Road Transport Refrigeration Equipment Market Size, Share & Industry Analysis, By Install Vehicle (Van & Light Truck, Heavy Truck, Trailer), By Mode of Operation (Single Temperature, Multi-Temperature), By Power Source (Vehicle Powered, Self-Powered), By Application (Food and Beverage Products, Pharmaceutical and Other Healthcare Products, Floral Products) and Regional Forecast, 2019-2026

The global road transport refrigeration equipment (Units) market stood at around 221.3 thousand units annually in 2018 and is projected to reach 339.3 thousand by 2026, exhibiting a CAGR of 5.5% during the forecast period.

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The global road transport refrigeration equipment market is likely to grow significantly in the upcoming years due to the increasing demand for frozen food globally, expanding pharmaceutical industry, rising per capita income, and increasing cross-continent & highway networks for quicker road freight transportation. The major manufacturers are focusing on producing all-electric refrigeration equipment causing no pollution and are also energy efficient.

The road transport refrigeration unit (Equipment) market has shown exponential growth over the decades in the developed regions and is expected to grow significantly in the developing regions during the forecast period. The development of multi-temperature road TRU’s is one of the latest trends as this equipment’s allow transporter to carry multiple products that require different temperatures reducing multi-trip transportation. Also, replacement of Hydrofluorocarbons (HFCs) with low global warming potential (GWP) refrigerants by major manufacturers is expected to reduce the global warming impacts and contribute to the growth of truck refrigeration market during the forecast period 2019-2026.

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Developed countries have around 1,500 refrigerator trucks per million population, West Asian nations have 300, Latin American countries have 100 to 150, China has 20 whereas India has only five refrigerated vans & trucks per million population.

MARKET DRIVERS

“High Demand for Frozen Foods and Vegetables across All Seasons”

Rising living standards with growing demand from middle class for transparent, clean, and ethical supply chain is expected to fuel the demand for road transport refrigeration units. Changing lifestyles, busy schedules leave a little time for lengthy meal preparations, and most people prefer to consume ready to eat and frozen foods increasing the demand for frozen food and vegetables. In Poland more than 43% people consume frozen foods due to busy lifestyles.

In 2018, the frozen food market in the United States crossed a whopping amount of USD 55.3 Billion. This exponential growth in frozen food globally will boost the growth of road transport refrigeration units throughout the forecast period.

Furthermore, economic growth & population rise, development of cold chain warehouses, and cold chain logistics and high temperatures in countries such as the Middle East and Africa, Latin America, and Asia Pacific have become an essential factor in the growth of road transport refrigeration equipment units in these regions.

“Development of cross-continent and cross country highway network for quick and safe road freight transportation in developed economies”

Governments of several developed and developing countries are focusing on constructing cross-continent, cross-country, and cross-regional highways that will allow transporters to provide their goods and products in remote areas. Previously, road connectivity between countries and states was the primary challenge that was faced by the food and vegetable distributors to transport their products. Moreover, government initiatives of highway construction are expected to drive the road transport refrigeration market globally.

For instance, the government of India has allotted USD 100 billion for its infrastructure in budget 2018 – 2019, wherein the government has planned to invest USD 22.4 Billion towards road infrastructure in the North-East region of India.

Moreover, due to bad road conditions, constant vibrations occur, which leads to loose connection and starts gas leakages. The leakage rate can vary from 20% - 30% per year. To reduce the leakages in long distance temperature-controlled trailers, companies are providing fully charged systems. Furthermore, companies that manufacture refrigeration equipments for trucks and trailers are concentrating on developing new products with large capacities.

SEGMENTATION

By Install Vehicle Analysis

“The refrigerated trailers segment is expected to hold the largest market share in the forecast period”

The refrigerated fleet varies from region to region, but the most popular is refrigerated trailer as it can prove to be more cost-effective and can store much more amount of products. It also offers features such as multi-temperature units allowing to transport different type of goods in a single trip and reducing multi-trip transportation.

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Furthermore, owing to increasing e-commerce and demand for express urban deliveries, the market share of vans and light trucks is expected to increase during the forecast period. The vans & light trucks are also expected to grow at the highest CAGR during the forecasting period owing to more demand in developed and developing cities as it can easily transport goods in compact places and narrow urban roads.

