Saudi Arabia Refrigerated Trailer Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 0.32 Billion |
| Market Size (2029) | USD 0.4 Billion |
| CAGR (2024 - 2029) | > 5.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Saudi Arabia Refrigerated Trailer Market Analysis
The Saudi Arabia Refrigerated Trailer Market size is estimated at USD 0.32 billion in 2024, and is expected to reach USD 0.4 billion by 2029, growing at a CAGR of greater than 5% during the forecast period (2024-2029).
The Saudi Arabia refrigerated trailer market has witnessed increasing demand for transporting perishable goods across the country. Refrigerated trailers, also known as reefer trailers, are essential for maintaining the freshness and quality of perishable items such as food, pharmaceuticals, and chemicals during transportation. As Saudi Arabia continues to develop its infrastructure and logistics sector, the demand for refrigerated trailers is expected to rise further.
The growth of the food industry is the key driver in the Saudi Arabian market. With a growing population and increasing urbanization, there is a rising demand for fresh produce, dairy products, and frozen foods. This has led to a greater need for efficient cold chain logistics solutions, leading to increased adoption of refrigerated trailers by food manufacturers, distributors, and retailers across the country. The SFDA has detailed some temperature controls for the transportation of different food and beverage types in the country.
Additionally, the pharmaceutical sector is emerging as a significant end-user of refrigerated trailers in Saudi Arabia. The transportation of temperature-sensitive pharmaceutical products requires precise temperature control to ensure their efficacy and safety. As pharmaceutical companies expand their regional operations and distribution networks, the demand for refrigerated trailers equipped with advanced temperature monitoring and control systems is expected to surge.
Furthermore, government initiatives aimed at enhancing food safety standards and ensuring the quality of perishable goods during transportation are also contributing to the growth of the refrigerated trailer market in Saudi Arabia. Regulations mandating refrigerated transport for certain perishable products are likely to further boost the adoption of refrigerated trailers in the country.
• Under articles 4 and 7 of the KSA Food Act, the Saudi Food & Drug Authority (SFDA) has set strict frameworks regulating the import of foods into the Kingdom of Saudi Arabia.
With the increasing focus on cold chain logistics and the expansion of end-user industries, the Saudi Arabia refrigerated trailer market is poised for continued growth during the forecast period.
Saudi Arabia Refrigerated Trailer Market Trends
Chilled Goods Segment Dominates the Saudi Arabia Refrigerated Trailer Market
The Chilled Goods segment is the largest goods type segment owing to Saudi Arabia's food and beverage industry’s heavy reliance on the transportation of perishable goods such as dairy products, fruits, vegetables, and processed foods. These items require controlled temperature environments to maintain their freshness and quality during transit. Consequently, the demand for refrigerated trailers to transport chilled goods has surged in tandem with the expansion of the food industry.
Additionally, the increasing adoption of modern retail formats, including supermarkets, hypermarkets, and convenience stores, has fueled the need for efficient cold chain logistics. These retail outlets demand reliable transportation solutions to ensure timely delivery of perishable products to meet consumer demands. Refrigerated trailers offer the necessary temperature-controlled environment to preserve the quality and safety of chilled goods throughout the supply chain, thus becoming indispensable for the retail sector.
Furthermore, the rise of e-commerce and online grocery platforms has further boosted the demand for refrigerated trailers in Saudi Arabia. As consumers increasingly prefer the convenience of ordering perishable items online, there is a growing need for reliable cold-chain logistics to fulfill these orders.
• In 2023, the Saudi Arabian e-commerce market was valued at USD 11.83 billion, compared to USD 10.28 in 2022.
Refrigerated trailers play a crucial role in enabling the seamless delivery of chilled goods from warehouses to customers' doorsteps, thereby driving the expansion of the chilled goods segment in the refrigerated trailer market.
Meat & Seafood is the Leading Segment in the Market
Saudi Arabia has a significant demand for meat and seafood products, fueled by a growing population, rising income levels, and changing dietary preferences. With a large portion of the population adhering to a halal diet, which mandates specific slaughtering and preparation methods for meat, the demand for refrigerated transportation becomes essential to maintain freshness and comply with religious regulations. The SFDA has mandated multiple frameworks regarding the Halal certification of foods, especially meat and seafood, in the KSA Food Act.
Furthermore, the geographical landscape of Saudi Arabia contributes additionally to the dominance of the meat & seafood segment in the refrigerated trailer market. The country's vast land area and diverse topography necessitate extensive transportation networks to distribute perishable goods across regions. Refrigerated trailers play a crucial role in this distribution process, allowing companies to transport meat and seafood products from production centers to retail outlets, restaurants, and consumers nationwide.
Moreover, with the ongoing development of infrastructure and logistics facilities in Saudi Arabia, refrigerated transportation services' efficiency and reliability further enhance the segment's dominance.
Additionally, the stringent regulations and standards governing food safety and hygiene in Saudi Arabia amplify the significance of refrigerated trailers in the meat & seafood segment. To comply with regulatory requirements and ensure consumer satisfaction, companies ought to adhere to strict temperature control measures throughout transporting and storing perishable goods. Refrigerated trailers equipped with advanced cooling systems and temperature monitoring capabilities offer a reliable solution for maintaining optimal conditions during transit, thereby reducing the risk of spoilage, contamination, and foodborne illnesses.
