilage or damage to perishable goods. Additionally, AI can predict maintenance needs, optimize vehicle performance and minimize downtime.
Key Developments
- On May 10, 2023, DALLAS– Aurora Innovation, Inc, a U.S.-based self-driving vehicle technology company and Hirschbach Motor Lines, Inc., a growing refrigerated trucking company, announced to begin a commercial pilot in May 2023 to test and safely deploy autonomous trucking for refrigerated cargo between Dallas and Houston.
- On December 24, 2020, Daikin, a Japan-based electronic manufacturer, announced to expand the availability of its Zanotti transport refrigeration solutions into Northern European markets of Germany, Belgium, France and the Netherlands.
- On November 20, 2020, working with Imperial College London and Cenex, the cleantech business Sunswap received two Innovate UK funds totaling €420K (£376K) to advance their zero-emission transport refrigeration system. In order to provide noise- and air-polluting zero-emission transport refrigeration products, Sunswap, a company founded at the beginning of 2020, is developing new technology.
Why Purchase the Report?
- To visualize the global refrigerated road transportation market segmentation based on vehicle, application 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
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