The global cold storage market size was valued at USD 94.02 billion in 2018 and is projected to expand at a CAGR of 12.2% during the forecast period. The market has benefitted significantly from the stringent regulations governing the production and supply of temperature-sensitive products. The industry is poised for unprecedented growth over the forecast period owing to growing organized retail sectors in the emerging economies.
Moreover, rising automation in refrigerated warehouses is projected to boost the demand further. Warehouse automation includes cloud technology, robots, conveyor belts, truck loading automation, and energy management. Refrigerated storage has become an integral part of the Supply Chain Management (SCM) when it comes to transporting and storing temperature-sensitive products.
In addition, growing trade of perishable products is also anticipated to help boost the demand for refrigerated storage solutions over the next few years.
Users and suppliers of temperature-controlled packaging systems are striving to reduce the environmental impact of cold chain shipping. At the same time, rising awareness about formal Corporate Social Responsibility (CSR) policies, stringent government regulations, and changing customer expectations also pose major challenges to the development of a suitable packaging system.
Lack of infrastructure required to sustain the cold chain is likely to pose a major challenge for the companies to expand their businesses in emerging markets. In addition, lack of power hook-ups for reefer trailers at transportation hubs and ports will hinder the market growth in such regions. However, this also opens growth avenues for industry participants to innovate unique solutions or leverage alternative energy sources that can overcome such issues.
Based on the warehouse-type, the cold storage market has been segmented into private & semi-private and public. The public segment led the market, in terms of revenue, in 2018 and is expected to maintain dominance over the forecast period. According to Global Cold Chain Alliance, the public warehouse capacity accounts for around 75% of the gross refrigerated storage capacity in U.S. A public warehouse is operated as an independent business that offers various services, such as handling, storage, and transportation for a fixed or variable fee.
Public warehouses are also known as duty paid warehouses that can be owned by an individual or agency. Private warehouses can also be called as proprietary warehouses. They are constructed and owned by the same enterprise that owns the merchandise stored and handled at the facility. They can be operated as a separate division within an enterprise. They offer greater control over cost, flexibility, and ability to make decisions regarding the overall activities and priorities of the facility.
However, given the massive costs associated with the construction and maintenance of warehouses, only big companies can afford to own and maintain their warehouses. Private warehousing can be done either on an off-site basis or on-site basis. An on-site warehouse is located either at a centralized location or at different manufacturing facilities. On the other hand, an off-site warehouse is located close to the marketing areas and is used to store on-site inventory.
Single-envelope construction technology, a recent development in composite panel construction, is expected to replace the existing methods of constructing warehouses. The new technology can help reduce overall construction time and costs of building material, operation, and maintenance while also ensuring enough flexibility for changing the use in the future. A warehouse built using the single-envelope technology boasts a smaller footprint and lesser height without compromising the internal volume.
The technology also offers flexibility in placing the Heating, Ventilation, and Air Conditioning (HVAC) equipment. The technology is gaining traction in U.K. refrigerated warehouse market. ISD Solutions, a U.K.-based refrigerated storage design, and construction company have adopted this technology to improve its frozen food warehouses. Based on the construction type, the market has been segmented into bulk storage, production stores, and ports.
The production stores segment led the market, in terms of revenue, in 2018 and is expected to maintain its position over the forecast period. The bulk storage segment is anticipated to expand at a CAGR of 11.2% over the forecast period. This type of warehouse is suitable for storing fruits and vegetables in bulk and can be used to extend the availability of the other bulk materials, such as flour, cooking ingredients, and canned goods, protecting them from spoilage and keeping them away from direct sunlight.
The ports segment is also likely to witness significant growth. Constructing refrigerated warehouses near ports can help simplify the customs procedures required for the import and export of temperature-sensitive products. Government initiatives to develop infrastructure for intermodal transportation in emerging economies, such as India and China, are likely to drive the segment growth.
Based on the temperature type, the market has been segmented into chilled and frozen. The frozen segment dominated the market in terms of revenue in 2018 and was valued at USD 75.21 billion. Rising consumption of frozen foods in emerging markets, such as India and China, is particularly driving the frozen food segment. Warehouses falling under this segment maintain their storage temperature in the range from -10 to -20°F. They are used to store frozen vegetables, fruit, fish, meat, seafood, and other products. Warehouses falling under the chilled segment are used to store fresh fruits & vegetables, eggs, dry fruits, milk, and dehydrated foods among others.
Changing consumer preferences toward ready-to-cook meals due to the rising awareness about the convenience and hygiene will boost the frozen segment growth. Moreover, consumers prefer frozen food owing to the ease of use, in terms of packing technique and support for microwave cooking. This is also likely to play a key role in segment development. The proliferation of organized retail chains, including hypermarkets and supermarkets, is also triggering the demand for such products in the emerging economies. However, the lack of refrigeration facilities in retail stores, the presence of several unorganized industry incumbents, and inadequate distribution facilities to serve the rural areas pose major challenges to the frozen food market in these economies.
Based on the application, the industry has been segmented into processed food; dairy; fruits & vegetables; fish, meat, & seafood; and pharmaceuticals. Continued advancements in the packaging of seafood are expected to influence the meat, fish, & seafood segment. The processed food segment is expected to witness the highest CAGR from 2019 to 2025 owing to constant improvements in food packaging materials.
Refrigerated warehouses remain vital for safeguarding food items, such as milk and dairy products, against spoilage. Hence, principles governing the deterioration of food substances due to bacterial growth need to be adhered to while storing dairy products in refrigerated warehouses. The pharmaceutical segment is also projected to witness significant growth over the forecast period.
North America held the largest market share in 2018 and is projected to expand further from 2019 to 2025. The proliferation of connected devices coupled with the presence of a large consumer base is the major factor propelling the region’s growth. Mexico, in particular, is expected to witness exponential growth in North America owing to strengthening the network of warehouses and rising investments in the development of the logistics infrastructure. These would also serve as the key factors stimulating the demand for the cold chain.
Furthermore, economic growth and changes in government regulations in Mexico aimed at streamlining the customs program are expected to accelerate the demand over the coming years. Countries, such as China, are transitioning to a consumer-driven economy. Thus, they are expected to witness considerable growth in the years to come. Advances in warehouse management and refrigerated transportation coupled with government subsidies to develop the cold chain industry are allowing service providers to tap these emerging markets leveraging innovative solutions that can overcome complexities associated with transportation.
Some of the major companies in the 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 (U.S.).
Base year for estimation
Actual estimates/Historical data
2014 - 2017
2019 - 2025
Revenue in USD Billion and CAGR from 2019 to 2025
North America, Europe, Asia Pacific, South America, and MEA
U.S., Canada, Mexico, Germany, U.K., France, Netherlands, China, Japan, India, Singapore, and Brazil
Revenue forecast, company share, competitive landscape, growth factors, and trends
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This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global cold storage market report on the basis of warehouse type, temperature type, construction type, application, and region:
Warehouse Type Outlook (Revenue, USD Billion, 2014 - 2025)
Private & semi-private
Construction Type Outlook (Revenue, USD Billion, 2014 - 2025)
Temperature Type Outlook (Revenue, USD Billion, 2014 - 2025)
Application Outlook (Revenue, USD Billion, 2014 - 2025)
Fruits & Vegetables
Fish, Meat & Seafood
Regional Outlook (Revenue, USD Billion, 2014 - 2025)
Middle East and Africa (MEA)
b. The global cold storage market size was estimated at USD 94.02 billion in 2018 and is expected to reach USD 106.57 billion in 2020.
b. The global cold storage market is expected to grow at a compound annual growth rate of 12.2% from 2019 to 2025 to reach USD 212.54 billion by 2025.
b. North America dominated the cold storage market with a share of 37.71% in 2018. This is attributable to the strengthening network of warehouses and rising investments in the development of the logistics infrastructure in the region.
b. Some key players operating 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 (U.S.).
b. Key factors that are driving the cold storage market growth include low-carbon design, environmental auditing, and crafty construction of cold storage warehouses.
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