Smart Food Logistics Market Size, Share & Trends Analysis Report By Component (Hardware (Sensors, Telematics, Networking Devices, etc.), Software and Services), By Deployment Model (On-Premises, Cloud), By Enterprise Size (Large Enterprises, Small & Medium Enterprises), By Transportation Mode (Railways, Roadways, Seaways, Airways), By Technology (Fleet Management, Asset Tracking, Cold Chain Monitoring and Other Technologies), By Industry Verticals (BFSI, IT & Telecom, Manufacturing, Healthcare, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global smart food logistics market size was valued at USD 11.23 billion in 2023. It is expected to reach USD 34.88 billion in 2032, growing at a CAGR of 13.42% over the forecast period (2024-32). Increasing consumer awareness and regulatory requirements regarding food safety and quality drive the adoption of smart food logistics solutions. Technologies such as IoT sensors, blockchain, and real-time monitoring systems enable enhanced traceability, transparency, and compliance throughout the food supply chain.

Smart food logistics is a part of the food supply chain that facilitates the collection of shipment tracking data. 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.

In addition, it facilitates efficient resource management and waste prevention along the food supply chain, from farm to table. Information technology has been integrated into the day-to-day operations of forward-thinking food logistics companies to deal with food safety compliances, road conditions (including roadblocks), and environmental performance. As it offers real-time knowledge about the location of assets and fleets as well as information about temperature conditions, smart food logistics adoption is anticipated to rise.

Market Dynamics

Market drivers

Increasing need for efficient monitoring and tracking for better control of assets

Since food is recognized as a fast-moving consumer goods (FMCG) sector with relatively low added value, related food firms have become more sensitive to price increases. There has been a shift toward efficiency in all areas due to the strain of increased expenses from maintaining logistical capacities, with cold chain capabilities, or employing several intermediaries when delivering food items. Aside from that, food producers must pay more to get their goods to market due to underutilized logistical infrastructure. As a result, numerous food producers have been looking to partner with logistics companies to use smart technologies. An effective strategy focused on lowering carbon footprints to boost profits was required as consumer environmental concerns grew. For many manufacturers of perishable items, artisanal food producers, and farmers with limited or no logistical capabilities, maintaining the cold chain throughout the delivery process arose as a substantial barrier.

Market restraint

Installation complexities

Despite the efforts of food associations and related logistics firms to promote smart technologies, interoperability problems, the absence of open standards, and the expense of integration with unrelated software and configurations have remained a problem. Due to their extensive connectivity and frequently lax security measures, global supply chains have become particularly alluring targets. Additionally, it is more lucrative for a hacker to take advantage of widespread supply chain vulnerabilities than those that only affect a specific device. The creation of a technology basis for seamless data transfer is necessary for full interoperability due to interoperability and installation complexity (end-to-end). Several sizable businesses frequently use a variety of IoT device solutions throughout their fleets. Full intermodal integration and communication are still a problem, though.

Market opportunities

Cold chain monitoring

A power transfer from manufacturers to merchants has been brought about by rapidly evolving eating patterns, increased demand for packaged foods, and strict laws on packing and storage. The main factors influencing automation and the adoption of the technologies in the food and beverage logistics industry include processes focusing on zero contamination, precise storage, and high-speed storage and retrieval activities. The distribution, shipment, and storage of goods that need to be stored in a temperature-controlled environment are efficiently managed by food makers with the aid of a cold chain monitoring solution. Because of incomplete cooling chains brought on by mechanical failures, traffic jams, and other issues, perishable foods might spoil and become unsafe. Additionally, ineffective operating procedures may result from a lack of real-time visibility into the whereabouts of the commodities. As a result, cold chain monitoring guarantees that commodities are transported and stored at stable temperatures.

Regional Analysis

North america dominates the global market

The global smart food logistics market is divided into four regions: North America, Europe, Asia-Pacific, and LAMEA. 

