Road Transport Refrigeration Equipment Market

Road Transport Refrigeration Equipment Market is anticipated to grow at a CAGR of 5.2% in the forecast period (2024-2034), with the market size valued at USD 4.2 billion in 2023 and expected to reach USD 7.3 billion by 2034.

Product Overview

Road transport refrigeration equipment is specialized machinery that is installed on vehicles to maintain specific temperature conditions for transporting perishable goods. These systems consist of a refrigeration mechanism powered by the vehicle's engine or an independent power source, along with an insulated compartment for storing the cargo. They play an essential role in industries such as food and pharmaceuticals by ensuring the preservation and safety of products during transit. In addition, by regulating the temperature and humidity levels, road transport refrigeration equipment reduces spoilage incidents, preserves the quality of products, and extends the shelf life. It comes in various sizes and configurations to include different types and volumes of cargo. Thus, the reliability and efficiency of this equipment are crucial for transporting temperature-sensitive goods, thereby facilitating the global distribution and availability of perishable products.

Market Highlights

Road Transport Refrigeration Equipment Market is projected to exhibit a CAGR of 5.2% during the forecast period, 2024-2034

Road transport refrigeration equipment market is anticipated to reach USD 7.3 billion, growing at a CAGR of 5.2% during the forecast period, due to the rising demand for temperature-controlled transportation of perishable goods like food, pharmaceuticals, and chemicals. The market for road transport refrigeration equipment is expected to grow owing to several factors, including the growing use of cold chain logistics, laws related to food safety & pharmaceutical transportation, and the need to reduce food wastage. In addition, technological innovations in refrigeration systems, such as the development of more energy-efficient and sustainable solutions, are propelling the industry forward. Moreover, the expansion of the e-commerce sector and the globalization of supply chains promote the demand for dependable and efficient road transport refrigeration equipment. Furthermore, regions with well-established cold chain infrastructure are leading the market, while emerging economies are rapidly growing due to rising disposable incomes.

 Source: Fatpos Global

Road Transport Refrigeration Equipment Market Segmentation

Refrigerated Trailers segment holds a prominent share as they offer extensive storage and reliability

Road Transport Refrigeration Equipment Market is divided based on Install Vehicles into Vans & Light Trucks, Heavy Trucks, and Refrigerated Trailers. The refrigerated trailer segment holds a dominant position in the road transport refrigeration equipment market as these trailers provide large storage capacities as compared to vans and light trucks. Refrigerated trailers are commonly utilized for long-haul journeys to meet the increasing demand for inter-regional and international cold chain logistics. Additionally, these trailers offer flexibility and can carry several temperature-sensitive products such as food items and pharmaceuticals. The globalization of supply chains and the growth of e-commerce are further boosting the demand for refrigerated trailers as they are important for the efficient transportation of perishable goods over extensive distances. These characteristics collectively position the refrigerated trailer segment as the industry leader in road transport refrigeration equipment.

Single Temperature Units segment will dominate owing to its affordability and ease of use

Road Transport Refrigeration Equipment Market is segmented based on Mode of Operation into Single Temperature Units and Multi Temperature Units. The single temperature unit segment will likely lead the road transport refrigeration equipment market as it offers simplicity and cost-effectiveness, appealing to several businesses that require consistent temperature control for homogeneous perishable goods. This segment efficiently transports large volumes of a single product type, thereby optimizing space and energy consumption. Additionally, single-temperature units are easier to maintain, which results in lower downtime and operational complications. Their versatility allows them to serve various industries, including food, pharmaceuticals, and chemicals. Thus, the combination of efficiency, affordability, and versatility makes the single-temperature unit segment as a preferred choice for businesses seeking dependable temperature-controlled transportation solutions.

Market Dynamics

Growth Drivers

Growing Demand for Perishable Goods Will Contribute to the Growth of the Market

Need for temperature-controlled transportation solutions is growing due to the rising global population and changing customer preferences toward fresh and perishable goods. Consumers are seeking fresh produce, dairy, meats, and pharmaceuticals, which require accurate temperature control to ensure their quality and safety during transit. Businesses that are involved in the transportation of perishable goods are increasingly relying on road transport refrigeration equipment to ensure the freshness of their products from production facilities to distribution centers. This pattern is expected to continue as consumer preferences are rapidly evolving, which leads to sustained growth in the road transport refrigeration equipment market

Expansion of Cold Chain Logistics has Encouraged the Use of Road Transport Refrigeration

Expansion of cold chain logistics is a major catalyst for the road transport refrigeration equipment market. Cold chain logistics involve careful transportation and storage of temperature-sensitive items throughout the supply chain. This growth is attributed to various factors, such as the globalization of supply chains, the rise in international trade of perishable goods, and the growth of e-commerce. Moreover, road transport refrigeration equipment plays an essential role in preserving the integrity of perishable goods during transit and meeting consumer demands for product quality and safety. Therefore, it is anticipated that the need for road transport refrigeration equipment will proportionately increase with the continuous expansion of cold chain logistics.

