Cold Chain Monitoring Market

Market Overview

The worldwide cold chain monitoring market size is expected to reach USD 16.07 billion by 2030 from USD 5.26 billion in 2021, growing at a CAGR of 13.2% during the forecast period, 2022–2030.

A cold chain is a continuous supply system that uses temperature-controlled environments to maintain product quality from production to transportation, distribution, storage, and retail. It offers a secure, temperature-controlled environment for sensitive items like fresh and frozen foods, pharmaceuticals, biologics, chemicals, and vaccines. The cold chain system currently employs sensor-based technology (IoT), which allows for sophisticated real-time data tracking and real-time logistic management of each chain link. Several export industries rely on the critical connections provided by connected sensors to detect incidents quickly and help to update any damages or delays with reactive responses.

In recent years, cold chain monitoring systems have become more critical in healthcare, hospitals, laboratories, clinics, pharmacies, food and beverage, server rooms, and other industries. These companies gained complete control over temperature regulation and monitoring processes, ensuring optimal temperatures throughout the logistics cycle and extending their life. Furthermore, new cold chain tracking and monitoring opportunities are expected to emerge as the packaged food industry expands, and demand for remotely operated automated devices in storage facilities rises. Freshurety, a Florida-based start-up, uses IoT sensors inside food palettes to continuously record ambient temperature and examine the gases in fruits and vegetables to predict expiration dates and prevent waste.

Market Dynamics

Cold Chain Monitoring Market Drivers

• Increased Demand for Temperature-Sensitive Medications throughout the World is the Main Factor

Temperature-sensitive pharmaceuticals, such as vaccines and items that require temperature ranges for chemical stability, are becoming more popular. On the International Institute of Refrigeration, the demand for heat-sensitive health items such as medications, vaccines, insulin, and derived blood products grows every year (IIR). Because of the possibility of unexpected environmental changes, the cold chain transit of these medications is the most critical in this regard.

Temperature changes during transportation can cause medicines to lose their ability to treat, making treatment in many cases ineffective. Air quality and temperature must be maintained to prevent damage to any pharmaceutical product. In the pharma supply chain, the packaging stage of items must also provide end-to-end visibility and condition monitoring.

Because manufactured pharmaceuticals contain high-value active ingredients with short shelf lives and strict temperature requirements, temperature control and monitoring throughout the supply chain have become increasingly important. Temperature-sensitive pharmaceuticals, as a result, necessitate cold chain monitoring solutions. Chain monitoring and tracking are control systems with sensors that monitor temperature-sensitive items between 2 and 8°C.

• Increasing focus on quality and product sensitivity

With increased innovation and a focus on quality, health, and integrity, the demand for fresh food and beverages has increased. The rise in demand for healthy foods and the rise of the middle class in places like China are driving the globalization of cold chains. Consumers now expect higher-end products, such as Alaskan salmon, to travel long distances and arrive fresh and in good condition. To avoid changes in texture and taste when a shipment deviates from recommended temperatures, cold chain products must be kept at the optimal temperature. Pharmaceutical companies also need effective cold chain monitoring systems, extended temperature for transportation, and over-the-counter drug coverage. So, the increased focus on quality & product sensitivity in the food & drugs sectors is growing the cold chain monitoring market.

Cold Chain Monitoring Market Restraint

• The High Cost of Implementation is a Constraint

Installing a cold chain monitoring system is extremely costly. The cost of installing sensors and setting up a communication network is high. It costs money to transport high-value goods over long distances while keeping them within their temperature range. As a result, businesses in the cold storage and transportation industries are hesitant to invest in new monitoring systems. Real-time cold chain monitoring systems are costly, particularly for small and medium-sized businesses, and many food industry participants are small businesses with thin profit margins. Cold chain monitoring systems necessitate investments because of the market's enormous size. These options include active refrigeration systems and passive cooling devices. Although it may appear simple, the cost of setting up the cold chain is substantial. Enhanced dependability is much shorter for large-scale actors in the cold chain network by spending the right amount and reaping the benefits. The restriction has a significant impact on people's lives. The market's expansion will be hampered by the high cost of cold chain monitoring solutions.

Cold Chain Monitoring Market Opportunity

• Research for advancements in cold chain software

Proper storage mechanisms became necessary with the rise in demand for perishable goods. As a result, IoT assists in cold chain management by providing sophisticated temperature tracking and monitoring solutions to deal with the complexity of operations of these temperature-controlled warehouses. It entails controlling and monitoring a product's flow from raw material procurement to final product distribution. Furthermore, IoT provides real-time data, allowing for unprecedented visibility into every process and transaction in cold chain logistics. It also creates a networked ecosystem for continuously measuring, collecting, and exchanging live data by intelligently connecting people, processes, and things via devices and sensors. Sensors, GPS, mobile networks, and a cloud-based platform allow operators to connect intermodal shipping containers, cargo, vessels, and trailers to enterprise I.T. systems. For example, in February 2022, M2Cloud, Korea's leading bio-cold chain technology company, collaborated with Thales, a global leader in IoT communication modules, to develop next-generation bio-cold chain systems by combining industry-leading security and IoT technology. As a result, the introduction of the Internet of Things (IoT) and the adoption of automated software for cold chain logistics create market opportunities.

Segmental Analysis

Insight into Temperature

In a large warehouse, there are several temperature zones. As a result, constant temperature monitoring is required to ensure that items are stored at the proper temperature and in good condition. Robots for inter-warehouse stock transfers, loading and unloading tasks, and other automated warehouse operations can help maximize warehouse efficiency and save money. Warehouse automation allows for more efficient storage, less wear and tear, greater dependability, and lower operating costs.