North America is the most significant revenue contributor and is expected to grow at a CAGR of 12.83% during the forecast period. Since the area is home to many well-known vendors, it is projected to account for a sizeable portion of the smart logistics market. Additionally, the government's push for the use of technologies to address supply chain wastage and the growing concern to remove waste and optimize resources are driving the expansion of the market in the area. For instance, the Federal Highway Association (FHWA) has promoted the use of asset monitoring in the transportation and logistics sector along with the American Association of State Highway and Transportation Officials (AASHTO) and state and local departments of transportation (DOTs).

Further, IoT solution providers are well-represented in the region, and their investments in the area fuel the market's expansion. Geotab announced the release of Cold Chain, a product for HGVs and vans with refrigeration capabilities to address the difficulties of continual temperature control and monitoring of refrigerated trucks. To maintain their competitiveness, businesses in the Canadian market implement several organic and inorganic growth tactics. Roambee, a logistics solutions provider, and Rogers for Business have joined to offer organizations real-time tracking of shipments and assets inside and outside the office.

Europe is expected to grow at a CAGR of 13.73% during the forecast period. Europe is a large user of contemporary technology and one of the world's most influential technology hubs. Many firms in the area have adopted various mobility technologies due to cost and compliance issues. Nearly all end-user industries have benefited from Europe's rapid adoption of new technologies. IoT, AI, and cloud services are technological innovations accelerating the adoption of smart logistics solutions in the local food business. The European Union (EU) approved 11 new research projects into the development of the 5G industry and use cases in Europe, with a focus on manufacturing, supply chains, and transportation, as well as on 5G hardware innovation headquartered in Europe.

As the food sector expands throughout the continent, there is a growing demand for highly effective and intelligent logistics solutions to make sure that the massive volumes entering Europe's distribution routes are delivered quickly and reliably to a market of pickier consumers. The investment activities of the local merchants also contribute to the region's growth. A global B2B SaaS startup called Locus, which automates human decisions in logistics, said in October 2020 that it would spend EUR 2 million in Europe for product and commercial development. The company's intelligent logistics solutions might lower carbon emissions and boost productivity. By 2030, the European Union wants to reduce food losses along the food production and supply chains and cut back on per capita food waste at the retail and consumer level. The emphasis on supply chain optimization and the strong automation focus of Industry 4.0 fuels the expansion of smart food logistics in the area.

Asia-Pacific is likely to accelerate the expansion of smart food logistics, being at the forefront of technological adoption. The growth of the smart food logistics industry in China is driven by the country's emphasis on deploying technology for food security. The government's efforts to strengthen the nation's logistics system fuel market expansion. The central government declared that a contemporary logistics system would be developed and advanced to support a new development pattern strongly. Modern logistics systems are built on science, technology, cutting-edge scientific theories, and complex logistical procedures aiming to integrate the distribution and supply chain processes and variables. Technology, food security, and sustainability have been emphasized as the primary focal areas in the Recover, Inclusion, Leap: Korea 2021 business plan, which the South Korean Ministry of Agriculture launched, Food and Rural Affairs. The supply chain for digital food and agricultural products is another area of interest for the government. The market is seeing new prospects due to the increased adoption of IoT and M2M modules in nations like Indonesia, Australia, and Indonesia, among others.

Latin America is anticipated to expand over the length of the prediction. In contrast to other parts of the world, the region's growth can be slower. Compared to how quickly they were adopted in other countries, some technical developments, such as IoT, AI, and cloud, were slower to reach the region. According to Nokia, Brazil is Latin America's most significant IoT market. Nokia and the world's largest telecom company, TIM, have a partnership to offer IoT services to each other's business clients in Brazil. With this agreement, TIM's enterprise customers should be able to monitor and manage their devices in real time, including fully connected cars with telematics and onboard diagnostics, as well as asset tracking and status sensors for the logistics sector. The endeavors of various logistics companies in the area fuel the expansion of the logistics industry. Additionally, several businesses from across the globe are increasing their products in the region through strategic alliances and acquisitions, which could help them create a presence there.

