Middle East Refrigerated Truck Market Size
| Study Period | 2024 - 2029 |
| Market Size (2024) | USD 0.84 Billion |
| Market Size (2029) | USD 1.13 Billion |
| CAGR (2024 - 2029) | 4.60 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Middle East Refrigerated Truck Market Analysis
The Middle East Refrigerated Truck Market size is estimated at USD 0.84 billion in 2024, and is expected to reach USD 1.13 billion by 2029, growing at a CAGR of 4.60% during the forecast period (2024-2029).
The Middle East refrigerated truck market is driven by several factors, including the region's rapid urbanization, increasing food demand, and the growing e-commerce sector. With a burgeoning population, there is a significant need for efficient cold-chain logistics to transport perishable goods across the region, such as fruits, vegetables, and pharmaceuticals. This has led to a rise in demand for refrigerated trucks that can maintain the quality and freshness of these products during transit. Additionally, the increasing awareness about food safety and the need for temperature-controlled transportation further propels the growth of the refrigerated truck market in the Middle East. As of 2022, the leading producer of heavy trucks in the Middle Eastern region was Turkey, with over 46.5 thousand units. In comparison, Iran produced approximately 12.5 thousand heavy trucks that year.
Besides, one of the primary challenges is the extreme weather conditions in the region, which puts immense pressure on the refrigeration systems of trucks. This necessitates frequent maintenance and repair, increasing operational costs for trucking companies. Moreover, the lack of proper infrastructure for cold-chain logistics, such as temperature-controlled warehouses and distribution centers, can hinder the market's growth. However, these challenges also present opportunities for market players. The need for more robust and efficient refrigeration systems has led to innovation in technology, with manufacturers focusing on developing trucks with better insulation, energy-efficient engines, and advanced temperature control systems. Furthermore, the lack of proper infrastructure creates a potential market for private players to invest in building and managing temperature-controlled warehouses and distribution centers, thus improving the overall cold-chain logistics in the region.
Saudi Arabia, the largest economy in the Middle East, holds immense potential for the growth of the refrigerated truck market. With the government's Vision 2030 initiative focusing on diversifying the economy and increasing private sector participation, there is a growing demand for efficient cold-chain logistics to support the expanding food and pharmaceutical industries. Moreover, the increasing adoption of e-commerce in the country further boosts the demand for temperature-controlled transportation. In October 2022, the Crown Prince launched the Global Supply Chain Resilience Initiative (GSCRI) to attract local and international investments in the supply chain sector. The initiative aims to raise SAR 40 billion (USD 10.64 billion) in its first two years and offers investors 10 billion riyals in financial and non-financial incentives. Such an initiative will surely help increase refrigerated truck sales in the coming years.
In the future, OEMs are actively developing advanced trucks, and the future of the Middle East refrigerated truck market looks promising, given the government's initiatives and the growing demand for efficient cold-chain logistics.
Middle East Refrigerated Truck Market Trends
Heavy Commercial Vehicle (HCV) increase the Demand in the Market
The Heavy Commercial Vehicle (HCV) segment holds significant importance in the Middle East refrigerated truck market, as these vehicles play a crucial role in transporting perishable goods across the nation. The recent market overview has shown a steady growth in the demand for HCVs in the refrigerated truck industry due to various factors such as expanding logistics infrastructure, increasing trade activities, and a growing consumer preference for fresh and high-quality products. In 2022, Saudi Arabia witnessed the sale of approximately 97,000 commercial vehicles, while Kuwait recorded around 16,600 commercial vehicle sales during the same period.
Several factors contribute to the increasing number of cars in the Middle East, including Heavy Commercial Vehicles. Firstly, the region's oil and gas industry has led to substantial economic growth, which has boosted residents' disposable income. In 2022, the total household disposable income in the United Arab Emirates was estimated to be around USD 254.90 billion. This increased purchasing power has made it possible for people to afford HCVs for both personal and commercial use. Additionally, the Middle Eastern governments have been investing heavily in public transportation, which has resulted in an increased demand for buses and other HCVs.
The Heavy Commercial Vehicle (HCV) market in the Middle East faces both challenges and opportunities. One of the primary challenges is the growing environmental concern, as HCVs are often associated with high levels of pollution and greenhouse gas emissions. Governments and vehicle manufacturers are focusing on developing eco-friendly and fuel-efficient HCVs to address this issue. This shift towards sustainable transportation presents an opportunity for companies to innovate and introduce cleaner technologies in the market. Another challenge is the fluctuating oil prices, which can impact the purchasing decisions of potential buyers. However, this can also create opportunities for HCV manufacturers to diversify their product offerings and explore alternative energy sources for these vehicles.
The future of Heavy Commercial Vehicles in the Middle East looks promising, given the region's continuous growth in various sectors. With governments emphasizing infrastructure development, logistics, and transportation, the demand for HCVs is expected to rise further. To capitalize on this growth, manufacturers must focus on developing advanced technologies that address environmental concerns and improve the overall efficiency of HCVs.
