ID: MRFR/SEM/1351-CR | June 2018 | Region: Global | 110 pages
Global Cold Chain Monitoring Market is predicted to touch USD 7158.8 Million at a 9.6% CAGR between 2018- 2023, reveals the latest Market Research Future’s cold chain monitoring market forecast (MRFR) report. The strong market growth can be accredited to the need for higher efficiency in the temperature-controlled supply chain.
The COVID-19 outbreak that had its origin in December 2019 in Wuhan (China) has spread at a quick pace across the globe. Border lockdowns, travel bans, and factory shutdowns to contain and combat the pandemic, have affected the global economy and also every industry. Maximum manufacturing plants either are working with a limited number of staff or are temporarily shut, owing to which the cold chain, as well as related components, have been disrupted.
On the brighter side, following the ease of lockdowns and lift on travel bans, there has been a positive impact on the cold chain monitoring market due to the growing demand for cold chain warehousing. Following the trend of social distancing and work from home, there has been a growing adoption of packaged beverage and food products that are impacting the market growth. Owing to restricted trade, food manufacturers are focusing not only on food products but also the storage of such food products to boost their shelf-life. This is likely to fuel the cold chain monitoring market growth.
Growing Demand for Refrigeration in Pharmaceutical and F&B Industry to Bolster Market Growth
The surging need for refrigeration in the pharmaceutical (healthcare) and food & beverage industry is likely to bolster market growth over the forecast period. Food and beverage remain the key application area for unwavering worldwide expansion of cooled or frozen food categories. Pharmaceuticals too need unfailing controlled room temperature solutions and have strict regulations concerning its storage, which are also adding market growth.
Additional factors adding to the cold chain monitoring market size include constant investments being made by government agencies and private sector companies to roll out cold storage warehouse networks, emphasis made by the government to improve the efficiency of supply chains of pharmaceutical products, dairy products, frozen food, and processed food, and other forms of products which require cold chain monitoring solutions, and strict regulations regarding shipment of pharmaceutical products. Besides, rapid urbanization, rising awareness of quality food, increased use of medications, maintaining a secure cold chain for vaccines, blood, and drugs, and growing health consciousness are also driving the growth of the cold chain monitoring market share over the forecast period.
Need to Reduce Food Wastage and Spoilage to Offer Robust Opportunities
The growing need to reduce food wastage and spoilage, and other temperature-sensitive goods and the growing need for improved food quality may offer robust opportunities to market players over the forecast period.
Environmental Concerns to Act as Market Restraints
Environmental concerns like the emission of greenhouse gases coupled with lack of standardization may act as market restraints over the forecast period
High Implementation Cost to Act as a Market Challenge
High implementation cost, coupled with monitoring and installation issues, may act as a market challenge over the forecast period.
Cold Chain Monitoring Market is bifurcated into Logistics, Application, and Components.
Food & Beverages Segment to Lead the Cold Chain Monitoring Market
By application, the global cold chain monitoring market is segmented into pharmaceuticals, foods and beverages, chemicals, and others. Of these, the food and beverages segment will lead the market over the forecast period.
Radio Frequency Devices Segment to Dominate the Cold Chain Monitoring Market
By components, the global cold chain monitoring market is segmented into software, sensors, radiofrequency devices, telematics devices, and others. Of these, radiofrequency devices will dominate the market over the forecast period.
Warehousing Segment to Spearhead the Cold Chain Monitoring Market
By logistics, the global cold chain monitoring market is segmented into warehousing and transportation. Of these, the warehousing segment will spearhead the market over the forecast period. This segment is predicted to grow at an 8.6% CAGR.
North America to Lead the Cold Chain Monitoring Market
By region, the global cold chain monitoring market covers the opportunities and recent trends across Europe, North America, the Asia Pacific (APAC), Latin America, and the Middle East and Africa (MEA). Of these, North America will lead the market over the forecast period. Booming frozen food industry, increased expenditure towards frozen foods, huge consumption of meat products, an elevated standard of living, sustainable investments in cold chain solutions, rising preference for fresh foods, and growing need for refrigeration in the pharmaceutical sector are adding to the global cold chain monitoring market demand in the region. Besides, an increase in the variety of drugs in the US, growing demand for chilled products, escalating need for fruits, vegetables, and dairy products, and rising import-export of exotic fruits and vegetables are also adding to the global cold chain monitoring industry growth.
