About the Report
The Internet of Things (IoT) has been transforming the perishable supply chain. The advent of smarter cold chain systems has been providing managers live data about temperature and location besides empowering them with the ability to remotely control logistics. As a result of the increasing demand for real-time and remote surveillance of crucial parameters of shipment, IoT cold chain monitoring has become highly sought-after in the transport of medicines, frozen food, vaccines, and other products. Globally, the IoT for cold chain monitoring market is expected to reach a valuation of 17.8 Bn by 2031.
In its new study, ESOMAR-certified market research and consulting firm Future Market Insights (FMI) offers insights about key factors driving demand for IoT for cold chain monitoring. The report tracks the global sales of IoT for cold chain monitoring in 20+ high-growth markets, along with analyzing the impact COVID-19 has had on the pharma & healthcare, and food & beverages industry in general, and IoT for cold chain monitoring in particular.
What is the Future Outlook for IoT for Cold Chain Monitoring Market in Comparison to Historical Pattern?
Between 2016 and 2020, global IoT for cold chain monitoring registered the CAGR of 11.0%. Rising government investments and efforts to reduce food spoilage and prevent damage of other temperature sensitive goods have fueled the demand for cold chain monitoring in industries such as food & beverages, healthcare & pharma, chemicals and others.
The rising demand for cold chain warehousing during COVID-19 pandemic had a positive impact on the IoT for cold chain monitoring market. During the extended period of lockdown observed around the world, increasing demand for packaged food & beverages products was noted. Food manufacturers have been increasingly adopting the IoT for cold chain monitoring solutions for monitoring the food products and to boost their shelf-life.
Because IoT-enabled temperature monitoring helps in monitoring goods round the clock, temperature logging has become way easier than manual methods, previously undertaken. This has resulted in increasing demand for data cold chain monitoring during the pandemic. Driven by these factors, the IoT for cold chain monitoring demand is likely to increase, expanding at a CAGR exceeding 13.6% throughout the 2021-2031 assessment period.
How will Blockchain Technology Influence Demand for Cold Chain Monitoring?
Blockchain technology offers a way to record transactions or any digital interaction and is designed to be transparent, secure, and efficient. Blockchain is the digital, distributed transaction ledger that is stored and maintained on multiple systems belonging to multiple entities sharing identical information. The demand for blockchain technology is increasing in cold chain monitoring as it increases the efficiency and transparency of supply chain and positively affects the cold chain processes, from delivery to storage and payment.
Due to transparency and security achieved by blockchain, the speed of physical flow of goods is increased. Blockchain records every single asset from product to containers as it flows through the supply chain nodes. It also helps in keeping track of information regarding orders, receipt, invoice, payments, and digital assets such as copyrights, certifications, barcodes, and other things. Through its decentralized nature, it shares the information about process, delivery, production, maintenance, between suppliers and vendors, bringing new modalities of collaboration in complex assembly lines.
Blockchain integration with cold chain results in increased sustainability, reduced errors and delays, it minimizes transportation cost, enables faster identification of errors, and offers improved product transport and inventory management. Through these advantages, blockchain integration in cold chain can help in strengthening corporate identities of market players.
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Why is Cold Chain Monitoring Moving to Cloud?
The cloud is metaphor for computing, where everything is a service that can connect and combine with other services to meet an infinite number of application needs. Organizations across the world have migrated some or most of their existing on premise applications to a cloud provider’s platform to take better advantage of cloud scalability and modern architectural patterns. Cloud computing is used for managing, storing, and processing data from disparate locations, and over the internet delivers hosted services.
When applications are hosted in the cloud, they are using data center resources from the cloud provider. Most colocation providers are involved in the construction of data centers to collect space to cloud service providers. Cloud computing can offer critical software for business management, reducing cost incurred on maintaining hardware and software effectively
Integrating on premise supply chain management can increase unnecessary burden of expenditures on organizations. On the business side, it might require large upfront cost to build an effective supply chain. Considering intrinsic challenges of building and managing rigid legacy on premise applications, supply chain providers are shifting towards more flexible, modern, and state-of-the-art solutions such as cloud services.
What is the Potential of Logistics 4.0 for IoT for Cold Chain Monitoring?
Logistics 4.0 enables process improvement through a variety of technological advancements, which include automated systems, driverless transport vehicle, and robotics. Increase in adoption of cloud-based technology with usage of logistics 4.0 and IoT is driving growth of the cold chain monitoring market. The IoT usage in cold chain monitoring is increasing as it helps in reducing cost and delays by avoiding risk.
IoT sensors are built into cargo, ships, cabs, and trains and are connected to an alarm system or dispatcher that is tracking and monitoring. These sensors transmit information to the team who then gains insights of hidden risk and knowledge. This also gives accurate in-transit visibility and delivery of goods. The demand for cloud-based software as a service is increasing in cold chain monitoring, as it helps the professional to access critical data and application both, on the road and in the office from any connected device.
