Global Cold Storage Construction Market - Industry Trends and Forecast to 2030

Global Cold Storage Construction Market, By Type (Production Stores, Bulk Stores, Ports, and Others), Application (Food and Beverages, Medical Products, Chemicals, and Others) - Industry Trends and Forecast to 2030.

Cold Storage Construction Market Analysis and Size

Cold storage has become an integral part of the logistics supply chain. These facilities are specifically designed to keep a wide range of food, medicine and chemicals at the right temperature. In past years, the trend of cold storage construction has expanded out of the healthcare industry. Cold storage assists in preserving food or any other product, such as medical products, at any cold place or refrigerator. Cold storage is considered a crucial part of the supply chain to store and transport products which are needed to be kept under a particular temperature.

Data Bridge Market Research analyses that the cold storage construction market which was USD 12.01 billion in 2022, would rocket up to USD 34.73 billion by 2030, and is expected to undergo a CAGR of 14.20% during the forecast period of 2023 to 2030.

“Food and beverages” dominate the application segment of the cold storage construction market owing to their significant demand for cold storage facilities due to the need for preserving perishable products such as fruits, vegetables, dairy products, meat, and seafood. Cold storage construction is essential to maintain the quality, freshness, and safety of food products throughout the supply chain, including production, processing, distribution, and retail. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.

Cold Storage Construction Market Scope and Segmentation

Market Definition

Cold storage construction involves the design, engineering, and construction of insulated buildings, warehouses, and distribution centres that are tailored to meet the specific requirements of temperature-controlled storage. These facilities often include features such as refrigeration units, insulated panels, specialized flooring, ventilation systems, and advanced monitoring and control systems to ensure optimal storage conditions.

Global Cold Storage Construction Market Dynamics

Drivers:

1. Expanding food and beverage industry: The food and beverage industry is experiencing rapid growth, driven by population growth, urbanization, changing dietary habits, and increased consumer demand for fresh and frozen food products. Cold storage facilities are essential for preserving the quality and extending the shelf life of perishable food items, driving the demand for the construction of new facilities.
2. Growing pharmaceutical industry: The pharmaceutical industry requires stringent temperature-controlled storage conditions for drugs, vaccines, and other temperature-sensitive medical products. The demand for specialized cold storage facilities to store and distribute pharmaceutical products is increasing due to factors such as the expansion of the healthcare sector, the rise in chronic diseases, and the growing importance of temperature-sensitive biologics and vaccines.
3. Changing consumer preferences: Consumers are increasingly demanding access to fresh and high-quality perishable products throughout the year. Cold storage facilities enable retailers and suppliers to meet these consumer demands by extending the shelf life of products and ensuring their availability even during off-seasons. This drives the need for additional cold storage construction to meet the changing consumer preferences.

2. Restraints:

1. High initial investment costs: Cold storage construction requires substantial initial investment due to the specialized infrastructure and equipment needed to maintain specific temperature and humidity conditions. The high cost of land, construction materials, refrigeration systems, insulation, and energy requirements can pose a challenge for potential investors and limit the growth of the market.
2. Operational costs and energy consumption: Cold storage facilities require significant energy consumption to maintain the desired temperature conditions. The high operational costs associated with energy consumption, refrigeration systems, and maintenance can impact the profitability of cold storage facilities. Fluctuating energy prices and increasing environmental concerns also pose challenges for cold storage operators, making it crucial to adopt energy-efficient technologies and practices.

3. Opportunities:

1. Technological advancements in cold storage solutions: Rapid advancements in cold storage technologies, such as automation, robotics, and real-time monitoring systems, offer opportunities for innovation and differentiation in the construction of cold storage facilities. Incorporating these advanced technologies in the design and construction process can enhance operational efficiency, improve inventory management, and provide value-added services, creating a competitive advantage for construction companies.
2. Rising demand for e-commerce and online grocery delivery: The increasing popularity of e-commerce platforms and online grocery delivery services has created a significant opportunity for the cold storage construction market. As consumers prefer the convenience of shopping online, the demand for cold storage facilities to store perishable goods and fulfill orders in a timely manner has surged. Cold storage construction companies can capitalize on this trend by building specialized facilities to support the growing e-commerce and online grocery sectors.

4. Challenges:

1. Volatility in the food and beverage industry: The global cold storage construction Market is closely tied to the food and beverage industry. Market fluctuations, seasonal demand variations, and perishable inventory management challenges can impact the growth and utilization of cold storage facilities. Economic downturns, changes in consumer preferences, and supply chain disruptions can lead to temporary declines in the demand for cold storage construction.
2. Lack of skilled workforce: Cold storage construction requires specialized knowledge and expertise in designing, constructing, and operating temperature-controlled facilities. There is often a shortage of skilled professionals in the field of cold storage construction, including architects, engineers, refrigeration technicians, and maintenance personnel. The limited availability of skilled workforce can lead to delays, quality issues, and increased costs, thereby impacting market growth.

This cold storage construction market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, the impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the Cold Storage Construction market contact Data Bridge Market Research for an Analyst Brief, our team will help you make an informed market decision to achieve market growth.

Recent Development

• In March 2023, Arcadia Cold Storage and Logistics announced an agreement to lease and operate a new cold storage facility currently under construction near Phoenix. This facility, expected to open in Q3 2023, will be a 293,000 sq. ft. Convertible freezer and cooler distribution center with 40,500 pallet positions. It is designed to cater to regional distribution, import-export activities, and high-volume throughput handling services. The location of the facility will serve as a hub for the Southwest U.S., providing access to markets in Southern California, Arizona, Nevada, Utah, New Mexico, and Colorado

Global Cold Storage Construction Market Scope

The cold storage construction market is segmented on the basis of product and application. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Type

• Production Stores
• Bulk Stores
• Ports
• Others

Application

• Food and Beverages
• Medical Products
• Chemicals
• Others

Global Cold Storage Construction Market Regional Analysis/Insights

The cold storage construction market is analysed and market size insights and trends are provided by element and application and are referenced above. The countries covered in the Cold Storage Construction market report are U.S., Canada, and Mexico in North America, Brazil, Argentina, and the rest of South America in South America, Germany, France, Italy, U.K., Belgium, Spain, Russia, Turkey, Netherlands, Switzerland, and the rest of Europe, Japan, China, India, South Korea, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, and the rest of Asia-Pacific in Asia-Pacific, and U.A.E, Saudi Arabia, Egypt, South Africa, Israel, and the rest of the Middle East and Africa.

North America is expected to be the cold storage construction market owing to the proliferation of connected devices and the presence of a large consumer base within the region.

Asia-Pacific is expected to be the fastest growing market during the forecast period of 2023 to 2030, owing to the surge in government subsidies for developing the cold chain industry in the region.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impact the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends, and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, the impact of domestic tariffs, and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Cold Storage Construction Market Share Analysis

The cold storage construction market competitive landscape provides details by competitors. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to the cold storage construction market.

Some of the major players operating in the cold storage construction market are:

• Preferred Freezer Services, Inc. (U.S.)
• LINEAGE LOGISTICS HOLDING, LLC (U.S.)
• Burris Logistics (U.S.)
• NICHIREI CORPORATION. (Japan)
• AmeriCold Logistics, LLC (U.S.)
• Emergent Cold (U.S.)
• Primus Builders (U.S.)
• Hansen Cold Storage Construction (U.S.)
• Tippmann Group (U.S.)
• HENNINGSEN COLD STORAGE CO. (U.S.)
• Stellar (U.S.)
• United States Cold Storage (U.S.)