APAC to Have Rapid Growth in Cold Chain Monitoring Market
In the APAC region, the global cold chain monitoring market is predicted to have rapid growth over the forecast period. Growing chemical industry, China being a key region for developing pharmaceutical and chemicals industry, mounting urbanization, high rate of industrialization, rising disposable income, and growing need for high-quality food products are adding to the global cold chain monitoring market growth in the region. Besides, the surging need for high-quality food products, increasing government initiatives in emerging economies, the rising funds from the government for logistics infrastructure development, and the growing penetration of warehouse management systems are also adding market growth.
The cold chain monitoring market is fragmented in nature with the presence of many top players. The growing participation of key players and rising investments in R&D activities is likely to ensure the growth of the market in the upcoming years. They have incorporated strategies such as mergers and acquisitions, new product launches, and alliances to stay at the forefront and strengthen their position.
Global Cold Chain Monitoring Market offers a detailed analysis of governing factors, parent market trends and insights, market and regional segmentation, and drivers and restraints to offer a better understanding to readers.
Frequently Asked Questions (FAQ) :
The global market of cold chain monitoring can thrive at 9.6% CAGR through the study period (2018-2023).
Berlinger & Co AG, Elpro-Buchs A G., Infratab Inc., and Zest Labs Inc. (Ecoark Holdings) are some renowned names in the cold chain monitoring market.
Intensifying competition and relationships among these players can benefit the cold chain monitoring market.
The rise in demand for convenient food can support the cold chain monitoring market growth.
Drivers and pitfalls of the cold chain monitoring market are vividly discussed in the report.
Pharmacy, warehouse, and logistics are major areas of application of cold chain monitoring solutions.
By logistics, warehousing and transportation are major cold chain monitoring market segments.
The global cold chain monitoring market is poised to reach a valuation of USD 7.15 Bn by the end of 2023, marking an above-average CAGR during the forecast period (2017 to 2023). This consistent growth during the review period can primarily be attributed to the increase in refrigerated warehouses to meet the growing demand for cold supply chain solutions. Stringent government rules regarding food wastage and the increasing number of pharmaceutical drugs, which require continuous temperature monitoring are some other factors driving cold chain monitoring market growth.
A growing need for consensus across logistics with regards to pharmaceutical trade has been identified, thus driving the growth of the global cold chain monitoring market. Moreover, ongoing transitions in product development are responsible for the rapid adoption of cold chain monitoring solutions. Other factors that drive the growth of the cold chain monitoring market include the increased administration of appropriate vaccinations, globally growing use of insulin products and inarguable need for reliable cold supply chain solutions in food safety.
Cold chain monitoring solutions offer many advantages over conventional storage monitoring methods such as control over energy costs, downtime, safety and other relevant factors. This allows organizations to reduce costs and improve overall efficiency. The recognition of these benefits have prompted demand for such solutions and is expected to motivate growth during the assessment period. The development of new technologies that work in tandem with cold chain monitoring solutions such as real-time monitoring and application of wireless sensor networks are expected to create opportunities for growth and market expansion.
The global cold chain monitoring market has been segmented on the basis of component, application, logistics, and region. By component, the market has been segmented into software, hardware, and services, with the hardware segment accounting for the most significant segment which is expected to surpass USD 3 Bn by 2023. The segment is led by the RFID devices sub-segment, which is extremely popular due its advanced temperature and humidity sensor technology, which allow real-time monitoring. Moreover, with the advent of the internet of things (IoT), food supply chains have been revolutionized as the technology is increasingly used in tracking freshness of food and avoiding wastage.
By applications, the cold chain monitoring market has been segmented into food & beverages (FnB), chemicals, and pharmaceuticals & healthcare. Of these, the food & beverages segment dominates the total market due to a visible emergence of consumer preferences for healthy and fresh products over processed food products, which is prompting cold chain providers to adopt new strategies in the FnB sector.
By logistics, the cold chain monitoring market has been segmented into warehousing and transportation, with the warehousing segment set to grow at a steady CAGR of 8.6% during the forecast period. This is primarily due to the increase in demand for refrigerated warehouses. Additionally, to meet the growing pharmaceutical and FnB needs, organizations are increasing their transportation fleets, leading to an overall increase in the logistics segment.
North America, with its inclusion of the U.S, accounts for the most significant share of the global cold chain monitoring market. In 2017, North America possessed over a third of total market share and is expected to retain its position over the assessment period. The market in this region is driven by factors such as an increasing preference for fresh produce, sustainable investments in cold chain solutions and a growing demand for cold storage in the pharmaceutical sector. The pharmaceutical sector in the U.S has gained global significance over the years due to the development of a variety of drugs in the country, many of these drugs require temperature controlled storage making this application a quickly growing one which is motivating further cold chain monitoring market growth.
