Cold Chain Equipment Market Growth & Trends
The global cold chain equipment market size is expected to reach USD 33.9 billion by 2027, expanding at a CAGR of 19.0% from 2020 to 2027, according to a new report by Grand View Research, Inc. Rising demand for the storage of processed food and frozen products is estimated to fuel market growth. Changing lifestyle of the people has led to the increased consumption of food and beverages, which is expected to increase the demand for cold chain equipment during the forecast period. Besides, the stringent government regulations for food and pharmaceuticals safety during storage and transit are boosting the demand for cold storage and transportation equipment.
The temperature-sensitive products such as vaccines, biotech products, and insulin require cold storage for their preservation. Moreover, amidst the coronavirus pandemic, the transit of various medicines, drugs, and test samples has increased worldwide. As a result, laboratories and companies require a reliable cold chain equipment to store these products during the transit, which is anticipated to propel the market growth.
Consumers are shifting their diet preferences towards value-added food categories, such as cheese, milk, yogurt, fresh vegetables, salads, ready-to-eat food products, and processed meat. Growing demand for chilled and frozen, packaged, and ready-to-eat food is paving the way to lucrative opportunities for local as well as foreign cold chain equipment players. The commonly used cold chain equipment in these applications include walk-in refrigerators, milk coolers, cold boxes, among others. Demand for organic fruit pulps and baby food is growing globally. Cold chain equipment is vital to store these fruit pulps, along with their essential nutrients for extended periods. The fruit pulp industry would play a decisive role in shaping the demand for the market. Cold chain equipment is being utilized effectively, right from the harvesting stage of fruits to reduce the losses associated with improper handling and storage.
The on-grid storage equipment segment held the largest market share in terms of revenue in 2019. However, the cold chain equipment manufacturers are making an early foray into the off-grid storage equipment and managing to deliver efficient and high-quality products that are expected to gain a competitive advantage in the market. Governments across the globe are encouraging the use of alternate energy source cold storage facilities to overcome the problems associated with the lack of access to reliable electricity and the cost associated with the on-grid storage facilities. As such, demand for off-grid cold storage equipment is anticipated to increase over the forecast period.
North America dominated the market in 2019 and is estimated to maintain its dominance over the forecast period leveraging its high technology adoption rate, a well-developed network of transportation and distribution systems, and growing demand for processed food products. In addition, the regional market is characterized by the presence of a large number of equipment manufacturers and cold storage warehousing facilities. The Middle East and Africa is expected to emerge as the fastest-growing regional market over the forecast period owing to rising population, increasing food demand, and rise in adoption of off-grid storage equipment, particularly in emerging economies of Africa.
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Cold Chain Equipment Market Report Highlights
The off-grid cold chain storage equipment is expected to expand at the highest CAGR of 21.7% from 2020 to 2027 due to increasing need to prevent food losses post-harvest and processing in developing countries
Increasing concerns over food safety and counterfeit pharmaceutical incidents have forced the government to tighten regulations on supply and production
The pharmaceuticals application segment is expected to witness significant growth over the forecast period owing to increased trade and transit of drugs, chemicals, and medicines amidst the COVID-19 pandemic
North America held the largest revenue share of more than 45.0% in 2019. The region is highly fragmented with the presence of numerous local companies.
