Truck Refrigeration Unit Market
Truck Refrigeration Unit Market Share & Trends Analysis, By Product Type (Chiller, Freezer), By Vehicle Type (Light Duty Trucks, Medium Duty Trucks, Heavy Duty Trucks), By End-Use (Dairy, Fruits and Vegetables, Meat and Sea Food, Others), & By Region Forecast, 2019-2029
Analysis of Truck Refrigeration Unit market covering 30 + countries including analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
The Cold Chain Logistics is Booming
The global sales of truck refrigeration units have reached ~US$ 1,045 Mn in 2018. and it is projected, register a CAGR of 4.5% during the forecast period 2019-2029. While international trade continues to expand at an unprecedented pace, perishable foods, drugs & chemicals are increasingly being traded and transported worldwide. Cold chain logistics has grown considerably over the years to support the staggering global commerce.
Rapid technological advancements in cold chain storage as well as transport continue to make cold chain logistics less expensive, and much more accessible.
The cold chain logistics is also witnessing tech penetration with developments in sensors, software, monitoring equipment, and scanners. The use of cold chain logistics is not only limited to transporting food, as pharmaceuticals have emerged as an influential player in this growing industry.
The global cold chain logistics industry has grown steadily over the years, owing to the growing trade of perishable products and rising government support for the development of advanced cold chain infrastructure. In light of the increasing demand for cold chain logistics, the refrigerated transportation industry is proliferating and rapidly impacting globalization to food safety as well as the life sciences.
Growing traction for refrigerated transportation has thereby created a considerable demand and adoption of truck refrigeration units in recent years. Fact.MR analysis estimated that the sales of truck refrigeration units reached ~US$ 1,045 Mn in 2018.
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Lucrativeness of Truck Refrigeration Units Market Set to Grow
While a massive amount of food that worth billions making it to bin due to poor supply chain network, the demand for efficient and highly durable truck refrigeration units is intensifying. Several companies are investing in proper cold supply chain infrastructure and widely adopting advanced truck refrigeration units to cater to the growing demand for quality-ensuring fresh and packaged food.
The cold chain logistics industry is continuously changing, which in turn, has been bringing a turmoil of changes in the truck refrigeration units market. The supply chain for popular refrigerated and frozen foods is always rotating. In line of the shifting
consumer habits, several companies are gravitating towards transport refrigeration to suffice the growing need for quality products, which in turn has been creating a stream of opportunities for manufacturers of truck refrigeration units.
Electrification Set to Create a Buzz
With a growing number of truck manufacturers shifting to electric-powered vehicles and components, the refrigeration units’ providers have also placed their focus on developing electric powered based units. This also falls in line with the shifting consumer preference for high efficiency products and lower operational cost.
Electric refrigeration units are increasingly making inroads in the truck refrigeration units market owing to the stringent government regulations that are aimed at prohibiting the use of diesel based refrigeration units to reduce carbon emission.
While the electrification enables the truck refrigeration units to run without requiring a diesel engine, and reduces carbon emission, this rapidly growing trend is increasingly shaping the growth strategies of the stakeholders.
For that matter, several players in truck refrigeration units market have introduced truck refrigeration units to meet the growing demand for safe transportation of food, while remaining at compliance with the stringent emission related regulations.
Additionally, demand for vehicle-powered refrigeration continues to overshadow that of diesel powered variants, owing to cost-effectiveness, and witnessed sales of ~61,129 units in 2018.
Apart from gravitating towards electrification, the manufacturers of truck refrigeration units market have also placed their focus on unconventional refrigeration methods, such as magnetic, thermo-acoustic, and thermo-electric refrigeration that are more energy-efficient than conventional vapour compression systems.
For instance, General Electrical, a wholly-owned subsidiary of Haier is developing a magnetic refrigeration system for commercial refrigeration application. Highly efficient unconventional refrigeration is highly likely to have enhanced application in truck refrigeration units, and is expected to shape the market growth in a positive way.
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Gains Remain Concentrated in F&B Transportation
The food and beverage production industry continues to expand at an unprecedented pace. This growing production, coupled with the increased focus of companies on cold chain capacity expansion to enable efficient storage and ensure minimize food wastage is anticipated to drive the demand for truck refrigeration units in the forthcoming years.
Number of warehouse and logistics/cold supply chain facilities has also grown substantially in developed as well as developing regions over the recent years.
For instance, in 2018, India reported ~150Mn cubic meters of refrigerated warehousing, and attained the position of the largest total capacity among the countries covered in the GCCA database.
India was closely trailed by the United States, with 131 million cubic meters of refrigerated warehouse capacity. These growing factors are anticipated to strengthen gains for the truck refrigeration unit market players in the years to come.
Developed Regions Continue to Retain Market Lead
Europe, closely trailed by North America has been leading the truck refrigeration units market, owing to the striking focus of the region on cutting greenhouse gas emissions by a worth considering percentage, while boosting the food security at the same time.
Many products are distributed cold as they are temperature sensitive, which in turn has been creating traction for a reliable cold chain to maintain the quality and safety of the storage, handling as well as transport. In view of the fact that power refrigeration leads to loss of 360m tons of food annually worldwide, development and demand for technology-driven truck refrigeration units are highly likely to grow considerably in the years to come.
North America, on the other hand also continues to remain the hot bed of opportunities for companies that are operating in the truck refrigeration units market.
Increased focus of North American trade agencies, associations, and organizations on developing cold chain networks through an improved regulatory framework, encouraging spending in the development of supporting infrastructure for cold chain networks, and a highly skilled workforce, is favouring market growth.
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Mapping the Truck Refrigeration Units Market Battlefield
The market for truck refrigeration units market is highly consolidated with the top two players, including Carrier Corporation (UTC) and Thermo King Corporation (Ingersoll Rand) collectively accounting for ~70% growth share. Growing number of market enthusiasts and local companies continue to enter into collaboration with the leading market players to seamlessly operate their manufacturing facilities.
Whereas, the market frontrunners are increasingly leveraging advanced technology to develop cost competitive and energy-efficient offerings, to cater to a growing demand from the food and the beverages industry. The established players in truck refrigeration units market have also placed their focus on strengthening their direct presence in the local markets through mergers and acquisitions with regional players.
New, improved and cost-competitive product development is and will continue to remain the key area of focus for the truck refrigeration units market leaders that are vying to gain an extra edge in the market.
For instance, in March 2019, a leading player in truck refrigeration unit market- Carrier Transicold introduced a new truck refrigeration unit named Supra S6, which is specifically designed for small- to medium-sized trucks. Supra S6’s high-performance smart diesel engine complies with the Environmental Protection Agency Tier 4 emissions standard and offers three speeds instead of two to enhance fuel savings.
Truck Refrigeration Units Market - Segmentation
Fact.MR’s study analyzes the truck refrigeration units market on the basis of power, product, vehicle, end use and region. The report also offers comprehensive information about the market dynamics as well as the various trends associated with varying segments, and how they are shaping the growth of the truck refrigeration units market.
By Product :
By Vehicle :
- Light Duty Trucks
- Medium Duty Trucks
- Heavy Duty Trucks
By End Use :
- Fruits and Vegetables
- Meat and Sea Food
By Power :
- Vehicle Powered
- Diesel Powered
By Region :
- North America
- Latin America
- East Asia
- South Asia
- FAQs -
The Vehicle Powered Segment Holds A Dominating Position
Food And The Beverages Industry Drives Most Demand For Global Market