The Cold Chain Logistics is Booming
Global truck refrigeration units market is envisaged to register a volume CAGR of ~4.5% through 2029. While the international trade continues to expand at an unprecedented pace, perishable foods, drug & chemicals are increasingly being traded and transported worldwide. The 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 transport food, as pharmaceuticals has 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, refrigerated transportation industry is proliferating and rapidly impacting the 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 the recent years. Fact.MR analysis estimated that the sales of truck refrigeration units reached ~US$ 1,045 Mn in 2018.
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.
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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 vapor 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.
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.
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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 a 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 network through improved regulatory framework, encouraging spending in the development of supporting infrastructure for cold chain networks, and highly skilled workforce, is favoring market growth.
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.
An Adaptive Approach to Modern-day Research Needs
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.
Truck Refrigeration Units Market Report: Introduction
The latest business report published by Fact.MR studies the historical and current state of ‘Global Truck refrigeration units Market’ to accurately gauge its future growth prospects.
It includes detailed information about the drivers, drawbacks, and compelling trends that are shaping the progress prospects of the truck refrigeration units market to find out the future opportunistic potential of the stakeholders in the forthcoming years. The report also sheds light on the growth trajectory of the truck refrigeration units market for the forecast period, 2019-2029.
The report presents incisive insights pertaining to the various aspects and nuances of the truck refrigeration units market to assist the market stakeholders form winning strategies.
Fact.MR’s study report also offers significant information related to the vital changes that are estimated tp shape or disrupt the growth pattern of the truck refrigeration units market during the projection period. The report also offers projection statistics about the truck refrigeration units market growth in terms of value (US$ million) and volume (units).
The report covers a detailed taxonomy of the truck refrigeration units market and valuable insights related to the market competitive structure. It also covers company profiles of the companies that are leading the growth path in the truck refrigeration units market, wherein, various unique and winning strategies leveraged by these stakeholders have been provided in a comprehensive way.
What are the Key Questions Answered in Fact.MR’s Report on Truck Refrigeration Units Market?
The report offers actionable insights pertaining to the truck refrigeration units market based on a detailed research on key factors that are playing a significant role in shaping the growth of the market.
The information presented in the report answers to the various questions related to the market growth and dynamics to enlighten the currently operating firms and the companies that are looking forward to penetrate in the truck refrigeration units market. Such strategies will help the companies design and implement smart strategies to take business-driving decisions.
- How the sales of chiller truck refrigeration units shape the growth of the market in 2018.
- How market leaders are formulating strategies to cash in on the attributes of truck refrigeration units?
- What will be the Y-o-Y growth of truck refrigeration units market between 2020 and 2021?
- What are the unique development strategies of market frontrunners in the truck refrigeration units market?
- What was the market share of diesel powered truck refrigeration units in 2018?
- What rate of ROI can truck refrigeration units’ manufacturers expect from its growing applications for transporting dairy products in the next couple of years?
Research Methodology – Truck Refrigeration Units Market
The research methodology followed by the analysts at Fact.MR while formulating the truck refrigeration units market report was based on a detailed research performed with the help of primary as well as secondary resources.
Fact.MR analysts dug deep into the industry-validated information obtained and proved by legitimate resources, and mentioned valuable insights and genuine forecast of the truck refrigeration units market.
During the primary research phase, analysts conducted various interviews of credible sources, including C-level executives, brand managers, regional managers, investors, industry players, raw material suppliers, vice presidents, and sales & marketing managers.
Based on the information received through the interviews of validated resources, analysts offered information related to the development landscape of truck refrigeration units market.
As a part of the secondary research, analysts assessed various annual report publications, research publications, white papers, numerous industry association publications, a series of case studies, and company website to obtain the much needed understanding of the truck refrigeration units market.
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Is the market research conducted by Fact.MR?
Yes, the report has been compiled by expert analysts of Fact.MR, through a combination of primary and secondary research. To know more about how the research was conducted, you can speak to a research analyst.
What research methodology is followed by Fact.MR?
Fact.MR follows a methodology that encompasses the demand-side assessment of the market, and triangulates the same through a supply-side analysis. This methodology is based on the use of standard market structure, methods, and definitions.
What are the sources of secondary research?
Fact.MR conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request.
Who are the respondents for primary research?
Fact.MR speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, and industry experts. For a full list of primary respondents, please reach out to us.
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