Refrigerated Road Transportation Market size is set to grow by USD 4.36 billion from 2024-2028, rising initiatives to promote cold chain to boost the market growth, Technavio

NEW YORK, June 18, 2024 /PRNewswire/ -- The global refrigerated road transportation market  size is estimated to grow by USD 4.36 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of about 7.3%  during the forecast period.  Rising initiatives to promote cold chain is driving market growth, with a trend towards advances in refrigerator monitoring systems. However, losses due to temperature excursion  poses a challenge. Key market players include AP Moller Maersk AS, Bay and Bay Transportation, C H Robinson Worldwide Inc., Carrier Global Corp., CMA CGM Group, CRST The Transportation Solution Inc., Daikin Industries Ltd., DB Schenker, Deutsche Post AG, FedEx Corp., GAH Refrigeration LTD., Great Dane LLC, Knight Swift Transportation Holdings Inc., Mike Frost Trucking Inc., Unternehmensgruppe Theo Muller, WEL Companies Inc., West Coast Carriers, Witte Bros Exchange Inc., and XPO Inc..

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Key Market Trends Fueling Growth

Refrigerated road transportation companies are increasingly adopting smart refrigerator monitoring systems to enhance control, efficiency, and cost savings. Traditional monitoring systems only allow temperature adjustments and status checks. However, smart systems offer remote access via smartphones, tablets, or desktops. Major players like 75F Inc provide automated monitoring solutions, reducing turnaround time and maintenance costs. These benefits will drive market growth, leading to more vendors integrating refrigerator monitoring systems in the forecast period. 

The Refrigerated Road Transportation market is experiencing significant growth due to the increasing demand for perishable goods. This sector is crucial for maintaining the cold chain, ensuring food safety and reducing food waste. Fuel efficiency and sustainability are key trends in this industry. Companies are investing in advanced technologies like fuel-efficient engines, temperature-controlled trailers, and telematics to optimize their operations. Additionally, the rise of e-commerce and the need for quick delivery of temperature-sensitive products are driving market expansion. Overall, the Refrigerated Road Transportation market is an essential component of the global logistics network, providing efficient and reliable transportation solutions for various industries. 

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Market Challenges

•         Refrigerated road transportation is a critical market segment, particularly for industries dealing with temperature-sensitive goods, such as biopharma. Temperature excursions, a common issue, result in significant losses due to product damage and equipment replacement costs. The biopharma industry alone experiences approximately USD35 billion in annual losses. Temperature fluctuations can lead to product adulteration, rendering it unsellable and negatively impacting both manufacturers and service providers' profitability. Additional labor costs further reduce profit margins, hindering market growth.

•         The Refrigerated Road Transportation market faces several challenges. Fuel costs are a significant concern, requiring continuous optimization of routes and vehicle utilization. Regulations, such as temperature control and food safety, add complexity and increase costs. Technological advancements, like GPS tracking and refrigeration systems, help address these challenges but also require substantial investment. Consumers' increasing demand for fresh produce and perishable goods puts pressure on the industry to ensure timely and efficient delivery. Additionally, competition from alternative transportation methods, like rail and air, necessitates continuous improvement and innovation. Overall, the Refrigerated Road Transportation market must balance cost, regulation, technology, and consumer demand to remain competitive.

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Segment Overview 

This refrigerated road transportation market report extensively covers market segmentation by

1. Type 
• 1.1 Refrigerated trailers
• 1.2 Refrigerated vans
2. Application 
• 2.1 Chilled food
• 2.2 Frozen food
3. Geography 
• 3.1 APAC
• 3.2 North America
• 3.3 Europe
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Refrigerated trailers-  Refrigerated trailers play a crucial role in transporting temperature-sensitive dairy products over long distances. These products, including milk, yogurt, and cheese, are highly perishable and susceptible to microbial growth. Maintaining a low temperature during transportation is essential to preserve their nutritional value and extend their shelf life. The global milk market is projected to grow by 22% by 2030, with significant production increases in APAC, particularly India and Pakistan. This expanding dairy market will drive the demand for refrigerated trailers in refrigerated road transportation.

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Research Analysis

The Refrigerated Road Transportation Market plays a crucial role in the Cold Chain Logistics sector, ensuring the safe and efficient transportation of Perishable Goods, including Dairy Products, Confectionery, and Frozen Foods. Food Safety and Waste Reduction are top priorities in this industry, leading to the adoption of Eco-Friendly Solutions and Sustainability practices. Transport Refrigeration Systems, available in Single Temperature and Multi-Temperature Systems, are essential for maintaining product temperature during transit. Diesel and Electric-powered refrigeration trucks are used extensively in this market. Fast Food Chains and Quick Service Restaurants rely heavily on these systems for the timely delivery of their offerings. Pharmaceutical Items also benefit from refrigerated transport, requiring specific temperature conditions for optimal efficacy. Affordability and Accessibility remain key challenges in the market, driving innovation and technological advancements.

The Refrigerated Road Transportation Market encompasses the transportation of perishable goods using refrigerated trucks. This sector plays a crucial role in ensuring the freshness and quality of food products, pharmaceuticals, and other temperature-sensitive commodities. The market is driven by factors such as increasing consumer preference for fresh and high-quality products, growing demand for refrigerated logistics services, and advancements in refrigerated transportation technology. The market is segmented based on the type of goods transported, including food and beverages, pharmaceuticals, and other temperature-sensitive commodities. The market is also geographically segmented into various regions, including North America, Europe, Asia Pacific, and the Middle East and Africa. The use of advanced technologies such as GPS tracking, temperature monitoring, and real-time inventory management systems is increasing in the market to enhance efficiency and improve customer service. The market is expected to grow at a significant rate in the forecast period due to these factors.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Type
• Refrigerated Trailers
• Refrigerated Vans
• Application
• Chilled Food
• Frozen Food
• Geography
• APAC
• North America
• Europe
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio