Cold Chain Monitoring Market Size - By Component (Hardware, Software), Temperature Type (Frozen, Chilled), Logistics (Storage, Transportation), End User (Pharmaceutical & Healthcare, Food & Beverage, Logistics & Distribution, Chemical), Forecast 2023 – 2032

Cold Chain Monitoring Market Size

Cold Chain Monitoring Market size was valued at USD 5.1 billion in 2022 and is projected to grow at a CAGR of over 12.5% between 2023 and 2032. The increasing global demand for perishable goods, including pharmaceuticals, food and beverages, and other temperature-sensitive products, is a significant driver for the market.
 

According to Invest India, as of now, the pharmaceutical sector in India holds a valuation of USD 50 billion. Projections indicate a forecasted growth of USD 65 billion by 2024, and a further escalation to $130 billion is anticipated by 2030. With the expansion of the pharmaceutical and food industries, there is a growing need for a reliable and efficient cold chain to ensure the quality and safety of these products from production to consumption.

The integration of Internet of Things (IoT) technologies and advanced sensor systems has greatly enhanced the capabilities of cold chain monitoring solutions. Real-time monitoring, data logging, and analytics capabilities provided by IoT-enabled devices and sensors enable better visibility and control over the cold chain. Quoting an instance, in February 2023, Danfoss revealed a collaboration with Lizard Monitoring, a US-based retail technology company, aimed at assisting North American retailers in mitigating food loss.
 

The sensor networks provided by Lizard seamlessly integrate with Danfoss' Alsense monitoring suite, ensuring uninterrupted temperature monitoring. Furthermore, the growing significance of healthcare supply chain management serves as a primary driver for the adoption of cold chain monitoring solutions. In the healthcare sector, ensuring the integrity of temperature-sensitive pharmaceuticals, vaccines, and medical supplies during transportation and storage is critical.
 

These technological upgrades help prevent temperature excursions, reduce product wastage, and improve overall efficiency in the supply chain, thereby driving the growth of the cold chain monitoring market. In contrast, the initial investment and ongoing operational costs associated with implementing cold chain monitoring systems can be significant. The deployment of advanced technologies, such as IoT-enabled sensors and data analytics platforms, requires a substantial financial commitment. For some businesses, especially smaller enterprises or those operating on tight budgets, the cost of acquiring and maintaining these systems may act as a barrier to adoption.
 

COVID-19 Impact

The COVID-19 pandemic significantly impacted the cold chain monitoring market by intensifying the need for robust and reliable temperature-controlled supply chains. With the global distribution of vaccines and pharmaceuticals to combat the virus, there was an increased demand for advanced monitoring systems to ensure the integrity of temperature-sensitive products during storage and transportation. This heightened focus on supply chain resilience has accelerated the adoption of cold chain monitoring technologies, driving innovation and growth within the industry.
 

Cold Chain Monitoring Market Trends

The integration of blockchain technology in cold chain monitoring is anticipated to increase. Blockchain can provide an immutable and transparent record of transactions and temperature data throughout the supply chain, ensuring greater traceability and accountability. This trend aligns with the increasing emphasis on transparency and compliance in the transportation and storage of temperature-sensitive goods.
 

In addition, the adoption of AI and ML in cold chain monitoring solutions may see growth. These technologies can analyze vast amounts of data from sensors and historical patterns to predict and prevent temperature excursions, reducing the risk of product spoilage. Integrating AI and ML can enhance the efficiency of cold chain operations by enabling proactive decision-making and optimizing temperature control processes.
 

Cold Chain Monitoring Market Analysis

Based on component, the hardware segment is poised to expand at a CAGR of 11% during the forecast period, attributed to the growing awareness of the critical role played by these technologies in ensuring the integrity of temperature-sensitive products. Sensors, RFID devices, network devices, telematics, and other hardware components provide real-time data on environmental conditions, enabling precise monitoring throughout the supply chain. As businesses prioritize efficiency, compliance, and quality assurance, the need for robust hardware solutions has intensified, driving increased demand for these components to bolster the reliability and effectiveness of cold chain monitoring systems.
 

Based on end user, the cold chain monitoring market size from food & beverage segment dominated around USD 3 billion in 2022, due to the imperative to maintain product quality, safety, and compliance. Stringent regulations and consumer expectations necessitate precise temperature control throughout the supply chain to prevent spoilage and ensure food safety. Cold chain monitoring systems offer real-time visibility, enabling proactive intervention to mitigate temperature excursions. As the industry embraces global sourcing and distribution, the need for reliable monitoring solutions becomes paramount, driving the adoption of technologies that safeguard the integrity of perishable goods and enhance overall supply chain efficiency.
 

North America cold chain monitoring market accounted for 37% of the revenue share in 2022. The region's pharmaceutical sector, a significant contributor to the cold chain market, is expanding rapidly. Notably, the U.S. Food and Drug Administration's (FDA) strict regulations emphasize the need for precise temperature control during transportation. Moreover, the increased demand for fresh and frozen food products, coupled with the rise in e-commerce, propels the need for efficient cold chain logistics. The COVID-19 vaccine distribution has further underscored the critical role of advanced monitoring systems, contributing to the industry's healthy growth in North America.
 

Cold Chain Monitoring Market Share

Major companies operating in the cold chain monitoring industry are:

• Berlinger & Co. AG
• Cold Chain Technologies, Inc.
• Controlant
• Descartes Systems Group Inc.
• Digi International Inc.
• Elpro-Buchs AG
• Emerson Electric Co.
• Honeywell International Inc.
• Infratab Inc.
• Monnit Corporation
• ORBCOMM Inc.
   

Emerson Electric Co. and Descartes Systems Group Inc. are prominent players in cold chain monitoring market. These companies are strengthening their presence through strategic measures such as technology collaborations, acquisitions, and product innovations. Emphasis on real-time data analytics, IoT integration, and partnerships with logistics providers enhances operational efficiency and ensures a competitive edge in the evolving market landscape.
 

Cold Chain Monitoring Industry News

• In August 2023, Emergent Cold Latin America (Emergent Cold LatAm), announced its acquisition of the cold storage business in Montevideo, Uruguay, from Frigorifico Modelo (Frimosa). Concurrently, Emergent Cold LatAm has revealed its intention to promptly initiate the development of a 17,000-pallet expansion for the recently acquired facility in Polo Oeste. This expansion project is anticipated to reach completion by mid-2024.
   

The cold chain monitoring market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

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Market, By Component

• Hardware
  • Sensors
  • RFID devices
  • Telematics
  • Networking devices
• Others 
  • Software
  • Real-time monitoring
  • Analytics and reporting

Market, By Temperature Type

• Frozen
• Chilled

Market, By Logistics

• Storage
• Transportation

Market, By End User

• Pharmaceutical & Healthcare
• Food & Beverage
• Logistics & Distribution
• Chemical
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• MEA
  • UAE
  • South Africa
  • Saudi Arabia