From three stages of “the first kilometer”, “circulation” and “the last kilometer”, cold chain equipment industry, corresponding to the pre-cooling equipment, cold storage equipment, refrigerated trucks/refrigerated container transport equipment, “the last kilometer equipment” and so on, of which cold storage and refrigerated trucks are the core of the equipment links. The first and the last kilometer links are the large part of the potential space.
Second, there is no scaled commercial demand for the pre-cooling facilities.
China’s pre-cooling preservation rate of only 30%, much lower than the 95% of Europe and the United States. Supply and demand both disperses largely. It is difficult to form leading large-scale enterprises. There is no demand for scaled commercial equipment at this stage.
The market size of cold storage equipment is about CNY 6 billion. Entering a stable growth stage, the future development of automation has large potential. Cold storage capacity was expected over 100 million cubic meters in 2016, when cold storage market valued CNY 20 billion, of which about 6 billion for refrigeration equipment. It is expected that the scale of the cold storage market will be CNY 20 billion per year in the next five years, and the automation level of three-dimensional cold storage may be the investment direction. Among them, Dalian Refrigeration and Yantai Moon monopolized in the competition.
Third, the market size of refrigerated trucks is CNY 8.5 billion, of which CNY 3.4 billion is from refrigerators.
It’s expected that the CAGR of refrigerated truck market is 10.5% in the next 5 years, which is expected to develop toward the light, multi-temperature and electric fields. The reserve number of refrigerated trucks was 93,400in 2015, which was equivalent to the growth in the United States or Europe one year; The growth per capita was only Japan’s 1/10; The market size of that was more than 8 billion CNY/year. It is estimated that the market size will reach 15 billion CNY/year with the CAGR of 11.8% by 2020. However the mature cooling technology and the fierce market competition both lead to the poor profit of the standardized products.
CRI estimates that in 2016 in China, over 130 million tons of goods were transported and distributed via cold chain logistics and the market size was over CNY 130 billion.
Cold chain is an uninterrupted series of harvest, processing, packaging, storage, transport and sale activities which maintain a given temperature range. It is used to help extend and ensure the shelf life of perishable products.