United States Refrigerated Trucking Market Report and Forecast 2024-2032

United States Refrigerated Trucking Market Size

The United States refrigerated trucking market is projected to grow at a CAGR of 3.90% between 2024 and 2032.

United States Refrigerated Trucking Market Outlook

• Some of the key drivers of the market are the growing demand for efficient cold chain logistics and the constant innovation in refrigeration technology.

• The trucking segment accounted for the highest revenue share of all the freight modes in 2021, generating USD 389.3 billion.

• The US had about 3.53 million truck drivers in 2022, of whom 56.2% drove heavy/tractor trailer trucks and 30% drove light/delivery service trucks.

United States Refrigerated Trucking Market Growth

The increasing demand for fresh and frozen food products, the expansion of e-commerce and online grocery delivery, the stringent regulations for food safety and quality, and the technological advancements in refrigerated trucking equipment and solutions are some of the factors increasing the United States refrigerated trucking market value. One of the ongoing advancements in refrigeration systems include electric refrigeration systems, which are offering a more environmentally friendly alternative to traditional diesel-powered refrigeration systems.

In several industries, such as food and beverage, pharmaceuticals, and agriculture, where the food and beverage segment dominates the market share, refrigerated trucking is an essential component of the supply chain. In the US food industry, there is a growing need for refrigerated transportation due to the rising demand for perishable items, such as fresh produce, confectionary, and dairy products. Currently, 2% of North America's trucks on the road are refrigerated and are generating USD 12 billion per year by delivering the perishable goods on time. This has helped in increasing refrigerated trucking market size in United States.

United States Refrigerated Trucking Market Trends

The increasing demand for pharmaceuticals and biotech products require precise temperature control, which is one of the trends boosting the refrigerated trucking market share in United States. Refrigerated trucking is crucial for the transportation of temperature-sensitive pharmaceuticals, such as vaccines, biologics, blood products, clinical trials, medical devices, and personal care products to comply with regulatory standards and to maintain product efficacy.

Industry Outlook

As per Oxford Economics, the global food and beverages value-added output experienced fluctuations from 2020 to 2023. In 2020, the output was relatively stable for food and beverages at 0.2% but saw a decline in beverages by -2.3%. In 2021, there was a strong rebound with food and beverages growing by 4.0% and beverages by 5.8%. The trend continued positively into 2022 with food and beverages growing by 4.2% and beverages by 5.3%. For 2023, the growth is forecasted to stabilize with food and beverages at 3.2% and beverages at 3.3%.

The global refrigerated trucking market significantly affects the growth of the refrigerated trucking industry. In terms of regional value-added output, the Asia-Pacific region demonstrated significant growth, especially in 2021 with a 10.9% increase, followed by a projected 10.1% in 2023. The Americas had varied performance, declining by -2.0% in 2020 but recovering with 2.6% growth in 2021 and stabilizing around 3.0% by 2022. Europe saw steady growth, with an increase from 1.6% in 2020 to 1.9% in 2021, and a projected growth of 1.9% in 2023. Overall, the data indicates a strong recovery and growth trend in the global food and beverages market, with notable regional variations.

As per Oxford Economics, Australia's food value-added output experienced various changes from 2020 to 2022. In 2020, food and beverages saw a slight increase of 0.1%, while meat production and processing declined by -0.4%. Dairy production and processing grew by 4.5%. In 2021, food and beverages, as well as meat production and processing, both increased by 1.1%. Dairy production and processing saw a significant increase of 7.8%.

From 2020 to 2022, France's food value-added output showed a variety of developments. 2020 witnessed a 2.0% reduction in food and beverage sales, a 1.0% decline in meat production and processing, and a 0.2% decline in dairy sales and processing. There was notable growth in 2021: the production and processing of meat increased by 3.5%, while the production and processing of dairy products decreased by 1.8%. The rise in food and beverages was 4.6%. Further growth is anticipated in 2022, with increases in food and beverage production and processing of 3.9%, meat production and processing of 4.1%, and dairy production and processing of 1.7%.

Refrigerated Trucking Industry Statistics in United States

The production of food and beverages in the United States grew by 1.8% in 2020; production and processing of meat increased by 0.7%, while dairy products increased by 5.6%. Meat production and processing expanded by 3.0%, dairy production and processing climbed by 2.9%, and food and beverages considerably increased by 3.1% in 2021. In 2022, food and beverage production grow by 1.8%, meat production and processing by 0.7%, and dairy production and processing by 2.4%.

