Cold Chain Equipment Market Size, Share & Trends Report

Cold Chain Equipment Market Size, Share & Trends Analysis Report By Equipment Type (Storage Equipment, Transportation Equipment), By Application, By Region, And Segment Forecasts, 2020 - 2027

  • Published Date: Jul, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-4-68038-787-2
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 105

Report Overview

The global cold chain equipment market size was valued at USD 8.38 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 19.0% from 2020 to 2027. Growing demand for frozen food across the globe is primarily driving the demand in the market. Increasing demand for processed food in developing economies, coupled with the focus on reducing wastage of food, is fueling the growth of the market over the forecast period. Factors such as changing food preferences increased spending on food, and increased intake of fresh food have fueled the industry growth.

U.S. cold chain equipment market size

According to the United Nations Food and Agriculture Organization, more than 40% of the food losses occur during processing and post-harvesting, especially in developing countries. This creates a need to establish energy-efficient and sustainable cold storage that can upsurge food supply about 250 million tons or nearly 15%. The cold storage facilities must be well-equipped with storage equipment to support the high food supply. Thus, upsurge in the food demand is boosting the market growth.

The seafood market has witnessed a significant change with the rising demand for a variety of products, such as Scottish crabs, New Zealand oysters, Alaskan black cod, Canadian lobsters, and Japanese lobsters. Along with this, the export of various other seafood, such as flounder, salmon, and halibut, is also increasing from multiple countries, including Norway and Chile. Demand and trade are also surging due to the availability of such products on online grocery shopping portals. As such, the consumer purchase patterns are changing from in-store to online fresh seafood vendors. The online selling of frozen meat, fishes, seafood, pork, ham, and other such foods is increasing considerably, which is likely to fuel the growth of the cold chain equipment market.

North America held the largest share in 2019 owing to the presence of an extensive number of cold storage facilities and equipment providers. The largest players in the cold storage market include Cloverleaf Cold Storage (U.S.), Agro Merchants Group (U.S.), Burris Logistics (U.S.), Americold Logistics LLC (U.S.), and Wabash National Corporation. The cold storage companies extensively focus on expanding and improving their facilities by installing new equipment and frequently upgrading their existing infrastructure. U.S. is the manufacturing hub of storage equipment with the presence of numerous manufacturers, such as U.S. Cooler, Kolpak, and Polar King International, Inc.

In addition, the temperature-controlled transportation boxes are widely used to transport meat, processed food, fresh vegetables, bakery products, and confectionery products. However, the high installation and maintenance cost of the storage and transportation equipment acts as a restraining factor. The affordability is likely to be hampered with the high pricing of cold chain and transportation equipment. In addition, the initial investments required to establish solar-powered cold storage facilities are much higher, but the manufacturers remain keen on investing by giving the long-term benefits, such as minimal operating costs associated with solar-powered cold storage facilities.

Equipment Type Insights

Based on equipment type, the market is broadly classified into storage and transportation equipment. The storage equipment segment held the largest share of more than 70.0% in 2019. The segment is further segmented into on-grid and off-grid. The on-grid segment includes walk-in coolers, walk-in freezers, ice-lined refrigerators, and deep freezers. Although the on-grid segment held more than 80.0% share of the overall revenue in 2019, the cold chain equipment manufacturers are also making an early foray into the off-grid storage equipment. The walk-in freezers segment led the market and accounted for more than 40.0% share of the global on-grid equipment revenue in 2019. This is attributed to the high demand for cold storage solutions to store raw, cooked, and processed food coming from the food factories.

The off-grid segment is anticipated to witness steady growth over the coming years. This is due to a high emphasis on the prevention of increasing food losses during the processing and post-harvesting stages in developing countries. Furthermore, the government’s growing interest in promoting off-grid storage equipment, such as solar chillers, milk coolers, and solar-powered cold boxes, in developing countries will increase the demand for off-grid solar energy-based storage equipment. Various government authorities are trying to encourage innovation and attract investments in the off-grid equipment. For instance, the U.K. Department of International Development is funding “Ideas to Impact,” a research program aimed at identifying and promoting sustainable, energy-efficient, and cost-effective technologies that can meet the cold storage requirements.

Application Insights

The market is segmented into various applications, such as fruits and vegetables, fruit and pulp concentrates, dairy products, fish, meat and seafood, pharmaceuticals, processed food, bakery and confectionaries, and others. The fish, meat, and seafood application led the market and accounted for more than 20.0% share of the global revenue in 2019. This is attributed to rising volumes of meat products, including chicken and beef, which are increasingly being exported from the U.S. and Brazil. As meat products are prone to natural, continuous, and irreversible bio-physiochemical changes, they need to be stored at a suitable frozen temperature range during its transit and storage. As such, demand for cold chain storage and transportation equipment is very high in the fish, meat, and seafood application.

