Cold Chain Tracking and Monitoring Market - Forecasts from 2023 to 2028

The cold chain tracking and monitoring market is projected to grow at a CAGR of 10.04% over the forecast period to reach US$11.242 billion in 2028 from US$5.754 billion in 2021

A cold chain is a continuous supply system that uses temperature-controlled facilities to preserve the quality of items from manufacture through transit, distribution, storage, and sale. For sensitive items including fresh and frozen food products, drugs, biologics, chemicals, and vaccines, it offers a secure, temperature-controlled environment. Currently, the cold chain system incorporates sensor-based technology (IoT), which enables real-time logistic management of each link in the chain and enables advanced real-time data tracking. Several export sectors rely on the critical connections made possible by connected sensors to quickly identify incidents and aid in mitigating any losses or delays with proactive solutions.

Market Drivers:

Rising demand for temperature-sensitive drugs

Drugs that require specific temperature ranges to maintain chemical stability, such as vaccines, are becoming more and more popular. The need for heat-sensitive medical products such as medications, vaccines, insulin, derived blood products, and oncology therapies is growing significantly each year, according to the International Institute of Refrigeration (IIR). Therefore, due to the risk of unanticipated environmental changes, the transit of these medications is the most crucial step in the cold chain. Any variation in temperature while being transported can have an impact on the medications, causing them to lose their ability to treat the conditions they are intended to result in ineffective treatment which increases the demand for cold chain tracking and monitoring market.

Better asset control using automation

Different temperature zones are seen in a sizable warehouse. Therefore, it is crucial to continuously monitor the temperature at which items are held as well as their real state. Moreover, the implementation of automation, including the application of robotic equipment for performing inter-warehouse stock transfers and loading and unloading operations, can be achieved for the best utilization of warehouses. Automation of the warehouse helps to maximize storage space while lowering maintenance costs, increasing reliability, and reducing wear and tear. The sensitive nature of many products necessitates their preservation as they are susceptible to deterioration during storage owing to wear and tear. Automation in warehouses can thereby lower these losses.

Increasing quality standards

The market expansion is being positively impacted by the increasing industry’s need for remotely controlled automated logistics warehouses to maintain the quality requirements of various products. Moreover, the incorporation of RFID and Internet of Things sensors into transportation pallets for asset tracking, inventory management, and improving data accuracy are fueling the market's expansion. A positive outlook for the market is being created by additional factors like the growing use of e-commerce platforms to order consumer goods, the quick development of refrigerated warehouses, and the growing demand among manufacturers to achieve end-to-end visibility and monitoring of conditions throughout the supply chain operation.

Research towards improving cold chain software

Due to the increase in demand for perishable commodities, proper storage techniques were necessary. Therefore, loT supports cold chain management by offering comprehensive temperature monitoring and tracking solutions to deal with the complexity of activities of these temperature-controlled facilities. It entails managing and keeping an eye on a product's flow from the acquisition of raw materials through the distribution of the finished good.

Market Restraints:

High implementation cost of cold chain tracking systems

Cold chain monitoring systems have a hefty installation price. It is expensive to set up the communication network and deploy the sensors. It costs a lot of money to transport valuable cargo over long distances within the required temperature range. The businesses engaged in freezing and cold transportation are still hesitant to invest in creating monitoring networks. Cost is the main barrier to the adoption of actual time cold chain tracking systems, especially for small- and medium-sized businesses that frequently operate on thin margins. The enormous cold chain sector necessitates large expenditures in cold chain monitoring technologies.

Installment and monitoring complexities

Due to the sharp rise in customer expectations in recent years, cold chain monitoring has grown even more complicated. Customer options and the complexity of multi-sourcing supply chains have both expanded because of globalization. As they can reach from manufacturing facilities, research facilities, and storage facilities to a variety of transit modes and end consumers, including retail chains and restaurants, cold chain networks can be geographically dispersed. It can be challenging to install numerous sensors on each of these sites which restraints the cold chain tracking and monitoring market size.

Asia Pacific is projected to be the significant cold chain tracking and monitoring market globally

The Asia Pacific region is anticipated to lead the cold chain tracking and monitoring market during the projected period. The region of Asia Pacific is anticipated to contribute to steady expansion because of the market for cold chain monitoring soaring demand. It is anticipated that China's market will grow greatly during the forecast period. The significant increase in pharmaceutical items and other medical demands is just one of several reasons for the expansion. Cold chain firms are encouraged to adopt temperature monitoring devices by the stringent requirements the Chinese government has in place to safeguard food quality. Governments across the world are taking action to monitor the cold chain logistically.

Market Key Developments:

• In February 2022, M2Cloud, the top Korean provider of bio-cold chain technology, collaborated with Thales, a world leader in loT communication modules, to create an IoT-based "LTE monitoring system" optimized for biopharmaceutical monitoring. The goal was to create the next generation of bio-cold chain systems by fusing industry-leading safety and loT technology. As a result, the market opportunity is facilitated by the development of loT and the use of computer software for cold chain logistics.
• In February 2021, Sensitech Inc. (US) introduced several new products, like TempTale GEO Ultra and its Dry Ice variation. The Dry Ice version, like TempTale GEO Ultra, is connected to Coldstream Select and can monitor temperatures between -95°C and +55°C. Since the recently released items include an alkaline non-lithium battery, the IATA hazardous item designation is not necessary.

Segmentation:

By System

• Hardware
• RFID Devices
• Telematics and Telemetry Devices
• Sensors And Data Loggers
• Networking Devices
• Software
• On-premises
• Cloud-based

By Logistics

• Storage
• Transport

By End-User

• Healthcare
• Pharmaceuticals
• Food and Beverage
• Chemical
• Others

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Indonesia
• Thailand
• Others