As per the data from the OECD, in 2019, the United States had the highest expenditure on retail pharmaceuticals per capita at USD 1,376, followed by Germany at USD 995 and Canada at USD 811. Other notable countries include Japan (USD 794), Switzerland (USD 661), and Australia (USD 657). In contrast, Mexico had the lowest expenditure at USD 427.

As per the refrigerated trucking industry analysis, per capita expenditure on health and pharmaceuticals in OECD countries has seen significant growth from 1970 to 2018. Current expenditure on health has risen sharply, reaching nearly USD 4,000 per capita in 2018. In comparison, expenditure on pharmaceuticals and medical goods, though increasing, remains substantially lower, indicating a broader trend of escalating healthcare costs over the decades.

Recent Developments

According to United States refrigerated trucking market analysis, trucking services are popular in both, domestic and international destinations. In 2023, around 28,000 people were employed by refrigerated trucking services providers of United States for serving in international and domestic markets. The segment’s growth is further driven by the increasing trade of agricultural products, food and beverages, and pharmaceuticals products, the implementation of free trade agreements, the improvement of cross-border infrastructure, and the diversification of export markets.

United States Refrigerated Trucking Industry Segmentation

“United States Refrigerated Trucking Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Strong Infrastructure and High Demand Boosts United States Refrigerated Trucking Market Share

• The market benefits from a strong infrastructure and logistics network, ensuring efficient transportation of goods.

• There is a consistently high demand for perishable goods transportation, driven by consumer needs, which will positively influence the refrigerated trucking demand forecast.

• Technological advancements in refrigeration and tracking enhance service reliability and efficiency.

High Costs and Regulatory Hurdles Challenge Market

• The industry faces high operational costs and fuel prices, impacting profit margins.

• Stringent regulatory requirements add complexity and cost to operations, which negatively impacts the refrigerated trucking market dynamics and trends.

• There is a limited availability of skilled drivers, creating staffing challenges.

Growing Demand for Fresh Produce and Pharma Presents Opportunities

• There is increasing demand for fresh and organic produce, bolstering the refrigerated trucking demand growth.

• Growth in the pharmaceutical and healthcare sectors drives the need for temperature-controlled transportation.

• Adoption of sustainable and energy-efficient technologies offers new avenues for cost savings and market differentiation, thus increasing the refrigerated trucking industry revenue.

Competition and Economic Fluctuations Pose Threats

• Intense competition from rail and air freight services poses a challenge to the growth of the refrigerated trucking market.

• Economic downturns can reduce demand for refrigerated transportation services.

• Environmental regulations and compliance costs present ongoing financial and operational challenges.

Competitive Landscape

Market players are engaged in acquisitions to expand their refrigerated trucking services and strengthen position in the market.

• FedEx Corp.

• Prime Inc.

• J.B. Hunt Transport Services, Inc.

• KLLM Transportation Services

• Deutsche Post AG

• Stevens Transport, Inc.

• Swift Transportation Company

• Marten Transport, Ltd.

• TransAm Trucking, Inc.

• Xpress Cargo Inc.

• Others

Market Competition in the Refrigerated Trucking Industry in United States

• Dominance of Major Players: Large companies with extensive fleets and advanced technologies dominate the market, creating high barriers to entry for smaller players.

• Fragmented Market Structure: Despite the dominance of major players, the United States refrigerated trucking market remains fragmented with numerous small and medium-sized enterprises competing for regional and niche markets.

• Price Competition: Intense price competition among service providers impacts profitability, with companies constantly striving to offer competitive rates while managing costs.

• Customer Relationships: Strong relationships with key customers in the food, pharmaceutical, and retail sectors are crucial for maintaining market share and securing long-term contracts.

• Innovation and Adaptability: Continuous innovation and adaptability in service offerings, such as adopting sustainable practices and improving operational efficiency, are propelling the growth of refrigerated trucking market.

Key Highlights of the Report

United States Refrigerated Trucking Market Report Snapshots

United States Refrigerated Trucking Market Size

United States Refrigerated Trucking Market Growth

United States Refrigerated Trucking Market Trends

United States Refrigerated Trucking Companies