Saudi Arabia is the leading market for refrigerated truck market in Middle East
Saudi Arabia has a well-developed transportation network, including road, rail, air, and sea transportation systems. The road network is extensive, covering more than 170,000 kilometers, and the government has been investing in upgrading and expanding it. The refrigerated truck market in Saudi Arabia is driven by several factors that contribute to its growth and development. One of the primary drivers is the increasing demand for temperature-controlled transportation of perishable goods, such as food products and pharmaceuticals. With a growing population and expanding retail sector, there is a heightened need for efficient and reliable refrigerated transportation services to ensure the quality and safety of these goods. Additionally, Saudi Arabia's strategic location as a trading hub in the Middle East further fuels the demand for refrigerated trucks, as they facilitate importing and exporting perishable items across the region.
Saudi Arabia's transportation industry has been growing rapidly due to the country's Vision 2030 program and the National Transport and Logistics Strategy. This has led to a USD 20.47 billion logistics market expected to record a 6.95% CAGR to reach USD 32.12 billion by 2026. The transportation ecosystem needs to expand, digitize, and interconnect to support this growth, including increasing air cargo capacity, improving integrated transport infrastructure, and developing marine and railway ports.
The refrigerated truck market in Saudi Arabia also faces several challenges and presents numerous opportunities for growth and innovation. One of the main challenges is the harsh climate, which puts additional strain on refrigeration systems and requires specialized maintenance and upkeep. Moreover, the market is highly competitive, with numerous local and international players vying for market share. However, this competition also presents opportunities for OEMs to differentiate themselves through innovative technologies, improved fuel efficiency, and enhanced customer service. Furthermore, the growing awareness of food safety and quality standards, such as HACCP and GDP, offers potential for refrigerated truck manufacturers to develop and market specialized solutions that meet these requirements. Some notable OEMs in the market include Carrier Transicold, Thermo King, Daikin, Frigoblock, Hubbard Systems, Zanotti, GAH Refrigeration, and Ficosa, which have established a strong presence in the region through local partnerships and distribution networks. These companies are committed to developing tailored solutions for the Saudi Arabian market, considering factors such as extreme weather conditions, diverse terrain, and specific logistical requirements.
As the country continues to invest in infrastructure development and logistics, the demand for efficient and reliable refrigerated transportation is expected to rise. OEMs will likely continue to innovate and develop advanced technologies to cater to the market's evolving needs, such as alternative energy sources, connected fleet management systems, and autonomous driving capabilities. Additionally, adopting sustainable practices and reducing carbon emissions are likely to become increasingly important, which may lead to the development of electric or hybrid refrigerated trucks in the future. Overall, the refrigerated truck market in Saudi Arabia is poised for continued growth and development, driven by both domestic and global trends and challenges.
Middle East Refrigerated Truck Industry Overview
The Middle East refrigerated truck exhibits a moderately consolidated landscape, dominated by a few major global players such as Carrier, Thermo King, Daikin, Frigoblock, Zanotti, Foton Group, ISUZU, TSSC (Harwal Group), Carrier, KRONE, Schmitz Cargobull, and others. These companies have established a stronghold in the market through extensive product portfolios, technological advancements, and strategic collaborations.
• In December 2023, Carrier Transicold came under significant collaboration with GIZ (Deutsche Gesellschaft für Internationale Zusammenarbeit) to accelerate cold chain development and decarbonization in Costa Rica and South Africa. This partnership aims to reduce greenhouse gas emissions and improve food safety and quality in these countries.
• In October 2023, Thermo King introduced an alternative for large truck diesel refrigeration systems. This new offering is designed to minimize environmental impact and improve overall efficiency in the transportation sector.
• In April 2023, Carrier Transicold, a leading transport and refrigeration solutions provider, announced its contribution to France's first electric hydrogen-powered truck. This innovative project aims to reduce carbon emissions and promote sustainable transportation.
• In April 2023, Thermo King entered into a long-term agreement with ZF, a global technology company. The collaboration aims to develop advanced vehicle systems and improve overall efficiency in the transportation industry.
Middle East Refrigerated Truck Market Leaders
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Thermo King
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Daikin
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Carrier
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Frigoblock
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Zanotti
*Disclaimer: Major Players sorted in no particular order
Middle East Refrigerated Truck Market News
January 2024: HummingbirdEV planned to establish a micro-factory in the United Arab Emirates for its zero-emission commercial vehicles. Initially, the company will address the increasing need for mid-mile and last-mile vehicle operations in the region, including refrigerated trucks. This move aims to contribute to the growing demand for environmentally friendly transportation solutions.
July 2023: Lecitrailer, Carrier Transicold, and VALX joined forces to launch a new refrigerated semi-trailer, combining their expertise to deliver a high-performance, energy-efficient, and environmentally friendly solution for the cold chain transportation sector. This innovative collaboration showcases the companies' dedication to advancing technology and sustainability in the industry.
