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The Cold Chain Market size is forecast to increase by USD 441.18 billion, at a CAGR of 18.04% between 2023 and 2028. The market is experiencing significant growth, driven by various factors. One trend transforming the industry is the increasing use of Radio Frequency Identification (RFID) technology in cold chain logistics for enhanced supply chain visibility and efficiency. Another growth factor is the rising number of mergers and acquisitions (M&A) activities, as companies seek to expand their reach and capabilities. This trend is significantly influenced by the growth of e-commerce, which demands efficient and scalable logistics solutions. However, challenges persist, particularly in developing countries where the lack of proper logistics and transportation infrastructure poses significant hurdles. Addressing these challenges through investment and innovation will be crucial for market expansion and ensuring the delivery of temperature-sensitive goods in a timely and effective manner.
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Refrigerated vehicles, refrigerated storage, and cold storage logistics are essential components of the cold chain infrastructure. Advanced technologies like cloud computing and IoT are being integrated to enhance warehouse management, inventory management, and refrigerated transportation. The digital food industry's growth is also contributing to the market's expansion. Additionally, the pharmaceuticals sector relies on cold chain infrastructure to transport temperature-sensitive medicines. Despite the advantages, cold chain infrastructure faces challenges like spoilage and contamination, which can lead to significant food wastage. To mitigate these issues, energy-efficient technologies and advanced refrigeration systems are being adopted to maintain optimal temperatures and reduce energy consumption. Railroads are also playing an increasing role in transporting refrigerated goods, providing a cost-effective and efficient alternative to road transport.
The increasing number of trade corridors, along with the integration of transport networks between different geographical regions, is a key driver of market growth. These corridors, which often feature integrated infrastructure like railroads and highways, connect cities or countries and stimulate economic development. They yield significant economic benefits, including job creation, poverty reduction, and enhanced economic resilience.
Additionally, various countries and regions are investing in trade corridors, exemplified by initiatives like China's Belt and Road Initiative (BRI). This initiative, resembling the ancient Silk Road, establishes land-sea trade corridors facilitating the transportation of commodities and goods between China and Europe. These developments are expected to fuel market growth in the forecast period.
The growing number of M&A activities is the primary trend shaping market growth. The competition in a fragmented market and rapidly evolving technologies pose significant threats to vendors operating in the market. In recent years, intense competition has led to an increase in the number of strategic alliances and M&A activities. In the face of increasing demand for the cold chain from various end-users, suppliers are opting for M&A activities and strategic alliances to improve their market reach and customer base. Furthermore, intense competition in the market is expected to force incumbents to increase their market presence through these activities.
Additionally, aligned with market trends and analysis, market players are investing heavily in joint ventures and acquisitions to gain a significant share of the market and expand their presence in new regions. Furthermore, the market has seen a significant increase in the number of strategic alliances and partnerships with competitors operating in different geographies and companies providing cold chains. This helps companies to improve operations and expand their geographic footprint. Thus, such factors are anticipated to drive market growth during the forecast period.
Fluctuating fuel prices is a challenge that affects market growth. Fuels such as petrol and diesel are used by cold-chain logistics providers for transportation. These fuels are used to operate vehicles, as well as for powering the refrigeration equipment installed in most vehicles used in cold chain logistics. The fuel is used by the main traction engine, which, in turn, generates power to run an electric motor in the refrigeration unit. Mostly, medium to large vehicles use self-contained refrigeration units, which consist of a self-contained diesel engine. These engines are typically used to transport refrigeration equipment in vehicles.
