Global Cold Chain Monitoring Market Overview
The key driver impacting the cold chain monitoring market is the rising demand for processed and frozen food globally. As per the Institute of Food Technologists, the need for frozen foods has been raised in the past couple of years, and its market reached $54 billion markets globally. For instance, in the U.S., sales of frozen foods increased by 2.1% in November 2018, whereas unit sales were also increased by 1.2%. Frozen food needs minimal contamination during manufacture, rapid chilling. It requires low temperatures during storage, handling, distribution, retail display, and consumer storage to maintain the safety and high quality of chilled foods, thus creating a massive demand for cold chain monitoring and management. Moreover, growing private and government investments in making refrigerated warehouses and high government efforts to minimize food spoilage and other temperature-sensitive goods contribute to market growth.
According to Value Market Research, the global cold chain monitoring market size was valued at around USD 14,000 million in 2020 and is projected to grow at a CAGR of about 20% during the forecast period 2021 to 2027.
The strict regulations concerning the storage and shipment of pharmaceutical products worldwide are estimated to augment cold chain monitoring demand in the forecast period. The Indian government recently passed a law with effect from July 2011. It mandates the use of track-and-trace barcodes on all drugs intended for export, following reports that Chinese counterfeiters were selling forged medicines labeled ‘Made in India’ in numerous African countries. Also, the growing demand for generic drugs owing to their higher accessibility across the globe drives the need for cold chain monitoring in the pharmaceutical industry. For instance, The health affairs organization report shows that there is a considerable demand US demand for “off-patent” generic drugs has grown considerably in the last few decades. There is more than 90 percent of retail and pharmaceutical drug prescriptions are distributed as generics. A per the India Brand Equity Foundation report, India is considered the largest provider of generic medicines across the globe. It accounts for a 20% share in worldwide supply by volume and supplies 62% of the demand for vaccines globally. Indian drugs and medicines are exported to over 200 countries across the world. Indian pharmaceutical sector provides 40% of the generic demand for the US and 25% of all drugs for the UK. The massive exports of medicines and medicines create the need to maintain the cold chain integrity for pharmaceutical products and decline the distribution cost by making a single source distribution channel, further enhancing the demand for cold chain monitoring. However, the high cost of implementation may hamper the global cold chain monitoring market in the long run. Also, complexities concerned with monitoring and installation of cold chain monitoring solutions are negatively impacting the market. The current industry trends, such as the high availability of cold chain logistics in developing countries and advancement in connected devices technology such as RFID and IoT, are expected to provide market players with new market opportunities.
The cold chain monitoring market is vast, with many local and global players. The cold chain monitoring market is extensive, with many local and international players. The key leaders follow different strategies to advance their market position, such as amalgamation, contracts, extending product portfolio, product upgrades, and acquisitions, to augment their market share across the globe. For instance, in August 2017, Orbcomm introduced a next-generation cold chain monitoring solution known as PT 6000. It is available as a dual-mode satellite-cellular or LTE cellular or 3G version and guarantees logistics, fuel and temperature management, maintenance, and regulatory compliance for refrigerated assets in transit. The significant players studied in the report are Orbcomm, Sensitech, Berlinger & Co., Monnit, Controlant, Elpro-Buchs, Securerf Corporation, Savi Technology, Zest Labs, and Infratab.
In this research report, the cold chain monitoring market is segmented by component, logistics, application, and region.
Analysis by Component:
By component, the report is segmented into the hardware and software. The hardware dominates the component segment with a 60% share in 2020. The growing usage of various hardware components such as sensors, data loggers, RFID devices, networking devices, telematics, and telemetry devices for tracking and tracing activities creates demand for hardware components. Moreover, the high adoption of telematics solutions allows managers to gain complete control over cold chain fleets by monitoring the refrigerated cargo's temperature and humidity levels and tracking the vehicles during the transit drives demands for hardware components in the forecast period.
Analysis by Logistics:
By logistics, the report is segmented into storage and transportation. The storage dominates the logistics segment with a 55% share in 2020. It is due to its growing preference for packaged food across the globe. Also, the ever-increasing demand for remote monitoring of cold storage is adding growth to the market. Moreover, the growing adoption of sensors and control devices for monitoring the storage temperature of packaged food and drugs drives demands for the storage segment in the forecast period.
Analysis by Application:
By application, the report is categorized into fruits & vegetables, fruit pulp & concentrates, dairy products, fish, meat & seafood, processed food, pharmaceuticals, bakery & confectionaries, and others. The fish, meat & seafood segment dominates the application segment with a 15% share in 2020. It is due to the changing dietary preferences of people and the growing liking for processed fish, meat & seafood. Moreover, growing health benefits associated with the fish and seafood contributing to the fish, meat & seafood segment's growth in the forecast period.
Analysis by Region:
In the regional outlook of the global cold chain monitorings market, the North America region dominates with over 20% market share during the forecast period. It is due to the presence of well-established transportation and distributed framework across the United States and Canada. Moreover, the rising demand for processed food and stringent rules and regulation associated with monitoring contributes to the high demand for the cold chain monitoring inventory in the pharmaceutical industry market in North America.
Market Segmentation covered in the Report:
- RFID devices
- Telematics and telemetry devices
- Sensors and data loggers
- Networking devices
- Fruits & vegetables
- Fruit pulp & concentrates
- Dairy products
- Fish, meat & seafood
- Processed food
- Bakery & confectionaries
- North America
- Asia Pacific
- Latin America
- Middle East and Africa
This market research report has been produced by gathering information on the basis of primary and secondary research. Secondary research has been done by using various sources which include (but not limited to) Company Websites, Paid Data Sources, Technical Journals, Financial Reports, SEC Filings, and other different industry publications.
If specific information is required which is not currently within the scope of the report, it can be provided as a part of customization.