Segmental Analysis

The global smart food logistics market is segmented by components and technology.

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. Real-time logistics, asset and supply chain tracking, and tracing are made possible by sensors installed on assets. Logistics firms and warehouses gain real-time information about the location of their assets and the state of their cargo. For instance, Intel's Connected Logistics Platform (Intel CLP) helps the transportation sector by lowering package loss and damage. The sensors provide businesses with information about food products' conditions while in transit.

Furthermore, by automating the identification processes, RFID and IoT solutions used in supply chain management applications considerably enhance international logistic networks and boost overall efficiency. The technology impacts the entire value chain, including the transportation of raw materials, production processes, warehousing, and distribution. A vehicle tracking device that enables the sending, receiving, and storage of telemetry data is part of a telematics system. Additionally, real-time position tracking of the vehicle is provided by telematics when used in conjunction with a fleet tracking system, making information sharing simple and increasing accountability. Location, speed, idling time, abrupt acceleration or braking, fuel consumption, vehicle issues, and other information can be included in the telematics data collected. This data can offer comprehensive insights throughout a fleet when examined for specific occurrences and patterns.

By investing in cutting-edge supply chain management software and solutions, businesses rapidly enhance their logistics and supply chains. The food business uses software solutions to track and distribute products to clients. Distribution organizations use logistics and analytics to supply raw materials to manufacturers efficiently. To maintain the freshness and quality of their products, food manufacturers need help keeping track of expiration dates. To guarantee that the products being sent and received are of the highest quality, the supply chain for the food industry predominantly relies on software solutions. The creation of food distribution software must prioritize order and shipment tracking, as well as prompt and effective delivery. Cloud solutions are being created to turn disjointed product development processes into information-driven product value chains. The feature that distinguishes vendor cloud products from one another is public access to product monitoring, real-time embedded analytics, and cross-functional collaboration. Vendors are now moving toward providing an all-in-one solution that includes hardware, software, and services for a set length of time. This element also contributes to the segment's expansion.

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 owns the highest contributor to the market and is estimated to grow at a CAGR of 12.25% during the forecast period. The distribution, shipment, and storage of goods that need to be stored in a temperature-controlled environment are efficiently managed by food makers with the aid of a cold chain monitoring solution. Because of incomplete cooling chains brought on by mechanical failures, traffic jams, and other issues, perishable foods might spoil and become unsafe. Additionally, ineffective operating procedures may result from a lack of real-time awareness of the position of the commodities. As a result, cold chain monitoring guarantees that commodities are transported and stored at stable temperatures. Technologies, such as Bluetooth Low Energy (BLE) beacons with temperature sensors, make it possible to trace temperature data continuously and smoothly during shipment or across the supply chain and track the position of goods at pertinent checkpoints. The technology, which is already in use at Menzies Aviation Bobba Bangalore (MABB), one of the cargo terminals at BLR Airport, will allow for real-time monitoring of perishables like fruits, vegetables, meat, seafood, dairy products, and cut flowers as well as pharmaceuticals and other temperature-sensitive goods.

The ability to connect various processes, workforces, and assets across the company value chain into a single integrated strategic system is provided by asset-tracking solutions combined with IoT technology. Asset tracking provides real-time data that affects the bottom line, and IoT devices and systems increase the accuracy and dependability of asset tracking. IoT-enabled asset monitoring systems make it simple to manage assets and remotely track fleets and equipment, allowing businesses to lower risk, save money, and develop new revenue sources. For instance, Telit Communications PLC offers Internet of Things (IoT) solutions for asset tracking that make it simple to connect and control all the assets from a single web-based IoT interface. Acculink Cargo is a new managed IoT solution that businesses can swiftly implement to track the location and condition of valuable and delicate assets, according to Sierra Wireless, a provider of IoT solutions. A single monthly cost will be charged to supply the solution as a service.

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.