Global sales of reefer container for pharmaceutical are valued at USD 3.9 billion in 2024 and are expected to touch a revenue of USD 5.8 billion in 2034. Revenue is set to increase at a CAGR of 4.1% during the forecast period, from 2024 to 2034. Reefer container for pharmaceutical generated revenue worth USD 3.7 billion in 2023. It is expected to record a Y-o-Y growth of 4.3% in 2024.
Advanced reefer containers have more enhanced capabilities and are the most used in the pharmaceutical market. Advanced technologies include, but are not limited to, real-time temperature monitoring, controlling humidity, and energy-efficient cooling in these containers, which are necessary for maintaining the integrity of temperature-sensitive pharmaceuticals such as vaccines and biologics.
With their increased precision and reliability, advanced reefers are much better adapted to the stringent requirements of cold chain logistics for pharmaceuticals than conventional reefers.
Global Reefer Container for Pharmaceutical Industry Assessment
| Attributes | Key Insights |
|---|---|
| Historical Size, 2023 | USD 3.7 billion |
| Estimated Size, 2024 | USD 3.9 billion |
| Projected Size, 2034 | USD 5.8 billion |
| Value-based CAGR (2024 to 2034) | 4.1% |
The 40-foot reefer container is the most used in the pharmaceutical market. With greater capacity, temperature-sensitive bulk shipment, like vaccines and biologics, can be allowed inside strict cold-chain requirements. This size provides better efficiency in long-distance transportation by minimizing costs for handling and storage.
Furthermore, the increased capacity reduces the per-unit shipping cost-an issue that is paramount to high-value pharmaceutical goods. Also, the 40-foot container allows flexibility in carrying multiple items according to highly specific temperature controls.
The reefer container for pharmaceutical industry is set to experience promising growth during the forecast period. It is projected to create an incremental opportunity of USD 1.9 billion and is predicted to rise 1.6 times the current market value through 2034.
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The above table presents the expected CAGR for the global reefer container for pharmaceutical market over several semi-annual periods spanning from 2024 to 2034. In the first half (H1) of the decade from 2023 to 2033, the business is predicted to surge at a CAGR of 4.5%, followed by a slightly low growth rate of 4.1% in the second half (H2) of the same decade.
| Particular | Value CAGR |
|---|---|
| H1 | 4.5% (2023 to 2033) |
| H2 | 4.1% (2023 to 2033) |
| H1 | 4.3% (2024 to 2034) |
| H2 | 4.6% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to increase slightly to 4.3% in the first half and remain relatively moderate at 4.6% in the second half. In the first half (H1) the market witnessed a decrease of 40 BPS while in the second half (H2), the market witnessed an increase of 30 BPS.
Rising Demand for Dry Containers Driving the Reefer Container for Pharmaceutical
Rising demand for multimodal transport is expected to be a driving force in the demand for dry containers, which in turn is driving the reefer container for pharmaceutical market growth. As a result of its low initial investment requirements, great efficiency, and minimal environmental impact, intermodal transport is quickly growing in popularity.
In addition to reducing transit time, this mode of conveyance also allows for direct delivery to the customer's door. This method utilizes alternative routes while also assuring the cargo's security. When compared to other modes of transportation, intermodal transport is very efficient and simple to monitor.
Computerized truck routing, online freight exchange, and active traffic management are just a few examples of the technical developments that have made intermodal transportation the go-to option for shippers.
As the global demand-supply balance in the manufacturing and construction sectors improves, there will likely be an increase in the need for dry containers. As the number of leasing and renting services for containers in the shipping and logistics sectors increases, it is projected that dry van containers will have great growth potential.
Smart Reefer Container is shaping the Pharmaceutical Industry
The smart reefer container, which is a linked container for transporting commodities that need to be kept cool, was first started by CMA CGM in February 2022. The location of the refrigerated goods as well as their current condition can be determined using the SMART reefer containers.
Additionally, in March 2022, ORBCOMM Inc., a global provider of IoT solutions, announced the debut of its CT 3500 IoT telematics device. This device contains the next step in the smart management of refrigerated containers and was developed by ORBCOMM Inc.
The ORBCOMM data-driven chilled container solution offered enhanced functionalities, connectivity choices, and analytic capabilities. Most notably, it demonstrates interoperability with telematics devices developed by third parties that assists shippers and carriers in driving efficiencies in the logistics of reefer containers.
Therefore, smart reefer containers are taking a prominent share in adoptability for the reefer container manufacturers which is expected to drive growth in the reefer container market for pharmaceuticals during the forecast period.
Reefer Containers Require High Operational Cost
The high operational cost for reefer containers is caused by the demand for constant power supply to keep freight at required temperature until the end of its journey. Reefer units require an external input of energy such as the electricity provided at ports, fueled by diesel-powered generators during transport, which greatly increases fuel consumption and energy costs.
The longer the distance, the greater the operational cost owing to the longer duration of refrigeration. Additionally, any change in the fuel price automatically affects the total expenditure on the container. The maintenance expenditure on the refrigeration units and power mechanisms also adds up to this cost.
Companies dealing in very costly pharmaceuticals see these costs as an investment to maintain their product integrity but at a rather costly rate.
Principal Consultant
The global reefer container for pharmaceutical industry recorded a CAGR of 2.1% during the historical period between 2019 and 2023. The growth of reefer container for pharmaceutical industry was positive as it reached a value of USD 3.7 billion in 2023 from USD 3.4 billion in 2019.
The pharmaceuticals reefer container market was growing at a steady pace throughout the historic period. Demand for cold chain logistics related to vaccines during the COVID-19 pandemic supported this growth. Growth in demand for biologics and personalized medicine that requires extreme controlled temperature conditions also favored higher demand for reefers.
In forecast period, it is also anticipated that sustained growth in the biopharmaceutical market, ongoing vaccine distribution, and investment in the cold chain infrastructure of emerging markets will continue to drive the market.
Other factors contributing to a promising outlook for this market in the near future relate to enhanced stringency in regulatory requirements, such as those for GDP compliance, and the technological development of reefers using energy-efficient, real-time monitoring.
A few of the key, interrelated trends by which huge demand from the pharmaceutical industry can be identified are an aging population, surging healthcare costs, rising investments in research and development capabilities, and a greater prevalence of lifestyle diseases like obesity and diabetes.
The sudden occurrence of the COVID-19 pandemic added even greater demand due to increased needs to circulate them to consumers. Owing to the rise in pharmaceutical research and development, more vaccines and other drugs are being synthesized than ever before, all of which must be kept at precise temperatures to preserve their efficacy.
Due to their sensitivity to temperature changes, most pharmaceuticals require a reefer shipping container for safe and effective storage and transport.
The pharmaceutical industry possesses complex supply chains through which medications reach the patient, and these systems are being updated continuously to make use of emergent technologies that enhance the safety of drug transport. Among others, cold storage facilities for pharmaceuticals, in turn, rely a lot on control tower technology, automated packing, and AI.
More complicated cold-chain requirements have come out of recent developments in the distribution of temperature-sensitive pharmaceutical products, such as vaccines against COVID-19 and other infectious diseases, novel oncology treatments, and Cell and Gene Therapies, which are used for the treatment of rare and chronic diseases and more.
Tier 1 companies include market leaders that correspond to a market revenue above USD 100 million capturing significant market share between 10% and 25% of the global market. These market leading firms are characterized by high production capacity and a wide product portfolio.
These players are characterized by substantial manufacturing experience concerning a range of products for different applications and geographic penetration, backed by a strong consumer base. These companies manufacturing the products have products on offer with a wide range and with state-of-the-art technological innovations, coupled with adherence to regulatory imperatives that offer nothing but the best quality.
Tier 1 prominent companies include A.P. Moller - Maersk, MSC Mediterranean Shipping Company, Hapag-Lloyd, CMA CGM Group, and Thermo King.
The companies in Tier 2 include mid-size players with revenues of USD 40 million to USD 100 million, present in specific regions, and highly influencing the regional market. Such players are characterized by a limited international presence and well-maintained market knowledge.
In the case of such market players, the technology is good, and the regulatory compliance is ensured, though advanced technology with wide global reach may not be there. While other prominent companies in tier 2 include Daikin Reefer, Klinge Corporation, Carrier Transicold, Singamas Container Holdings Limited, and TLS Offshore Containers/TLS Special Containers, among others.
The rest are very small companies operating at the local presence and serving niche markets having revenue below USD 40 million. These companies are notably oriented to the fulfillment of local market demands and are consequently classified within the tier 3 share segment.
They are players on a very small scale, and have very limited geographical reach. Within this context, Tier 3 can be described as an unorganized market-a generic term applied to that part of the industry which has less structure and formalization compared to the organized competitors.
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The section below covers the industry analysis of the reefer container for pharmaceutical market for different countries. Market demand analysis on key countries in several regions of the globe, including North America, South Asia & Pacific, East Asia, Western Europe, Eastern Europe, and others, is provided.
In North America, United States is anticipated to register a moderate growth at 2.5% through 2034. In South Asia Pacific, India is an emerging country in reefer container for pharmaceutical projected to witness a growth rate of 5.1% by 2034 end.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| USA | 2.5% |
| Germany | 2.2% |
| UK | 2.7% |
| Brazil | 3.8% |
| India | 5.5% |
| China | 5.1% |
| Japan | 3.2% |
| GCC Countries | 4.4% |
India is expected to report substantial growth at a CAGR of 5.5% and capture more than 50% of value share in south Asia and Pacific region during the forecast period. The cold storage capacity in India was projected to be 40.7 million metric tonnes in 2023, up 8.2% from an estimated capacity of 37.6 million metric tonnes in 2020.
Due to enormous requirements emerging from temperature-controlled logistics in the food and pharmaceutical industries, India is experiencing fast growth in demand for cold storage. This growth will be driven by the expansion of industries connected with cold chain, such as agriculture, dairy, and biopharmaceuticals.
The cold storage industry is expected to grow at a certain CAGR during the forecast period and thus is crucial for supporting India's food security and healthcare infrastructure. The rising demand shows that further investments are needed in cold chain infrastructure.
With over 80% market share in 2024, the USA dominates the market in North America and is expected to grow at a 2.5% CAGR by the end of the assessment period. The high incidence of cancer in the USA, once every 1.6 million cases in 2020 alone in the USA, with an acute mortal mortality rate-supports demand for advanced pharmaceutical interventions, including biologics, immunotherapies, and vaccines.
These are highly temperature-sensitive, and this makes the cold chain logistics essential for maintaining the efficacy of the transport. That, of course, brings up the growing number of new cancer cases, 403 per 100,000 people, a statistic that requires a reliable supply chain to deliver those lifesaving drugs right around the country.
This trend is driving up demand for reefer containers in the USA pharmaceutical market because they ensure safe and consistent temperature control, while preventing spoilage and ensuring timely delivery of critical medications.
The demand for reefer container for pharmaceutical in the china will surge at a 5.1% CAGR through 2034. Key factors driving growth in China include investments in modern manufacturing technology and automation that improve reefer container for pharmaceutical production quality and efficiency.
Some Chinese manufacturers have adopted advanced technology and software solutions to position them among the global leaders in streamlined manufacturing and resultant development of the reefer container for pharmaceutical market.
Development in infrastructure in China and the expansion of cold chain facilities have opened up a requirement for packaging solutions that would keep product integrity in a variable temperature environment. For the cold chain and logistics industry, the insulating capability of reefer container for pharmaceutical has made the segment a darling among organizations.
The section contains information about the leading segments in the industry.
| Container Size | High Cube |
|---|---|
| Value Share (2034) | 27% |
High cube reefer containers are anticipated to record a market share of about 27% because of their higher height, which allows extra storage space beyond the standard containers. This extra space is highly utilized in moving larger or bulkier pharmaceutical products, such as high-volume drug shipments or specialty medical supplies.
While the volume is higher in these containers, strict temperature control is still maintained to keep the temperature-sensitive pharmaceuticals intact. They are also preferred because of their flexibility and the capacity they provide with regard to efficient and safe pharmaceutical logistics.
| Mode of Transportation | Seaways |
|---|---|
| Value Share (2034) | 65% |
Seaways account for 65% of the market share in the reefer container sector for pharmaceuticals, since they are capable of handling bulk volumes over long distances. It is a very vital mode for international trade, without it, transportation of bulk pharmaceuticals and vaccines could not have been visualized as they need precise temperature control during the entire journey.
The worldwide network for shipping caters to every conceivable route and makes it the most viable option for international pharmaceutical logistics. Its reach and capacity provide for responsible and inexpensive distribution of many critical medications throughout the world.
The leading pharmaceutical reefer container companies remain competitive through continuous investment in advanced temperature control technologies and real-time monitoring systems for the precise management of sensitive shipments. They also put their concentration on energy efficiency, sustainability, offering eco-friendly solution cost reduction in operational areas.
It enables seamless international transportation, expands global networks, and integrates logistics services. Strong adherence to regulations and increased measures for security protect the integrity of pharmaceutical products. In addition, companies regularly innovate with customizable solutions and strategic partnerships that position them to meet emerging market needs while continuing to develop their capabilities.
Recent Industry Developments in Reefer Container for Pharmaceutical Market
In terms of container size, the industry is divided into 20 feet, 40 feet, and high cube.
In terms of technology, the industry is segregated as conventional reefer and advanced reefer.
The industry is classified by mode of transportation as roadways, railways, and seaways.
Key countries of North America, Latin America, Western Europe, Eastern Europe, South Asia & Pacific, East Asia, and Middle East and Africa (MEA), have been covered in the report.
The global reefer container for pharmaceutical industry is projected to witness CAGR of 4.1% between 2024 and 2034.
The global reefer container for pharmaceutical industry stood at USD 3.7 billion in 2023.
The global reefer container for pharmaceutical industry is anticipated to reach USD 5.8 billion by 2034 end.
South Asia and Pacific is set to record the highest CAGR of 4.8% in the assessment period.
The key players operating in the global reefer container for pharmaceutical industry include A.P. Moller - Maersk, MSC Mediterranean Shipping Company, Hapag-Lloyd, CMA CGM Group, and Thermo King.
1. Executive Summary
2. Industry Introduction
2.1. Market Taxonomy
2.2. Market Definition
3. Market Trends and Success Factors
4. Market Background
4.1. Macro-economic and Industry Outlook
4.2. Market Dynamics
4.3. Value Chain Analysis
4.4. List of Key Market Participants (Manufacturers/Channel Partners)
4.5. Analysis of Key Industry Matrices
4.6. Industry Development Roadmap
5. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034
5.1. Historical Market Volume Analysis
5.2. Future Market Volume Projections
6. Pricing Analysis
7. Global Market Value (USD) Analysis 2019 to 2023 and Forecast 2024 to 2034
7.1. Historical Sales Analysis
7.2. Future Market Size and Growth Projections
8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, Container Size
8.1. 20 Feet
8.2. 40 Feet
8.3. High Cube
9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Technology
9.1. Conventional Reefer Container
9.2. Advanced Reefer Container
10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Mode of Transportation
10.1. Roadways
10.2. Railways
10.3. Seaways
11. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Region
11.1. North America
11.2. Latin America
11.3. Western Europe
11.4. East Asia
11.5. South Asia & Pacific
11.6. Middle East and Africa (MEA)
11.7. Eastern Europe
12. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments and Country
13. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments and Country
14. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments and Country
15. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments and Country
16. South Asia & Pacific Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments and Country
17. Middle East and Africa (MEA) Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments and Country
18. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments and Country
19. Sales Analysis 2024 & 2034 by Key Market Segments for 30 Countries
20. Competition Outlook including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard
21. Company Profile
21.1. Danteco Industries BV
21.2. NewPort Tank
21.3. A.P. Moller - Maersk
21.4. China International Marine Containers (Group) Ltd
21.5. COSCO SHIPPING Development Co., Ltd.
21.6. Singamas Container Holdings Limited
21.7. TLS Offshore Containers/TLS Special Containers
21.8. W&K Containers, Inc.
21.9. Daikin Reefer
21.10. Carrier Transicold
21.11. Thermo King
21.12. Hyundai Translead
21.13. Klinge Corporation
21.14. MSC Mediterranean Shipping Company
21.15. Triton Container International Limited
21.16. Seaco Global Limited
21.17. Blue Sky Intermodal
21.18. Evergreen Marine Corporation
21.19. CMA CGM Group
21.20. ZIM Integrated Shipping Services
21.21. Hapag-Lloyd
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Reefer Container for Pharmaceutical Market
