Transport refrigeration systems are used for maintaining a consistent temperature for refrigerated and frozen goods. Road Transport Refrigeration Equipment is defined as cooling systems designed road transport vehicles like Vans, Trucks and Trailers. Against the backdrop of the growing importance of cold food chain, refrigerated road transportation 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.
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. Future growth in this market will be indirectly influenced by factors such as health of key industries like food and beverage, pharmaceuticals and chemicals; trade patterns and transportation costs; globalization in food trade; food safety regulations; environmental regulations, economic, political, energy-related policies, and technological developments.
Amid the COVID-19 crisis, the global market for Road Transport Refrigeration Equipment estimated at US$3.5 Billion in the year 2020, is projected to reach a revised size of US$4.6 Billion by 2026, growing at a CAGR of 4.5% over the analysis period. Trailers, one of the segments analyzed in the report, is projected to grow at a 4.2% CAGR to reach US$2.8 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Heavy Trucks segment is readjusted to a revised 4.7% CAGR for the next 7-year period. This segment currently accounts for a 29.5% share of the global Road Transport Refrigeration Equipment market. Heavy trucks are used for medium distance outstation deliveries; while trailers and trailer trains are used for inter-state and inter-national long distance deliveries. Temperature-controlled equipment manufacturers are also focusing on the development of innovative refrigeration units for intermodal trailers that provide improved reliability and protect sensitive components during critical transportation operations including protection against vibration, shock, and thermal stress.
The U.S. Market is Estimated at $1.6 Billion in 2021, While China is Forecast to Reach $306.7 Million by 2026
The Road Transport Refrigeration Equipment market in the U.S. is estimated at US$1.6 Billion in the year 2021. The country currently accounts for a 44.66% share in the global market. China, the world’s second largest economy, is forecast to reach an estimated market size of US$306.7 Million in the year 2026 trailing a CAGR of 5.9% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 3.6% and 4% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 4.4% CAGR while Rest of European market (as defined in the study) will reach US$318.9 Million by the end of the analysis period. In the coming years, growth will be led by developing countries in Asia-Pacific and Latin America, driven by growing population, increasing disposable incomes and subsequent rise in consumption of food and non-food products, and developments in road infrastructure.
Vans & Light Trucks Segment to Reach $537.4 Million by 2026
Typically, vans are used for short distance and frequent local deliveries. As customer demand for frozen foods is generally in small quantities and multiple batches of assorted products, the scenario is expected to create demand for small refrigerated vehicles like vans and pick-up trucks. In the global Vans & Light Trucks segment, USA, Canada, Japan, China and Europe will drive the 5.5% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$325.1 Million in the year 2020 will reach a projected size of US$472 Million by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$49.2 Million by the year 2026.
Global Industry Analysts, Inc.