Cold Storage Construction Market

The global Cold Storage Construction Market is valued at USD 9.5 Billion in 2022 and is projected to reach a value of USD 19.7 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 11% between 2023 and 2030.

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Cold Storages now have cutting-edge insulation materials, LED lighting, and automated systems to reduce energy usage as sustainability gains importance. To generate renewable energy and lower their carbon footprint and operating expenses, cold storage warehouses, for example, incorporate photovoltaic panels on their rooftops. Designs have evolved to maximize storage capacity while ensuring effective product flow. For instance, high-density storage options like mobile racking and automated retrieval systems are being used to make the most of the available space. As a result, less space is needed overall, and storage density can be increased. Cold storage manufacturers customize each facility to meet a specific need, whether for the long-term transportation of fresh produce or the short-term storage of industrial goods. Temperature is where cold storage facilities diverge most. “cold storage” refers to temperatures between 12°C and -30°C. Medical supplies and industrial storage are kept in deep freeze facilities with temperatures between -30°C and -18°C. For frozen foods, medium-temperature warehouses are typically used between -18 and -10 degrees Celsius. In comparison, high-temperature warehouses are maintained between -5 and 5 degrees Celsius for medium-term storage and as high as between +2 and 12 degrees Celsius for short-term storage.

In terms of regulatory bodies, several organizations are crucial to ensuring compliance and safety in the construction of cold storage facilities. In the case of ammonia refrigeration systems, frequently used in cold storage facilities, the International Institute of Ammonia Refrigeration (IIAR) develops standards and guidelines for their safe use. To ensure compliance with food safety regulations, the Food and Drug Administration (FDA) in the United States also regulates developing and managing cold storage facilities.

• The use of automated technologies in the design of cold storage facilities contributes to improving the process of storing and retrieving goods overall in terms of efficiency, speed, and accuracy.
• More than 50.2 % of the global revenue in 2022 came from the market's leading segment, production stores. Incorporating green elements like solar panels, green roofing, energy-efficient HVAC systems, and natural lighting systems not only lowers greenhouse gas emissions but also prevents the waste of natural resources. Adopting such procedures makes cold storage buildings environmentally sustainable while also enabling long-term cost reductions, which are essential in today's cutthroat marketplace.
• In 2022, the public warehouse sector dominated the market and accounted for 64.36% of total revenue
• In 2022, the food and beverage sector dominated the market, contributing to about 38.9% of global revenue. Companies are looking for creative solutions to optimize their cold storage facilities and raise operational effectiveness in response to the rising demand for frozen and perishable goods. The adoption of robotics, artificial intelligence, and Internet of Things (IoT) devices, which improve cold storage systems' general performance and monitoring, is driving this trend.
• In 2022, the North American regional segment dominated the market and generated more than 42.6% of global revenue

Top Market Trends

1. The global market is seeing a rise in demand for automated cold storage solutions. The main cause of this is the rapid expansion of e-commerce, which has increased the need for warehousing in recent years. The market need for automated cold storage solutions is driven by additional advantages such as lower operational costs, less expensive labor, and improved end-to-end supply chain visibility.
2. Sustainable cold storage structures are essential in the current market environment. The growing awareness of the effects of industrialization and urbanization on the environment has driven the demand for sustainable Cold Storage Construction.
3. Processes like temperature control, inventory management, and loading and unloading are being streamlined through automated solutions, ensuring the best conditions for food safety and lowering the possibility of human error. This technologically driven approach to building cold storage is anticipated to revolutionize the sector and offer substantial advantages to producers, distributors, and customers alike.

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Economic Insights

Construction of cold storage facilities is frequently more in demand during economic expansion to accommodate the expanding food and beverage sector. Increases in labor and raw materials costs can significantly impact the overall cost of building a cold storage facility. For instance, if the price of steel, a common material used to build these facilities, rises, the overall construction cost may go up significantly. As a result, projects may become less feasible, and new investments in cold storage facilities may be postponed or abandoned. In conclusion, several economic factors, including inflation, government regulations, economic stability, and inflation, significantly impact the Cold Storage Construction market. To thrive and succeed in this dynamic market, stakeholders in the Cold Storage Construction industry must closely monitor and adapt to these economic factors.

Market Segmentation

The global Cold Storage Construction market can be categorized on the following

The global Cold Storage Construction market can be categorized into Storage Type, Warehouse Type, Application, Region. The Cold Storage Construction market can be categorized into Bulk Stores, Distribution Stores, Production Stores, Refrigerated Containers, Other Storage Types based on Storage Type. The Cold Storage Construction market can be categorized into Private Warehouse, Public Warehouse, Other Warehouse Types based on Warehouse Type. The Cold Storage Construction market can be categorized into Food & Beverages, Pharmaceuticals, Chemicals, Other End Users based on Application. The Cold Storage Construction market can be categorized into North America, Europe, Asia Pacific, Latin America, Middle East & Africa based on Region.

Based on Storage Type

Production Stores Segment Dominates the Cold Storage Construction Market, Accounting for the Largest Share of The Market

Production stores dominate the Cold Storage Construction market among the various storage types because of their crucial function in food production. Perishable food items, such as raw materials, ingredients, and partially processed goods, are stored in production stores while being produced at various stages. To preserve the quality and freshness of the stored items, these facilities frequently have highly controlled environments that maintain ideal temperatures, humidity levels, and air quality. A dairy processing facility illustrates a production store because milk is kept in temperature-controlled areas before going through additional processing to become different dairy products like cheese, yogurt, or butter.