Restraints

High Maintenance and Initial Investment Costs are Seriously Impeding Market Expansion

Despite the benefits of road transport refrigeration equipment in maintaining the quality of the product, the high initial investment presents a notable challenge for small & medium-sized enterprises. These expenses include the procurement of refrigerated vehicles and necessary infrastructure, which can discourage small businesses from investing in such equipment. Moreover, the expenses to set up refrigerated trailers, trucks, and vans, along with the cooling units, can be substantial. In addition, operational costs like maintenance, fuel, and energy further add to the total ownership expenditure. These costs could deter businesses from investing in road transport refrigeration equipment or increasing their fleets. However, innovations in technology and a growing realization of the benefits of temperature-controlled shipping will eventually mitigate this concern.

Recent Developments

• In 2023, Carrier Transicold Launched the NaturaLINE® APU series which features CO2 refrigeration for sustainable, near-zero emission operations. They have acquired TRS Refrigerated Transport Services to expand their service network and aftermarket offerings.
• In 2023, Thermo King introduced the Advancer A500 trailer refrigeration unit which features improved efficiency and connectivity. The company has also introduced the eComfort all-electric delivery van which provides emission-free last-mile solutions.
• In 2023, Mitsubishi Heavy Industries Thermal Systems, Ltd. expanded its global service network by strengthening its aftermarket support capabilities. They have also focused on R&D for next-generation refrigerants to contribute towards better sustainable cooling solutions.
• In 2023, Daikin Industries invested in the electric vehicle charging infrastructure while supporting the transition to e-mobility. They are also aiming to offer remote monitoring and data-driven insights for consumers.
• In 2023, Klinge Corporation launched their Launched Silent Knight electric trailer refrigeration unit for noise-sensitive urban areas.

Road Transport Refrigeration Equipment Market

Key Players:

• Carrier Transicold
• Thermo King Corporation
• Mitsubishi Heavy Industries Thermal Systems, Ltd.
• Daikin Industries, Ltd.
• Klinge Corporation
• Johnson Truck Bodies
• Utility Trailer Manufacturing Company
• Lamberet SAS
• Schmitz Cargobull AG
• GAH Refrigeration Ltd.
• Hubbard Products Ltd.
• Gray & Adams Ltd.
• Ingersoll Rand Inc.
• Wabash National Corporation
• Great Dane LLC
• Other Prominent Players (Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis)

Regional Analysis

Road Transport Refrigeration Equipment Market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. The North American region is expected to lead the road transport refrigeration equipment market owing to its well-established cold chain infrastructure and advanced transportation networks, that ensure food safety. This environment promotes the wide adoption of refrigeration equipment for maintaining the quality of perishable goods during transit. Furthermore, the North American region has a strong economy and industrialization, which drive major demand across various sectors, like food, pharmaceuticals, and chemicals.

In Asia Pacific, fast urbanization and increasing disposable incomes are changing consumer preferences towards perishable goods, which spur demand for efficient cold chain logistics and refrigeration equipment to preserve product freshness. The expanding e-commerce sector in the region further amplifies this demand as consumers are increasingly buying perishable items online. Consequently, Asia Pacific presents substantial growth opportunities for the market as investments in infrastructure and technology will propel the industry.

Source: Fatpos Global

Impact of Covid-19 on Road Transport Refrigeration Equipment Market

Road transportation equipment refrigeration market was significantly affected by the COVID-19 pandemic. Initially, lockdowns resulted in panic buying and a high demand for grocery deliveries, which led to high utilization of refrigerated equipment. However, as the pandemic progressed, global lockdowns and travel restrictions disrupted supply chains and impacted the availability of essential components. Moreover, the pandemic increased the awareness of hygiene and food safety, which resulted in a high demand for better refrigeration equipment for perishable goods. Furthermore, the growth in the e-commerce sector promoted last-mile refrigerated delivery solutions. Therefore, despite initial setbacks, the road transport refrigeration equipment market displayed resilience with a sharp recovery.

Road Transport Refrigeration Equipment Market is further segmented by region into:

• North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada
• Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil, and Rest of Latin America
• Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey, and Rest of Europe
• Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia, and Rest of APAC
• Middle East and Africa Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa, and Rest of MENA

Road Transport Refrigeration Equipment Market Scope and Segments:

Frequently Asked Questions (FAQ):