The reefer container for pharmaceutical market is expected to reach US$ 6,391.8 million by 2028 from US$ 2,846.7 million in 2021. It is estimated to grow at a CAGR of 12.5% during 2022-2028.
The increase in demand for refrigerated medicines, vaccines, and blood plasma, coupled with government policies promoting international trade, is driving the growth of the reefer container for pharmaceutical market in North America. The Bureau of Economic Analysis reported that in 2021, the US saw a rise of US$ 394.1 billion or 18.5% in goods and service exports, and US$ 576.5 billion or 20.5% in imports compared to 2020. To stimulate economic growth and increase the transportation of pharmaceutical and other important products, the US is pursuing trade liberalization through negotiations and policies. High-tech reefer containers, equipped with advanced temperature monitoring devices, are ideal for preserving optimal conditions for shipping temperature-sensitive products and ensuring their safe delivery to the final destination. Additionally, these containers are equipped with sensors that can detect slight temperature variations and light exposure, which can alter the compositions of certain pharmaceuticals.
The COVID-19 pandemic has driven significant growth in the cold chain industry, with rental reefer containers being preferred for pharmaceutical transportation over purchased ones. In April 2022, Cardinal Health secured a contract worth US$57.8 million to store and distribute 80,000 pallets of personal protective equipment for the Strategic National Stockpile, a division of the US Department of Health and Human Services. Studies examining 15 reefer trade routes revealed a 50% increase in the third quarter of 2021, while dry container freight rates more than doubled in 2021. Additionally, FESCO Transportation Group announced plans to expand its reefer container fleet to 4,000 units by the end of summer 2022, as part of its strategy to develop its Dalreftrans subsidiary. The rising demand for the transportation and logistics of pharmaceutical products is driving the adoption of reefer containers.
The healthcare supply chains and cold chain industry in the Asia Pacific have been impacted by the COVID-19 pandemic due to trade restrictions. Countries such as China, India, Singapore, and South Korea are becoming major hubs for drug manufacturing outsourcing, clinical trials, and pathology testing, which drives the demand for reefer containers. The increasing demand for biopharmaceuticals and vaccines in Asia Pacific, which have huge populations, is another key factor driving the growth of the reefer container market for pharmaceuticals. As most of these products require temperature-sensitive handling, cold storage facilities are crucial. Reefer container manufacturers catering to the pharmaceuticals industry in China include Hapag-Lloyd AG, Tianjin LongTeng International Trade Co., Ltd., and Shanghai Metal Corporation.
The reefer container market for pharmaceuticals in Europe is experiencing growth due to the efforts of the European Commission to create regulations and policies. These initiatives provide trading opportunities for European companies, thereby increasing the demand for reefer containers for transporting pharmaceutical products. In November 2021, MECOTEC Group, based in Germany, delivered eight deep-freeze storage containers for COVID-19 vaccines.
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. are among the key players profiled in the reefer container for pharmaceutical market study. The market report provides detailed market insights, which helps the key players strategize the growth in the coming years.
The pharmaceutical industry is adopting new technologies to ensure the safe delivery of temperature-sensitive medical products, including control tower technology, packaging automation, and artificial intelligence. As the demand for complex cold-chain requirements increases, the cold storage capacity in India is predicted to grow by 8.2% and reach 40.7 million metric tonnes by 2023. Globally, the cold chain industry is expected to grow by over 20% CAGR by 2025, driven by the shift toward modern storage spaces. Maersk Company (MCI) has announced a new cold storage facility in Ridgeville, South Carolina, to serve temperature-controlled goods, expected to commence operations in Q1 2023.
Advancements in reefer containers are contributing to the efficiency and reliability of containers used in the pharmaceutical industry. The increasing use of IoT-connected devices by shipping companies is a crucial trend, as it allows for the collection and transmission of a large volume of data during transportation. This data can be analyzed to identify issues, reduce downtime, and streamline procedures, improving operational efficiencies in the maritime industry. CMA CGM introduced its SMART reefer container in February 2022, allowing for tracking of the position and status of refrigerated goods. ORBCOMM Inc. launched its CT 3500 IoT telematics device in March 2022, featuring enhanced functionality, connectivity options, and analytics capabilities. This data-driven refrigerated container solution is interoperable with third-party telematics devices, driving efficiencies in reefer container logistics. The acceptance of smart reefer containers among manufacturers is expected to fuel growth in the reefer container for pharmaceutical market during the projected period.
The market for reefer containers used in the pharmaceutical industry is divided into two segments: container size and application. Container size is categorized as small, medium, or large. Application segments include pharmaceutical preparations, injectables, blood derivatives, vaccines and serums, and others.
The reefer container for pharmaceutical market is categorized into five major regions-North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). In 2021, Asia Pacific led the market with the largest share, followed by North America. Further, Europe is anticipated to register the highest CAGR in the market during 2022-2028.
The market size for reefer containers used in the pharmaceutical industry was determined through primary and secondary research. The initial phase involved a thorough secondary research process utilizing internal and external sources to collect qualitative and quantitative data about the market. This process also provided an 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 verify the data and gather further analytical insights about the reefer container for pharmaceutical market.