Road Transport Refrigeration Equipment Market Size, Share & COVID-19 Impact Analysis, By Install Vehicle (Vans & Light Trucks, Heavy Trucks, and Trailers), By Mode of Operation (Single Temperature and Multi-Temperature), By Power Source (Vehicle-Powered and Self-Powered), By Application (Food and Beverage Products, Pharmaceutical and Other Healthcare Products, and Floral Products), and Regional Forecast, 2023-2030

The global road transport refrigeration equipment market size was valued at USD 3.91 billion in 2022. The market is projected to grow from USD 4.08 billion in 2023 to USD 5.74 billion by 2030, exhibiting a CAGR of 5.0% during the forecast period.

Road transport refrigeration equipment is a piece of control equipment that allows a container or trailer (loaded, unloaded, or parked) to switch product temperature. The engines used in this type of equipment are either diesel or electric. These equipments are divided into two categories based on the mode of operation - single temperature and multi-temperature system. 

Transport refrigeration systems are being used to keep frozen and chilled products at a constant temperature. Cooling systems built for road transport vehicles such as vans, trucks, and trailers are being used as road transport refrigeration equipment.

Frozen fruits and vegetables are in high demand and this trend is expected to continue. It is due to the refrigeration trucks' ability to carry meat, dairy, and pharmaceutical items quickly and safely. Furthermore, emerging nations throughout the world are focusing on building cross-continent highway networks to provide continuous road freight transit, which is propelling worldwide market expansion. Furthermore, major manufacturers' replacement of hydrofluorocarbons (HFCs) with low global warming potential (GWP) refrigerants is projected to minimize global warming effects and contribute to market development throughout the projected period.

COVID-19 IMPACT

Rising Consumption of Refrigerated Food Products Elevated the Market Demand during the Pandemic

The coronavirus pandemic put an enormous strain on transportation and logistics, leading to a drastic shift in demands. COVID-19 has had a considerable influence on road transport refrigeration. The sector, as a whole, was suffering from lower inventory and higher demand. In addition, food, mostly meat and dairy products, were delivered by road in refrigerated containers. According to the Organization for Economic Co-operation and Development (OECD), restrictions such as crew change limitations, required quarantines, and extra screening during transportation had decreased the transportation of refrigerated containers by 8.0%.

However, the market depicted positive growth and is anticipated to exhibit the same in the future. This is attributed to the increased consumption of refrigerated food products and packed food products to stockpile essential groceries and minimize trips to stores and supermarkets. Furthermore, the worldwide vaccination programs are running at an extensive pace, which also needs refrigerated transportation and storage.

Moreover, according to the Global Cold Chain Alliance (GCCA), responding manufacturers are optimistic about the success of truck refrigeration operations. Additionally, inventions such as all-electric transport refrigeration equipment and low global warming potential (GWP) refrigerants are expected to reduce cold chain emissions. Therefore, manufacturers are optimistic about the exponential world road transportation refrigeration equipment market growth during the forecast period.

LATEST TRENDS

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Pharmaceutical Cold Chain Logistics Advancement to Propel Market Growth

Presently, the shipping of pharmaceutical goods using road transport refrigeration systems requires a high degree of skill. According to the Pharmaceutical Research and Manufacturers of America (PRMA), at least seven out of ten of the country's largest pharmaceutical businesses require temperature-controlled transportation. Furthermore, multiple logistic operations, such as supply, transit, storage, and end-user, are all part of the pharmaceutical industry's supply chain. In addition, pharmaceutical businesses, including AbbVie, Inc., McKesson Canada, Eli Lilly and Company, GlaxoSmithKline plc, MSD Pharmaceuticals Private Limited, Roche Holding AG, and others rely on cold chain logistics for secure transportation of goods. Therefore, cold chain logistics service providers emphasized regulating the temperature throughout the route as temperature variations of just 2 degrees can cause a deterioration of pharmaceutical products.

Moreover, the demand for truck refrigeration is anticipated to increase as middle-class living standards are rising resulting in an abundance of frozen food. Furthermore, the fast-paced life, day-to-day work, a developing lifestyle & others, are increasing the demand for ready-to-eat and frozen foods, which is propelling the demand for frozen food products and vegetables. Hence, these logistics advancements and increased demand for frozen food are driving factors for the growth of the truck refrigeration market.

DRIVING FACTORS

Consistent Increase in Demand for Frozen Food Products to Boost Market Growth

The food and beverage industry is utilizing freezing technology as it allows them to store items for a longer period of time. The use of industrial freezing for the preservation of food for a long time has exhibited major growth. Furthermore, governments all across the world are concerned about the limited availability and wastage of food and vegetables during the off-season. Additionally, ever-increasing food waste is a major problem that endangers the environment and natural resources, which are the driving factors for the growth of the truck refrigeration market.