Meanwhile, the accelerated economic growth and the growth of cold chain monitoring in the Asia Pacific have triggered a strong demand for current cold storage technologies and transportation. The region has been recognized as the fastest growing region in the global cold chain monitoring market due to the expansion of the manufacturing sector. The region features emerging economies such as India, China, and Japan which are rapidly urbanizing and have high disposable incomes. These countries account for the most significant contributors to market growth and are witnessing a growing demand for fresh products as well as a strong demand for current pharmaceutical drugs, many of which require refrigerated storage.
Prominent market leaders in the global cold chain monitoring market include Controlant, Zest Labs Inc. (Ecoark Holdings), NEC Corporation, and Sensitech, Inc. Other reputable players of note that have been included in the report are ORBCOMM Inc., Infratab Inc., NXP Semiconductors N.V., Elpro-Buchs AG, Berlinger & Co AG, and Monnit Corporation. Players such as NXP Semiconductors N.V. and NEC Corporation have been employing strategies such as expansion, mergers, and acquisitions. Many key players are making heavy investments across borders to capitalize on the global increase in demand for cold storage solutions.
Global Cold Chain Monitoring Market: Competitive Landscape
NXP Semiconductors N.V., NEC Corporation, Sensitech Inc., ORBCOMM Inc., Berlinger & Co AG, and Infratab Inc. collectively accounted for 26% share of the global cold chain monitoring market in 2017. These companies continue to maintain their strong global presence through expansion, merger & acquisition, and extensive product portfolio.
NXP Semiconductors N.V., is engaged in the development, manufacture, and provision of mixed-signal semiconductor solutions. The company operates majorly in two business segments: high performance mixed signal (HPMS) and standard products (SP). Under the standard products segment, the company develops and supplies small signal and power discrete and protection, signal conditioning components, standard logic devices, diodes, transistors, rectifiers, interface protection devices, and bipolar power transistors. The company operates through offices located in Asia, Europe, and the U.S. The company has five wafer fabrication facilities in Austin, Texas, Chandler, Arizona, Nijmegen, the Netherlands, and Singapore.
NEC Corporation held the second position in terms of market share, in 2017. The company focuses on investing in new technology to develop high-performance, energy-efficient products. The company engages in the provision of systems, components, services, and integrated solutions for computing and communications applications. The company primarily serves government agencies, financial institutions, public institutions and other organizations, as well as telecom carriers. The company operates through four major segments namely public business, enterprise business, telecom carrier business, and system platform business. Additionally, the company also provides systems integration services such as maintenance and support services, systems implementation and consulting, system equipment and outsourcing/cloud services. Technological innovation in the cold chain monitoring has helped to drive significant advances in the quality and performance of supply chain.
In 2017, Sensitech Inc. acquired the third spot in the market. The company has been implementing both organic and inorganic growth strategies. The company invests tremendously in research and development in order to expand its product portfolio. The company has nearly occupied every major industry segment. Other expansion strategies including mergers & acquisitions keep strengthening their technical expertise and increasing their customer base. The company’s products include dataloggers, electronic indicators, strip chart recorders, chemical indicators, ethylene absorption filters and sachets, and facility monitoring solutions. Additionally, the company provides accessories like remote printers and USB interface plus readers, logistics security services such as carrier compliance audit, active shipment monitoring, and logistics security assessments. The company offers ColdStream which is an accommodated relational database application used to view, store, retrieve, and analyze cold chain data.
ORBCOMM INC. is one of the most competitive players in the cold chain monitoring market. The company has focussed on the execution of its strategies without losing focus on its key areas. The company also provides hardware devices, modems, web applications and data services which are delivered over multiple satellites and cellular networks. The company primarily operates in M2M and IoT industries, which include various types of communications systems that enable intelligent machines, devices and fixed or mobile assets for communication across organizations. The company has been involved in various innovations and R&D to ensure a strong market presence and product portfolio. Orbcomm is also focusing on tapping newer geographical regions and newer market segments. With their advanced cold chain monitoring solution, the company is delivering new technologies in fleet management
Berlinger & Co AG stands at the 5th position in the global cold chain monitoring market. The company believes in continuous re-invention and transformations. The company has been majorly focusing on temperature monitoring solutions for pharmaceuticals and logistics. The company also offers temperature monitoring systems for temperature-critical products and made-to-measure products which includes cutting, gluing, lining, perforating, cutting precisely to length, winding, punching, and various other services. Also, the company offers insulating products, including thermoflex, a polyester foam laminated pipe for concealed cables, and Oekotherm, a polyethylene foam without PVC coat for concealed cables
New product development is a key focus area for players as the demand for more efficient and application-specific monitoring solutions continues to grow. In the near future, market players are also likely to benefit from pro-urbanization policies that are being introduced by governments in developing countries.