Reefer Container Market Size, Share, Industry Analysis, Trends, Growth, 2032

Reefer Container Industry Prospective:

The global reefer container market size was worth around USD 9.33 billion in 2023 and is predicted to grow to around USD 20.09 billion by 2032 with a compound annual growth rate (CAGR) of roughly 8.90% between 2024 and 2032.

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Reefer Container Market: Overview

A reefer container is also known as a refrigerated container. It is a shipping structure or can also be termed an intermodal container with main applications in freight transport through multiple modes. It is used for transporting temperature-sensitive goods such as food items and fruits. Reefer containers can manage between a temperature range of −65 °C up to 40 °C. Refrigerated containers contain an in-built refrigeration system. They are powered by external power either generated from a quay, a container ship, or a land-based electrical power point. In the case of reefer containers on the road, the entire unit is powered using diesel-powered generators that are attached to the containers while moving from one location to another.

Certain reefer containers are also equipped with a water-cooling system which is generally stored below the deck of the vehicle. Most reefer containers run on a combination of air and water-cooling systems and the demand for reefer containers running on water cooling systems alone is registering a decline. Highly sensitive cargo is mostly transported in a system that also contains a redundant refrigeration system which is made of backup refrigeration units and the primary reefer unit. The growing construction of new trade routes has affected the demand for efficient reefer containers. During the projection period, the industry for reefer containers is projected to grow rapidly.

Key Insights:

• As per the analysis shared by our research analyst, the global reefer container market is estimated to grow annually at a CAGR of around 8.90% over the forecast period (2024-2032)
• In terms of revenue, the global reefer container market size was valued at around USD 9.33 billion in 2023 and is projected to reach USD 20.09 billion by 2032.
• The market is projected to grow at a significant rate due to the growing construction of new trade routes
• Based on industry segmentation, the food segment is expected to dominate the global market during the forecast period.
• Based on transportation mode segmentation, the seaways segment is projected to swipe the largest market share.
• On the basis of region, Asia-Pacific is growing at a high rate and is projected to dominate the global market.

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Reefer Container Market: Growth Drivers

Growing construction of new trade routes to drive the market demand

The global reefer container market is expected to grow due to the rising construction of new trade routes across the globe. The rising levels of consumerism and the growing need to perpetually improve trading routes for faster and cost-effective transportation of freight have led to higher investments in the construction of new trading routes. For instance, as per the latest reports, China is currently building a new deep-water port that will provide the country with direct access to the resource-rich region of South America. The Silk Road mega project is worth USD 3.5 billion and upon operation, it will become the first port in South America to be controlled by China.

In November 2023, it was reported that Mexico was building a new railway line to compete with the Panama Canal. The 300-kilometer-long railway line is being built on an investment of USD 2.85 billion and will offer over 3000 direct and indirect jobs. Apart from the construction of new trade lines across borders, more investments are also being observed in the regional construction of new commercial pathways. Infrastructure development has become a key aspect of overall economic growth for all countries. These development projects also include the construction of time-saving commercial roads that will prove helpful in moving goods from one point to another within the region.

In February 2024, the New South Wales South Coast Road corridor was announced to reach a new milestone in the coming years with the beginning of the construction of the Jervis Bay Road Intersection Project in Australia. The Australian government is set to invest AUD 100 million with the New South Wales (NSW) government investing AUD 64 billion. Such initiatives have led to an increase in the demand for reefer containers as they are highly efficient units that safely transport sensitive goods from one location to another.

Rising demand in the pharmaceutical sector will fuel the industry revenue systems

The demand for reefer containers in the pharmaceutical sector has grown tremendously. COVID-19 propelled further the need to develop a robust infrastructure system for the supply of temperature-sensitive medicines in a limited time. International healthcare agencies such as the World Health Organization (WHO) and the United Nations Children's Fund (UNICEF) announced a joint statement in 2020 stating the need for greater health commodity supply chain integration, especially for temperature-sensitive pharmaceutical products. Such measures are likely to impact the revenue streams in the global reefer container market.

Reefer Container Market: Restraints

High cost of constructing and maintaining reefer containers may limit the market expansion rate

The global industry for reefer containers is expected to be restricted due to the high cost of constructing and maintaining the containers. These units are built using advanced technology and contain sophisticated electrical components. Additionally, as the equipment technology becomes richer, the cost is likely to increase.

For instance, as per market research, the average expense associated with buying a 40-foot reefer container can be around USD 8000. The cost-efficiency index of the containers may come into play. If the return on investment is lower, the high initial cost may not be justified thus limiting the number of players in the industry.