The U.S. Department of Agriculture, Cornell University, and the Food Marketing Institute have introduced a virtual guidebook that includes information on how long most common foods can be stored in a freezer to avoid the negative effects of left-over food. As a result, consumers will have access to a variety of options for avoiding food waste and storing food for off-season use.

Furthermore, several developed and emerging countries are concentrating their efforts on building cross-continental, cross-country, and cross-regional highways that will allow carriers to transport their goods and products to remote locations. Previously, road communication between nations and states was exceedingly difficult and inconvenient, preventing food and produce movement. Hence, the market share is expected to surge with rising government efforts for highway development projects in the near future.

RESTRAINING FACTORS

Health Issues Related to Consumption of Frozen Food & High Maintenance Cost of Transportation to Hinder Market Growth

Generally, fruits and vegetables are preserved in frozen units by adding chemical preservatives, such as sulfites, nitrates, nitrites, sorbates/sorbic acid, and sometimes nuclear radiations. These preservatives are added to decrease the rate of microbial growth, which further allows retaining the eating quality of the product. Therefore, the adoption of frozen foods has decreased over the past few years, which ultimately affected the growth of the global road transport refrigeration unit.

Moreover, the global market is being hampered by obstacles such as a lack of transportation infrastructure in emerging nations, rising fuel prices, and product maintenance during transit. In addition, poor road conditions might result in weak connections and gas leaks, further limiting its usage. Additionally, in developing nations, continuing road-building in remote locations is causing disruption impeding the market. Also, due to high operating costs of fuel technologies, an increase in fuel costs is likely to stifle growth. However, developed countries are pouring money into road improvements to reduce gas leakage from transport refrigeration units.

SEGMENTATION

By Install Vehicle Analysis

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Refrigerated Trailers to Hold Major Market Share Owing to Increased E-Commerce Deliveries

By install vehicle, the market is divided into trailers, heavy trucks, and vans & light trucks.

The refrigerated trailer segment is expected to hold the largest market share considering the cost-effectiveness and the ability to hold most items. It also has multi-temperature modules, which allow different types of items to be transported in a single journey, minimizing the need for multiple trips.

The vans & light trucks segment is poised to grow at the highest CAGR throughout the forecast period. This is because they help in readily transporting products in compact locations and small urban roadways & also owing to the increased e-commerce deliveries in developed and emerging cities.

Heavy trucks are expected to grow significantly due to their payload capacity and the ability that they may be equipped with a variety of mechanical refrigeration systems driven by minor transposition of engines that are diesel or use carbon dioxide either in liquid form or in dry ice as a conserving agent.

Based on volume estimation, the global volume of market was 261.5 thousand units in 2022, and is projected to reach 357.4 thousand units by 2030, with a CAGR of 4.0%.

By Mode of Operation Analysis

Single-Temperature Segment to Dominate the Market Due to Increased Penetration

Based on the mode of operation, the market is segmented into multi-temperature and single-temperature.

The market is majorly driven by single-temperature refrigeration equipment, owing to the increasing usage of transportation of perishable products, dairy products, pharmaceuticals, and meat. The market penetration of multi-temperature refrigeration units has been modest due to the recent launch and delayed acceptance of multi-temperature refrigeration systems in most areas.

Multi-temperature trailers are projected to grow at a faster rate than heavy vehicles and small trucks as the trailers have more storage capacity for various items at different temperatures. In addition, most road transport refrigeration equipment customers in developed countries choose multi-temperature units, even if they only function in single-temperature mode, to reduce the number of trips required for transportation. It is often utilized for urban distribution since it saves money on transportation.

By Power Source Analysis

Vehicle-Powered Refrigeration Units to Hold Largest Market Share Owing to Growing Inclination Toward Fuel-Efficient Cars

By power source, the market is categorized into vehicle-powered and self-powered.

The market share of vehicle-powered refrigeration systems is predicted to grow during the forecast period. Conventional diesel-powered road refrigeration system units are losing market share every year as alternative technologies such as battery-powered and all-electric refrigeration systems become more widely available. In addition, most businesses are aiming to expand their metropolitan delivery fleet with more fuel-efficient cars.

By Application Analysis

 Food & Beverage Products Application Segment to Augment Market Growth

By application, the market is segmented into floral products, food and beverage products, and pharmaceutical and other healthcare products.

The food & beverage products segment is expected to grow rapidly, as the market for frozen and processed foods, as well as pharmaceutical items, is significantly increasing in every area. Also, the demand for fast cold chain transportation has increased in recent years as the global commerce of perishable goods also exhibited substantial growth.

REGIONAL INSIGHTS

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The regional analysis comprises five major regions - North America, Asia Pacific, Europe, the Middle East & Africa, and Latin America.

North America is projected to have the leading position in the market due to the rising demand for processed foods and increased expenditures in the development of the cold supply chain across Canada and the U.S. Furthermore, trade agencies, organizations, and cold chain associations are focusing on building truck refrigeration networks through a better regulatory framework, which is complementing the market's regional expansion.