Based on the Warehouse Type

Public Warehouses Provide Multiple Temperature-Controlled Zones, Enabling them to Accommodate Various Perishable Goods Simultaneously

Public warehouses dominate the market for Cold Storage Construction for various factors. First, public warehouses offer flexible storage options and accommodate numerous clients with various storage requirements. For instance, Lineage Logistics manages a sizable network of open-access cold storage facilities throughout the US. Second, public warehouses provide affordable options because customers can split operating costs, such as energy and upkeep, among themselves. Additionally, new technological advancements are fuelling market expansion. As an illustration, Americold Realty Trust uses automation and robotics in its open-access warehouses to maximize productivity and enhance inventory control. This technological advantage further strengthens their hegemony in the Cold Storage Construction market.

Based on Application

Cold Storage Constructions Play a Crucial Role in the Food and Beverages Industry

The food and beverage industry dominates the Cold Storage Construction Market's application segment. Cold storage buildings are vital to the food and beverage industry as they make it easier to store perishable goods, including meat, dairy, fruits, and vegetables. In the food and beverage business, using cold storage buildings contributes to reducing product waste and lengthening product longevity. Buildings with cold storage are also necessary to keep food's flavor and nutritional value while maintaining consumer pleasure. Furthermore, the development of food processing and preservation technologies has increased the demand for specialized cold storage facilities. For instance, modified atmosphere packaging, quick freezing methods, and altered atmospheric composition call for particular storage conditions. These developments have increased the need for building cold storage facilities in the food and beverage sector. The market is expanding due to the food and beverage industries' rising need for temperature-controlled storage and strict rules addressing storage conditions. As a result, the market for Cold Storage Construction is dominated by the food and beverage industries.

Based on Region

Over 40% of the World's Cold Storage Solution Demand Comes From North America.

North America is the greatest geographical area for cold storage buildings. Over 40% of the world's cold storage solution demand comes from this region, including the United States and Canada. The rise in demand for frozen and processed foods, medications, and biological products is mostly to blame for North America's market domination. The region's substantial use of cold storage facilities is also a result of the rising popularity of online food delivery services.

Additionally, the growth of meal kit subscription services has increased demand for cold storage facilities in North America. Due to these developments, companies have increased their investments in enhancing their cold storage infrastructure. The Cold Storage Construction market has undergone notable changes in recent years in North America. These include implementing robotics and automation, incorporating cloud-based inventory management systems, and investing in energy-efficient cold storage warehouses. As an illustration, Lineage Logistics, a well-known cold storage provider in North America, has improved operational efficiency by installing automated storage and retrieval systems (ASRS) in some of its facilities. The construction of modern refrigeration warehouses outfitted with cutting-edge technology, including sophisticated temperature control systems, automated storage and retrieval systems (AS/RS), and real-time monitoring systems, is a prime illustration of the advancements made in this market. These facilities guarantee the secure storage and preservation of perishable goods while satisfying consumers' rising standards of quality and freshness. North America is the largest region in the Cold Storage Construction market due to a unique combination of difficult climatic conditions, a strong food and beverage industry, advanced technologies, and infrastructure.

Competitive Landscape

Numerous international and regional actors compete fiercely on the global market. Major corporations engage in strategic alliances, mergers & acquisitions, and joint ventures to acquire a market advantage. In addition, manufacturers concentrate on capacity expansions and R&D for new product development to offer consumers products that are on trend. For instance, Americold Realty Trust, a leader in temperature-controlled warehouses and logistics for the food industry, announced the grand opening of its newest facility in Dunkirk, New York, in July 2022. With 181,000 square feet of cold storage and operational space and 25,000 pallet positions, this LEED-certified building will support the region's cold storage needs in western New York.

The key players in the global Cold Storage Construction market include - Versa Cold Logistics Services (Canada), Tippman Group (U.S.), Americold Logistics LLC (U.S.), Burris Logistics (U.S.), Primus Builders Inc. (U.S.), Lineage Logistics (U.S.), United States Cold Storage Inc. (U.S.), Preferred Freezer Services LLC (U.S.), Nichirei Logistics Group Inc. (Japan), AGRO Merchants Group LLC (U.S.), Swire Cold Storage (Australia), NewCold Advanced Cold Logistics (Netherlands), Emergent Cold LatAm Management LLC (U.S.), Hansen Cold Storage Construction (U.S.) among others.

Recent Market Developments

• On April 24, 2023, as part of the movement by refrigeration and freezer companies into Northeast Florida, Karis Cold planned to prepare more than 24 acres in Westlake Industrial Park to develop a warehouse.
• On April 4, 2023, Koch Foods intends to develop a new cold storage facility in Fairfield, Ohio, according to a county official. The Butler County Port Authority recently approved a resolution endorsing Koch Foods' plans to demolish the Liberty Mutual structure and construct a 450,000-square-foot cold storage facility.
• On May 16, 2023, Tampa Cold Storage Logistics, a state-of-the-art refrigerated warehouse facility spanning 109,000 square feet, was opened thanks to the efforts of Sansone Group, Mandich Group, and BentallGreenOak. This cutting-edge facility, poised to revolutionize the Southeast's Cold Storage Construction market, offers businesses needing first-rate warehouse space an unrivaled opportunity.

Segmentation of the Global Cold Storage Construction Market