Reefer Container Market Report (2024 - 2030) - Size and Share Analysis, Industry Trends, and Growth Forecasts

Reefer Container Market Overview

The global reefer container market was 4,004.7 thousand twenty-foot equivalent units (TEU) in 2023, which is expected to reach 7,142.8 thousand twenty-foot units by 2030, progressing at a CAGR of 8.8% during 2024–2030. This is attributed to the increasing demand for pharmaceutical drugs across the world, the rising number of trade routes, the growing e-commerce industry, and the development of real-time tracking technology.

The pharmaceutical industry has witnessed a boom in recent years, with key players expanding their customer base globally. Most pharmaceutical drugs are temperature sensitive and are required to be stored and transported under a temperature-controlled environment, in order to maintain their efficacy along with other properties.

Moreover, an increase in the number of trade routes has led to a rise in the demand for reefer containers. As consumers around the world seek access to a wider variety of biodegradable goods, such as fruits, vegetables, seafood, and pharmaceuticals, the need for reliable temperature-controlled transportation solutions is growing.

Companies are launching new technology in this field to expand their market share. For instance, in February 2024, Ocean Network Express Pte. Ltd. announced the introduction of dual-temperature refrigerated containers with controlled atmosphere functions in partnership with Pan Pacific International Holdings Inc. and NAX Japan. The objective of this launch is to support the transportation of numerous types of goods from Japan to overseas.

Reefer Container Market Trends & Drivers

Increasing Partnerships and Market Consolidation Is a Key Market Trend

• In the last few years, the shipping and container industry has witnessed a significant number of mergers, acquisitions, and partnerships among container lines, a reshuffling of shipping alliances, and the expansion of shipping companies to port operations.
• The key players in the industry are joining alliances and consolidating, as container lines expect to reduce costs, better manage a ship’s capacity, and enhance efficiency.
• These, in turn, benefit shippers, if on a given route, the savings achieved by container lines translate into lower rates and improved service offerings.
• For instance, in August 2023, Hapag-Lloyd AG, a Germany-based shipping company, is currently in the acquisition bid for Hyundai Merchant Marine (HMM), one of the largest shipping companies in South Korea.

Expanding E-Commerce Industry Boosts the Demand

• The increasing e-commerce industry at a tremendous rate across the globe drives the market. The e-commerce industry is largely driven by price and convenience advantages since customers look for a suitable deal on products that are delivered quickly. For instance, according to the Ministry of External Affairs, digitally influenced retail spending is set to surpass USD 1.5 trillion by the end of 2030 and will account for about 80% of total retail spending.
• As international demand grows for products and services, all of the service providers in transportation, particularly the shipping industry, will need to keep up with rapidly changing supporting technologies, while simultaneously improving customer services.
• This e-commerce boom, majorly in developing countries like China, India, Brazil, and Mexico, is expected to drive the reefer container market during the forecast period.
• According to the Ministry of Commerce and Industry, it is estimated that India has secured approx. 125 million online shoppers in the last three years, with around 80 million expected by the end of 2025.

Advent of Real-Time Tracking Technology Drives the Market

• The transportation and logistics industry is witnessing significant changes, and the integration of real-time tracking technology is one of them.
• The internet of things (IoT) is becoming predominant within several sectors, with logistics and transportation observing its adoption at a high rate.
• In order to help the companies meet the growing demand for freight transportation, the shipping industry is adopting this technology, to provide real-time tracking facilities to users.
• This allows customers to get details such as real-time location, container and vessel information, and port details.
• For instance, Remote Container Management (RCM) by A.P. Moller – Maersk A/S provides real-time global positioning system (GPS) tracking of the containers and monitors and records the power status of the reefer, keeping customers up to date throughout the entire journey.
• Internal sensors gather real‑time data, which covers everything from temperature and humidity to CO2 levels. With such advanced next-generation technology in place, companies are live-streaming the process of the delivery, to establish and maintain a competitive advantage.
• Thus, the integration of the real-time tracking technology in reefer containers is driving the market growth.

Lack of Adequate Ecosystem and Infrastructure Is Hampering the Market

One of the most important pillars for the long-term success of the shipping and logistics industry is the presence of an adequate ecosystem, in the form of infrastructure, regulatory support, and investments.

However, even if a port operates in an efficient manner, the cargo may still experience delays because of inefficient rail or truck operations, congestion caused by the lack of port capacity, and reefer plug unavailability, thus hampering the transport of the cargo to and from ocean freight carriers.

Moreover, there is a shortage of skilled labor in many developing countries like India, Pakistan, Bangladesh, and Indonesia, in addition to a lack of proper infrastructure, causing delays and accidents at ports.

For instance, in May 2023, according to a report published by the World Shipping Council (WSC), the loss of containers reached around 660 in 2022. Therefore, the lack of adequate infrastructure at various ports around the world could hinder the market growth during the forecast period.