Reefer Container Market: Opportunities

Increasing engineering improvements in reefer container technology will generate high-growth opportunities

The global reefer container market has high growth opportunities in the form of ongoing improvements in reefer technology. The addition of new solutions in the market along with the growing consumer awareness will benefit the industry in the long run. In February 2024, WEC Lines, a Netherlands-based port line, announced its entry into the refrigerated container market with the addition of modern reefers. The port authorities have added 50 units of 45ft High-Cube Pallet-Wide refrigerated containers thus proving the company’s commitment to provide comprehensive transport solutions to the clients. The move came as a result of increasing demand for reefer containers across critical industries.

In March 2024, Seatrade launched Seatrade Chile. It is the first specialized reefer container vessel in a series of 6 similar vessels. It has 640 reefer plugs and is also equipped with an additional power generator thus creating improved facilities for transportation using reefer containers.

Rising use of reefer containers in the growing e-commerce segment will be helpful in generating high revenue

The global e-commerce industry is registering surging revenue. The rising trend of online shopping is driven by factors such as consumer convenience offered by the industry players and the wide range of product options available online. Movement of temperature-sensitive products through the e-commerce sector is made easy using the products available in the global reefer container market.

Reefer Container Market: Challenges

Risk of inaccurate readings could challenge the market expansion rate

The global industry for reefer containers faces challenges in terms of the risk associated with the failure of the electrical components of the containers. In case a container malfunctions, it may show inaccurate readings leading to the stored goods being damaged. In addition to this, even though the containers are large in size, the real available space for goods storage is limited since most of the space is occupied by the electrical components needed for keeping the unit operational.

Reefer Container Market: Segmentation

The global reefer container market is segmented based on industry, size, transportation mode, and region.

Based on industry, the global market segments are chemical, pharmaceutical, and food. In 2023, the highest growth was observed in the food sector. During the projection period, the same trend can be expected. The growing demand for vegetables, fruits, and meat products is the leading growth propeller. Additionally, the growing investments in globalizing the food sector will be beneficial for the segmental growth rate. The global food & beverages industry is currently valued at over USD 1 trillion.

Based on size, the global reefer container industry is segmented into more than 40 feet, 40 feet, and 20 feet.

Based on transportation mode, the global market is segmented into roadways, railways, and seaways. In 2023, the most dominant segment was seaways. As per the International Maritime Organization (IMO), 90% of the world’s white goods trade is carried through waterways. Oceans and seas offer cost-effective and efficient modes of transport. The growing construction of new ports will further propel the segmental demand.

Reefer Container Market: Report Scope

Reefer Container Market: Regional Analysis

Asia-Pacific to register a significant growth rate during the projection period

The global reefer container market will be dominated by Asia-Pacific during the forecast period. The region is home to several large-scale ports. Singapore is the world’s leading nation in terms of the maritime industry. The regional growth is a result of the advanced maritime technology installed at the ports. In May 2023, Myanmar witnessed the inauguration of a new port backed by India. In November 2023, the India Shipping Ministry announced its plans to commence the construction of the first phase of the international trans-shipment port which will be built in the Great Nicobar Island at Galathea Bay.

In addition to this, the region is witnessing a high rate of innovation in reefer container technology. In February 2024, Tokyo-based Ocean Network Express (ONE) launched a trial for the world’s first dual-temperature refrigerated container. The launch is in association with NAX Japan and Pan Pacific International Holdings Inc. (PPIH). It is also equipped with Controlled Atmosphere (CA) functions. In February 2024, Sumitomo Corporation and Orient Overseas Container Line Limited (OOCL) announced a partnership offering refrigerated ocean transport using electric field technology. The novel technology will ensure the freshness of the commercial products over longer hours.

Reefer Container Market: Competitive Analysis

The global reefer container market is led by players like:

• Carrier Transicold
• Maersk Container Industry (MCI)
• Klinge Corporation
• Daikin Reefer
• Hyundai Translead
• China International Marine Containers (CIMC)
• Klinge Corporation
• Thermo King Corporation
• Singamas Container Holdings Limited
• TITAN Containers A/S
• Dong Fang International Container (Hong Kong) Co. Ltd.
• SeaCube Container Leasing Ltd.
• Mitsubishi Heavy Industries Thermal Systems Ltd.
• Blue Star Refrigeration Ltd.
• Klinge Corporation.

The global reefer container market is segmented as follows:

By Industry

• Chemical
• Pharmaceutical
• Food

By Size

• More than 40 Feet
• 40 Feet
• 20 Feet

By Transportation Mode

• Roadways
• Railways
• Seaways

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa