Saudi Arabia Refrigerated Truck Market Size
| Study Period | 2024 - 2029 |
| Market Size (2024) | USD 250 Million |
| Market Size (2029) | USD 340 Million |
| CAGR (2024 - 2029) | 6.30 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Saudi Arabia Refrigerated Truck Market Analysis
The Saudi Arabia Refrigerated Truck Market size is estimated at USD 250 million in 2024, and is expected to reach USD 340 million by 2029, growing at a CAGR of 6.30% during the forecast period (2024-2029).
The recreational vehicle financing market exhibits a moderately consolidated landscape, dominated by a few major global players such as Carrier Transicold, Thermo King, Daikin, Frigoblock, Red Sea Global, Zanotti, and others. These companies have established a stronghold in the market through extensive product portfolios, technological advancements, and strategic collaborations.
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 the import and export of 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 that is expected to recorded a 6.95% CAGR to reach USD 32.12 billion by 2026. To support this growth, the transportation ecosystem needs to expand, digitize, and interconnect, 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, 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, taking into consideration 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 evolving needs of the market, such as alternative energy sources, connected fleet management systems, and autonomous driving capabilities. Additionally, the adoption of sustainable practices and the reduction of 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.
Saudi Arabia 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 Saudi Arabia refrigerated truck market, as these vehicles play a crucial role in the transportation of 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, 97,006 commercial vehicles were sold, which was a 49.54% growth compared to 2020 (64835 units).
Several driving factors contribute to the increasing demand for Heavy Commercial Vehicles (HCVs) in the Saudi Arabian refrigerated truck market. Firstly, the country's strategic location as a trade hub between Asia, Europe, and Africa has led to a surge in import and export activities, necessitating the need for efficient transportation solutions. In 2022, the number of trucks departing from Saudi Arabia via the King Fahd Bridge was around 183 thousand trucks, up from around 166 thousand trucks in 2020. Additionally, the rapid urbanization and economic growth in the region have led to an increase in the demand for food and other essential goods, further fuelling the need for HCVs in the refrigerated truck market.
Besides, One of the significant challenges faced by the industry is the need for improved fuel efficiency and environmental sustainability. As global concerns about climate change and air pollution continue to grow, there is an increasing demand for eco-friendly transportation solutions. This presents an opportunity for manufacturers and service providers to invest in research and development of more energy-efficient and environmentally friendly HCVs.
As the market evolves, we will likely witness advancements in technology, infrastructure, and operational efficiency, which will further boost the demand for HCVs. However, stakeholders must address the challenges associated with sustainability and environmental impact to ensure long-term growth and success in this market.
Expansion of Food and Beverages industry is anticipated the market demand
The refrigerated truck market in Saudi Arabia is experiencing substantial growth due to the significant influence of the food and beverage (F&B) industry. The F&B market in Saudi Arabia is primarily demand-driven, with limited scope for local agricultural production, high disposable income, and exposure to diverse culinary traditions. Consequently, F&B imports hold paramount importance in the sector. With only 1.5% of the land area classified as arable, the country cannot meet the local market demand for agri-food products, let alone cater to the growing preference for product variety. The harvested area in Saudi Arabia is significantly less than 1 million hectares (10,000 km²) in comparison to other markets with similar geographies like Mexico and Iran.
Although food and beverage imports constitute the major portion, local food processing in Saudi Arabia holds significance. In 2022, the country imported approximately USD 3 billion worth of intermediate food products, with the United States supplying approximately 11% of the total. This continuous growth in the industry has led to a higher demand for temperature-controlled transportation, thereby fueling the growth of the refrigerated truck market.
Several factors contribute to the increasing number of F&B refrigerated trucks in Saudi Arabia. The expanding retail sector, including supermarkets, hypermarkets, and convenience stores, necessitates a steady supply of fresh and chilled products. This, in turn, drives the demand for refrigerated trucks to transport goods efficiently. Additionally, the rise in food service businesses like restaurants, cafes, and catering services requires temperature-controlled transportation to ensure product quality and safety. Furthermore, the government's efforts to diversify the economy and reduce dependence on oil have led to the growth of various industries, including F&B, which in turn boosts the demand for refrigerated trucks.
Manufacturers can focus on developing advanced and energy-efficient refrigeration systems that can withstand extreme temperatures and reduce maintenance costs. Investing in better logistics infrastructure and improving cold chain management can help overcome distribution challenges and enhance overall market efficiency. Given the growing demand for diverse food products and the government's commitment to economic diversification, the future of the F&B refrigerated truck market in Saudi Arabia appears promising. As the retail and foodservice industries continue to grow, the need for efficient temperature-controlled transportation will also increase.
Moreover, technological advancements and the adoption of sustainable practices are expected to drive innovation in the refrigerated truck market. This may involve the development of electric or hybrid refrigerated trucks, which can reduce emissions and lower operating costs. In conclusion, the F&B refrigerated truck market in Saudi Arabia is anticipated to expand significantly in the coming years, driven by the dynamic growth of the F&B industry and the nation's commitment to economic diversification.
Saudi Arabia Refrigerated Truck Industry Overview
The Saudi Arabia refrigerated truck exhibits a moderately consolidated landscape, dominated by a few major global players such as Carrier Transicold, Thermo King, Daikin, Frigoblock, Zanotti, Red Sea Global, Voith Turbo, Foton Group, Emerald Transportation Solutions, ISUZU, and others. These companies have established a stronghold in the market through extensive product portfolios, technological advancements, and strategic collaborations.
• 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.
• In May 2022, Carrier Transicold unveiled its new XR Series engineless truck refrigeration units, which offer enhanced performance and sustainability. These innovative units are expected to significantly reduce fuel consumption and greenhouse gas emissions in the transportation sector.
Saudi Arabia Refrigerated Truck Market Leaders
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Carrier Transicold
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Thermo King
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Daikin
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Frigoblock
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Foton Group
*Disclaimer: Major Players sorted in no particular order
Saudi Arabia Refrigerated Truck Market News
November 2023: Daikin announced a new lineup of transport refrigeration products. The innovative offerings aim to enhance energy efficiency and reduce environmental impact in the transportation sector.
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.
May 2022: Frigoblock introduced the FK 2 refrigeration unit for electric transport cooling and sustainable deliveries. This new product is designed to support the growing demand for eco-friendly refrigeration solutions in the logistics industry.
Saudi Arabia 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 demand for temperature-controlled logistics
4.3 Market Restraints
4.3.1 High initial investment and operational costs
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
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 Red Sea Global
6.3.7 Voith Turbo
6.3.8 Foton Group
6.3.9 Emerald Transportation Solutions
6.3.10 ISUZU
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Saudi Arabia Refrigerated Truck Industry Segmentation
A refrigerated truck is a specialized type of 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 that the goods reach their destination in optimal condition, minimizing potential losses and maintaining consumer safety.
The Saudi Arabia 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) and by Country (Saudi Arabia).
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 |
Saudi Arabia Refrigerated Truck Market Research FAQs
How big is the Saudi Arabia Refrigerated Truck Market?
The Saudi Arabia Refrigerated Truck Market size is expected to reach USD 250 million in 2024 and grow at a CAGR of 6.30% to reach USD 340 million by 2029.
What is the current Saudi Arabia Refrigerated Truck Market size?
In 2024, the Saudi Arabia Refrigerated Truck Market size is expected to reach USD 250 million.
Who are the key players in Saudi Arabia Refrigerated Truck Market?
Carrier Transicold, Thermo King, Daikin, Frigoblock and Foton Group are the major companies operating in the Saudi Arabia Refrigerated Truck Market.
Which is the fastest growing region in Saudi Arabia 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 Saudi Arabia Refrigerated Truck Market?
In 2024, the North America accounts for the largest market share in Saudi Arabia Refrigerated Truck Market.
What years does this Saudi Arabia Refrigerated Truck Market cover, and what was the market size in 2023?
In 2023, the Saudi Arabia Refrigerated Truck Market size was estimated at USD 234.25 million. The report covers the Saudi Arabia Refrigerated Truck Market historical market size for years: . The report also forecasts the Saudi Arabia Refrigerated Truck Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Saudi Arabia Refrigerated Truck Industry Report
Statistics for the 2024 Saudi Arabia Refrigerated Truck market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Saudi Arabia 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.
Saudi Arabia Refrigerated Truck Market Report Snapshots
