Transportation Condensing Units Market: Rapid Expansion of Cold Chain Facilities & Favorable Government Regulations to Favor Growth: Global industry analysis, 2013 - 2017 and opportunity assessment, 2018 - 2028

Transportation Condensing Units Market: Rapid Expansion of Cold Chain Facilities & Favorable Government Regulations to Favor Growth: Global industry analysis, 2013 - 2017 and opportunity assessment, 2018 - 2028

Transportation Condensing Units Market - Key Research Findings

  1. Global transportation condensing units market size in 2018 – Nearly US$ 2.3 Bn
  2. The transportation condensing units market is likely to thrive at an estimated 5.6% CAGR over 2018-2028.
  3. Government Food and Logistics Regulatory Scenario -
  4. Latin America - In October 2014, the Brazilian government published dietary guidelines for the use of fresh food over processed food, recommending improved cold chain development to meet the demand for fresh food.
    • In Sub-Saharan Africa, nearly 94% of all wasted food is a direct result of inadequate and inefficient supply chains. Food franchisees are focusing on significant long-term expansion goals in the Middle East.
    • Lack of stringent industry standards in transportation and cold chain logistics, and dearth of health and safety regulations regarding handling of temperature-sensitive products propagate improper trade practices.
    • Increasing awareness regarding significant food wastage due to inefficient transportation and storage systems in India is creating a promising market. But regulatory burdens, complexities of subsidization, and high taxation dissuade service providers from entering the Indian market.
  5. North America and Europe are expected to remain prominent regional markets for transportation condensing units.
    • Notably, CARB (California Air Resource Board) regulations prevailing in the US do not allow seven or more years old transportation condensing units to operate in the region – consequently encouraging new sales of transportation condensing units, ranging from 10-15 kW.
  6. East Asia and South Asia hold substantial growth potential in the transportation condensing units market.
    • Globally, cold storage capacity reached 616 million cubic meters in 2018, an increase of 2.7% since 2016. The three prominent markets—India, China, and the US - accounted for 60% of the world’s total refrigerated space.
  7. Scroll compressors are the most preferred type of compressors in new transportation condensing units.
    • Excellent individual full-load and part-load efficiency, significantly low vibration and lesser movable parts, and continuous compression process with almost no pulsation or vibration make this a lucrative segment in the transportation condensing units market.

Top 4 Factors Shaping the Transportation Condensing Units Market

  • Government Regulations and Price Competitiveness Set to Play a Pivotal Role

    Local content depends upon governmental regulations and market specifics, and is very important for the transportation condensing units market with specific requirements. Importantly, commercial vehicle (CV) manufacturers and suppliers need to offer competitive prices in order to augment the aftermarket sales of transportation condensing units.

  • Noise Control is One of the Critical Factors Seen by Buyers Before Purchasing Transportation Condensing Units

    In addition, noise acts as a critical factor while choosing a transportation condensing unit. Sound-reducing baffles, intake silencers, acoustic barriers, and special door seals are offered by manufacturers in transportation condensing units, such as Thermo King and Carrier, to curb extensive noise levels.

  • Expansion of Cold Chain Facilities Across the World Proliferate the Need for Efficient Transportation Condensing Units

    The transportation of perishable food products in a temperature-controlled environment is an important part of the cold chain, and thus, the growth of the global cold chain is foreseen to boost the demand for transportation condensing units, including refrigerated trailers.

    Moreover, increased consumer bargaining power has peaked the demand for fresh and superior quality food products. Thus, postharvest products are required to be transported to processing units with minimal loss in freshness, using transportation condensing units. Consequently, these factors are propelling the demand for transportation condensing units.

Transportation Condensing Units Market Structure Analysis

  • The global transportation condensing units market is a consolidated competition landscape, wherein, tier 1 companies hold more than 82% revenue share.
  • While most prominent players maintain strategic focus on the North American and European markets, FMI’s report states that new technology assessment and environment-friendly products will be an important developmental strategy for companies.
  • Leading players in the transportation condensing units market are also concentrating on the ASEAN, Indian, and Chinese markets where cost competitiveness will remain a strong differentiation strategy.

Transportation Condensing Units– Perishable Food Security & Related Concerns Take Back Seat

Burgeoning concerns pertaining to the perishable food safety and related concerns have led to an increased penetration of transportation condensing units in the cold chain. With an extensive portfolio of products and services, demand for transportation condensing units is witnessing substantial growth as they help manage and monitor the cold chain of highly temperature-sensitive, and perishable products. Food brands are increasingly leveraging trucks and trailers that are equipped with transportation condensing units to capitalize on the growing demand for chilled and frozen food products.

Transportation Condensing Units – Lifesaver for Frozen & Chilled Product Distribution

Rapid growth of the food & beverages industry coupled with the growing number of warehouse and cold supply chain facilities are providing an impetus to the growth in the transportation condensing units. Foodservice providers, including foodservice chains and caterers are increasingly investing in the deployment of refrigerated display cases to cater to the growing demand for frozen and chilled food and beverages.

North America & Europe to Hold Combined Value Share of Over 65%

Sales of transportation condensing units will grow at a steady pace in North America and Europe, owing to the burgeoning health consciousness among consumers coupled with rising demand for enhanced products and high-end components. Shifting consumer inclination towards ready to eat food, baked, and frozen food products in the developed regions is another key factor driving the adoption of transportation condensing units in the region.

OEM Sales of Transportation Condensing Units to Remain High, Aftermarket to Pick Pace

Sales of transportation condensing units through OEM sales channel will continue to remain high, as they are made by and for the manufacturer of a vehicle. However, aftermarket sales of transportation condensing units are also picking pace, owing to the growing manufacturer and buyer demand for customized, vehicle specific variants.

Key Segment

By Cooling Capacity

  • Below 5 KW
  • 5 - 10 KW
  • 10 - 15 KW
  • 5.3.4. Above 15 KW

By Compressor Type

  • Reciprocating
  • Rotary
  • Scroll

By Sales Channel

  • OEM
  • Aftermarket

By Vehicle Type

  • Trucks
  • Trailers

Region

  • North America
  • Latin America
  • Europe
  • South Asia
  • East Asia
  • Oceania
  • Middle East & Africa

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