The cold chain monitoring market size is expected to grow from USD 4.6 billion in 2020 to USD 8.2 billion by 2025 at a CAGR of 12.5% during forecast period 2020 to 2025 according to report by MarketsandMarkets. Increasing demand for temperature-sensitive drugs, rising demand for better food quality, intensifying need to reduce food wastage, growing demand for generic drugs owing to higher accessibility, and surging government focus on increasing the supply chain efficiency of the fast-growing pharmaceuticals sector in Europe and North America, are some of the major factors driving the growth of the cold chain monitoring market.
Cold chain monitoring market for software to grow at a higher CAGR during forecast period
The market for software is expected to grow at a higher CAGR during the forecast period. Recently, the demand for cold chain monitoring software solutions, such as reporting, data analytics, and tracking software, has increased considerably. Software provides the ability to uninterruptedly monitor the performance of cold chains in real time and ensures adherence to guidelines set by regulatory agencies, such as the Food & Drug Administration (FDA) and the World Health Organization (WHO).
Food & beverages applications to register high CAGR
The market for food & beverages applications is expected to capture the highest CAGR during the forecast period. This growth is driven mainly by the growing demand for high-quality food products on a global scale. Additionally, with rapid urbanization in many parts of the world, there has been an increase in the number of fast-food chains, where food quality and the timely delivery of resources are of paramount importance. Furthermore, rising awareness regarding the importance of food quality, safety, and the nutritional value of food is driving growth of the cold chain monitoring market for the food & beverages application.
APAC to be fastest-growing market for cold chain monitoring solutions
APAC is expected to be the fastest-growing market for cold chain monitoring solutions. The growth of the market in APAC is driven by rising demand for high-quality food products and growing initiatives of the governments in emerging economies to bring maximum people under the modern healthcare umbrella. Additionally, increasing government funding towards logistics infrastructure development, and penetration of warehouses management systems are other major factors, which will favor growth of the market during the forecast period.
However, decline in trade and industrial activities across APAC due to the COVID-19 pandemic is likely to affect the cold chain monitoring market. This is happening on account of shutdown of the manufacturing activities in China, South Korea, and India.