Home Automotive and Transportation Refrigerated Truck Market Size, Value, Demand, Share, Forecast Report, 2031

Refrigerated Truck Market

Refrigerated Truck Market Size, Share & Trends Analysis Report By Type (Light Commercial Vehicle (LCV), Medium Commercial Vehicle (MCV), Heavy Commercial Vehicle (HCV)), By Tonnage Capacity (Less than 10 tons, 10-20 tons, More than 20 tons), By Application (Food and Beverages, Pharmaceuticals, Chemicals, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Report Code: SRAT55610DR
Study Period 2019-2031 CAGR 7.7%
Historical Period 2019-2021 Forecast Period 2023-2031
Base Year 2022 Base Year Market Size USD 4.2 Billion
Forecast Year 2031 Forecast Year Market Size USD 8.1 Billion
Largest Market North America Fastest Growing Market Europe
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Market Overview

The global refrigerated truck market size was valued at USD 4.2 billion in 2022 and is projected to reach a value of USD 8.1 billion by 2031, registering a CAGR of 7.7% during the forecast period (2023-2031). Temperature management is becoming increasingly important to prevent food loss, potential health issues, and the trade of perishable commodities, all essential market drivers for refrigerated truck market growth.

A refrigerated truck, often known as a reefer truck, is a vehicle designed to transport perishable foods and items that require temperature control. Refrigeration units are installed in these trucks to maintain particular temperature settings, preserving the freshness and quality of the cargo throughout the transportation process.

The growing demand for temperature-sensitive items is fueling the global market's expansion. Furthermore, rising consumption of fish, meat, dairy, and other food products and demand for packed ready-to-eat (RTE) meals are boosting market growth due to rising purchasing power and hectic schedules. Furthermore, altering consumer tastes toward frozen food and significant growth in the food and beverage (F&B) business drive the refrigerated truck market share.

Market Dynamics

Global Refrigerated Truck Market Drivers

Growing Demand for Perishable Goods

The rising need for perishable items such as fresh produce, dairy products, and frozen meals is a major driver in the refrigerated truck business. Consumers worldwide want access to fresh and frozen products, fueling the demand for dependable cold chain logistics. The rise of e-commerce, particularly in the food and grocery sectors, has dramatically increased the demand for refrigerated transportation. According to Statista, worldwide online food delivery is expected to reach USD 151.5 billion by 2025, highlighting the growing reliance on cold chain logistics.

Demand for tropical fruits is driven by consumer tastes and the desire for a diverse and fresh diet, generating a market for importation. Furthermore, rising demand for cold chains is projected to propel the market. The Indian cold chain market was worth INR 1,814.9 billion in 2022. By 2028, the market is anticipated to reach INR 3,798.7 billion. Fresh fruit and vegetable consumption worldwide has been gradually increasing. The Food and Agriculture Organization (FAO) reports that global fruit output climbed from 849 million tonnes in 2000 to 1.39 billion in 2019. Also, according to the International Trade Centre (ITC), global fresh fruit and vegetable exports will reach USD 61.6 billion in 2020, demonstrating a consistent increase over the years. The sector will likely see technological and operational advancements to satisfy the expanding cold chain requirements, adding to the continued expansion of the refrigerated truck market trend.

Global Refrigerated Truck Market Restraints

High Initial Investment 

Refrigerated trucks, often known as reefers, contain sophisticated cooling systems that necessitate a larger initial investment. A reefer truck typically costs around Rs 30 lakh. The expense of purchasing refrigerated trucks, particularly those fitted with advanced temperature control systems, can be substantial. In addition, continuing maintenance costs and the requirement for periodic updates add to the financial strain. According to industry statistics, the cost of a new refrigerated truck can range from tens to hundreds of thousands of dollars, depending on criteria such as size, technology, and amenities.

Furthermore, refrigerator trucks consume more fuel and have lesser efficiency than box trucks. The cooling mechanism can also lower the battery's range by over 23 kilometers per charge. This can boost annual running costs by over USD 1,500. These expenditures include the refrigerated unit and the costs of guaranteeing the truck's insulation, adequate temperature control mechanisms, and compliance with regulatory norms. High start-up expenses can operate as a barrier to entry, limiting the involvement of new entrants, particularly small enterprises. Hence, Budget constraints may hinder the introducing of innovative technology and more energy-efficient refrigeration equipment.

Global Refrigerated Truck Market Opportunity

Increasing E-commerce and Online Grocery Shopping

The expansion of e-commerce and the rising popularity of online grocery shopping create a substantial opportunity for the refrigerated truck business. Online merchants and supermarket delivery services frequently use refrigerated trucks to ensure the timely and safe delivery of perishable goods to consumers' doorsteps. As individuals seek frictionless and quick ways to meet their food demands, the COVID-19 epidemic has dramatically expedited the growth of online grocery shopping. Amazon Fresh, Instacart, and Walmart Food, among other major e-commerce platforms and food delivery services, have seen increased demand for online grocery services. Statista reports that worldwide e-commerce revenues reached USD 4.28 trillion in 2020, with forecasts of USD 5.4 trillion in 2022.

