Market Scenario 

The ASEAN refrigerated truck market, encompassing aftermarket refrigeration systems and telematics services, held a value of US$ 1,362.5 million in 2023. This market is expected to reach US$ 3,728.3 million by 2032, reflecting a Compound Annual Growth Rate (CAGR) of 12.07% during the forecast period (2024-2032).

The refrigerated truck market in ASEAN countries is poised for significant growth due to a confluence of factors.  The rising demand for perishable goods, fueled by changing consumer preferences and increasing income levels, is a primary driver.  This trend is particularly noticeable in Indonesia and Vietnam, where meat consumption and production are on the rise. Simultaneously, the explosive growth of e-commerce in ASEAN countries has given consumers wider access to goods, including refrigerated and frozen products. This accessibility further boosts the demand for refrigerated storage and transport solutions.

Furthermore, ongoing modernization within the logistics sector directly supports the growth of refrigerated logistics in ASEAN nations. Technological advancements and automation are streamlining operations, improving efficiency, and reducing the costs associated with transporting perishable goods over long distances. Key players like DHL Group, K Line Logistics, Kerry Logistics Network Limited, Konoike Group, and Tiong Nam Logistics are crucial in the development of this market.

Despite the promising outlook, the ASEAN refrigerated truck market faces hurdles. Operators must navigate regulatory frameworks aimed at controlling emissions and ensuring the quality and safety of perishable goods throughout the transportation process.  However, opportunities for expansion remain abundant, particularly within the burgeoning e-commerce and pharmaceutical sectors. The increasing popularity of home delivery for perishable goods and the stringent need for refrigerated transport within the pharmaceutical sector both signal a growing reliance on reliable refrigerated trucks across ASEAN countries. 

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Market Dynamics 

Driver: Increasing Demand for Fresh and Frozen Food Products 

The ASEAN refrigerated truck market is experiencing significant growth due to increasing demand for fresh and frozen food products. The rising population, urbanization, and changing consumer preferences are driving the demand for refrigerated transportation. In 2023, the total population of ASEAN countries was estimated at 686 million, and it is projected to reach 717.5 million by 2025. Additionally, the rapid growth of the e-commerce sector, which is expected to reach $153 billion by 2025 in Southeast Asia, is further fueling the demand for refrigerated trucks to ensure the timely delivery of perishable goods. The expanding food and beverage industry, valued at $288.4 billion in 2022 in the ASEAN region, is also contributing to the growth of the refrigerated truck market.

Moreover, the increasing focus on reducing food waste is driving the adoption of refrigerated trucks. According to the United Nations Food and Agriculture Organization (FAO), approximately 1.3 billion tons of food is wasted globally each year, with a significant portion of this waste occurring during transportation. By using refrigerated trucks, food companies can extend the shelf life of their products and reduce waste. Governments in ASEAN countries are also supporting the growth of the refrigerated truck market through various initiatives. For example, the Indonesian government has launched the "Sea Toll Road" program, which aims to improve the country's maritime logistics infrastructure, including the development of cold chain facilities and the procurement of refrigerated trucks.

Trend:  Technological Advancements in Refrigerated Trucks

The refrigerated truck market in ASEAN countries is witnessing a trend towards the adoption of advanced technologies to improve efficiency, reduce costs, and ensure product quality. Smart refrigeration systems, which use IoT sensors and cloud-based platforms to monitor and control temperature, humidity, and other parameters, are gaining popularity. These systems enable real-time tracking of cargo and provide alerts in case of any deviations from the desired conditions. According to a study by Accenture, the use of IoT in the transportation and logistics industry can lead to a 10-15% reduction in operational costs. Another trend is the use of solar-powered refrigeration units, which can reduce fuel consumption by up to 25% and lower carbon emissions. 

In addition to these technologies, the use of telematics and GPS tracking systems is becoming increasingly common in the ASEAN refrigerated truck market. These systems allow fleet managers to monitor the location, speed, and performance of their trucks in real-time, enabling them to optimize routes, reduce fuel consumption, and improve delivery times. The adoption of telematics in the ASEAN commercial vehicle market is expected to grow at a CAGR of 12.5% between 2024 and 2032. The use of advanced insulation materials, such as vacuum insulated panels (VIPs) and phase change materials (PCMs), is also gaining traction in the market. These materials can provide better thermal insulation and maintain a more consistent temperature inside the truck, reducing energy consumption and improving product quality.

Challenge:  Lack of Adequate Infrastructure

Despite the growth opportunities, the ASEAN refrigerated truck market faces several challenges. One of the main challenges is the lack of adequate infrastructure, such as well-maintained roads and cold storage facilities. In many ASEAN countries, the road network is underdeveloped, which can lead to delays and damage to perishable goods during transportation. According to the World Bank, only 79% of the roads in ASEAN countries are paved, compared to 95% in developed countries. Another challenge is the high initial cost of refrigerated trucks, which can deter small and medium-sized enterprises from investing in them. The average cost of a refrigerated truck in ASEAN countries ranges from $50,000 to $100,000, depending on the size and features. Additionally, the lack of skilled personnel to operate and maintain refrigerated trucks is a challenge. According to a survey by the International Association of Refrigerated Warehouses, 60% of the companies in the ASEAN region face difficulties in finding qualified technicians for their refrigerated trucks.

Furthermore, the fragmented nature of the ASEAN refrigerated truck market poses a challenge for market players. The market is dominated by small and medium-sized enterprises, which often lack the resources and expertise to invest in advanced technologies and expand their operations. This fragmentation also leads to intense competition and price pressures, which can erode profit margins. Another challenge is the lack of harmonized regulations and standards across ASEAN countries. Each country has its own set of regulations and standards for refrigerated transportation, which can create barriers to entry and increase compliance costs for market players. The development of a unified regulatory framework for the ASEAN refrigerated truck market could help to address this challenge and promote greater market integration.

Segmental Analysis 

By Vehicle Type 

The ASEAN refrigerated truck market is dominated by internal combustion engine (ICE) vehicles, which held a 92.9% market share in 2023. This is largely due to the well-established infrastructure for diesel and petrol vehicles in the region. However, the electric vehicle (EV) segment is expected to grow at the highest CAGR of 14.84% during the forecast period. The growth of the EV segment is driven by several factors. Firstly, governments in ASEAN countries are increasingly focusing on reducing carbon emissions and improving air quality. For instance, the Delhi government in India approved a proposal in March 2021 to procure 300 new low-floor electric buses. Secondly, the falling costs of batteries and the improving range of EVs are making them more attractive for commercial use. Finally, the development of charging infrastructure in the region is expected to support the adoption of electric refrigerated trucks.

Despite the growth of the EV segment, ICE vehicles are likely to remain dominant in the near term due to their lower upfront costs and the lack of widespread charging infrastructure. However, as the costs of EVs continue to fall and charging networks expand, the market share of electric refrigerated trucks is expected to increase significantly in the long term.

By Tonnage Capacity

Less than 1.5 Tons segment held the largest market share of 51.2% in the ASEAN refrigerated truck market in 2023. This segment is expected to grow at the highest CAGR of 11.92% during the forecast period. The growth of this segment is driven by the increasing demand for last-mile delivery of perishable goods, particularly in the food and beverage industry. The rise of e-commerce and home delivery services has led to a surge in demand for smaller refrigerated trucks that can navigate urban areas and make frequent stops. The 1.5 - 10 tons segment is well-suited for this purpose, as these trucks are more maneuverable and fuel-efficient than larger vehicles. Additionally, the growth of small and medium-sized enterprises (SMEs) in the food processing and distribution sectors is driving demand for smaller refrigerated trucks.

However, the larger tonnage segments are also expected to see significant growth, particularly in the long-haul transportation of perishable goods. The 10-20 tons segment is expected to benefit from the increasing trade of food and beverage products within the ASEAN region, while the more than 20 tons segment is likely to be driven by the growth of the pharmaceutical and chemical industries.

By Temperature 

The frozen segment held the largest market share of 53.6% in the ASEAN refrigerated truck market in 2023 and is expected to grow at the highest CAGR of 12.46% during the forecast period. The growth of this segment is driven by the increasing demand for frozen food products, particularly in urban areas. The rising disposable incomes and changing lifestyles of consumers in ASEAN countries are leading to a shift towards convenience foods, including frozen ready-to-eat meals, snacks, and desserts. The growth of the food processing industry in the region is also driving demand for frozen transportation, as companies seek to extend the shelf life of their products and expand their distribution networks.

The chilled segment is also expected to see significant growth, particularly in the transportation of fresh produce, dairy products, and pharmaceuticals. The development of cold chain infrastructure in the region, including the construction of refrigerated warehouses and distribution centers, is expected to support the growth of this segment. However, the frozen segment is likely to remain dominant due to the longer shelf life and lower risk of spoilage associated with frozen products. Additionally, the increasing adoption of multi-temperature refrigerated trucks, which can transport both frozen and chilled products, is expected to blur the lines between these segments in the future.

By End-Use Industry

The food and beverage segment held the largest market share of 48.1% in the ASEAN refrigerated truck market in 2023 and is expected to grow at the highest CAGR of 12.36% during the forecast period. The growth of this segment is driven by the increasing demand for perishable food products, particularly in urban areas. The rising population and urbanization in ASEAN countries are leading to a growing demand for fresh and processed food products, including meat, dairy, fruits, and vegetables. The expansion of the food processing industry in the region is also driving demand for refrigerated transportation, as companies seek to source raw materials from different locations and distribute their products to a wider market. 

