LONDON--(BUSINESS WIRE)--Technavio analysts forecast the global refrigerated road transportation market to grow at a CAGR of more than 26% during the forecast period, according to their latest report.
The research study covers the present scenario and growth prospects of the global refrigerated road transportation (RRT) market for 2017-2021. To calculate the market size, the study considered revenue generated by the refrigerated road transportation vendors.
|The global refrigerated road transportation market is expected to grow to USD 19.56 billion by 2021, with almost 50% of the incremental growth originating from APAC. This region will be both the largest and the fastest growing market, driven by the increasing consumption of fruits and vegetables.|
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Technavio analysts highlight the following three factors that are contributing to the growth of the global refrigerated road transportation market:
- Increasing demand for frozen food products
- Integration of multi-temperature systems in refrigerated trucks and trailers
- Increased requirement for sustainable transportation
Increasing demand for frozen food products
The most important reason behind the growth of the frozen food market is the changing lifestyles and dietary patterns of consumers. Frozen foods are perceived to be extremely nutritious and possess higher percentages of essential vitamins and minerals. Technavio analysts forecast the global frozen foods to grow to USD 255 billion, growing at a CAGR of 4%.
“Frozen foods, such as vegetables, fruits, meat, and pre-cooked meals, needs to be stored at specific temperatures to ensure a long shelf life. To avoid damage or decay during storage and transportation, vendors in the market are integrating their refrigerated units with thermal liners, computer controls, and multi-temperature systems. This is one of the key drivers for the refrigerated road transportation market,” says Sharan Raj, one of the lead analysts at Technavio for transportation and distribution research.
Integration of multi-temperature systems in refrigerated trucks and trailers
With an increase in grocery shopping via e-commerce platforms, a number of vehicles carrying different classes of grocery, which needs different temperatures for storage are increasing. This, in turn, is creating a demand for multi-temperature systems in refrigerated trucks and trailers. The global online grocery market will reach USD 80 billion by 2021, ensuring significant revenue generation for the refrigerated road transport market.
Having a vehicle maintained at one single temperature would prove to be inefficient for businesses as the items to be delivered would have to be separated based on storage temperatures. Therefore, to increase the operational efficiency of the delivery process and to provide high-quality products, manufacturers are integrating refrigerated trucks and trailers with multi-temperature systems.
Increased requirement for sustainable transportation
“The need for sustainable transport is on the rise and is vital for the entire food and beverage cold chain logistics. The primary aim for the manufacturers to switch to sustainable transportation is to reduce the carbon footprint and decrease fuel consumption. Refrigeration transport vendors in the market, such as Safeway, Woolworths, Nisa, and Casino, are shifting to sustainable refrigeration solutions,” says Sharan.
Sustainable refrigeration transport solutions cut up to 20% of the total fuel consumption by using large condenser coils in the design. They use less volume refrigeration units, and nitrogen systems as an alternative to diesel. The ecoFridge Production Company launched an innovative and sustainable refrigeration unit called natureFridge which uses nitrogen-powered systems instead of diesel. Such proactive steps taken by vendors will lead to the growth of this market.
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- Global Perishable Goods Transportation Market 2016-2020
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Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
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