Report: Increased trading of perishables attributed to growth of refrigerated transport market
The integration of multi-temperature systems is further expected to create growth opportunities for refrigerated transport service providers and frozen and chilled food product manufacturers.
The growth of the refrigerated transport market is attributed to the increased trading of perishable commodities at a global level, according to a report released by MarketsandMarkets, New York. Apart from this, technological advancements in refrigerated systems, such as the production of technologies to reduce environmental impact, are further expected to enable ease of operations for refrigerated transport service providers. The integration of multi-temperature systems is further expected to create growth opportunities for refrigerated transport service providers and frozen and chilled food product manufacturers. However, the market is marred by challenges such as difficulty in handling products during transportation, lack of infrastructure in emerging countries and rising fuel costs.
The rising demand for chilled and frozen products, especially in the emerging Asia Pacific region, is expected to fuel the growth of the refrigerated transport market. Furthermore, local government expenditure for infrastructure development in countries such as China and India is further expected to boost the development of refrigerated transport services in this region. In other words, growth of the refrigerated transport is directly proportional to its growth in terms of population. Growth is estimated to be higher in developing countries such as India and China, where the number of refrigerated vehicles is lower than that in developed countries, based on requirement. Rising income levels in these countries also results in the growth of the organized retail sector, which requires refrigerated transport to source temperature-sensitive raw materials.
Technological innovations and advancements in refrigerated systems and equipment
Advancements in refrigerated transport technology have led to improved food safety and reduced food waste, energy consumption and environmental impact.
Monitoring software, which evaluates temperature, humidity, oxygen, carbon dioxide and ozone levels and provides real-time readings of each parameter through satellites or GSM and transmits the information to service providers, are shaping the future of the refrigerated transport market.
Regional dynamics in the refrigerated transport market
The Asia Pacific region is expected to dominate the refrigerated transport market thanks to the expansion of fast food chains in the region. Apart from this, consumers are opting for ready-to-eat/cook food products. Additionally, factors such as an increase in the number of local refrigerated transport service providers and government initiatives promoting infrastructure development further smoothen the refrigerated transport services in this region.
Developing countries such as India and Brazil are expected to create lucrative opportunities for the growth of frozen and chilled food manufacturers and service providers of refrigerated transport in coming years.
The usage of refrigerated transport is high in North America, as the region is backed by a well-established infrastructure along with high consumption of frozen and chilled food products in the region. Government initiatives to develop infrastructure facilities in the developing countries are expected to fuel the demand for refrigerated transport services in these countries.
The North American region is one of the key markets, with robust infrastructure, distribution and transportation systems driving the growth of light commercial vehicles in the region. In Europe, there has also been an increase in the demand for light commercial vehicles.