What are Key Threats Posed by IoT for Cold Chain Monitoring?
A huge amount of data is generated in cold chain monitoring, which is analyzed and used for decision making by professionals. The data is collected by using devices such as data logger, various IoT sensors, and GPS devices. The data collected through these devices can be tampered or unauthorized user can access the device for data theft. This may lead to the misuse of important information regarding products, orders by unauthorized users. However, this a major challenge that is restricting growth of the IoT for cold chain monitoring market.
What are Prospects for Cold Chain Companies amid Pandemic?
In COVID-19 pandemic, the cold chain is priority as manufacturers and distributor are looking that how cold chain would be used to successfully deliver a temperature sensitive COVID-19 vaccine. The cold chain companies are highly adopting the cloud storage, blockchain, IoT sensors for monitoring and gaining real time insights for temperature change so that the vaccine is prevented from any kind of damage.
IoT sensors are the most important tools for understanding the temperature changes in vaccine once the vaccine is out of manufacturing facilities. As the COVID-19 vaccines will be distributed across the globe, it is creating opportunities for cold chain companies.
Market Share Analysis of IoT for Cold Chain Monitoring Vendors
The IoT for cold chain monitoring market is fragmented. The companies that hold market share of 10% to 12% are tier-1 companies and this group includes players such as Huawei Technologies, TE Connectivity.
The companies with market share of above 7% and below 12% are the promising players. These companies are likely to showcase a quick growth trend and harness the opportunities that the global market has to offer to accommodate business expansion and revenue generation. This group includes Zebra Technologies.
Companies that have a relatively lower size with a market share worth less than 7% are strategizing to attract new clientele in foreign markets. The companies in this group are Moschip Technologies Limited, Laird Connectivity, Aeris Communication.
What are Opportunities for IoT for Cold Chain Monitoring Sales in the U.S.?
Until 2020, IoT for cold chain monitoring sales across the United States experienced a Y-o-Y growth of over 8% to reach US$ 2.9 Bn. The market is set to further aggrandize at a CAGR of nearly 8.6% through 2031. U.S. is offering the opportunity for generation of high revenue during the forecast period, owing to high presence of cold chain monitoring solution players.
U.S. has witnessed a high demand for chilled products, frozen meat, dairy products, increase in variety of drugs and this is increasing the demand for IoT for cold chain monitoring.
Based on current trend estimates, in 2019, U.S. was world’s largest pharmaceutical market that accounted for 48% of global pharmaceutical market. Due to increasing demand for medicines in U.S. the demand for IoT for cold chain monitoring also increased for monitoring the medicines temperature and prevent from damage.
How Big is the U.K. IoT for Cold Chain Monitoring Landscape?
The U.K IoT for cold chain monitoring market is expanding due to rise in online grocery shopping that resulted in the increasing number of refrigerated warehouse. The U.K. has been named as the third largest online grocery market in the world. Around 6.1% of the grocery sales in the U.K. is made online, which in turn is propelling the U.K. IoT for cold chain monitoring market growth.
The growing demand for refrigerated warehouse and development of pharma sector is driving the IoT for cold chain monitoring market in U.K. The U.K. DC IoT cold chain monitoring market is estimated to reach a valuation of 555 Mn by the end of 2031 by registering a CAGR of 11%
How is IoT for Cold Chain Monitoring Expanding in China?
China is estimated to record an incremental opportunity worth US$ 1.6 Bn during the forecast period. China IoT for cold chain monitoring market growth is driven by meat, quick frozen food, fruits & vegetables and dairy products. China food industry generated revenue of around 8 Tr in 2019.
Key player food & beverages sector in China are focusing on investing in cold chain monitoring to offer their fresh and undamaged products in the market.
How Big is ASEAN IoT for Cold Chain Monitoring Market?
ASEAN is estimated to register a high growth at a CAGR of 19.2% during the forecast period. As the COVID-19 pandemic is affecting various industries including the food & beverages, the cold storage companies have emerged as a key point in the supply chain.
Food manufacturers and cold storage warehouse are operating with skeletal workforce for ensuring the flow of fresh food products to super markets, grocery stores and convenience store.
As various ASEAN countries are imposing lockdown for mitigating the spread of virus, cold chain technologies are helping cold chain operators in managing and keeping products within a specific temperature range throughout the supply chain as the demand for fresh and frozen food is increasing.
Adoption of cold chain technologies such as cloud WMS, RFID, sensor tags, AGVs, IOT and mobile racking is increasing for enhancing the overall warehouse operations, improve efficiency and connect seamlessly to every step of the cold chain process.
For mitigating the impact of COVID-19 cold storage companies are revisiting their supply chain strategy and are increasing adopting the sensor technologies, implementing supply chain risk management and business continuity strategies. Cold chain companies need to continuously improve by embracing automation and digitization to reduce costs and increase business efficiency.
