According to the latest MarketsandMarkets research report ‘Cold Chain Monitoring Market by Component (Hardware (Sensors and Data Loggers) and Software), Application (Pharmaceuticals & Healthcare, Food & Beverages, and Chemicals), Logistics (Storage and Transportation), and Region – Global Forecast to 2023’, the market is expected to grow from USD 3.80 billion in 2018 to USD 6.46 billion by 2023, at a CAGR of 11.17 per cent between 2018 and 2023. The growth of the cold chain monitoring market can be attributed to the growing governmental focus on issuing policies impacting the supply chain efficiency of fast-growing pharmaceuticals sector in Europe and North America, increasing demand for temperature-sensitive drugs, rising demand for better food quality and need to reduce food wastage, growing demand for generic drugs owing to higher accessibility.
The cold chain monitoring market is segmented based on components into hardware and software. The hardware segment is estimated to hold a larger share of the cold chain monitoring market in 2018. The hardware segment is expected to continue to hold a larger market size since a wide variety of hardware components with varying prices are deployed to monitor the cold chain for various applications. Cold chain monitoring solutions require lots of sensors and other hardware components for effective network monitoring, and a few of these hardware components can be comparatively expensive.
The rising demand for high-quality food products has resulted in the growth of the cold chain monitoring market for the food & beverages application. The growing demand for meat and seafood owing to the dietary changes of people in various countries is driving the use of cold chain monitoring solutions in this application. Food quality and durability are directly related to the effective maintenance of cold chain operations. The dependence of the food and beverages industry on cold chain monitoring solutions has been gradually increasing.
The high growth of the transportation segment is driven by the growing distribution network of the cold chain. Nowadays, cold chains have become vital for modern supply chain solutions, transporting larger volumes of more sensitive or vital cargo over greater distances through diverse climatic conditions. Being prone to environmental variations, cargo needs to be maintained at a specific temperature or within an acceptable temperature range, which is also driving the growth of the market for the transportation segment.
The Americas is the largest market for cold chain monitoring. The Americas to hold the largest share of the global cold chain monitoring market in 2018. Pharmaceuticals and healthcare is expected to continue to account for the largest size of the cold chain monitoring market in the Americas in the next few years. Various pharmaceutical companies supplying numerous drugs that require cold chain monitoring solutions are based in the country. Increasing demand for chilled and frozen foods in North American countries triggered the cold chain market growth in North America, thereby, driving the growth of the cold chain infrastructure market, which includes refrigerated storage and refrigerated transport. The main factors for supporting the growth of cold chain monitoring market in the Americas are the regulatory environment for the pharmaceuticals industry and the rise in the demand for generic drugs.