By Mode of Operation Analysis

“Single Temperature Road Transport Refrigeration Equipments Are Expected To Dominate the Market During The Forecast Period”

The single-temperature refrigeration equipments dominated the market with around 79% share and the multi-temperature refrigeration units with 21% market share in 2018. The recent introduction and slow adoption of multi-temperature units in most regions has resulted in the slow penetration of multi-temperature refrigeration units in the market. The multi-temperature trailers are anticipated to grow at the highest rate as compared to heavy trucks and light trucks owing to trailers having more storage ability for different products at different temperatures.

Also, most of the customers of road transport refrigeration equipment units in developed regions are opting for multi-temperature units even if they mostly operate in single temperature mode to reduce multi-trip transportation required chiefly used for urban delivery and decrease the transportation costs also.

By Power Source Analysis

“Self-Powered Road Transport Refrigeration Equipment Are Expected To Dominate the Market During The Forecast Period”

The self-powered road transport refrigeration equipments will dominate the global market having around 72% share in 2018 and self-powered refrigeration equipment around 28%. The market shares of vehicle powered refrigeration units is expected to increase during the forecast period. With the advent of new technologies such as battery powered and all-electric refrigeration units globally, traditional diesel powered road refrigeration equipments units are losing their market share every year. Additionally, most businesses are looking to add more fuel-efficient vehicles to their urban delivery fleet.

By Application Analysis

“Food and Beverage Products Are Expected To Dominate the Market During The Forecast Period”

By application, refrigerated food and beverage products transport accounted for around 87%, pharmaceutical and healthcare products accounted to around 11% and floral products 2%. Refrigerated food and pharmaceutical applications are anticipated to grow at a rapid rate as the market for frozen & processed food and also pharmaceutical products in expanding rapidly in every region. The global trade of perishable items has increased in the past couple of years spurring the demand for quick cold chain transportation. This is not only true for food, such as meat, dairy, and others but also for other sensitive items such as medical products and pharmaceuticals. Therefore, refrigerated pharmaceutical and other healthcare products are expected to grow at the highest CAGR of 6.2% during the forecast period.

REGIONAL ANALYSIS

Increasing demand for processed foods in the U.S., growing investments towards the expansion of cold supply chain backed by robust roads infrastructure in the region, is expected to drive the growth of road transport refrigeration units in North America. North America is also expected to hold the highest market share throughout the forecast period 2019 – 2026. For instance, in the U.S., there is a strong demand for truck services for long-distance transport. According to ATA’s freight transportation forecast for 2018 to 2029 projects that the freight volumes are expected to increase by 4.2% to reach nearly 16 billion tons in 2018 and increase by 35.6% to reach USD 21.7 Billion tons by 2029 resulting in increased use of truck refrigeration equipment for transporting food.

Asia Pacific offers considerable cold chain opportunities for the cold chain industry, including warehousing and transportation sectors. This growth is likely to be driven by an increase in awareness about the prevention of food wastage before consumption, rapid urbanization, growth of the organized retail sector, government support & initiatives in this sector, and rise in consumer demand for perishable foods. Furthermore, the Asian middle class is projected to grow by six times in 2030 which would require increased cold chain warehousing and transportation. In China, the refrigerated warehouse capacity or cold storage facilities grew more than 40% between 2014 and 2016 and is expected to grow at the same pace owing to the enormous potential in the market. Furthermore, the market in India is expected to grow at the highest CAGR during the forecast period owing to the number of government incentives such as schemes of NHM, subsidies, 100% FDI, external commercial borrowing allowed, and excise exemption, no service tax applicable and zero custom duty etc. The sales of refrigerated trucks are expected to grow more than ten folds till 2030 citing the current requirement and demand of these vehicles.

In Europe, according to Eurostat, in 2018, more than 25 percent of the European population bought food and groceries from online retail channels, which has resulted in increased demand for refrigerated trucks and vans. Additionally, the construction of silk road (longest trade network) from China to Europe, worth USD 900 Billion and connecting 65% of global population, is expected to fuel the road refrigeration transport industry in the region as more frozen food and vegetables can be transferred across the border without compromising with the quality of food. Globally, Europe is one of the largest exporter and consumer of frozen vegetables. To augment the frozen vegetables market share, companies are focusing on promotional strategies and multinational campaigns to increase consumption and awareness of processed frozen vegetables, which would result in more demand for refrigeration equipment units for trucks and vans.

