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Report Overview: Europe Refrigerated Truck Rental MarketThe Europe refrigerated truck rental market size was estimated at USD 18.8 billion in 2020 and is anticipated to expand at a CAGR of 8.3% from 2021 to 2027. The development of the cold chain industry plays a major role in driving growth. Cold chains logistics protects perishable commodities from spoilage during transportation and can hence be considered as an essential element in the food and beverage industry. The governments are gradually rolling out the public infrastructure and the legislation necessary for the development of cold chains. Simultaneously, service providers are training their employees and helping them in enhancing their technical expertise in the operation, management, and maintenance of specialized facilities required to haul and transport food. The growth opportunities in the market can be found mainly in the looming need for refrigerated transport of pharmaceuticals and food and beverages. Moreover, the refrigerated freight industry is expected to thrive in line with the continued growth in the volume of goods transported by road. Furthermore, the rapid growth of the retail e-commerce industry, the subsequent growth in the need for advanced and efficient logistics, and strengthening regulations on vehicular emissions are some of the factors that have been augmenting the growth of reefer trucks in Europe. Refrigerated truck transport happens to be a “derived demand” industry, where the demand for refrigerated truckers is directly proportional to the demand for the products these vehicles are supposed to haul. Besides, reefer truck rental can be a highly cost-effective alternative for businesses engaged in handling reefer cargo as it relieves these businesses from the costs incurred on maintaining a fleet of reefer trucks. Also, refrigerated truck rental services are ideal to ensure proper storage and transportation of temperature-sensitive products and prevent perishable products from spoilage. Smartphone proliferation, coupled with the growing preference for online shopping and home delivery, has transformed the way consumers shop for the food products they require in their day-to-day life. Mobile app-based ordering has bolstered the demand for fresh food products, especially from Quick Service Restaurants (QSRs), which need a regular supply of frozen food products. Hence, it has also proliferated the demand for frequent logistic services to keep up with the inventory, which, in turn, is anticipated to augment the demand. Refrigerated truck fleet operators are also integrating advanced technologies, such as spiral compressors, to enhance the efficiency of the refrigerant. Several reefer truck rental solution providers are investing aggressively in installing sensors and deploying IT infrastructure capable of offering a minute-by-minute report on the temperature levels while the vehicle is in transit. Hence, the growing integration for telematics, GPS systems, navigation systems, and temperature-monitoring sensors are expected to elevate the logistics industry, which in turn is anticipated to boost the market growth. Truck Type Insights Light truck segment led the Europe refrigerated truck rental market in 2019 and was valued at USD 7.4 billion. These vehicles are suitable for intra-city transportation of frozen foods and perishable products, especially for QSRs and supermarkets. Owing to the compact size, they offer ease-of-driving in the traffic-congested cities. Hence, the demand for light trucks segment is estimated to rise with the growth in e-commerce retail, FMCG, and pharmaceutical sectors. Besides, several regulations on the entry of heavy commercial vehicles in congested cities during peak hours are also projected to influence the demand. The heavy truck segment is poised to expand at the second-highest CAGR of 7.0% from 2021 to 2027. Heavy trucks are mostly preferred for long-distance transportation of frozen foods and perishable goods owing to their higher transportation capacity. Moreover, with the use of multi-temperature refrigerated systems, these trucks can transport multiple products such as meat, fish, and dairy products at the same time, thus improving the delivery efficiency as well as profit margins of the service providers.
Rental Type Insights: Europe Refrigerated Truck Rental MarketBased on rental type, the market has been segmented into short-term and long-term. The short-term rental segment is expected to witness significant growth from 2020 to 2027, as it aids the businesses in meeting the seasonal demand by offering suitable refrigerated trucks for the job for a short period, without any commitments or penalties. This is considered as an economically viable option. Also, short-term rental contracts offer flexibility to end-users during temporary peak seasons. Such factors are anticipated to positively influence segment growth over the forecast period 2021-2027. In long-term rental contracts, the end users are bound to use refrigerated vehicle fleet on agreed terms and for a yearly-basis or a standard period. Therefore, the end users opt for the same service provider owing to high switching costs, which in turn is likely to affect the segment growth. However, long-term rental contracts may benefit the reefer truck rental service providers through a drop in diesel prices, as it directly impacts their operating cost. Hence, the long-term rental segment is expected to expand at a CAGR of 6.6% from 2021 to 2027. Country Insights Germany was valued at USD 5.2 billion in 2019. According to the German Frozen Food Institute (GFFI), in 2019, frozen food products sales grew by 1.5% as compared to the previous year. Consumers are gradually looking for nutritious solutions for their daily diet, and hence the demand for sustainable and healthy food continues to upsurge. Additionally, 68% of households in Germany buy frozen products several times a month. Besides, frozen pizza, ready-to-eat frozen meals, and frozen potato products witnessed an enormous increase in demand in 2019. Such factors are responsible for driving the cold chain logistics industry in the country, which is further augmenting the demand for reefer trucks rental solutions. The market in the U.K. is poised to expand at a considerably high CAGR of 8.5% from 2021 to 2027. The U.K. frozen food product industry is currently the fastest-growing retail category. Also, expansion of retail food chains is likely to spur the demand for cold chain logistics industry over the forecast period, thus increasing the demand for reefer truck rentals in the country. Moreover, retailers are focusing on developing long-term strategic planning to withstand stiff competition in the retail industry as well as the shift in consumer preferences. The production of fruits and vegetables has fallen in Europe owing to unseasonal conditions that could present opportunities for the frozen food industry, which in turn is further expected to drive the market.
Key Companies & Market Share Insights: Europe Refrigerated Truck Rental MarketThe intensity of market competition is high owing to the presence of a large number of truck rental service providers, as well as truck original equipment manufacturers, who provide rental services as well. The prominent industry participants include Fraikin Limited; Penske Corporation, Inc.; Petit Forestier; The Hertz Corporation; and Ryder System, Inc. These companies have been strategically promoting their fleet management services to the end users. It includes telematics such as GPS systems and navigation systems that offer optimal usage of the rental reefer trucks with door-to-door services, insurances, cost estimates, document administration, and service support. One of the recent developments in the market is the swift move toward sustainable refrigeration units to reduce carbon footprint by minimizing the release of Chlorofluorocarbons (CFCs), thus influencing the overall environmental impact. Europe Refrigerated Truck Rental Market Report Scope
Key companies Profiled: Europe Refrigerated Truck Rental Market Report
This report forecasts revenue growth at regional and country levels and analyzes the latest industry trends in each of the sub-segments from 2016 to 2027. For this study, Trusted Business Insights has segmented the Europe refrigerated truck rental market report based on truck type, rental type, and country:
- Fraikin Limited
- Penske Corporation, Inc.
- Petit Forestier
- The Hertz Corporation
- Ryder System, Inc.
Truck Type Outlook (Revenue, USD Million, 2016 - 2027)
Rental Type Outlook (Revenue, USD Million, 2016 - 2027)
Table of Contents Chapter 1 Methodology and Scope 1.1 Information Procurement 1.2 Purchased Database(Statista, FactSet, Bloomberg, SDC Platinum) 1.2.1 IFF Internal Database 1.3 Research Methodology 1.4 Geographic Scope & Assumptions 1.5 Country Wise Market Calculation 1.5.1 Country Wise Market: Base Estimates 1.5.2 Country Market: CAGR Calculation 1.6 Country-based Segment Share Calculation | read more...