Global Cold Storage Construction Market is Segmented By Construction (Insulated Concrete, Insulated Metal Panel, Box-in-a-Box), By Storage (Bulk Stores, Ports, Production Stores, Others), By Cold Storage Warehouse (Refrigerated Containers, Cold Rooms, Blast Freezers and Chillers, Pharmaceutical Cold Storage Warehouse), By Application (Biopharmaceutical Products, Perishable Food, Chemical, Flowers and Plants), and by Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031
Cold Storage Construction Market Size Share Trends Growth
The Cold Storage Construction Market size is projected to reach USD YY billion by the end of 2029, with growth at a CAGR of 13.83% during the forecast period 2024-2031.
One of the most important aspects of the logistics supply chain is cold storage. These facilities are meant to maintain the proper temperature for various foods, chemicals, and medicines. Cold storage has experienced significant growth in construction activity, particularly in recent months; the trend goes beyond the healthcare demand and is attributed to several factors, including primary online grocery shopping. Furthermore, cold storage design and construction services require knowledge of the intricacies of these highly specialized facilities. In addition, the type of construction used has a big impact on how well a structure is insulated and cooled.
The global Cold storage construction market is projected to obtain potential development due to the increasing attentiveness concerning hygiene is making customer inclinations to drive to ready-to-cook meals. There are a few factors hindering the growth of the global market foundation, boosting power, and subsistence costs of cold stores, and enlarging legal ordinances forced on gases used in cold stores. Steady preservation and cleaning mandatory by cold storage constructions act as the foremost hurdles for the progress of the Cold Storage Construction market.
Cold storage is one of the major factors in the logistics supply chain. This meant to continue the correct temperature for different foods, Medicines, and chemicals. Cold storage has gained a prominent growth rate in the construction industry majorly in recent months, the growth trend goes out of the demand for healthcare and it accounted to numerous factors. Furthermore, cold storage structures and construction services need an idea of the intricacies of these heavily focused facilities.
Asia Pacific Cold Storage Construction market has controlled the global market, and this trend is expected to remains continue in the coming years. The Asia Pacific region was dominated by China, India, Indonesia, and Japan, due to Increasing consciousness about stopping food waste, increasing customer requirements for perishable goods, the surge in the well-structured retail sector, and rising government initiatives in the cold storage construction industry are the major drivers for the growth of the Asia Pacific region.
Besides, the augmenting demand for preserved food products in APAC region countries owing to increasing digital shopping in the economies such as India and China has boosted the demand for the global market in the APAC region.
Furthermore, the North American region acquire a promising place in the global market. Owing to increasing warehouse network, and increased investment in infrastructure development in this region. In North America, Mexico is probably to show a significant growth rate. These factors motivating in the enhancement of the market growth. Besides, factors that are boosting the demand for the global market such as the expansion of the economy, and alteration in government laws in Mexico.
Cold Storage Construction Market Scope
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Metrics |
Details |
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CAGR |
13.83% |
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Segments Covered |
By Construction, By Storage, By Cold Storage Warehouse, By Application, By Service Type, and By Region |
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Report Insights Covered |
Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights. |
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Largest Market Share |
North America |
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Major Companies Covered |
AmeriCold Logistics, Preferred Freezer Services, Burris Logistics, Lineage Logistics Holding LLC, Nichirei Logistics Co., Ltd, Swire Group, and AGRO Merchants Group, LLC, Kloosterboer, NewCold Coöperatief U.A, VersaCold Logistics Services |
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Market Dynamics
The increasing online grocery sales and rising preference for online shopping have escalated the demand for cold storage construction. Rising demand for fresh and processed food products is driving the facility for cold storage construction.
The increasing online grocery sales and rising preference for online shopping have escalated the demand for cold storage construction.
In an April 2020 survey, 38% of buyers with a high level of anxiety about COVID-19 chose to purchase groceries online. As a result, grocery stores have adapted to increased demand for online food delivery. Indeed, supermarket delivery and pick-up sales in the United States increased from 1.2 million dollars in August 2019 to 7.2 million dollars in June 2020. Thus the unprecedented growth in the global online grocery market has created immense opportunities for the cold storage construction facilities to grow at a higher rate to store the product for a longer period.
