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08 January 2020

The Global Refrigerated Transport Market to Reach USD 21.6 Billion by 2025

Refrigerated Transport Market by Application (Chilled food and Frozen food), Mode of Transportation (Road, Sea, Rail, and Air), Vehicle Type (LCV, MHCV, and HCV), Temperature (Single and Multi-temperature), Technology, and Region - Global Forecast to 2025


According to MarketsandMarkets, the global refrigerated transport market is estimated to be valued at USD 15.5 billion in 2019 and is projected to reach USD 21.6 billion by 2025, recording a CAGR of 5.8% from 2019 to 2025. The growth of the refrigerated transport market is attributed to the increasing trade of perishable commodities at a global level, as lower tariffs enable ease of cross-border movement of perishable goods. In addition, technological advancements in refrigerated systems, particularly technological solutions introduced by refrigerated transport service providers for reducing the environmental impact, are projected to enable their ease of operations. Integration of multi-temperature systems is further projected to create growth opportunities for refrigerated transport service providers and frozen & chilled food product manufacturers. However, the market growth is projected to remain hindered due to challenges such as the maintenance of products during transportation, lack of infrastructure in emerging countries, and rise in fuel costs.

Refrigerated Transport Market

On the basis of frozen food products, the fish & seafood segment accounted for the largest share in the refrigerated transport market in 2018

On the basis of frozen food products, the refrigerated transport market is segmented into bakery products, ice cream, processed meat, frozen dairy products, and fish & seafood. The fish & seafood segment accounted for the largest share in 2018. The market is projected to witness high growth prospects in the fish & seafood segment during the forecast period. Manufacturers are offering frozen and canned food options that promote longer shelf life. Fast-paced lifestyles have led to an increasing preference for home delivery services, as it significantly reduces the cooking time. These factors are projected to create lucrative opportunities for frozen fish & seafood manufacturers and refrigerated transport service providers in the coming years.

By vehicle type, the LCV segment accounted for the largest market size in the refrigerated transport market during the forecast period

The refrigerated transport market is segmented, on the basis of vehicle type, into LCV, MHCV, and HCV. The LCV segment is estimated to dominate the market in 2019 and is projected to grow at the highest CAGR during the forecast period. The growth of the LCV segment is driven by factors such as high demand for home delivery services and developments in the foodservice industry and food processing sector. The demand for refrigerated LCV is further driven by the increase in delivery of dairy products and pharmaceuticals by vans for short-distance transportation. Moreover, factors such as the availability of easy finance options for fully built vehicles will contribute to the increase in the sales of refrigerated LCVs.

Refrigerated Transport Market

Asia Pacific is projected to account for the largest market share during the forecast period

In 2019, Asia Pacific accounted for the largest share in the refrigerated transport market. The growth of the market is attributed to the increasing investments by governments in this region for transportation infrastructure development projects related to highways, railway, and airport constructions. For instance, the Chinese government significantly invested in its transport infrastructure in 2018. In the first 11 months of 2018, the country spent USD 328 billion, according to the government data. The Chinese transport ministry is also focusing on speeding up the construction of logistics hubs for transport and storage in the country. These factors are projected to drive the refrigerated transport market in the region.

Key Market Players

Key players (food & beverage) in refrigerated container market include General Mills (US), Conagra Foods (US), Kraft Heinz Company (US), Nestle (Switzerland), Associated British Foods (UK), Kerry Group (Ireland), Unilever (UK), Mccain Foods Limited (Canada), Samworth Brothers Limited (UK), and Iceland Foods Ltd. (UK). These players have opted for different organic and inorganic strategies to increase their market share. Nestle, one of the major players in the market, adopted a well-established distribution strategy, which made it possible to deliver products in both the urban and rural markets. It adopted various strategies such as acquisitions, expansions & investments, new product launches, and agreements in the frozen and chilled foods segment, which increased the usage of refrigerated transportation. In addition, with the increasing preference for on-the-go food products, the demand for chilled and frozen food is projected to increase, which in turn, helps the company increase its sales.


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