Moreover, Canada is expected to show major growth during the forecast period. It is attributed to the rising demand for frozen foods in the country. In addition, as frozen foods and vegetables are available year-round, the market for them is constantly rising. Additionally, due to a lack of time, customers choose to buy processed and frozen fruits and vegetables. As a result, the market for transport refrigeration units is likely to increase promptly in the near future. However, technological advances in refrigeration units are expected to escalate the road transport refrigeration equipment market share globally.

Asia Pacific has a lot of commercial prospects for the cold chain sector, comprising storage and shipping. Additionally, increased government support and initiatives in the road refrigeration industry, as well as increased consumer demand for perishable foods, are further contributing toward the road transport refrigeration equipment market growth.

Furthermore, in Europe, almost 25%-35% of the population purchased online groceries and food which results in an increasing need for vans & truck refrigeration. In addition, the building of the world's longest commerce network, stretching from China to Europe and linking 65% of the world's population, is projected to boost the road refrigeration transport market size.

The Middle East & Africa and Latin America regions are estimated to exhibit constant progression during the forecast period. Additionally, the sales at supermarkets/hypermarkets in the Gulf Cooperation Council (GCC) have seen a significant rise. Furthermore, Saudi Arabia is expected to raise its share of GCC food consumption, which necessitates truck refrigeration equipment in the region.

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Latin America is projected to be fueled by the increasing middle-class population and strengthening economy in Brazil, Mexico, and others along with the expansion of refrigerated vans, trucks, and trailers in the area.

KEY INDUSTRY PLAYERS

Leading Players Emphasize More on Developing & Delivering Eco-friendly and Energy-efficient Products

Key players such as Carrier Global Corporation, Mitsubishi Heavy Industries, and others focus on creating eco-friendly refrigeration units for road transport refrigeration equipment that are equipped with cutting-edge technology with the restricted use of diesel. Furthermore, to lower the rate of global warming, manufacturers are creating electrical, solar-powered, and battery-powered refrigeration systems. In addition, manufacturers ranging from huge multinational organizations to small privately-held businesses hold almost 54.78% of the market.

LIST OF KEY COMPANIES PROFILED:

• Carrier (Carrier Transicold) (U.S.)


• Mitsubishi Heavy Industries (Mitsubishi Heavy Industries Thermal Systems Ltd.) (Japan)


• G.A.H. Refrigeration (U.K.)


• Hwasung Thermo Co. Ltd. (Korea)


• Trane Technologies plc (Thermo King Corporation & FrigoBlock Grosskopf GmbH) (U.S.)


• Daikin Industries Ltd. (Zanotti S.p.A.) (Italy)


• Songz Automobile Air Conditioning Co., Ltd. (China)


• Safkar Ege Cooling Air Conditioning Cold Air Tes.İhr.İth.A.Ş (Turkey)


• Kingtec Group Company Limited (U.S.)


• Zhengzhou Corun Tech Co., Ltd. (China)

KEY INDUSTRY DEVELOPMENTS:

• September 2021 – Trane Technologies acquired Farrar Scientific, a leader in ultra-low temperature management, for biopharmaceutical and other life science applications. Farrar Scientific's patented technology meets an unmet demand for ultra-low temperature storage and process that is modular, efficient & versatile including heating/thawing & cooling.


• September 2021- Robert Bosch GmbH signed a collaboration with Carrier Corporation, to construct trailer and truck bodies for performing in the FresH2 fuel cell project which was carried out in France. The new technology is utilized to improve the efficiency of refrigerated trucks, and trailers while moving from one location to another.


• August 2021- Thermo King, a subsidiary of Train Technologies Plc introduced a new T-80 E series trailer refrigeration units for Asian market. It has features such as being able to operate with multi-temperature capacities, being equipped with long-life evaporative fans, and easily operating by control software.


• July 2021 - Mitsubishi Heavy Industries (MHI) Group’s subsidiary Mitsubishi Heavy Industries Thermal Systems, Ltd., planned to launch two new kinds of centralized power panels that will allow air conditioning units and public CO2 heat pump water heaters to be managed from a single console.


• July 2021 - SeaCube Containers LLC acquired 200 Carrier PodsTM monitored by Sensitech to meet the expected increase in demand for chilled storage capacity and cargo visibility in support of COVID-19 vaccine distribution.


• February 2021- Ingersoll Rand Plc launched new fully electric refrigeration units for vans and light trucks. It has features such as low noise level, emission-free, and maintains coldness for large-mile deliveries.

REPORT COVERAGE

An Infographic Representation of Road Transport Refrigeration Equipment Market

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The research report provides a detailed analysis of the market. It provides information about leading companies along with their business overview, types, and leading applications of the product. In addition, it offers insights into the SWOT analysis, and competitive landscape, along with ongoing market trends, and highlights key drivers and restraints. In addition to the aforementioned factors, the report includes numerous aspects contributing to the market growth in recent years.

Report Scope & Segmentation