November 2022: Daikin unveiled its new monoblock refrigeration solution at Gulfood Manufacturing 2022. This cutting-edge technology promises to optimize energy consumption and contribute to a more sustainable food supply chain.
October 2022: Daikin expanded its presence by launching a new factory in Saudi Arabia. The state-of-the-art facility will contribute to the company's growth and support the regional demand for advanced cooling solutions.
March 2022: TFMO, a leading French transport and logistics company, equipped one of its plug-in hybrid trucks with Carrier Transicold's all-electric refrigeration solutions. This innovative move demonstrates TFMO's commitment to reducing its carbon footprint and promoting sustainable transport solutions in the cold chain industry.
Middle East Refrigerated Truck Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Growing food and pharmaceutical industries
4.3 Market Restraints
4.3.1 Limited awareness of advanced technology and specialized solutions
4.4 Value Chain / Supply Chain Analysis
4.5 Porters 5 Force Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 PESTLE Analysis
5. MARKET SEGMENTATION
5.1 By Vehicle Type
5.1.1 Light Commercial Vehicle (LCV)
5.1.2 Medium Commercial Vehicle (MCV)
5.1.3 Heavy Commercial Vehicle (HCV)
5.2 By Tonnage Capacity
5.2.1 Less than 10 tons
5.2.2 10-20 tons
5.2.3 More than 20 tons
5.3 By End User
5.3.1 Food and Beverages
5.3.2 Agriculture
5.3.3 Healthcare and Pharmaceuticals
5.3.4 Other End Users
5.4 By Country
5.4.1 United Arab Emirates
5.4.2 Saudi Arabia
5.4.3 Egypt
5.4.4 South Africa
5.4.5 Rest of Middle-East
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Mergers & Acquisitions
6.3 Company Profiles
6.3.1 Carrier Transicold
6.3.2 Thermo King
6.3.3 Daikin
6.3.4 Frigoblock
6.3.5 Zanotti
6.3.6 Foton Group
6.3.7 ISUZU
6.3.8 TSSC (Harwal Group)
6.3.9 Carrier
6.3.10 KRONE
6.3.11 Schmitz Cargobull
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Middle East Refrigerated Truck Industry Segmentation
A refrigerated truck is a specialized truck equipped with temperature-controlled storage and transportation facilities. It is designed to maintain a specific temperature range, typically between -25°C and 25°C, to preserve the quality and safety of temperature-sensitive goods such as perishable food items, pharmaceuticals, and other temperature-dependent products during transit. This ensures the goods reach their destination in optimal condition, minimizing potential losses and maintaining consumer safety.
The Middle East refrigerated truck market is segmented by Vehicle Type (Light Commercial Vehicle (LCV), Medium Commercial Vehicle (MCV), and Heavy Commercial Vehicle (HCV)), by Tonnage Capacity (Less than 10 tons, 10-20 tons, More than 20 tons), by End User (Food and Beverages, Agriculture, Healthcare and Pharmaceuticals, Other End Users), by Country (United Arab Emirates, Saudi Arabia, Egypt, South Africa, and Rest of Middle-East).
For each segment, the market size and forecast were based on the value of USD.
| By Vehicle Type | |
| Light Commercial Vehicle (LCV) | |
| Medium Commercial Vehicle (MCV) | |
| Heavy Commercial Vehicle (HCV) |
| By Tonnage Capacity | |
| Less than 10 tons | |
| 10-20 tons | |
| More than 20 tons |
| By End User | |
| Food and Beverages | |
| Agriculture | |
| Healthcare and Pharmaceuticals | |
| Other End Users |
| By Country | |
| United Arab Emirates | |
| Saudi Arabia | |
| Egypt | |
| South Africa | |
| Rest of Middle-East |
Middle East Refrigerated Truck Market Research FAQs
How big is the Middle East Refrigerated Truck Market?
The Middle East Refrigerated Truck Market size is expected to reach USD 0.84 billion in 2024 and grow at a CAGR of 4.60% to reach USD 1.13 billion by 2029.
What is the current Middle East Refrigerated Truck Market size?
In 2024, the Middle East Refrigerated Truck Market size is expected to reach USD 0.84 billion.
Who are the key players in Middle East Refrigerated Truck Market?
Thermo King, Daikin, Carrier, Frigoblock and Zanotti are the major companies operating in the Middle East Refrigerated Truck Market.
Which is the fastest growing region in Middle East Refrigerated Truck Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Middle East Refrigerated Truck Market?
In 2024, the North America accounts for the largest market share in Middle East Refrigerated Truck Market.
What years does this Middle East Refrigerated Truck Market cover, and what was the market size in 2023?
In 2023, the Middle East Refrigerated Truck Market size was estimated at USD 0.80 billion. The report covers the Middle East Refrigerated Truck Market historical market size for years: . The report also forecasts the Middle East Refrigerated Truck Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Middle East Refrigerated Truck Industry Report
Statistics for the 2024 Middle East Refrigerated Truck market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Middle East Refrigerated Truck analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
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