The pharmaceutical segment is also expected to see significant growth, particularly in the transportation of temperature-sensitive vaccines, drugs, and medical devices. The COVID-19 pandemic has highlighted the importance of cold chain logistics in the pharmaceutical industry, as the distribution of vaccines requires strict temperature control from production to administration. Other end-use industries, such as chemicals and electronics, are also expected to contribute to the growth of the refrigerated truck market in ASEAN. The increasing trade of specialty chemicals and high-value electronic components is driving demand for temperature-controlled transportation to ensure product quality and safety.

However, the food and beverage segment is likely to remain the largest end-use industry for refrigerated trucks in ASEAN due to the perishable nature of food products and the growing demand for fresh and convenient food options among consumers.

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Regional Analysis 

Singapore holds a dominant position in the ASEAN refrigerated truck market as a major Southeast Asian trade hub with more than 32.6% market share, boasting a robust logistics infrastructure and strategic location for efficient distribution throughout ASEAN. In 2022, Singapore's total trade value reached S$2,663.4 billion, a testament to its influence within regional and global trade. This focus on high standards and quality further strengthens Singapore's exports, naturally extending to goods requiring refrigerated transportation.

Indonesia represents one of ASEAN's fastest-growing economies. Its rapidly expanding urban population drives demand for refrigerated storage and transport. The consumption of refrigerated or frozen products in Indonesia is projected to surpass USD 3 billion by 2032. Underscoring this growth, between January and June 2022, Indonesia sold 475,321 vehicles (4-wheelers and more), dethroning Thailand as ASEAN's largest automotive market. 

Looking at the broader ASEAN refrigerated truck market, the cold chain industry is poised for substantial growth in the coming years. Rising income levels in ASEAN countries and lifestyle changes are driving the growth of meat consumption and production, particularly in Indonesia and Vietnam. As consumers become more affluent, they are shifting from carbohydrate-rich diets to protein-rich foods, which require cold chain logistics for transportation and storage. Additionally, there is an ongoing shift in consumer habits to buy fresh and frozen produce from supermarkets rather than traditional wet markets, especially in the Philippines.

The Philippines' agricultural exports have increased dramatically in recent years, driving the demand for cold chain storage facilities and logistics. Furthermore, there is an increasing demand for seafood as consumers around the world recognize its nutritional value. However, the implementation of cold chain for seafood in the refrigerated truck market involves many challenges, such as the lack of integrated supply chains from farm to fork.

Top Players in ASEAN Refrigerated Truck Market 

• Refrigerated Truck Rental Players
  • Penske Corp
  • Hertz Corp
  • ZeusQencana
  • Lalamove
  • MGM Bosco Logistics
  • Success Frozen
  • Rentalorry
  • Systematic Air Conditioning Pte Ltd
  • U-COOL Refrigeration LLC
  • Enterprise Truck Rental
  • Other Prominent Players
• Refrigerated Truck Players
  • Carrier Transicold.
  • Bernard KRONE Holding SE & Co. KG
  • China International Marine Containers (Group) Ltd Great Dane LLC
  • Hyundai Translead. Inc.
  • Kgel Trailer GmbH & Co.KG.
  • Lamberet SAS
  • Schmitz Cargobull AG
  • Thermo King
  • Wabash National
  • Other Prominent Players
• Telematics Service Players
  • Arvento
  • Atlanta Telematics
  • Sensel Telematics
  • Geotab
  • Tata Motors
  • Tracko Bit
  • Teltonika
  • Intangles
  • Intellishift
  • Linxup
  • Fleetio
  • Other Prominent Players

Market Segmentation Overview:

By Solution

• Vehicle
  • Insulated Truck
  • Chiller Conversion Truck
  • Semi-Freezer Truck
  • Full-Freezer Truck
  • Frozen Refrigerated and Reefer
  • Truck
  • Multimodal Temperature
  • Container
  • Atmosphere Controlled
  • Container
  • Others
• Truck Refrigeration System
• Parts & Spares
• Telematics Control Unit
• Services
  • Rental Services
  • Post Purchase Services (Repair & Maintenance)
• Telematics Services (Data Based Services)
  • Location Tracking
  • Temperature Monitoring
  • Fuel Monitoring
  • Vehicle Performance
  • Driver Monitoring
  • Driver License Card Read
  • Telephone Support
  • Route Optimization
  • Safety Evaluation
  • Others

By Tonnage Capacity

• Less than 1.5 Tons
• 1.5 - 10 Tons
• 10-20 Tons
• More than 20 Tons

By Vehicle Type

• ICE
• EV

By Temperature Range

• Frozen (Below -15℃)
• Chilled (-5 - 5℃)
• Dry (10 - 20℃)

By End Use Industry

• Food and Beverage
  • Frozen Food
  • Chilled Food
  • Others
• Retail
• Pharmaceuticals
• Transportation
• Others

By Country

• Singapore
• Thailand
• Vietnam
• Indonesia
• Malaysia
• Philippines
• Rest of ASEAN