Reefer Container for Pharmaceutical Market Research Report and Outlook by 2028

The pharmaceutical reefer container market is projected to grow from US$ 2,846.7 million in 2021 to US$ 6,391.8 million by 2028, reflecting a compound annual growth rate (CAGR) of 12.5% from 2022 to 2028.

The surge in the need for refrigerated pharmaceuticals, including medicines, vaccines, and blood plasma, along with supportive government policies that encourage international trade, is propelling the expansion of the reefer container market for pharmaceuticals in North America. According to the Bureau of Economic Analysis, the United States experienced an increase in goods and services exports by US$ 394.1 billion (18.5%) and imports by US$ 576.5 billion (20.5%) in 2021 compared to the previous year. To foster economic growth and enhance the transport of pharmaceuticals and other essential goods, the US is actively pursuing trade liberalization through various negotiations and policies. Advanced reefer containers, which come equipped with sophisticated temperature monitoring systems, are essential for maintaining the ideal conditions necessary for shipping temperature-sensitive items, ensuring their safe arrival at their intended destinations. These containers also feature sensors capable of detecting minor temperature fluctuations and light exposure, both of which can affect the integrity of certain pharmaceutical products.

The COVID-19 pandemic has significantly accelerated growth within the cold chain sector, with a notable preference for rental reefer containers over purchased units for pharmaceutical logistics. In April 2022, Cardinal Health secured a contract valued at US$ 57.8 million to manage the storage and distribution of 80,000 pallets of personal protective equipment for the Strategic National Stockpile, a branch of the US Department of Health and Human Services. Research on 15 reefer trade routes indicated a 50% increase in activity during the third quarter of 2021, while dry container freight rates more than doubled throughout the year. Furthermore, FESCO Transportation Group announced its intention to expand its reefer container fleet to 4,000 units by the end of summer 2022, as part of its strategy to enhance its Dalreftrans subsidiary. The growing need for the logistics and transportation of pharmaceutical products is driving the increased adoption of reefer containers.

The healthcare supply chains and cold chain sectors in the Asia Pacific region have faced challenges due to the COVID-19 pandemic and associated trade restrictions. Countries like China, India, Singapore, and South Korea are emerging as significant centers for drug manufacturing outsourcing, clinical trials, and pathology testing, which in turn boosts the demand for reefer containers. The rising need for biopharmaceuticals and vaccines in the densely populated Asia Pacific region is another critical factor contributing to the growth of the reefer container market for pharmaceuticals. Given that many of these products require careful temperature management, the availability of cold storage facilities is vital. Notable reefer container manufacturers serving the pharmaceutical sector in China include Hapag-Lloyd AG, Tianjin LongTeng International Trade Co., Ltd., and Shanghai Metal Corporation.

In Europe, the reefer container market for pharmaceuticals is witnessing growth, driven by the European Commission's initiatives to establish regulations and policies that create trading opportunities for European firms. This has led to an increased demand for reefer containers for the transportation of pharmaceutical products. In November 2021, the German-based MECOTEC Group delivered eight deep-freeze storage containers specifically for COVID-19 vaccine storage.

Key players in the reefer container market for pharmaceuticals include BSL REFRIGERATED CONTAINERS, CMA CGM GROUP, KLINGE CORPORATION, DAIKIN INDUSTRIES, LTD., MAERSK CONTAINER INDUSTRY AS, EVERGREEN MARINE CORP. (TAIWAN) LTD., SEACO, TITAN CONTAINERS A/S, COSCO SHIPPING, and W&K CONTAINERS, INC. The market report offers comprehensive insights that assist these key players in strategizing for future growth.

The pharmaceutical sector is increasingly adopting innovative technologies to ensure the secure delivery of temperature-sensitive medical products. This includes the implementation of control tower technology, automation in packaging, and the use of artificial intelligence. As the complexity of cold-chain requirements escalates, India's cold storage capacity is anticipated to grow by 8.2%, reaching 40.7 million metric tonnes by 2023. On a global scale, the cold chain industry is expected to expand at a CAGR exceeding 20% by 2025, driven by a transition towards modern storage solutions. Maersk Company (MCI) has announced plans for a new cold storage facility in Ridgeville, South Carolina, aimed at serving temperature-controlled goods, with operations expected to commence in the first quarter of 2023.

Technological advancements in reefer containers are enhancing the efficiency and reliability of containers utilized in the pharmaceutical sector. The growing adoption of IoT-connected devices by shipping companies is a significant trend, enabling the collection and transmission of extensive data during transport. This data can be analyzed to identify potential issues, minimize downtime, and optimize processes, thereby improving operational efficiencies within the maritime industry. In February 2022, CMA CGM launched its SMART reefer container, which allows for real-time tracking of the position and condition of refrigerated goods. Additionally, ORBCOMM Inc. introduced its CT 3500 IoT telematics device in March 2022, featuring enhanced functionalities, connectivity options, and analytical capabilities. This data-driven refrigerated container solution is compatible with third-party telematics devices, promoting efficiencies in reefer container logistics. The growing acceptance of smart reefer containers among manufacturers is expected to further stimulate growth in the pharmaceutical reefer container market during the forecast period.

The reefer container market for pharmaceuticals is segmented into two main categories: container size and application. Container sizes are classified as small, medium, or large, while application segments encompass pharmaceutical preparations, injectables, blood derivatives, vaccines and serums, among others.

The reefer container market for pharmaceuticals is divided into five primary regions: North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). In 2021, Asia Pacific held the largest market share, followed by North America. Furthermore, Europe is projected to exhibit the highest CAGR in the market from 2022 to 2028.

The market size for reefer containers in the pharmaceutical sector was determined through a combination of primary and secondary research methodologies. The initial phase involved extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data regarding the market. This process also provided a comprehensive overview and forecast of all market segments. Additionally, primary interviews were conducted with various industry experts, including VPs, business development managers, market intelligence managers, national sales managers, and external consultants such as valuation experts, research analysts, and key opinion leaders, to validate the data and obtain further analytical insights into the reefer container market for pharmaceuticals.