Market Size - New Refrigerated Vehicles

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New Refrigerated Vehicles: Market Size

While the market size of the new refrigerated vehicles sold in the US could not be determined, we identified that the Long-Distance Refrigerated Trucking Industry in the US had a market size of $11 billion in 2018. Also, in 2017, North America generated an estimated $2,035 billion in revenue of sold refrigerated vehicles, and the United States was the primary consumer.

REFRIGERATED VEHICLES MARKET: RELEVANT INFORMATION

UNITED STATES
  • The US Department of Agriculture indicated that there is an increasing demand for refrigerated trucks in the country.
  • Refrigerated Trucking Industry:
    • The Long-Distance Refrigerated Trucking Industry in the US had a market size by revenue of $11 billion in 2018.
    • There were 2,237 refrigerated trucking businesses in the US in 2018.
    • While the Long-Distance Refrigerated Trucking Industry focuses on refrigerated transportation, particularly refrigerated trailers or reefes, its market size is composed by the revenue of the refrigerated trucks, brokerage and logistics, dedicated services, freight, and other services.
    • According to the report created by Market Research Pro, the key players in the refrigerated vehicle market of the US are United Technologies Corporation, Ingersoll Rand, Tyson Foods, and Smithfield Foods.
  • Truck Trailer manufacturing industry:
    • The overall truck trailer manufacturing industry of the US has a market size of $12 billion in 2019.
    • This industry is composed of refrigerated trailers, flat-bed trailers, long-distance freights trailers and local freight trailers.
  • Insights from companies:
    • Reefer trailers or refrigerated trailers increased their sales by 240% between 2017 and 2018.
    • In August 2018, ACT Research Co. reported an order of 38,200 new trucks, being the month with the highest requested number to date.
    • Other companies in the US, like Class 8, also reported an increase in orders for new trucks in July and August 2018.
    • The FTR research firm indicated a total number of orders of 35,300 units in 2018.
    • Don Ake, FTR’s vice president of commercial vehicles, said that the sale of trucks and trailers is increasing thanks to the boom that is happening in the industrial economy of the US.
GLOBAL
  • The Global market for refrigerated vehicles is expected to reach a value of $15.5 billion in 2019.
  • The Global refrigerated trucks market was worth $6.36 billion in 2017. This market includes only the vehicles and not the services.
  • In 2017, North America accounted for 32% of the global refrigerated truck market.
  • Market and Research created a global analysis of the refrigerated vehicles market with a special focus on the markets of Europe, US, and China.
  • Market Research Insights also has a report on the global industry and their respective market sizes.

RESEARCH STRATEGY

To determine the US market size of new refrigerated vehicles sold, our first strategy was doing a direct search of the value through US focused industry reports of refrigerated vehicles. This search provided information about the Long-Distance Refrigerated Trucking Industry in the US and its market size of $11 billion in 2018. While this number is valuable because it demonstrates the revenue potential of the industry, this market size includes both the sales of the vehicle units and the services associated with the industry. The breakdown of this revenue was not publicly available.

Our second strategy was looking for the number of refrigerated vehicles sold in the US in news, expert's publications, experts's analysis, statistical databases, and interviews with leaders in the industry. The objective was locating the total number of refrigerated trucks sold in the country every year, from an industry perspective. Then we planned to triangulate this number with the average price of the vehicles to calculate the revenue of sold refrigerated vehicles in the US. A publication by the US Department of Agriculture contained an analysis of the refrigerated trucks and the need for them in the country, and while it contained their rates, their availability, and capacity, it did not give any information about the total number of refrigerated trucks that are currently in the US.

Our third strategy was looking for the global market size of refrigerated vehicles and the market share the US represented. Our objective was triangulating them to calculate the market size of the US. While we managed to find multiple global reports of the industry through Market Research Insights, Market and Research that has the information we need, most of the data was not publicly available but limited to paid customers. We managed to find the global market of refrigerated vehicles in 2019, which is $15.5 billion. The market share of the US, however, was hidden. The most valuable information we could find was the global market size of the refrigerated truck market of 2017, $6.36 billion. This report focused only on vehicle sales and included the market share of North America 32% and the fact that the US represents the largest portion of this market.

CALCULATION: By multiplying $6.36 billion by the 32% market share, we could determine the market size of North America. $6,360,000,000 x 0.32 = $2,035,200,000. $2,035 billion was the estimated revenue generated by new refrigerated vehicles sold in North America in 2017.

Our fourth strategy was looking for the total revenue of the truck industry in the US and the percentage represented by the refrigerated trucks. IndexBox published an analysis of the trucks and trailers market in the US with a forecast to 2020 and information from 2016 and forward. However, although it gave a lot of information and segmentation of the industry, it did not contain any data on refrigerated trucks or trailers. We found a report about the US truck trailing manufacturing industry that contained the annual revenue of 2019, $12 billion. While the report presents a breakdown of revenue by the types of trucks (refrigerated trailers, flat-bed trailers, long-distance freights trailers, and local freight trailers), the breakdown details were hidden and not available publicly, so we could not calculate the percentage that refrigerated trailer represents in the US trailer market size.

Finally, as our fifth strategy, we looked for the key players in the US industry and the number of companies who sell refrigerated vehicles in the US. Our focus was on finding their annual revenue from refrigerated vehicles and combining all these revenues to estimate the overall market size. We verified the interview mentioned with the representative of FTR and while the interview had the sales numbers reported by different companies, these only focused on August and July 2018 and did not contain any information about their annual revenue. We searched for the key players in the refrigerated vehicle market of the US and found that most of them provide a global revenue instead of a US revenue for only refrigerated vehicles. Lastly, we found that the number of companies who are in the refrigerated vehicles' industry in the US were 2,237 in 2018, so our focus on the key players would not give an accurate estimate of the country's market value.

We concluded that, although the market size in the US is not publicly available, it is available through the reports we have included, through purchase. Additionally, our research was able to determine that the market size of North America's sold refrigerated vehicles in 2017 was $2,035 billion.
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