Cold chain monitoring market forecasts growth at a CAGR of 16.6% till 2026

Transportation is the most important phase in the cold chain due to the possibility of unforeseen environmental variations.

The Cold chain monitoring market is expected to grow at a CAGR of 16.6% from USD 4.7 billion in 2021 to USD 10.2 billion in 2026. Increasing demand for Cold chain monitoring products in the pharmaceuticals & healthcare industry will drive the market as per ResearchAndMarkets. com’s offering. Cold chain monitoring market for transport is expected to grow at the highest CAGR during the forecast period. The need for healthcare cold chain logistics is primarily felt in three major segments: biopharmaceuticals, vaccines and clinical trials. According to the International Institute of Refrigeration (IIR), the demand for heat sensitive health products such as drugs, vaccines, insulin, derived blood products, and oncology products is rising globally every year. Hence, the transportation of these drugs is the most critical phase in the cold chain due to the possibility of unforeseen environmental variations. Any change in temperature during transportation can affect the medicines, losing their potency to cure the ailments they are meant for, thereby leading to ineffective treatment in many cases. Hence, cold chain transportation is a temperature-controlled supply chain used in industries such as pharmaceuticals, healthcare, food & beverages, and chemicals. 

Market growth 

The increasing demand for temperature sensitive drugs, rising demand for better food quality, surging need for reducing food wastage, and growing demand for generic drugs owing to higher accessibility are anticipated to drive the market’s growth. Data loggers are used throughout the cold chain to monitor the temperature of food, pharmaceuticals, chemicals, and other temperature-sensitive products. Sensors and data loggers are important components of the sensory network of a cold chain. Various types of sensors, such as temperature sensors, humidity sensors, chemical indicators, and impact and tilt sensors, are used in this network. Temperature sensors sense the temperature at a specific location within a cold room, freezer room, refrigerator, or freezer unit. 

Drivers 

Increasing global demand for temperature sensitive drugs, rising demand for better food quality and need to reduce food wastage; surging demand for generic drugs owing to higher accessibility are the main drivers. The escalating demand for dairy products, vegetables, and fruits is increasing the imports, as well as exports of exotic vegetables and fruits and dairy products, which is also boosting the demand for cold chain monitoring solutions. 

Challenges and opportunities 

The high implementation cost of cold chain monitoring solutions is the major factor restraining the market’s growth. The complexity involved in the installation and monitoring of cold chain monitoring solutions is the major challenge faced by many providers of cold chain monitoring solutions. The better control over assets in warehouses achieved using automation and cold storage technologies and the demand for cold chain logistics in developing countries are anticipated to be the major opportunities for the market 

North America is the largest market for cold chain monitoring in the Americas at present and is likely to exhibit a similar trend during the forecast period. Increasing demand for chilled and frozen food products in North American countries is likely to trigger the demand for cold chain monitoring solutions in the region. Cold chain monitoring infrastructure includes refrigerated storage and refrigerated transport. The efficient management of cold chain transportation is essential for maintaining the integrity of the products being transported, for instance, the cold chain transportation of pharmaceuticals, many of which must be maintained at a specific temperature. Medical and high-end products have a lower tolerance for temperature excursions, and product spoilage leads to a significant loss of capital. To minimise the chances of temperature irregularities in transit, transporters use simple measures such as dedicated vehicles, phase-change gel bricks to identify excursions, doubling up on packaging, and active cooling to secure their shipments. 

However, restraints involve high cost of implementation and environmental concerns regarding greenhouse gas emissions.