Global Smart Food Logistics Market Grows at a Staggering CAGR of 13.42%

Introduction

Smart food logistics suppliers help FMCG companies maintain the quality of foods like fruits and vegetables to stop food from going bad. Smart food logistics companies use wireless temperature sensors to provide multi-zone monitoring and maintain frozen goods in refrigerated vehicles and trailers. Cloud-based collaborative solutions are utilized throughout the whole supply chain by smart food logistics organizations. These solutions offer tight integration of information from the end user, the warehouse, and transportation throughout the supply chain. Smart food logistics use is projected to increase as it provides real-time information about the whereabouts of assets and fleets and temperature conditions.

Market Dynamics

Increasing Need for Efficient Monitoring and Tracking for Better Control of Assets Drives the Global Market

Related food firms have been increasingly vulnerable to price rises as food is classified as a fast-moving consumer goods (FMCG) industry with a relatively low added value. Due to the pressure of rising costs from maintaining logistical capacities, with cold chain capabilities, or using several intermediaries when transporting food goods, there has been a shift toward efficiency in all areas. Aside from that, new logistical infrastructure forces food producers to pay more to bring their products to market. As a result, many food producers seek partnerships with logistics firms to use cutting-edge technologies. As consumer environmental concerns increased, a profitable strategy that reduced carbon footprints was needed. Maintaining the cold chain throughout the delivery process was a significant obstacle for many producers of perishable goods, artisanal food producers, and farmers with minimal or no logistical capacities.

Cold Chain Monitoring Creates Tremendous Opportunities 

Rapidly changing eating habits, rising packaged food demand, and stringent storage and packing restrictions have resulted in a power shift from manufacturers to retailers. The procedures concentrating on zero contamination, precise storage, and high-speed storage and retrieval activities are the key reasons affecting automation and the adoption of the technologies in the food and beverage logistics business. Food manufacturers effectively manage the distribution, shipment, and storage of products that need to be kept in a temperature-controlled environment with the help of a cold chain monitoring solution. Perishable goods may expire and become unsafe due to inadequate cooling chains caused by mechanical problems, traffic congestion, and other problems. Additionally, a lack of real-time visibility into the whereabouts of the commodities may lead to poor operational processes. Therefore, cold chain monitoring ensures that goods are moved and kept at constant temperatures.

Regional Analysis 

North America is the most significant revenue contributor and is expected to grow at a CAGR of 12.83% during the forecast period. The region should account for a sizable percentage of the market for smart logistics because it is home to several well-known providers. The government's push for using technology to reduce resource waste in the supply chain and the rising concern over waste removal and resource optimization are also propelling the market's growth in this area. For instance, the American Association of State Highway and Transportation Officials (AASHTO), state and local departments of transportation, and the Federal Highway Association (FHWA) have all advocated for the use of asset monitoring in the transportation and logistics industry (DOTs). Businesses in the Canadian market use a variety of organic and inorganic expansion strategies to retain their competitiveness. To provide businesses with real-time tracking of shipments and assets both inside and outside the workplace, Roambee, a logistics solutions provider, and Rogers for Business have teamed up.

Europe is expected to grow at a CAGR of 13.73%during the forecast period. Europe is a significant consumer of modern technology and one of the most important centers for it worldwide. Due to cost and compliance concerns, many businesses in the area have embraced various mobility solutions. Europe has profited from the quick adoption of innovative technology in almost all end-user industries. Technological advancements like IoT, AI, and cloud services accelerate the adoption of smart logistics solutions in the local food industry. As the food industry grows across the continent, there is an increasing need for highly efficient and sophisticated logistics solutions to guarantee that the vast volumes entering Europe's distribution routes are delivered quickly and reliably to a market of more discerning customers. The company's innovative logistics solutions could increase productivity and reduce carbon emissions. By 2030, the European Union plans to cut back on per capita food waste at the retail and consumer levels and food losses along the production and supply chains for food.

Key Highlights

• The global smart food logistics market was valued at USD 9.98 billion in 2022. It is projected to reach USD 31.00 billion by 2031, growing at a CAGR of 13.42% during the forecast period (2023-2031). 
• Based on components, the global smart food logistics market is bifurcated into hardware (sensors, telematics, networking devices, etc.), software, and services. The software and services segment is the highest contributor to the market and is estimated to grow at a CAGR of 13.97% during the forecast period.
• Based on technology, the global smart food logistics market is bifurcated into fleet management, asset tracking, cold chain monitoring, and other technologies. The cold chain monitoring and other technologies segment is the highest contributor to the market and is estimated to grow at a CAGR of 12.25% during the forecast period.
• North America is the most significant revenue contributor and is expected to grow at a CAGR of 12.83% during the forecast period.

Competitive Players

1. Orbcomm
2. Sensitech (Carrier Global Corporation)
3. Berlinger and Co. AG
4. Geotab Inc.
5. Kii Corporation
6. Verizon Connect
7. Teletrac Navman
8. Monnit Corporation
9. Controlant
10. Samsara Inc.
11. Seaos
12. Nippon Express Co. Ltd.

Recent Developments

• February 2024 - In the Giza Governorate, SulleX started building the first smart temperature-controlled logistics city in the history of the country. The USD 150 million project, called SulleX-TRC, is a major financial commitment. Covering 510,000 square meters, SulleX-TRC is well positioned to establish itself as a major regional center for the production and distribution of a wide range of temperature-sensitive products, such as pharmaceuticals, chilled meat, poultry, and dairy products, frozen agricultural commodities, and more.
• April 2024 - With the help of a local carrier and Huawei, the first 5G Smart Warehouse in the UAE officially opened for business. For the logistics sector in the United Arab Emirates, this ground-breaking project seeks to provide 5G-driven robot warehouse solutions. The 5G Smart Warehousing project, which is situated in the Dubai South Freezone, uses state-of-the-art 5G technologies to transform warehousing logistics in an intelligent manner. This improves supply chain operations, lowers costs, and boosts warehouse logistics management efficiency.

Segmentation

1. By Component
   1. Hardware (Sensors, Telematics, Networking Devices, etc.)
   2. Software and Services
2. By Deployment Model
   1. On-Premises
   2. Cloud
3. By Enterprise Size
   1. Large Enterprises
   2. Small & Medium Enterprises
4. By Transportation Mode
   1. Railways
   2. Roadways
   3. Seaways
   4. Airways
5. By Technology
   1. Fleet Management
   2. Asset Tracking
   3. Cold Chain Monitoring and Other Technologies
6. By Industry Verticals
   1. BFSI
   2. IT & Telecom
   3. Manufacturing
   4. Healthcare
   5. Others