Transportation Refrigeration Demand to Rise 4 Percent Annually
Ohio Ag Connection - 05/17/2018
Demand for transportation refrigeration systems is projected to increase 4.2% per year through 2022 to $2.7 billion. Growth opportunities will stem largely from the ongoing need for refrigerated transport of food and beverages. Most demand for transportation refrigeration systems in the US is met by domestic production.
However, competition from imports has increased in recent years driven by rising imports from Mexico and China due to lower production costs.
Transportation refrigeration systems are among the most expensive types of commercial refrigeration equipment, and some manufacturing capacity has been relocated to help curb production costs.
These and other trends are presented in Commercial Refrigeration Equipment in the U.S., 14th Edition, a new study from The Freedonia Group, a Cleveland-based industry research firm.
Nevertheless, the significant size of these units and the dominance of two US-based firms -- Thermo King (U.S.-based subsidiary of Ireland-based Ingersoll-Rand) and Carrier (United Technologies) -- limit overall import competition. The large size of transportation refrigeration systems also dampens limits export opportunities, with the vast majority of U.S. export sales going to Canada.
According to Capital Goods Project Director Kyle Peters, "Transportation refrigeration systems will outpace all other commercial refrigeration product segments."
Demand for commercial refrigeration equipment in the US is projected to rise 2.9% per year through 2022.