Due to real-time visibility of cargo location, temperature, humidity, and other environmental conditions, manufacturers and distributors can take faster preventative measures, reducing the risk of spoilage or contamination. Automated storage and retrieval systems (ASRS) can deduct energy expenditures by 35% to 50% by allowing maximum storage in less chilled space while maintaining optimal temperature levels. Perishable consumer goods, such as beverages and frozen food, are among the cold storage supply chain's most complex challenges.

An automated picking system can detect and dispose of expired products using RFID chips and scanners. Because their sensitivity to spoilage and physical wear and tear can result in losses if they become contaminated, constant temperatures are used to preserve a wide range of agricultural products, including fruits and vegetables. As a result, warehouse automation may assist in reducing these losses.

Insights into the Logistics Industry

There are two distinct markets within the cold chain monitoring industry: temperature-controlled storage and transportation. The storage category emerged as the largest because of the growing demand for packaged food worldwide. Food packaging requires consistent temperatures, and pharmaceutical packaging temperatures are monitored using a variety of sensors and control systems. The storage market is expected to grow significantly as demand for remote monitoring of cold storage grows.

During the projection period, transportation will be the fastest-growing category. The increase in sales can be attributed to trade-in foods, beverages, and pharmaceuticals. The segment's growth is also fueled by increasing demand for remote monitoring and tracking of refrigerated truck assets. Furthermore, remote temperature monitoring technologies can help with any public health issues related to the consumption of food and medications that have not been properly stored. Remote monitoring systems may be critical in terms of product quality and safety.

Insights into the Application

Cold chain monitoring subcategories include fruits and vegetables, pulp and concentrate, dairy products, fish, meat, seafood, processed food, medicines, bakery, and confectionery. The industry's growth is due to the increased consumption of processed foods and a shift in consumer eating habits. In contrast, fish, meat, and seafood grew to become the largest market category in 2018 and are expected to continue throughout the forecast period.

The pharmaceutical market is expected to grow significantly in the coming years. Increased global demand necessitates stringent regulatory guidelines to ensure the safe storage and transportation of pharmaceuticals. Pharmaceuticals and medicines that are temperature sensitive must be kept and delivered at a constant temperature. Cold chain monitoring systems are particularly appealing to supply chain operators who store and return pharmaceutical items.

A High CAGR is Expected in the Chilled Cold Chain Monitoring Market

Cold chain monitors of mercury cadmium telluride (HgCdTe) and indium antimonide require mechanical cooling to improve their signal-to-noise ratio (InSb). At room temperature, the sensitivity of InGaAs detectors is comparable to that of HgCdTe and InSb detectors; however, the sensitivity of InGaAs detectors can be improved by chilling them. The chilled cold chain monitors are kept cool using thermoelectric or cryogenic cooling.

In some cases, liquid nitrogen can also be used to cool detectors. By cooling the sensor, thermally produced noise can be reduced to a minimum, improving performance. Cooled cold chain monitoring has some disadvantages, such as a higher cost. Scientific research, astronomy, surveillance, and spectroscopy, among other fields, use high-accuracy cooled chain monitoring.

Cold chain monitoring systems that use infrared (NIR and LWIR) and long-wave infrared (LWIR) do not always require chilling. The sensitivity of InGaAs detectors can be increased by cooling them, but this is not always the case. Cooled cold chain monitoring systems commonly use the MWIR spectral region.

Regional Analysis

The Landscape of the Regions

The cold chain monitoring market of North America is now experiencing the fastest growth in the Americas, and this trend will be continued in the coming years. The demand for frozen and chilled food items is likely to rise in North American countries, increasing the demand for cold chain monitoring systems. A cold chain monitoring system must include both refrigerated storage and refrigerated transportation.

Imports and exports of exotic vegetables, fruits, and dairy products are increasing in demand, necessitating cold chain monitoring systems. The pharmaceutical and healthcare industries have made ample contributions to the area's cold chain monitoring market.

Strict rules are set to ensure the safety, proper storage, and distribution of pharmaceutical products. The Global Cold Chain Alliance's (GCCA) efforts and the region's strict food safety standards directly impact the cold chain monitoring market.

Recent Developments

• April 2022: CoolKit Selects ORBCOMM for Monitoring the U.K.'s Largest Fleets of Temperature-Controlled Vans. ORBCOMM Inc., a global provider of IoT solutions, announced that it had been selected by CoolKit, the largest manufacturer of temperature-controlled vans in the United Kingdom, to deliver temperature monitoring, management and compliance for the refrigerated vehicles it provides to customers in the pharmaceutical, healthcare, food & beverage and agricultural industries.

Cold Chain Monitoring Market Segmentation

By Temperature Types

• Frozen
• Chilled

By Logistics

• Storage
• Transportation

By Applications

• Fruits and vegetables
• Fruit pulp & concentrates
• Dairy products
• Fish
• Meat and seafood
• Processed food
• Pharmaceuticals
• Bakery & confectionaries

By Regions

North America

• The U.S.
• Canada
• Mexico

South America

• Argentina
• Brazil

Europe

• The U.K.
• Germany
• France
• Italy
• Netherlands
• Spain
• Rest of Europe

The Asia-Pacific (APAC)

• China
• Japan
• India
• South Korea
• Australia
• The Rest of APAC

The Rest of the World (RoW)

• Middle East
• Saudi Arabia
• A.E.
• Africa