Indepth-Segmentation Analysis

Size Insights

• Based on size, more than 40 feet category held the largest share, of 90%, in the market in 2023.
• This is mainly because more than 40-feet containers are intended to carry voluminous cargo, rather than heavy cargo.
• In addition, all major players in this market offer more than 40-foot-high cube reefers, which have become a standard in the industry.
• More than 40-foot-high cube reefer containers are equipped with a cooling unit to control the temperature inside, for transporting delicate goods that require a fixed temperature, such as chilled or frozen food items.

The report covers reefer containers of the following sizes:

• 20 feet
• 40 feet (fastest-growing category market)
• More than 40 feet (largest category market)

Transportation Mode Analysis

• On the basis of transportation mode, the seaways category held the largest share in the reefer container market in 2023, and it is expected to maintain the lead in the coming years. This is because the majority of international trade is done by seaways.
• Moreover, according to the United Nations Conference on Trade and Development, more than 80% of international trade is carried by sea and the percentage of trade is even higher in the more developed country.

Further, the transportation mode segment is divided into three categories:

• Seaways (largest and fastest-growing category market)
• Roadways
• Railways

Industry Insights

Based on industry, the food category held the largest market share and it is expected to remain in the dominant position throughout the forecast period as well.

• This is attributed to the increasing consumer preferences for fresh and diverse food products that have driven the growth of the transportation of food globally.
• Consumers expect access to a wide range of seasonal fruits, vegetables, seafood, and other perishable items regardless of geographic location or time of year.
• Reefer containers facilitate the transportation of these products from regions of production to regions of consumption, meeting consumer demand for fresh and diverse food options.
• Moreover, it also fulfills the demand for enriched food where there is a high requirement for that fortified food.

Whereas, the pharmaceutical category is expected to record the highest CAGR in the coming years. This can be attributed to the rising need for vaccines, cellular therapies, blood products, and biologics, which necessitate temperature-controlled vessels for their transportation and storage.

• Mainly liquid or semi-liquid formulation is temperature-sensitive, so the demand for reefer containers is high in this category.
• Moreover, this is due to the increasing demand for over-the-counter (OTC) medicines, such as vitamins, minerals, and supplements (VMS), common cough and cold drugs, gastrointestinal drugs, and dermatology products.

Industry segment is further categorized into:

• Food (largest category market)
  • Fruits
  • Meat/poultry
  • Fish/seafood
  • Vegetables
  • Dairy products
  • Others
• Pharmaceutical (fastest-growing category market)
  • Liquid medicine
  • Pills
  • Vaccines
  • Biologicals
  • Others
• Chemical

APAC is the Largest Region

Globally, APAC is the largest regional market for reefer containers, accounting for 60% share in 2023. This is due to the high economic growth in the region.

• Although China's economic growth is slowing gradually, India's gross domestic product (GDP) growth is expected to remain robust.
• Therefore, factors like the expanding global trade of seaborne perishable reefer cargo, coupled with the developments in reefer container technology, are expected to drive the APAC reefer container market at a healthy CAGR during the forecast period.

Whereas, the LATAM reefer container market is projected to witness the highest CAGR, of 9%, during the forecast period. This can be due to the increasing shipping and transportation activities for food items.

• Among countries in the LATAM region, Brazil is expected to generate the demand for reefer containers at the highest rate in the coming years, owing to the shifting inclination toward technological innovation, coupled with the rising chilled- and frozen-food trade with APAC countries like China and India.
• In addition, the country is also home to the largest logistics industry in the region.

Further, the following regions and countries were analyzed in this report:

• North America
  • U.S. (larger and Faster-Growing Country Market)
  • Canada
• Europe
  • Germany (Largest Country Market)
  • U.K.
  • France
  • Italy
  • Spain (Fastest-Growing Country Market)
  • Rest of Europe
• APAC (Largest Regional Market)
  • China (Largest Country Market)
  • Japan
  • India (Fastest-Growing Country Market)
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM) (Fastest-Growing Regional Market)
  • Brazil (Fastest-Growing Country Market)
  • Mexico (Largest Country Market)
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Fastest-Growing Country Market)
  • South Africa (Largest Country Market)
  • U.A.E.
  • Rest of MEA

Competitive Landscape

The global reefer container market is consolidated in nature, with the presence of a few large global players and domestic players. In recent years, key players in the industry have taken several strategic measures, including partnerships, product launches, facility expansions, and mergers and acquisitions to gain a competitive edge in the market.

Reefer Container Market Companies News

• In September 2023,Daikin Reefer, Thai Mango Shipper Co. Ltd., and CMA CGM collaborated with each other to stimulate the shipment of mango from Thailand to Korea and Japan.
• In April 2021,Thermo King Europe introduced the latest container fresh & frozen (CFF) refrigeration units.
• In April 2021,Carrier Transicold and SeaCube Containers LLC announced a strategic partnership. In this, Carrier Transicold, a part of Carrier Global Corporation, provides cold chain solutions to SeaCube Containers LLC.