The desire for reliable and efficient transportation of perishable goods to offshore oil rigs has driven significant growth in the global offshore reefer container market in recent years.
For the most part, reefer containers play an indispensable role in maintaining the quality and freshness of items, such as fruits, vegetables, meat, seafood, and pharmaceutical products.
Because of this ability to cater to the unique logistical challenges, the offshore reefer container market is expected to experience continued growth and innovation in the coming years. And this is even more true with the technological advancements that have made the sector even more efficient and cost-effective!
Market overview for offshore reefer containers
The offshore reefer container market has seen the emergence of key players who offer comprehensive solutions for transporting perishable goods to offshore oil rigs.
These players like MGS Offshore understand the need for more reliable and efficient supply chains.
As such, they provide a wide range of offshore reefer containers in various sizes, including 10ft, 20ft, and 40ft, to meet the specific needs of customers.
Furthermore, the market size of offshore reefer containers has been steadily increasing over the years as more offshore oil and gas companies recognise the importance of efficient and dependable logistics in their operations.
According to Research and Markets, in 2019, the market accounted for a size of 3,169.2 thousand twenty-foot equivalent units (TEU). Additionally, it is projected to grow at a CAGR of 8.0% during the forecast period (2023-2030).
The rising demand for offshore reefer containers can be credited to the increasing number of trade routes, the growing demand for pharmaceutical drugs, the expansion of the e-commerce industry, and the adoption of real-time tracking technology.
There are several factors that have influenced the offshore reefer container market.
For example, the increasing demand for perishable goods like fresh produce, seafood, and pharmaceutical drugs, has fueled the need for efficient and reliable transportation solutions.
Additionally, the growth of the e-commerce industry, particularly in the food and healthcare sectors, has contributed to the rising demand for offshore reefer containers.
However, the market also faces multiple systemic challenges.
The COVID-19 pandemic has had an undeniable impact on the offshore reefer markeT, leading to disruptions in global supply chains and unexpected restrictions on international trade.
Moreover, the high cost of offshore reefer containers and the need for specialised infrastructure and equipment pose challenges for market growth.
Trends in the offshore reefer container market
The marriage of technology and offshore reefer containers has brought about revolutionary changes. With the integration of GPS tracking systems, shippers can now gain real-time insights into the location of their cargo.
Energy efficiency has also become a focal point, driving the development of containers that optimise power consumption while delivering impeccable performance.
Remote temperature monitoring has also emerged as a game-changer, ensuring temperature-sensitive cargo is continuously kept in a desired environment.
Regulatory changes have had a considerable impact on the offshore reefer container market. Governments and international organisations have implemented stricter regulations to ensure the quality and safety of perishable goods during transportation.
These regulations include temperature control requirements, food safety standards, and environmental regulations. Compliance with these regulations is essential for offshore reefer container operators to maintain their market position and meet customer expectations.
Changes in demand and supply
The offshore reefer container market has experienced changes in demand and supply patterns. The increasing demand for perishable goods, particularly in emerging economies, has driven the need for efficient transportation solutions.
On the supply side, the market has seen the emergence of multiple new players offering innovative solutions to meet customers’ dynamically changing needs.
Additionally, the adoption of e-commerce platforms and the growth of online grocery shopping have augmented the demand for offshore reefer containers.
To explore more emerging trends in offshore reefer container control and monitoring, consider reading this insightful resource: Emerging Trends for Offshore Reefer Monitoring and Control.
The offshore reefer market offers significant growth potential, particularly in segments with high demand. Offshore oil rigs in Europe, for example, present a promising market for offshore reefer containers.
As offshore drilling activities increase in the region, the demand for fresh produce, meat, and seafood for offshore rig workers is expected to grow.
This presents a unique opportunity for offshore reefer container providers to expand their operations and cater to the particular needs of the offshore oil industry.
Future Outlook: 2023–2030
The offshore reefer market is predicted to persist with its current exponential growth trajectory in the coming years.
According to market forecasts, the market size is expected to grow at a CAGR of 8.0% from 2023 through 2030. However, the market also faces systemic challenges that need to be addressed to ensure sustainable growth.
These challenges include the high cost of offshore reefer containers, the need for specialised infrastructure, and compliance with regulatory requirements.
By addressing these challenges and leveraging technological advancements, the offshore reefer market can capitalise on the elevated demand for efficient transportation solutions.
Overall, the global offshore reefer container market is poised for substantial growth in the coming years due to the expansion of offshore oil and gas exploration activities.
Furthermore, the increasing global demand for perishable goods, the expansion of the e-commerce industry, and advancements in technology are also driving market growth.
However, challenges such as regulatory compliance and the high cost of offshore reefer containers need to be addressed.
By capitalising on emerging trends and leveraging technological advancements, companies in this market can position themselves to meet the elevated demand for the transportation of perishable goods to offshore oil rigs.
A graduate (Business) from KDU, Jason Tan, is the current Business Director (Sales) for MGS Icestorm and has been associated with the company for the past 10 years.
With over 13 years in the shipping industry, he has had a significant contribution to Malaysia’s oil and gas industry in the engine and boat supply sector.
His expertise includes managing offshore catering business, offshore reefer containers, AI technology, offshore gas tanks, A60 pressurized cabins, etc. His contributions have helped establish MGS, in partnership (joint venture) with Thermo King and Honeywell to produce state of art Offshore Reefer Container products.