However, there has been significant volatility in the prices of crude oil, from which petrol and diesel are produced, due to the imbalance in demand and supply chains. Consequently, the fluctuating prices of Brent crude oil will lead to fluctuation in the prices of petrol and diesel, which will impact the profitability of market players. The fluctuation in global crude oil prices adversely impacts the prices of petrol and diesel, which may impede market growth during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market analysis and report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Americold Realty Trust Inc.: The company provides cold chain solutions such as Cold Storage Warehouses for storing perishable goods, maintaining quality, and ensuring safe distribution.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The refrigerated warehouse segment is estimated to witness significant growth during the forecast period. A refrigerated warehouse is a cold storage facility where temperature control products, such as meat, dairy products and pharmaceutical products, are stored to prevent them from decaying. As the import and export of temperature-sensitive products are increasing, there is a growing demand for refrigerated warehouses and transportation facilities. As the demand for refrigerated transportation increases, the demand for value-added services such as product consolidation in the warehouse and repack operations will also increase.
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The Refrigerated warehouse segment was the largest and was valued at USD 100.99 billion in 2018. Further, with the increasing need to preserve food products and reduce food wastage, numerous food producers are opting for cold storage services. This is leading to increased demand for refrigerated warehouses in countries such as the US and Germany. Hence, it is encouraging global players to expand their storage facilities by venturing into M&A activities with regional cold storage service providers. Thus, such factors are expected to drive the growth of the refrigerated warehouse segment of the market during the forecast period.
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APAC is estimated to contribute 33% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Another region offering significant growth opportunities to companies is North America. The North American market is expected to grow due to increased imports and exports of fresh produce and increased online grocery sales. Countries such as the US have become increasingly dependent on imported fruits and vegetables, especially asparagus and avocados, over the past decade. Meat consumption is also increasing in the US as consumers seek to add more protein to their diets. Imports of exotic fruits and vegetables, as well as increased consumption of meat and poultry in the country, have led to an expansion of cold stores near and at ports, as well as at border crossings and major trade gates. These factors will lead to increased revenue for the North American market during the forecast period.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market is a critical segment of the food industry, focusing on the transportation and storage of perishable goods at specific temperatures to maintain their quality and extend their shelf life. Convenience food and protein-rich foods, such as frozen meals and bakery products, are significant contributors to this market. Organized retail stores and retail chains have increased the demand for cold chain infrastructure due to their large-scale operations and the need to reduce food wastage. Trade liberalization and the growth of the foodservice sector have also driven the market. Refrigerated vehicles, cold storage systems, and insulated containers are essential frontend hardware, while backend IT infrastructure, cloud computing, RFID technology, and temperature management systems are crucial for effective operation. Additionally, the transportation of vaccines relies heavily on cold chain systems to ensure their efficacy. Integrating advanced technologies into both frontend and backend processes enhances efficiency and reliability in maintaining the integrity of perishable goods and critical pharmaceuticals.
Perishable items like fruits, vegetables, dairy products, and vaccines require precise temperature control to prevent spoilage and contamination. The rising costs of fuel have led to the exploration of alternative fuels for cold chain transportation. Off-grid storage systems, such as solar-powered cold storage, are gaining popularity. E-commerce and online groceries have added a new dimension to the cold chain market, with the digital food industry and quick-frozen foods becoming increasingly popular. Public health concerns and the need to prevent the spread of harmful pathogens further emphasize the importance of effective cold chain infrastructure. Crop productivity and cross-border commerce are also significant factors influencing the market's growth.
Market Scope |
|
Report Coverage |
Details |
Page number |
173 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 18.04% |
Market growth 2024-2028 |
USD 441.18 billion |
Market structure |
USD Fragmented |
YoY growth 2023-2024(%) |
17.7 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 33% |
Key countries |
US, China, India, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Americold Realty Trust Inc., AP Moller Maersk AS, Burris Logistics Co., Cold Chain Technologies, Congebec Logistics Inc., Deutsche Post AG, FedEx Corp., Frialsa Frigorificos SA de CV, ColdEX Ltd., John Swire and Sons Ltd., Kuehne Nagel Management AG, Lineage Logistics Holdings LLC, NewCold Cooperatief UA, Nichirei Corp., Orient Overseas Container Line Ltd., Snowman Logistics Ltd., Tippmann Group, United Parcel Service Inc., VersaCold Logistics Services, and WH Group Ltd. |
Market dynamics |
Parent market growth analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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