The demand for large-scaled cold storage is growing at a rapid clip across multiple industries from ports to cities in both retail and industrial space.
“Cold storage forms an important part of the logistics supply chain,” said the “Cold Storage Construction – Global Market Trajectory & Analytics” report published by Global Industry Analytics last month. “These facilities are designed to keep a wide range of food, chemicals and medicine at the right temperature.”
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Global Cold Storage Construction Market to Reach $22.9 Billion by 2026
Not only is large-scale cold storage in demand in 2022 but the Global Industry Analytics report projects that the cold storage construction global market, estimated at $12.1 billion this year, will grow to $22.9 billion by 2026.
“Cold storage construction has received major impetus from the COVID-19 crisis that led pharmaceutical companies to come up with novel vaccines requiring storage as well as distribution at ultra-low temperature settings,” said the report. “While cold storage has experienced a major uptick in construction activity in the recent months, the trend goes beyond the healthcare demand and is attributed to several factors, primarily online grocery shopping.”
The global cold storage construction market is projected to see robust 17.2 annual growth.
The U.S. accounts for 26.43 percent of the global cold storage construction market with an estimated $3.2 billion spent this year.
“The US is witnessing a pressing need to construct new cold storage facilities for addressing rising demand for COVID-19 vaccine rollouts and food delivery,” the report authors said. “The requirement is prompting more owners and developers to kick-start new cold storage construction projects in the country, with California being the primary destination for these projects.”
Cold Storage Demand Heating Up for These 5 Industries
Large-scale cold storage demand has been growing across all industries but these five are showing super-charged growth:
- Groceries and Online Perishable Food Suppliers
- Hospitals, Clinics and Pharmacies
- Transportation and Logistics Warehouses
- Healthcare and Science Research Facilities
- Information Technology Data Centers
Here’s a closer look at each of the industries:
Groceries and Online Perishable Food Suppliers
Perhaps no industry has seen a more rapid change than groceries and online perishable food suppliers as consumers embrace e-commerce delivery options during the pandemic.
“The demand for cold storage construction is expected to be driven by a rise in demand for online grocery,” said the Global Industry Analytics report. “With food companies expanding production in order to meet the increased demand for food products, demand for cold storage facilities is expected to remain robust in near future. With last-mile delivery gaining precedence amid the rise in e-commerce and direct-to-consumer shopping, warehouse construction near key logistics hubs has gained momentum.”
Hospitals, Clinics and Pharmacies
The global cold chain’s mobilization effort to vaccinate as many as five billion people around the world has increased demand for large-scale cold storage in hospitals, clinics, and pharmacies.
Certain vaccines and medicines already required a certain cold temperature prior to the pandemic, but some COVID-19 vaccines have required temperatures as low as minus-94 degrees. Even those that do not need such extreme low temperatures, they need to be shipped and stored long-term at minus-4 degrees which requires cold storage infrastructure.
It also appears that COVID-19 vaccines will not be a one or two-shot deal with the prospects of annual coronavirus vaccine shots, like the annual flu shots offered, becoming very real.
Transportation and Logistics Warehouses
The Global Industry Analytics report says that cold storage facilities located in coastal markets with access to ports and in the vicinity of large population centers are in high demand.
“In the global Ports segment, USA, Canada, Japan, China, and Europe will drive the 15.7% CAGR estimated for this segment. These regional markets accounting for a combined market size of $987 million will reach a projected size of $2.7 billion by the close of the analysis period.
Demand for new transportation and logistics cold storage warehouse space is being driven by:
- Biopharmaceutical products
- Chemicals
- Flowers and plants
- Perishable foods
- Processed foods
Healthcare and Science Research Facilities
The COVID-19 vaccines in the spotlight the past two years spent years being developed and tested in science labs and research centers that require large-scale cold storage.
Vaccines are just one of many healthcare research elements that can require cold storage including:
- Plasma
- Blood cells
- Organs
- Tissue
Even brief temperature fluctuations can compromise research and laboratory samples.
Information Technology Data Centers
The rush to e-commerce during the pandemic has spurred construction of information technology data centers which often require its infrastructure to be housed in cold storage facilities.
“Data center cooling is a growing industry. Data streaming and storage has been a business necessity for some time, even before 2020’s global COVID-19 lockdowns. Now we’ve further increased our reliance on data-driven services to power our work and our lives. As a result, data centers are running hotter than ever—and they need experts to keep them cool,” says Gateway Mechanical Services.
Designing data centers with insulated metal panels can help with the building’s thermal performance as well as providing the benefits of structural capability, durability and protection from the elements and speed and ease of installation.
Green Span Profiles has more than a century of experience in finding cost-effective solutions for its customers. Contact Green Span Profiles today to find out more about how we can provide you with everything from drafting and engineering to estimating and installer training for your large-scale cold storage facility.
