Refrigerated warehousing and trucking sectors are expected to experience double-digit growth in the coming years.
According to a recent report by Allied Market Research, the refrigerated warehousing industry accounted for $129.80 billion in 2021. The segment is expected to reach $412.90 billion by 2031, improving at a compound annual growth rate (CAGR) of 12.5 percent. On the refrigerated truck (reefer) side of the equation, a Market Research Future report indicates an 11.80-percent CAGR rate is expected to result in upwards of $13.9 billion in growth by 2030. These global figures point to higher demand for owner-operators and fleets running reefers.
“The global market for refrigerated trucks has registered a massive surge in the growth rate in the last few years. The major aspect causing an upsurge in the market’s growth is the growing consumer demand for packaged food,” according to the Comprehensive Research Report by Market Research Future. “The growing per capita consumer spending on frozen food across several developed countries catalyzes the demand for refrigerated trucks worldwide. Furthermore, the rapid growth in the pharmaceutical and medical industries across the globe is also projected to boost the market’s growth over the coming years.”
The study released by Allied Market Research highlights other driving reasons why the reefer sectors could surge. Restaurants and operations that sold or distributed refrigerated and frozen goods were negatively impacted by the pandemic. States with stringent lockdowns closed restaurants, ice cream shops, and others, hampering refrigerated warehouse demand. With those forces no longer tamping down demand, transportation has resumed and demand runs high.
Freight rates in the reefer segment averaged $3.04 per mile during June and into mid-July, with the Midwest averaging $3.16 and the Northeast coming in at a low $2.61. Southern states have the highest demand year-over-year. Average flatbed rates over the same period were higher at $3.35 per mile in July but dipped by $.06 from June. The Southeast posted the highest rate at $3.68 per mile, with the lowest average located in the West at $2.89. But experts anticipate the U.S. experiencing the highest reefer demand.
“The North American Region will lead the global refrigerated truck market over the forecasted timeframe. The U.S. is the top revenue pocket across the regional market. The country is the major driver operating behind the larger expansion of cold chain transportation across the globe. The major aspect driving the regional market’s growth is the adoption of refrigerated trucks in national and international fast-food chains across the Region,” according to the Comprehensive Research Report.
Truckers and freight carriers may be surprised to learn the U.S. has less than 500,000 reefer trailers on the road and only about 70,000 are purchased annually. Reports also estimate the U.S. reefer niche to spike by at least $5 billion over the next three years.
Sources:
https://www.globenewswire.com/en/news-release/2022/07/07/2475591/0/en/Refrigerated-Truck-Market-Worth-USD-13-9-Billion-by-2030-at-11-80-CAGR-Report-by-Market-Research-Future-MRFR.html
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