Global cold chain equipment market share

The processed food segment is anticipated to expand at the highest CAGR over the forecast period due to rising global consumption of various processed food products, including canned meat, canned beans, jams and pickles, chocolate bars, and other food items. Moreover, major e-commerce giants in the country are increasingly making efforts to upgrade and create efficient logistics infrastructure owing to increasing demand for chilled and frozen food products. The e-commerce players are focusing on building a reliable network of distribution channels and delivery systems to maintain their supplies of fruits, seafood, and frozen food products fresh, along with boosting their sales.

Regional Insights

North America dominated the market and accounted for over 45.0% share of global revenue in 2019 and is anticipated to maintain its lead over the forecast period. This is attributed to the significant fragmentation of cold storage and cold chain equipment companies in North America. Moreover, factors such as rising disposable income, increasing population, and regulatory initiatives towards food safety during storage and transportation are expected to drive the market during the forecast period. Increasing demand for fresh meat, seafood, and vegetables is further anticipated to boost the regional market growth.

Asia Pacific is expected to expand at a CAGR of 22.2% from 2020 to 2027. This is attributed to the increased transit of temperature-sensitive pharmaceutical products and drugs in and out of the region owing to the COVID-19 pandemic. Moreover, the expansion of the food industry in the region is anticipated to fuel market growth. Followed by Asia Pacific, numerous developing countries in South America and Middle East and Africa are witnessing a high demand for off-grid storage equipment. As such, these regional markets are expected to witness the highest growth from 2020 to 2027.

Key Companies & Market Share Insights

The market is highly fragmented with the presence of numerous local companies, especially in North America. Along with cold storage equipment manufacturers, there are multiple large-scale cold storage facility operators across the globe owing to which the market is growing at a significant pace. The industry participants are focusing on market expansion, partnerships, and mergers & acquisitions to stay ahead of the competition. For instance, in April 2019, Americold Logistics LLC entered into a partnership with Chiller Holdco, LLC (U.S.), a cold storage provider in the U.S. This agreement is expected to enhance the position of Americold Logistics LLC as one of the leading operators of temperature-controlled infrastructure.

Moreover, in May 2019, Lineage Logistics announced the acquisition of Preferred Freezer Services, LLC (U.S.). With this acquisition, both the companies feature the largest temperature-controlled facility network across the globe. In addition, Lineage Logistics would become the logistics partner for both small and large food retailers and producers across the world. Some of the prominent players in the cold chain equipment market include:

  • Blue Cold Refrigeration Pvt. Ltd.

  • Bry-Air

  • Everidge, Inc.

  • Hengel Industrie

  • Henry Schein, Inc.

  • Kolpak

  • Modern Ice

  • Polar King International, Inc.

  • Thermo Fisher Scientific

  • U.S. Cooler

Cold Chain Equipment Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 10.02 billion

Revenue forecast in 2027

USD 33.89 billion

Growth Rate

CAGR of 19.0% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Revenue in USD million and CAGR from 2020 to 2027

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments Covered

Equipment type, application, region

Regional scope

North America; Europe; Asia Pacific; South America; Middle East & Africa

Country scope

U.S.; Canada; Mexico; U.K.; Germany; France; China; India; Japan; Brazil

Key companies profiled

Blue Cold Refrigeration Pvt. Ltd.; Bry-Air; Everidge, Inc.; Hengel Industrie; Henry Schein, Inc.; Kolpak; Modern Ice; Polar King International, Inc.; Thermo Fisher Scientific; U.S. Cooler

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Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis on the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global cold chain equipment market report based on equipment type, application, and region:

  • Equipment Type Outlook (Revenue, USD Million, 2016 - 2027)

    • Storage Equipment

      • On-grid

        • Walk-in coolers

        • Walk-in freezers

        • Ice-lined refrigerators

        • Deep freezers
      • Off-grid

        • Solar Chillers

        • Milk Coolers

        • Solar powered cold boxes

        • Others (solar refrigerators and products related to solar panels)

    • Transportation Equipment

  • Application Outlook (Revenue, USD Million, 2016 - 2027)

    • Fruits & Vegetables

    • Fruits & pulp concentrates

    • Dairy Products

    • Fish, Meat, & Seafood

    • Processed Food

    • Pharmaceuticals

    • Bakery & Confectionaries

    • Others

  • Regional Outlook (Revenue, USD Million, 2016 - 2027)

    • North America

      • The U.S.

      • Canada

      • Mexico

    • Europe

      • The U.K.

      • Germany

      • France

    • Asia Pacific

      • China

      • Japan

      • India

    • South America

      • Brazil

    • Middle East & Africa

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