The need for convenience food is the driving reason behind the demand for frozen food all over the globe. And to ensure the safe transfer of frozen food, an effective cooling syste...
Refrigerated transportation is a logistics process that involves the transportation of temperature-sensitive perishable goods. It is an integrated component of cold chain logistics and also helps in the management and control of the flow of the cold chain supply process. Refrigerated transportation requires extensive logistics planning to ensure the integrity of the goods transported. A rise in international trade has increased the need for the transportation of perishable products from producers to end-users in distant locations. The introduction of new and innovative methods to manage the SCM improves the effectiveness of logistics according to Research and Markets. Technavio's market research analyst predicts that the global refrigerated transportation market will grow at an impressive CAGR of close to 7 percent during the forecast period. Frozen foods require an efficient cold storage system to ensure that the chemical composition of the food items remains unchanged even after several months. This need for an effective cooling system has led to the refrigerated transport service providers to improve their supply chain efficiency and technology used in cold storage facilities to deliver high-quality foods. Therefore, cryogenics and growing demand for frozen foods are contributing to the high demand for refrigerated transport systems. Thus, growth in the frozen foods segment will positively affect the market for refrigerated transportation until the end of 2020. According to Technavio, Factors like the increased provision of end-to-end integrated services will bolster the growth of this market during the forecast period. Numerous transport service providers offer end-to-end cold chain management services including inventory management, order scheduling, warehousing, and delivery management to their customers. Such vendors also provide disaster recovery services that allow the customers to track consignments and communicate with the entire supply chain efficiently. This recent increase in end-to-end integrated services is expected to propel the global refrigerated transportation market during the forecast period. Need for product-specific refrigerated vehicles is one of the major trends emerging in this market. End-users need product-specific refrigerated vehicles that can prevent food contamination by avoiding cross-product transportation. According to the report by Research and Markets, the growth in the Organized Retail sector and growing demand for frozen food are among the main drivers of the market in the US. Food consumption patterns have changed worldwide and people prefer convenience foods, which require efficient logistics services. Temperature-sensitive food products are part of this changing trend, as these require efficient refrigerated transport services. Further, the report states that government regulations and policies constitute one of the main challenges in this market. The US government has passed several regulations concerning environmental safety because of the increasing emissions of GHGs. Refrigerated vehicle users and service providers are struggling to reduce GHG emissions to comply with the US government's regulations. According to the report by Technavio, during 2015, food segment dominated the global refrigerated transportation market and accounted for more than 46 percent of the market share. Refrigerated containers transport various food items including meat, seafood, milk and dairy products, vegetables and fruits, bakery and confectionary products, grains, and oilseeds. This market segment is mainly driven by the increasing demand for meat and dairy products globally. Since the shelf life of meat and dairy products is short, they need to be stored and handled under proper temperature conditions. With a rise in online food retailers and adoption of Omni channel by consumers, companies are restructuring and adopting new technologies to make fresh food available to their customers. During 2015, North America dominated the refrigerated transportation market with a market share of close to 37 percent. Factors such as an increase in demand for refrigerated products due to busy lifestyle is driving the market in North America. Also, efficient private-public partnerships have enabled significant logistics support for refrigerated transportation service across North America will aid in the growth of the refrigerated transportation market in the region. The global refrigerated transportation market is highly fragmented due to the presence of many regional and international vendors. The local vendors have raised the standard by offering products at reduced prices and innovative packaging solutions. Key vendors in this market are: Carrier Transicold,CMA CGM, GAH Refrigeration, Maersk Line, MSC, and Swift Transportation. Other prominent vendors in the market are Agility, Air Canada Cargo, Avinex Ukr, Bay & Bay, Biocair, Biotec Services, CEVA, Cold Chain Technologies, Continental Air Cargo, CRST International, Culina Group, DB Schenker, FedEx, Frost Trucking, FST Logistics, Green Reefers Group, Hanson Logistics, NYK Line, Seatrade Reefer Chartering, and UPS.