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In the Middle East and Africa, a growing number of modern retail outlets, such as supermarkets, hypermarkets, discount stores, and other forms of organized retail, are significantly contributing to the increasing demand for food products. Sales at supermarkets/hypermarkets in Gulf Cooperation Council (GCC) rose to around USD 70 Billion by 2018. Also, hypermarket sales in the relatively underpenetrated markets, such as Saudi Arabia, Qatar, Oman, and Kuwait, are likely to grow at a healthy pace throughout the forecast period generating demand for temperature-controlled refrigeration units. Saudi Arabia, the most populated country in the GCC, is the largest consumer of food products. In 2019, the Kingdom of Saudi Arabia is forecasted to increase its share of GCC food consumption to 71.4% of sales, demanding more requirements for truck refrigeration equipment.

Latin America includes middle-ranked countries in terms of refrigerated warehousing per urban population such as Mexico and Brazil. Brazil’s refrigerated warehouses have recorded an annual growth of more than 4% after 2015 in spite of economic crisis. Brazil is also expected to grow at the highest CAGR during the forecast period. Additionally, Mexico in 2018 surpassed China to become the second-largest exporter and importer of consumer-ready products and agricultural products to the U.S. Furthermore, the rising middle-class population and improving economy in Latin American countries are also expected to fuel the growth of refrigerated vans, trucks, and trailers.

INDUSTRY KEY PLAYERS

“Market Players like Thermo King, Carrier Transicold, Mitsubishi, etc. are more focused on manufacturing eco-friendly and energy-efficient solutions.”

Most of the key players in the Road Transport Refrigeration Unit (Equipment) Market are constantly focussing on developing cleaner, greener, and eco-friendly refrigeration units to be used for road transport refrigeration. Following the ban of diesel road transport refrigeration equipment in major cities globally such as Madrid, Rome etc., companies such as Mitsubishi, Thermo King, Hwasung Thermo etc. have developed electrical as well as solar-powered and battery-powered refrigeration units which aim at reducing the rate of global warming owing to negligible pollution caused by these refrigeration units.

Furthermore, the companies are continually developing new and improved solutions such as absorption, liquid-gas cryogenic systems, and eutectics, etc. to replace diesel units and decrease the pollution caused by diesel refrigeration units. Also, companies like Carrier Transicold are offering road transport refrigeration units with telematics solutions enabling remote configuration monitoring, data management, control and diagnostics, etc.

List Of Key Companies Covered:

• Carrier Transicold


• G.A.H. Refrigeration


• HwaSung Thermo Co. Ltd.


• Mitsubishi Heavy Industries Thermal Systems Ltd.


• Ingersoll-Rand (Thermo King Corporation & FrigoBlock Grosskopf GmbH)


• Zanotti S.p.A. (Daikin Europe N.V.)


• Kingtec Group Company Limited (Denso)


• Songz Automobile Air Conditioning Co. Ltd.


• Subros Ltd.


• Zhengzhou Corun Tech Co., Ltd

REPORT COVERAGE

The report provides an elaborative analysis of the global road transport refrigeration equipment market dynamics and competitive landscape. Various key insights presented in the report are the price trend analysis, recent industry developments in the global Road Transport Refrigeration Unit Market, such as mergers & acquisitions, the regulatory scenario in crucial countries, macro, and microeconomic factors, SWOT analysis, and key retail industry trends, competitive landscape and company profiles.

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INDUSTRY DEVELOPMENTS:

• April 2019: Thermo King introduced all-electric E 200 that fir for small to medium vehicles with the benefits of an all-electric solution that controls vehicle battery drainage, No drive kit and no road compressor along with easy plug and play installation. It has the feature of advanced intelligent power management to optimize the supply and demand of power.


• May 2019: Carrier TransiCold showcased their future generation temperature-controlled trailer system, the Vector HE 19 (High Efficiency) in Brisbane Truck Show. Its innovative ultra-modern design aimed at delivering a reduction in fuel consumption up to 30.0 %, a 10.0 % saving in weight, 3 dB (A) reduction in noise and up to 15.0 % savings on maintenance cost compared with its predecessor.