A refrigerated truck can be seen as a self-contained unit which is used for the transportation of goods that need a cold environment for storage and even during transportation. Since such products can lose their quality or become inappropriate for use or consumption if not stored in a cold and stable environment, thus adding to the losses for producers or manufacturers, their role in some sectors is very crucial. These types of trucks come with a well-insulated storage compartment, which keeps heat from the external environment from entering the unit, and an advanced refrigeration system which regulates the internal temperature in order to prevent it from going below or above the required temperature. Different types of polymers are used for the process of insulation, and this type of insulation maintains the internal temperature even when the refrigeration goes out temporarily. This offers two-way safety for contents in the truck. From large refrigerated trucks, which are meant for the transportation of huge volumes of temperature-sensitive products, to small refrigerated trucks or vans for small-scale applications, a wide range of refrigerated trucks are available in the market. The transformation across industries, which has been going on for centuries, has been changing various aspects of all key business sectors. From the approaches leveraged by industry players to manufacture goods, to the way these goods are made available to customers, every part of the value chain has witnessed a very significant change since the beginning of this decade. Logistics is one of the parts which have witnessed a high degree of transformation. From finding the right mix of different modes of transportation to choosing the right type of vehicles, many things have changed. These changes are shaping the growth of refrigerated trucks market across the globe.
The market growth can be linked to the disposable income of people. Rising disposable income in many parts of the world, and resultant improvement in people’s living standards, is driving with it the demand for convenience foods and beverages. Growing working population in many countries is increasing the demand for packed foods and beverages among people since these offer high ease of preparation and consumption to them. Growing urban population is also contributing significantly to the rising demand for ready to eat/drink products. The figure given below shows the continuous increase in global urban population:
Global Urban Population, % of Total Population
Source: The World Bank Group
Since many people in urban areas tend to adopt a fast lifestyle, the demand for frozen products among them is increasing continuously. In order to meet this growing demand and to avoid losing market share due to inability or delay in adapting to changing market trends, many food and beverage manufacturers are pumping significantly huge investments into expansion of their portfolio and including ready-to-make or ready-to-eat or drink products in their portfolio. As globalization engine continues to run, global trade of temperature-sensitive and perishable foods and beverages is also increasing at a good rate. Since quality of goods needs to be in line with the standards set for them, cold chain logistics sector is witnessing a good growth. This is driving the demand for refrigerated trucks among manufacturers and some other parts of the supply chain. Increasing number of mergers and acquisitions in cold chain sector indicates good growth and competitive nature of the business sector. Recent acquisition of Newport-St. Paul Cold Storage by Americold Realty Trust in in January 2020 is one example of the M&A activities picking up pace in this sector. Earlier, in November 2019, Emergent Cold got acquired by Lineage Logistics for nearly US$900 million as the company (Lineage Logistics) seeks to expand its footprints into high-growth markets across the Asia Pacific. In the same month Nova Cold Logistics also got acquired by Americold Realty Trust for around US$253 million.
Boost to business activity through mergers and acquisitions like these will continue to drive the demand for refrigerated trucks among customers, thus propelling the market growth.
The market growth is also being driven by rapid growth of chemical and pharmaceutical industry in many parts of the world. Increasing demand for chemicals, for instance, from sectors which are aligned to the chemical industry and use chemicals and other chemical products as raw materials is pushing industry players to pour significant capital investments into the sector. Europe, for instance, holds a significantly strong position in the global chemical industry, and chemical sales by players across this region are complimented by significant capital investments. The figure given below shows the trend:
EU Member Countries Chemical Sales and Capital Spending in Chemical Industry, in Euro Billion, 2008 to 2018
Source: The European Chemical Industry Council
Since growth of the industry is good, players across all key regions are making capital investments in order to capitalize on the market growth potential. China, Japan, the United States and India among others are also witnessing many industry players funnelling fairly heavy capital investments into this sector. This, besides boosting the demand for manufacturing machinery and other machinery and tools, is driving the demand for refrigerated trucks which ensure that manufactured goods reach their customers in the best of their quality. This is increasing the adoption of refrigerated trucks, thus propelling the market growth.
Geographically, the report, titled Global Refrigerated Trucks Market, by Knowledge Sourcing Intelligence, offers in-depth analysis of the market across all key regions, namely North America, South America, Europe, Middle East and Africa, and Asia Pacific. To give a clearer view of the market, these regional markets have been further segmented into countries which account for a significant share in the market.
About the Author:
Dhiraj Kumar Sharma is a Market Research Analyst at Knowledge Sourcing Intelligence. He combines his outright understanding of technologies with years of experience working in the industry to deliver actionable information to clients who span across industries and geographies. Dhiraj often works closely with clients in order to better understand their requirements and is known for the quality of market insights he delivers to them.