Due to the growing demand for online grocery, various key players set into the market to overcome consumers' growing demand. Increasing online service-providing companies in developing and developed regions are more likely to create opportunities for the cold storage construction market in the forecast period.
Rising demand for fresh and processed food products is driving the facility for cold storage construction.
Increased demand for convenience and processed foods has resulted from increased disposable income due to economic expansion, particularly in rising economies such as India and China. Developed countries have tremendously increased in recent years in terms of food manufacturing. The food processing technology is advanced in U.S and Germany, but revenue from the food processing business grows slower.
The expansion of the food and beverage processing equipment market is predicted to be aided by increased demand for processed food in developing countries and increased consumption of convenience foods due to the growing working population. As per the joint study by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) in India and Grant Thornton in the United Kingdom, India's food processing sector has the potential to attract US$33 million in investments by 2024.
The largest investments are in food processing technologies and processing equipment, as the country's total food production is expected to double by a certain time. Thus tremendously growing packaged food percentages in developing and developed regions are more likely to create demand for cold storage construction facilities in the region to maintain the self-life of the product for a longer period.
Steady preservation and cleaning mandatory by cold storage constructions act as the foremost hurdles for the progress of the Cold Storage Construction market
Cooling systems require regular cleaning, maintenance, and scheduled overhauls to operate efficiently. It can range from routine maintenance (such as flushing) to repairs that necessitate removing the tube bundle from the heat exchanger shell for cleaning or even replacing whole cooling towers. Regular maintenance is a major parameter required for the sizing of the cold storage construction.
Furthermore, a cooling system must be derated, or extra capacity should be provided by increasing heat transfer surface area and pumping capacity if cooling demand increases or is underestimated at installation. Different cooling systems may operate at high temperatures and pressures or with hazardous fluids, necessitating appropriate operating procedures to prevent crew injury and system failure.
Some cooling systems, such as cooling towers, have a limited BEP range and may perform less efficiently at higher and lower flow rates than their nominal flow rates. Thus the mentioned disadvantages of cold storage constructions are the challenges that hurdle the market's growth.
Segment Analysis
The global cold storage construction market is segmented into construction, cold storage warehouse, application, and region.
Competitive Landscape
The cold storage construction market is highly competitive with the presence of local and global companies. Some prime companies contributing to the market's growth are AmeriCold Logistics, Preferred Freezer Services, Burris Logistics, Lineage Logistics Holding LLC, Nichirei Logistics Co., Ltd, Swire Group, and AGRO Merchants Group, LLC, Kloosterboer, NewCold Coöperatief U.A, VersaCold Logistics Services, among others.
The major companies are adopting several growth strategies such as acquisitions, product launches, and collaborations, contributing to the growth of the Cold Storage Construction market globally.
- For instance, in February 2019, Preferred Freezer Services, a global network of state-of-the-art, temperature-controlled warehouses, was acquired by Lineage Logistics, a trusted and innovative provider of temperature-controlled logistics solutions. The company's position in the temperature-controlled logistics business is expected to improve due to the approach.
Lineage Logistics Holding LLC
Overview: The Company is a prominent global provider of temperature-controlled industrial REIT and logistics solutions. It has a global network of over 350 strategically positioned facilities covering 15 nations in North America, Europe, and Asia-Pacific, with a total capacity of over 2 million cubic feet. Lineage's unrivaled real estate network, development, and deployment of innovative technology and industry-leading expertise in end-to-end logistical solutions help increase distribution efficiency, advance sustainability, reduce supply chain waste, and, most importantly, help feed the world as a Visionary Partner of Feeding America.
Product Portfolio: The company has a product portfolio of cold storage constructions that includes:
- Cold Storage: The company offers cold storage facilities to serve companies and their customers. Whether the operations are domestic or global, the company ensures the integrity of the temperature-controlled products.
Key Development
- For instance, on September 2, 2021, Lineage Logistics completed Northern Superhub Cold-Storage Warehouse Expansion in the UK. The upgraded warehouse will play an important role in UK food distribution. It will use 75% less energy than the European average since it is equipped with cutting-edge technologies that maximize warehouse area use.
The global cold storage construction market report would provide approximately 69 market data tables, 66 figures, and 180 pages.
Target Audience 2024
- Service Providers/ Buyers
- Transportation Companies
- Storage Companies
- Emerging Companies
- Manufacturers
- Logistics companies
- Distributors