What is Supporting Uptake of IoT Software/Platform for Cold Chain Monitoring?
By component, IoT Software/ Platform for cold chain monitoring is expected to register a CAGR of 15.1% throughout the forecast period. The IoT software for cold chain monitoring offers the ability to uninterruptedly monitor the performance of cold chain in real time and ensure adherence to guidelines set by regulatory agencies.
Players are focusing on offering the IoT software for reporting, data analytics and tracking for products. However, over the course of the forecast period, dominance is going to remain with the hardware segment in terms of component.
Which Enterprise Size is Exhibiting High Demand?
While the uptake among large enterprises continues to be higher, FMI has projected the demand for small and medium enterprises (SMEs) to rise at a higher pace in the coming years. Growth in the latter category of industries will be supported by the rapid adoption of IoT technologies among SMEs, intended at reducing overall expenditure incurred on various operations.
Which Industry Dominated in 2020?
The food & beverages industry dominated and accounted a market share of 30.5% in 2020. The perishability of food and its wastages has been a major concern that starts from the raw material procurement to showcasing end products on the retail shelf. Noticeable changes in ambient temperature resulting from climate changes have an alarming effect on cold chain infrastructure, thus the increasing need for resilient cold chain solutions to protect the food products from damage.
FMI has profiled the following prominent IoT for Cold Chain Monitoring providers in its report:
- Huawei Technologies
- Aeris Communication
- HC Technologies
- SenseGiz Inc.,
- Zebra Technologies
- TE Connectivity
- Moschip Technologies Limited
- Laird Connectivity
- Roambee Corporation
The aforementioned players rely on multiple expansion strategies to deepen penetration across lucrative markets. These strategies include product launches, collaborations with key players, partnerships, acquisitions and strengthening of regional and global distribution networks.
SenseGiz Inc., for instance, is a company that offers enterprise and industrial IoT products for sensors based monitoring, security and real time asset tracking application.
In August 2020, Roambee Corporation entered into partnership agreement with Rogers to enable businesses to take advantage of Internet of Things technologies, resulting in smarter, more agile supply chain and connected operations.
Also, in December 2020, Laird Connectivity introduced Sentrius BT610 IoT sensor that is built on Laird Connectivity expertise developing the longest range sensors.
IoT for Cold Chain Monitoring Market Report Scope
Historical Data Available for
US$ Mn for Value & Units for Volume
Key Regions Covered
North America, Europe, Middle East & Africa and Rest of the World
Key Countries Covered
U.S., Canada, Germany, Italy, France, U.K., Spain, GCC and South Africa
Key Segments Covered
Component, Enterprise Size, Industry and Region
Key Companies Profiled
Customization & Pricing
Key questions answered in the report
How will IoT for Cold Chain Monitoring market expand until 2031?
FMI projects the global IoT for cold chain monitoring market to register a CAGR of 13.6% during 2021-2031 owing to focus on quality and product sensitivity, government changing policies, and regulations and growth in pharma sector.
What is the impact on IoT for Cold Chain Monitoring sales?
In recent years, the demand for IoT for cold chain monitoring has been increasing owing to increasing investments in R&D of wireless sensors, and cold chain monitoring software by key players.
Who are the leading players in IoT for Cold Chain Monitoring market?
Prominent players operating in the global IoT for Cold Chain Monitoring landscape include Huawei Technologies, Roambee Corporation, TE Connectivity, Moschip Technologies Limited, HC Technologies, Laird Connectivity among others
Which component of IoT for Cold Chain Monitoring Market highly sought-after?
The hardware platform for IoT for Cold Chain Monitoring is highly sought-after. However, growth in the IoT Software/Platform for Cold Chain Monitoring is likely to happen at a higher pace between 2021 and 2031.
Enquiry before Buying
Is the IoT for Cold Chain Monitoring market research conducted by FMI?
Yes, the IoT for Cold Chain Monitoring report has been compiled by expert analysts of FMI through a combination of primary and secondary research. To know more about how the research was conducted, you can speak to the research analyst
What research methodology is followed by FMI?
FMI follows a methodology that encompasses the demand side assessment of the market, and triangulates the same through a supply side analysis. This methodology is based on use of standard market structure, methods and definitions.
Who are the respondents for primary research?
FMI speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, industry experts. For a full list of primary respondents, please reach out to us.
What are the sources of secondary research?
FMI conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request.
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Key Segments Covered of the IoT for Cold Chain Monitoring Market
- IoT Temperature/Humidity Sensors
- Data Logger
- IoT Software/Platform for Cold Chain Monitoring
- Integration & Installation
- Support & Maintenance
- Large Enterprises
- Healthcare & Pharma
- Retail & CPG
- Food & Beverages
- North America
- Latin America
- East Asia
- South Asia & Pacific
- Middle East & Africa (MEA)