As a consequence, businesses operating in the meat and seafood industry prioritize investments in refrigerated trailer fleets to uphold quality standards and meet regulatory compliance, driving the segment's dominance in the Saudi Arabian market.
Saudi Arabia Refrigerated Trailer Industry Overview
The Saudi Arabia refrigerated trailer market is fragmented in nature, with multiple players operating in the segment. Some of the key players operating in the market are Coldstores Group of Saudi Arabia, DHL Group, ALBA, Alshehili, Yarres International, and TSSC Group, among others.
The key players are actively engaged in offering new and innovative products and forming strategic alliances and product collaborations to gain an edge over their competitors in the market.
Saudi Arabia Refrigerated Trailer Market Leaders
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Coldstores Group of Saudi Arabia
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Transworld Group
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TSSC Group
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DHL Group
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Yarres International Logistics GmbH
*Disclaimer: Major Players sorted in no particular order
Saudi Arabia Refrigerated Trailer Market News
- In July 2023, GORICA, a Dubai-based trailer manufacturer, announced its plan to expand its refrigerated transport range to the Kingdom of Saudi Arabia. The company is already present in the Saudi transport industry but has extended its goals to capture the perishable goods transportation market.
- In October 2023, HUABON THERMO's HT-380 refrigeration units were shipped to Saudi Arabia to set new standards in the refrigeration industry. The unit is designed specifically for fresh and frozen cargo and is tailored to efficiently cool refrigerated truck boxes ranging from 16 to 22m³ in volume.
Saudi Arabia Refrigerated Trailer Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 The Growing Demand for Perishable Food Items is Driving the Market
4.2 Market Challenges
4.2.1 High Initial Investment and Maintenance Cost is a Challenge
4.3 Porters Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Goods Type
5.1.1 Frozen Goods
5.1.2 Chilled Goods
5.2 By Application
5.2.1 Dairy
5.2.2 Meat & Seafood
5.2.3 Fruits & Vegetables
5.2.4 Medicines
5.2.5 Others
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Coldstores Group of Saudi Arabia
6.2.2 Kuehne+Nagel
6.2.3 Transworld Group
6.2.4 DHL Group
6.2.5 Yarres International Logistics GmbH
6.2.6 ALSHEHILI COMPANY FOR METAL INDUSTRIES
6.2.7 Almar Container Group
6.2.8 Sharaf Din Group of Companies
6.2.9 TSSC Group
6.2.10 Arabian Metal Industries Ltd
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 The Growing E-commerce Industry Presents Ample Growth Opportunities
8. MARKET SIZE AND FORECAST IN TERMS OF VOLUME
Saudi Arabia Refrigerated Trailer Industry Segmentation
A refrigerated trailer, also known as a reefer trailer or refrigerated container, is a specialized type of trailer or container used for transporting temperature-sensitive goods and perishable items over long distances. These trailers are equipped with a built-in refrigeration system, typically powered by a diesel engine or electric power source, which maintains a controlled temperature environment inside the trailer's cargo compartment.
The Saudi Arabia refrigerated trailer market is segmented based on the type of goods used and their application. The market is segmented by food type into frozen and chilled goods. The market is segmented by application as dairy, meat & seafood, fruits & vegetables, medicines, and others. The report offers market size and forecasts for all the above segments in terms of value (USD).
| By Goods Type | |
| Frozen Goods | |
| Chilled Goods |
| By Application | |
| Dairy | |
| Meat & Seafood | |
| Fruits & Vegetables | |
| Medicines | |
| Others |
Saudi Arabia Refrigerated Trailer Market Research FAQs
How big is the Saudi Arabia Refrigerated Trailer Market?
The Saudi Arabia Refrigerated Trailer Market size is expected to reach USD 0.32 billion in 2024 and grow at a CAGR of greater than 5% to reach USD 0.4 billion by 2029.
What is the current Saudi Arabia Refrigerated Trailer Market size?
In 2024, the Saudi Arabia Refrigerated Trailer Market size is expected to reach USD 0.32 billion.
Who are the key players in Saudi Arabia Refrigerated Trailer Market?
Coldstores Group of Saudi Arabia, Transworld Group, TSSC Group, DHL Group and Yarres International Logistics GmbH are the major companies operating in the Saudi Arabia Refrigerated Trailer Market.
What years does this Saudi Arabia Refrigerated Trailer Market cover, and what was the market size in 2023?
In 2023, the Saudi Arabia Refrigerated Trailer Market size was estimated at USD 0.30 billion. The report covers the Saudi Arabia Refrigerated Trailer Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Saudi Arabia Refrigerated Trailer Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Saudi Arabia Refrigerated Trailer Industry Report
Statistics for the 2024 Saudi Arabia Refrigerated Trailer market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Saudi Arabia Refrigerated Trailer analysis includes a market forecast outlook for 2024 to (2024to2029) and historical overview. Get a sample of this industry analysis as a free report PDF download.