In addition, according to a study by Brick Meets Click and Mercatus, online food sales in the United States hit USD 9.3 billion in January 2021, nearly double sales in 2020. The rising reliance on online grocery shopping platforms directly correlates to a demand for refrigerated trucks to convey perishable commodities from distribution hubs to consumers' homes. To satisfy the special requirements of fresh and frozen items, e-commerce platforms invest in robust cold chain logistics, including refrigerated vehicles outfitted with innovative temperature control systems.

The global trend of online grocery shopping will likely increase demand for refrigerated vehicles. The market may seize this opportunity by focusing on innovations that improve the efficiency and dependability of cold chain logistics and satisfy the changing needs of e-commerce platforms and online grocery delivery services. This involves improving temperature monitoring systems, route optimization, and overall supply chain visibility to ensure the smooth transit of perishable items from warehouses to consumers' doors.

Regional Analysis

The global refrigerated truck market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North America Dominates the Global Market

North America is the most significant global refrigerated truck market shareholder and is estimated to grow at a CAGR of 7.3% over the forecast period. The regional refrigerated truck sector is thriving as the demand for frozen food, snacks, and fresh vegetables grows. Among these include changing lifestyles, the growth of e-commerce, rising income levels, and the desire for ease. Furthermore, the United States Refrigerated Truck market had the biggest market share, while the Canada Refrigerated Truck market was the fastest-growing market in North America.

Furthermore, the meteoric rise in online grocery shopping, with forecasts indicating that the US e-commerce business would be worth USD 1 trillion by 2022, has greatly increased demand for refrigerated vehicles. Furthermore, the North American pharmaceutical business, worth more than USD 550 billion, demands a complex web of temperature-controlled logistics, ensuring a steady base for growth.

Europe is anticipated to exhibit a CAGR of 7.8% over the forecast period. According to refrigerated truck market insights, in 2022, the European refrigerated Truck market held a sizable market share. The market is growing due to increased spending in the food service sectors of countries like Germany and the United Kingdom to modernize their cold storage facilities to prevent food waste. Furthermore, the German Refrigerated Truck market had the biggest market share, while the United Kingdom Refrigerated Truck market was the fastest expanding in the European region. Regulatory environments, consumer behavior, and technical improvements shape European market dynamics. The pharmaceutical business in Europe, worth more than USD 280 billion, emphasizes the importance of effective cold-chain logistics.

Meanwhile, the impact on refrigerated logistics is apparent as the European e-commerce market approaches USD 1 trillion by 2028. Stringent EU food safety requirements heighten the demand for top-tier refrigerated shipping. European manufacturers, led by behemoths like Schmitz Cargobull and Lambert, are setting global trends and determining regional preferences. Another pillar of the market is the flow of fresh produce, particularly throughout Europe's length and breadth.

The Asia-Pacific refrigerated truck market is expected to rise significantly during the forecast period. This is due to the region's growing economies, such as China and India. China, the world's largest food exporter, is expected to contribute to the growth of the Asia-Pacific refrigerated transport business. Furthermore, rising government spending in Asian countries to develop the logistics and transportation sectors, an increase in the region's population that consumes frozen foods, and an increase in disposable income are expected to significantly impact the market's expansion in Asia-Pacific. The increased e-commerce penetration in the Asia-Pacific food business will benefit the refrigerated transport market. Furthermore, China's Refrigerated Truck market had the greatest market share, while India's Refrigerated Truck market was the fastest expanding in the Asia-Pacific region.

Report Scope

Report Metric Details
Segmentations
By Type
  1. Light Commercial Vehicle (LCV)
  2. Medium Commercial Vehicle (MCV)
  3. Heavy Commercial Vehicle (HCV)
By Tonnage Capacity
  1. Less than 10 tons
  2. 10-20 tons
  3. More than 20 tons
By Application
  1. Food and Beverages
  2. Pharmaceuticals
  3. Chemicals
  4. Others
Company Profiles Kögel Trailer GmbH & Co.KG Hyundai Translead . Inc. Wabash National Fahrzeugwert Bernard Krone Gmbh & Co.KG China International Marine Containers (Group) Ltd. GRW Tankers and Trailers Lamberet SAS Great Dane LLC Chereau Schmitz Cargobull AG.
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Singapore Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

The global refrigerated truck market is segmented based on vehicle type, tonnage capacity, application, and region.

By vehicle type, the market is further segmented into light commercial vehicles (LCV), medium commercial vehicles (MCV), and heavy commercial vehicles (HCV).

Light Commercial Vehicle (LCV) accounts for the largest share of the market.

