SAN FRANCISCO – The global cold chain equipment market size is expected to grow by 19 percent a year between 2020 and 2027, reaching US$33.9 billion.
Rising demand for the storage of processed food and frozen products will fuel the growth, propelled by changing food purchasing trends and increasing regulation of the pharmaceutical industry, says a report by Grand View Research, Inc.
The Covid-19 pandemic is also boosting demand as transit of 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 transit.
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.
Demand for off-grid cold chain storage equipment is expected to expand at 21.7 percent from 2020 to 2027 due to increasing need to prevent food losses post-harvest and processing in developing countries. The fruit pulp industry is expected to play a decisive role in shaping the demand for the market.
Cold chain equipment manufacturers are making developing off-grid storage equipment as governments across the globe encourage 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.
In 2019 on-grid storage equipment still held the largest market share in terms of revenue.
North America held the largest revenue share of more than 45.0 percent in 2019. The region is highly fragmented with the presence of numerous equipment suppliers and cold storage warehousing facilities. It is expected to maintain its dominance over the forecast period, thanks to a high technology adoption rate, well-developed transportation and distribution systems, and growing demand for processed food products.
The Middle East and Africa region is expected to emerge as the fastest-growing 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.