Middle East Refrigerated Truck Market Size (2024 - 2029)

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 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.