GMI Research analysis indicates that the Cold Storage Market size was estimated at USD 91.0 billion in 2021 and is slated to register a single digit CAGR of 8.0% over the forecast period and is projected to reach USD 168.4 billion in 2029.
Cold Storage Market Trends and Drivers
The key factors driving the cold storage market includes growth in the demand for frozen and chilled food, strict food safety regulations, rising popularity of e-commerce and online grocery across the globe. Additionally, the government has also imposed strict regulations regarding the production of temperature sensitive products, surge in trade of perishable commodities, and increasing automation in refrigerated warehouse. The strict laws to control the manufacturing and distribution of temperature-sensitive goods have further benefited the market. The cold storage market is gaining traction because of the expansion of organised retail market among emerging countries. This will further expected to increase automation in refrigerated warehouses, which in turn to boost the market growth.
Growth of pharmaceutical industry is driving the cold storage market, as many drugs and medicines are temperature sensitive and require immediate supply chain. For instance, US FDA introduced regulations which ask the distributor to store the products at adequate temperature to maintain the quality and sustainability of the medicines. As most of the consumers are relying on the medicines due to the increasing prevalence of diseases, the demand for the pharmaceutical products is expected to increase in the coming years which will further increase the demand for cold storage market. Expansion of e-commerce in perishable goods would contribute towards the demand for refrigeration storage options. For example, as per the Canadian government, Canada imported fresh and frozen fruits products of approx. USD 6.9 billion, that indicates an increase of 3.1% yearly in 2021. Moreover, consumers are shifting towards the online platform for purchasing of groceries and other essential items which is paving way for various e-commerce companies to focus on reducing delivery time especially for perishable food. For instance, Amazon came up with a strategy to deliver grocery item to its prime subscribers within two hours in 2019.
Based on Temperature, Frozen segment is projected to dominate the market.
Increased demand for frozen food in the countries like India and China as they can be stored for a longer period and took very less time to cook in comparison to normal food. In addition, various food and beverages companies used to store the products for maintaining the required temperature which is boosting the frozen segment in cold storage market.
Based on Region, North America region is anticipated to hold largest share.
North America region is expected to hold largest market share in the cold storage market. The key factors driving the North America region includes the changes in migration pattern, increasing demand for the frozen snacks and meat products, presence of massive refrigerated cold storage facility and the growing popularity of online grocery platforms across the North America region.
Asia Pacific counties such as India is anticipated to grow during the forecast period driven by the increasing demand of processed food items. Additionally, the government is also supporting the schemes for the development of cold chain infrastructure, growing needs for the more warehouse space and rising investments by foreign and domestic companies for the manufacturing plants.
Top Market Players
Some of the major companies operating in the Cold Storage market are Emerson Electric Co., The Weir Group PLC, Flowserve Corporation, Schlumberger Limited, IMI PLC, Spirax Sarco Limited, Crane Co., Metso Corporation, and KITZ Corporation, among others.
Segmentation by Type
o Private and Semi-Private Warehouses
o Public Warehouses
Segmentation by Temperature
Segmentation by End-Use Industry
o Food and Beverage
o Pharmaceutical Industry
Segmentation by Region
• Asia Pacific
o Rest of APAC
• North America
o United States of America
o United Kingdom
o Rest of Europe
o South Africa
o Saudi Arabia
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