Cold Chain Monitoring Market Size, Share & Trends Analysis Report By Component (Hardware, Software), By Application (Food & Beverages, Pharmaceuticals), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global cold chain monitoring market size was estimated at USD 23.90 billion in 2022 and is anticipated to grow at a compound annual growth rate (CAGR) of 22.5% from 2023 to 2030. The growing trade of pharmaceutical and temperature-sensitive products globally is anticipated to spur industry growth over the forecast period. An increasing number of strict government regulations regarding the storage and shipment of pharmaceutical products has resulted in increased demand for cold chain monitoring solutions. Moreover, rising private and government investments in building refrigerated warehouses and government efforts to reduce spoilage of food and other temperature-sensitive goods are expected to propel the industry growth over the forecast period.

Pharmaceutical products are extremely temperature sensitive and require effective temperature monitoring technologies. In addition, temperature monitoring technologies are used in maintaining the required temperature level throughout the shipment to protect the quality of products. Countries such as the U.S. and Canada will have a significant growth rate in the near future due to well-developed transportation & distribution networks.

The market is expected to expand in developing economies with increasing technological developments in Radio Frequency Identification (RFID) technology and the Internet of Things (IoT). Cold chain monitoring solutions are designed to track and monitor products such as perishable, eatable, food items, and other temperature-sensitive products during storage and transportation activities. These products are tracked through various methods such as real-time and predictive analytics, among others. Increasing demand for perishable and fragile products, along with maintaining their optimum temperature, has significantly boosted the market.

COVID-19 Impact

The pandemic led to lockdowns and travel restrictions in many parts of the world, impacting the supply chains of various businesses. The pandemic affected the market to a significant extent. On the supply side, the production of pharmaceutical drugs and supply of raw materials for clinical trials of vaccines increased owing to the significant increase in the total number of COVID-19 active cases worldwide in Q2 and Q3 of 2020. With the growing number of active cases, several key pharmaceutical players, such as Pfizer Inc.; Moderna, Inc.; and Johnson & Johnson Services, Inc., actively invested in developing COVID-19 vaccines for the global market.

Moreover, digitalization accelerated in the wake of the pandemic and businesses adopted remote working models and attempted to automate workflows. The COVID-19 pandemic boosted e-commerce sales as an increased number of consumers ordered groceries and perishable food products online. Hence, the need for cold chain monitoring grew post the COVID-19 pandemic. The need to monitor vaccines and food products drives the market growth.

Component Insights

Based on component, the cold chain monitoring market is segmented into software and hardware. The hardware segment held the largest revenue share of 78.6% in 2022. It is expected to grow at a CAGR of 22.2% throughout the forecast period. Hardware monitoring equipment includes various sensors, radio frequency identification (RFID) devices, telematics devices, and networking devices, among others, which are used to collect real-time data, such as temperature and location data. Businesses can use these devices to monitor the cold chain and make decisions accordingly. Samsara Inc. and Laird Connectivity offer cold chain monitoring hardware. The growth of this segment can be attributed to the requirement of monitoring temperature-sensitive products by collecting data through hardware solutions for cold chains.

The software segment is anticipated to grow at the fastest CAGR of 23.7% throughout the forecast period. The software segment includes on-premise and cloud-based software for monitoring temperature-sensitive products. The software analyses the information received from various hardware components, including data loggers, sensors, and telematics devices. The need to analyze data collected from hardware devices to improve the overall cold chain operations is driving the growth of the software segment.

Application Insights

Based on application, the market is segmented into pharmaceuticals, food & beverages, and others. The food & beverages segment dominated the overall cold chain monitoring industry, gaining a revenue share of 77.3% in 2022. It is expected to grow at a CAGR of 22.3% throughout the forecast period. The growing demand for processed food and changes in consumer preferences is driving the demand for cold chain monitoring solutions across the food & beverages sector. Hence, cold chain monitoring solutions are required to effectively track and collect data on perishable food products and take corrective actions and mitigate any potential damages.

The pharmaceuticals segment is expected to grow at the fastest CAGR of 24.5% over the forecast period. The high demand in the pharmaceutical segment can be attributed to the importance of maintaining the efficacy of pharmaceutical products. The COVID-19 pandemic accelerated the demand for cold chain monitoring solutions to store and distribute COVID-19 vaccines safely. Therefore, the need to maintain the quality of pharmaceutical products and compliance with strict regulations drives the segment’s growth.

Regional Insights

The North America region held the largest revenue share of more than 34.5% in 2022. The growth of the cold chain monitoring industry in the region can be attributed to developed technology infrastructure and the presence of prominent cold chain monitoring companies such as U.S.-based ORBCOMM and Canada-based Geotab Inc. Moreover, the region has very high research & development (R&D) activities of advanced technologies such as Artificial Intelligence (AI), robotics, and the Internet of Things (IoT). This makes the region favorable for innovative cold chain monitoring solutions.

The Asia Pacific region is expected to grow at the fastest CAGR of 25.6% over the forecast period. The growth of the market can be attributed to the developing technological infrastructure in the region. China is one of the major participants in the R&D of advanced technologies. According to the United Nations Conference on Trade and Development (UNCTAD), China and India led the IoT research with 28,641 and 21,188 IoT-related publications, respectively, between 2000 and 2021. The large population is expected to drive the demand for cold chain monitoring solutions with the growing need for perishable goods such as food and pharmaceutical products.

Key Companies & Market Share Insights

The market is highly competitive, and companies are adopting mergers & acquisitions, expansion, and product development strategies to gain a competitive edge. For instance, in May 2023, Tridentify announced the launch of its real-time temperature monitoring system. The system features real-time monitoring of the remaining shelf-life and stability of pharmaceutical products. With this launch, the company aimed to help businesses optimize their operations. Some of the key players in the global cold chain monitoring market include:

• ELPRO-BUCHS AG

• Carrier

• Berlinger & Co. AG

• Savi Technology,

• ORBCOMM,

• Geotab Inc.

• Monnit Corporation

• Controlant

• Zest Labs, Inc.

• Infratab, Inc.

Cold Chain Monitoring Market Report Scope

Global Cold Chain Monitoring Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global cold chain monitoring market report on component, application, and region:

• Component Outlook (Revenue, USD Million, 2017 - 2030)

  • Hardware

    • Sensors

    • RFID Devices

    • Telematics

    • Networking Devices

    • Others

  • Software

    • On-premise

    • Cloud-based

• Application Outlook (Revenue, USD Million, 2017 - 2030)

  • Food & Beverages

    • Fruits & Vegetables

    • Fruit Pulp & Concentrates

    • Dairy Products

      • Milk

      • Butter

      • Cheese

      • Ice cream

      • Others

    • Fish, Meat, and Seafood

    • Processed Food

    • Bakery & Confectionary

    • Others

  • Pharmaceuticals

    • Vaccines

    • Blood Banking

    • Others

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • UK

    • France

    • Spain

    • Italy

    • Norway

    • Netherlands

    • Switzerland

    • Russia

  • Asia Pacific

    • China

    • Japan

    • India

    • Singapore

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa

    • Kingdom of Saudi Arabia (KSA)

    • UAE

    • South Africa