Nearly 98,000 refrigerated trucking units were sold last year, and sales are expected to expand within the next 10 years for the cold chain.
The use of reefers for the transportation of fresh produce is envisaged to account for substantial market share this year, accounting for 40% of overall sales through 2029.
A recent study found that the demand for highly perishable foods has been growing at an unprecedented pace, prompting food and beverages companies to strengthen their cold chain. Demand has since increased for proper transportation refrigeration infrastructure, while creating a window of opportunities for the market players.
In light of demand, chillers have seen a significant demand over freezers, the report found. Chillers' demand was driven primarily by the growing global meat production, which is anticipated to be 16% higher in the next five years. As per the study, higher meat and sea food production will create and increased demand for refrigeration transportation, which is projected to create innumerable opportunities for the market players in the forthcoming years.
Meanwhile, light duty vehicles will continue to remain the bedrock of sales of truck refrigeration units, owing to the increasing demand for smaller size vehicles for in-city product transportation.
According to the study, light-duty vehicles accounted for nearly 46% market volume share last year, and their sales are likely to reach 46,862 units in 2019. The demand for light-duty vehicles coincides with the rising population, coupled with smaller lane sizes in developed regions.
While the demand for light weight duty vehicles will continue to pick pace, medium size trucks are also expected to grow at a volume CAGR of 4.4% as well.
Moreover, as per the analysis the adoption of vehicle powered truck refrigeration units continues to grow at a steady pace, whereas high cost diesel powered variants are increasingly losing their attractiveness. The adoption of vehicle powered truck refrigeration units reached 61,129 units in 2018, and is likely to account for 60% market share in 2019.
The research found that the proliferating agriculture sector in the developing regions has been creating an increased demand for proper transportation as well.
The fruits and vegetables sector will remain a considerable mine of opportunities for stakeholders that are aiming to expand their business and extend their reach in the rapidly developing regions.
The traction for truck refrigeration units continues to pick pace in line with the rapidly growing cold chain industry and increasing demand for quality-ensuring packaged foods.