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The global reefer container market size was 2,915.6 thousand twenty-foot equivalent units (TEU) in 2019, which is projected to reach 5,981.6 thousand TEU by 2030, growing at a CAGR of 7.3% during the forecast period (2020–2030). The increase in the number of trade routes, expanding e-commerce industry, and advent of real-time tracking technology are the key growth factors driving the reefer container market.
COVID-19’s rapid spread has had a significant impact on global shipping market, with a downturn in the demand for products, thus having a ripple effect on anything, from cargo ships and oil tankers to reefer containers. Moreover, logistics companies throughout the world are now facing reduced available capacity, pressure on equipment availability, possible congestion in specific ports and extra related costs, and congestion surcharges. However, it is expected that COVID-19 will become a key catalyst for digital and technological advancements in the reefer container market.
In 2019, the more-than-40-feet category held the largest share in the reefer container market, on the basis of size. All major players in the market offer 40-feet-high cube reefers, which have become a standard in the industry. The 40-feet-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 reefer container market is expected to be witnessed faster growth in the chilled bifurcation, on the basis of commodity. Owing to busy lifestyle and time poverty, consumers have been demanding convenience foods at an exponential rate. Therefore, chilled processed food, which can be cooked in less time, remains in high demand.
Globally, APAC was the largest market for reefer containers in 2019. The economic growth rate in the APAC region has remained robust, though country-specific patterns have varied somewhat. Although China's economic growth is slowing gradually, India's gross domestic product (GDP) growth is expected to remain consistent. Therefore, factors such as the expanding global trade of seaborne perishable reefer cargo, coupled with the advancements in the reefer container technology, are expected to drive the APAC reefer container market during the forecast period.
A high-percentage growth in urbanization is expected to take place in LAMEA countries in the near future. Major countries in the region are home to numerous seaports and inland ports, with easy access to waterborne transport. Moreover, the emerging nations of the world, many of which are in the LAMEA region, are expected to continue witnessing rapid urbanization during the forecast period. As many large urban centers are located in the LAMEA region, the rising population and increasing demand for food products from the emerging economies will further result in a rise in the shipping and transportation of food items via other modes. Due to these factors, the LAMEA reefer container market is expected to witness the fastest growth during the forecast period.
In the last five years, the shipping and container market has witnessed a significant number of mergers, acquisitions, and partnerships among container lines, a reshuffling of shipping alliances, and expansion of shipping companies into port operations.
The key players in the reefer container market are joining alliances and consolidating, as container lines expect to reduce costs, better manage the ship capacity, and enhance the efficiency. These changes, in turn, would benefit shippers, if, on a given route, the savings achieved by container lines translate into lower rates and improved service offerings. For instance, in January 2020, Textainer Group Holdings Ltd. announced that the company's wholly-owned subsidiary, Textainer Ltd., completed the purchase of Leased Assets Pool Company Limited (LAPCO). LAPCO owns a fleet of approximately 163,000 TEU of intermodal containers, now managed by Textainer, and approximately 3,000 TEU of containers managed by other container lessors.
Allowing goods to reach distant markets, a single trade route contains long-distance arteries, which may further be connected to smaller networks of commercial and non-commercial transportation routes. Thus, with the continuous rise in the global maritime trade volumes and number of trade routes, the reefer container market is expected to witness strong growth over the forecast period.
The transportation and logistics market is witnessing significant changes, and the integration of the real-time tracking technology is one of them. The internet of things (IoT) technology is becoming prevalent within several industries, with transportation and logistics observing its adoption at a high rate. 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 reefers, keeping customers up to date throughout the entire journey. Thus, the integration of the real-time tracking technology in reefer containers is driving the reefer container market growth
|Base Year (2019) Market Size||2,915.6 Thousand TEU|
|Forecast Period (2020-2030) CAGR||7.3%|
|Report Coverage||Market Trends, Logistics Industry Overview, Regulatory Landscape, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Company Share Analysis, Companies’ Strategical Developments, Product Benchmarking, Company Profiling|
|Market Size by Segments||By Size; By Transportation Mode; By Commodity; By Geography|
|Market Size of Geographies||U.S., Canada, Germany, France, Italy, U.K., Netherlands, Japan, China, India, South Korea, Brazil, Mexico, U.A.E..|
|Market Players||A.P. Moller - Maersk A/S, Singamas Container Holdings Ltd., China International Marine Containers (Group) Co. Ltd., Seaco Srl, Triton International Ltd., MSC Mediterranean Shipping Company S.A., Hapag-Lloyd AG, Ocean Network Express Pte. Ltd., ZIM Integrated Shipping Services Ltd., SeaCube Container Leasing Ltd., Pioneer Refrigeration & Air Conditioning Works, Trans ACNR Solutions Pvt. Ltd., DAIKIN INDUSTRIES Ltd., Klinge Corp., Ice Make Refrigeration Ltd., BSL Refrigerated Containers.|
|Secondary Sources and References (Partial List)||International Association of Movers, International Maritime Organization, International Union of Marine Insurance, Mercantile Marine Department (MMD), National Customs Brokers & Forwarders Association of America, Inc., Singapore Shipping Association, Supply-Chain Council, The National Association Of Freight And Logistics|
The reefer container market is highly consolidated, with the presence of numerous large global players and few domestic players. In recent years, the major players in the market have taken several strategic measures, such as product launches, partnerships, and facility expansions, to gain a competitive edge in the market. In 2019, the top five players held more than 50.0% share in the global reefer container market. Key players including A.P. Moller - Maersk A/S, China International Marine Containers (Group) Co. Ltd., Seaco Srl, Triton International Ltd., Hapag-Lloyd AG, and SeaCube Container Leasing Ltd. control key assets in the physical value chain, which gives them a competitive edge.
In February 2020, A.P. Moller - Maersk A/S started offering end-to-end cold chain logistics solutions to grape exporters. The company is improving the overall transportation time of the commodity from India to North Europe, by four days.
In December 2019, Hamburg Süd launched a new remote container management (RCM) technology for its reefer container shipments. RCM monitors parameters such as temperature, relative humidity, and the concentration of O₂ and CO₂ within the reefer container, in real time. The added value of using RCM is that it enables customers to use this data to monitor their supply chain better, to make it efficient and reliable, and thus increase their cost savings.
In September 2019, Hamburg Süd expanded the e-commerce offerings on its website and is now offering INSTANT, a digital application that makes booking containers easier and faster. Customers will benefit from the enhanced assurance in their planning, as well as higher transparency and efficiency, as they will be able to view fixed prices and book their cargo directly online.
The research offers market size of the global reefer container market for the period 2014–2030.
Based on Size
Based on Transportation Mode
Based on Commodity