Light Commercial Vehicle (LCV)

Light commercial vehicles (LCVs) are typically small to mid-sized trucks built for transporting commodities with lower volume and weight restrictions in the refrigerated truck sector. LCVs are adaptable and can deliver perishable commodities to local companies, grocery stores, and households in urban and suburban locations. In 2022 the light commercial vehicle (LCV) segment dominated the market. This market segment has grown dramatically in recent years. The use of light commercial vehicles to transport frozen and refrigerated items for short-distance delivery is in great demand because of the increased need for home delivery services provided by several online portals. During the pandemic, there was a high demand for light commercial vehicles since many online shops provided delivery services that used these small, light trucks to transport items from one point to another.

Medium Commercial Vehicle (MCV)

Medium Commercial Vehicles (MCVs) are distinguished by their intermediate size and capacity in the refrigerated truck market. They are appropriate for broader applications, including regional and intercity delivery of perishable goods. MCVs provide a good blend of cargo capacity and maneuverability. Factors such as the expansion of retail networks and the necessity for efficient regional distribution all impact the medium commercial vehicle category. Market participants frequently concentrate on improving MCV fuel efficiency and cooling capacities.

Based on tonnage capacity, the market is sub-segmented into Less than 10 tons, 10-20 tons, and More than 20 tons.

10-20 tons influenced the market growth.

10-20 tons

Refrigerated trucks with a tonnage capacity of 10-20 tons are classified as medium-sized. These trucks are adaptable and find use in regional distribution, meeting the transportation needs of enterprises that operate within a certain geographic area. In 2022, the 10-20 tons segment dominated the market. The segment's growth is explained by its scalability and increased demand for food and beverage items. Regional trade patterns, the expansion of retail networks, and the necessity for efficient distribution within a certain geographic area all impact the 10-20-ton category.

More than 20 tons

Refrigerated trucks with tonnage capacities over 20 tons are considered heavy-duty vehicles suitable for long-distance transportation. These vehicles are critical for large-scale distribution on a national or worldwide scale, meeting the needs of complex supply networks. Global trade patterns, cross-border transportation demands, and the requirement for efficient cold chain logistics on a wider scale all influence the more than 20-ton category. Refrigeration technological advancements and fuel efficiency are significant issues for this industry.

The market can be bifurcated by application into Food and Beverages, Pharmaceuticals, and Chemicals.

Food and Beverages generate the most revenue.

Food and Beverages

One of the most common applications for refrigerated trucks is in the food and beverage industry. These trucks transport perishable food commodities such as fresh produce, dairy products, meat, seafood, and frozen goods from production hubs to distribution sites, merchants, and consumers. In 2022, the food and beverage segment led the Refrigerated Truck market. This is due to increased demand for bread, confectionary items, beverages, fresh fruit, and dairy products. Even though this market has reached saturation in rich countries, it is still rapidly expanding in developing countries. The demand for chilled food products is expanding in emerging markets.

Pharmaceuticals

The pharmaceutical industry transports temperature-sensitive medications, vaccines, and biotechnology materials. Maintaining appropriate temperature conditions during transit is crucial to preserving medication efficacy and integrity. Factors influencing the pharmaceuticals area include the rise of the pharmaceutical business, advances in biotechnology, and the requirement for secure and temperature-controlled delivery of medicinal items.

Market Size By Type

Market Size By Type
  • Light Commercial Vehicle (LCV)
  • Medium Commercial Vehicle (MCV)
  • Heavy Commercial Vehicle (HCV)
  • Recent Developments

    Top Key Players

    Refrigerated Truck Market Share of Key Players

    Refrigerated Truck Market Share of Key Players
    Kögel Trailer GmbH & Co.KG Hyundai Translead . Inc. Wabash National Fahrzeugwert Bernard Krone Gmbh & Co.KG China International Marine Containers (Group) Ltd. GRW Tankers and Trailers Lamberet SAS Great Dane LLC Chereau Schmitz Cargobull AG. Others

    Frequently Asked Questions (FAQs)

    What is the market size of Refrigerated Truck Market?
    The global Market of Refrigerated Truck size was valued at USD 4.2 billion in 2022.
    The global Market of Refrigerated Truck growing at a CAGR of 7.7% from (2023–2031).
    The Light Commercial Vehicle (LCV) sector is expected to dominate over the forecast period.
    Kögel Trailer GmbH & Co.KG, Hyundai Translead . Inc., Wabash National, Fahrzeugwert Bernard Krone Gmbh & Co.KG, China International Marine Containers (Group) Ltd., GRW Tankers and Trailers, Lamberet SAS, Great Dane LLC, Chereau, Schmitz Cargobull AG., are the prominent players in the Refrigerated Truck Market.
    Growing Demand for Perishable Goods are some key drivers supporting the growth of the Refrigerated Truck Market.


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