The increasing demand of real time data is encouraging the cold chain companies to adopt cloud technology for collecting, analysing and sharing of the data where and when needed.
This, according to a new study by an ESOMAR certified-market research and consulting firm, will push the overall valuation of the Internet of Things (IoT) for cold chain monitoring market to US$4.79 billion (€3.97 billion) in 2021.
IoT technologies can utilise data that exists within the physical environment to unlock the business value across the cold chain in the form of brand equity, reduced waste, and return on investments. The web-based platform leverages real-time information from the manufacturing, production, storage and distribution stages to help companies monitor and manage asset health, temperature, work flow, vehicle location, and environmental data.
IoT offers a multitude of benefits and has been adopted across diverse industries for cold chain monitoring. According to study, healthcare & pharma segment is estimated to register a CAGR of 16.1% during the forecast period as the medicines and drugs are highly temperature sensitive and need to be stored and transported at consistent temperature levels so the supply chain operators are opting for IoT for cold chain monitoring solution for storing and transporting pharma products. A key point to consider here is that large enterprises will account for a dominant share of 55.2% of the market in 2021
Key takeaways: IoT for cold chain monitoring
- The global IoT for cold chain monitoring market is estimated to register a CAGR of 13.6% during the forecast period of 2021-2031
- The U.S. will continue leading the market, accounting for 86.7% of North America in 2021
- The U.K. will remain a key market in Europe, exhibiting 10.8% Y-o-Y growth in 2021
- Demand from Germany and France will continue increasing through 2031
- While growth exhibited by Japan and South Korea is expected to increase at accelerated pace, over half of East Asia market will be accounted by China through the forecast period
“Market players have been focusing on strengthening their portfolio with innovations, besides which they are concentrating on collaborations to gain competitive advantage,”says an analyst.
As the world is struggling with the COVID-19 pandemic, cold storage companies are working for ensuring that there are enough fresh products to buy. Due to COVID-19 the adoption of IoT sensors for cold chain monitoring is increasing has the sensors help to collect, analyse light, humidity and temperature as well as send notification with location details if any issue arises.
Cold chain management has emerged as a crucial factor during the pandemic. As governments and other entities has started COVID-19 vaccines distribution the demand is increased for cold chain monitoring. Cold chain management maintains the necessary refrigeration levels of temperature-sensitive coronavirus vaccine across manufacturing, transportation, storage, and distribution process.
However, the IoT for cold chain monitoring market is estimated to grow around 10% to 12% Y-o-Y from 2019 to 2020.
Adoption of IoT tech driving market growth
IoT adoption is increasing in response to the increasing awareness regarding the use of IoT in business and benefits of using IoT technologies is increasing. In emerging countries, the governments are announcing the plan to set up an IoT institute for developing IoT in automation, robotics, healthcare and other industries as the smartphone usage is increasing and there is availability of strong network of fourth generation broadband and data centres.
Adoption of IoT will increase in various industries for different purposes such as adoption of IoT in cold chain monitoring will help the companies to monitor and manage the products and prevent them from damage.
Who is winning?
Some of the leading players operating in the market are TE Connectivity, Huawei Technologies, Zebra Technologies, Aeris, Laird Connectivity, Roambee Corporation, MosChip Technologies Limited. SenseGiz Inc, HC Technologies, Dycodex.
These companies have been focusing on innovations to gain competitive advantage. For instance, in 2017 Orbcomm unveiled a state-of-the-art cold chain monitoring solution, which it called PT 6000.
These insights are based on a report on IoT for Cold Chain Monitoring Market by Future Market Insights.