TES and PCMs are the future of energy savings in cold chain logistics

Vishu Sasidharan, VP and Business Head at PLUSS Advanced Technologies, states the cold chain sector is undergoing a change driven by the adoption of Thermal Energy Storage and advanced automation, improving energy efficiency, reducing costs, and restructuring operations to meet the rising demands of the food and pharmaceutical industries.

Please talk about emerging opportunities in cold chain warehousing.

Globally, the cold chain market is anticipated to reach $585 billion by 2027, with India contributing significantly due to its expanding food and pharmaceutical sectors. The Indian cold chain market, valued at around $17 billion, is expected to grow at 14-15 percent CAGR. TES solutions, like PCMs, could reduce energy costs by 20-30 percent, making it an essential technology for growing cold storage facilities in the country.

What new developments have taken place in warehouse automation technologies?

With the global warehouse automation market projected to reach $30 billion by 2026, India’s share will grow rapidly, fuelled by increasing demand in e-commerce, retail, and pharma. The warehouse automation market in India, valued at around $500 million, is poised to expand by 15-20 percent yearly. Integrating TES in automated cold storage can cut energy consumption by up to 30 percent, which is crucial for the cost-sensitive Indian market. Automation will also support innovative OPEX-based business models that bring transparency and monitoring, encourage adoption and offer companies robust tools to analyse data.

What are your views about growth in the warehousing and logistics industry?

The Indian warehousing and logistics sector, growing at a 10-12 percent CAGR, aligns with global trends that emphasise energy efficiency. As refrigeration can account for 40 percent of energy costs in cold storage, India’s adoption of TES technologies, which can reduce these costs by up to 30 percent and reduce dependency on diesel-based backup systems is increasingly important. This shift is vital for the sector’s growth, particularly in food preservation and pharmaceuticals.

What infrastructure innovations are happening, given the increasing online demand for frozen commodities?

Globally, TES and PCMs in cold storage can result in 15-20 percent energy savings. In India, where energy costs are a significant concern, adopting these innovations can lead to similar savings. It will improve profitability in the frozen food sector. India’s online grocery market is anticipated to grow by 25 percent annually, driving demand for advanced cold storage infrastructure that includes TES to manage operational costs effectively.

What initiatives are needed to prop up cold chain business in India?

The global cold chain market’s annual growth rate of 17 percent suggests that India, with a projected growth of 14-15 percent, is on a similar trajectory. The country can bolster its cold chain infrastructure by adopting TES solutions like PCMs, which can cut refrigeration energy costs by up to 30%. Expanding cold storage facilities in rural areas and investing in TES will help reduce food wastage, aligning India with global best practices.

What logistical facilities are in demand for automation in cold chain warehousing?

Automation in cold chain logistics, growing globally at 18%, is increasingly relevant in India. The Indian market for automated cold storage is expected to increase by 15-20 percent annually. Integrating TES with automation can provide stable temperature control. It is critical for reducing spoilage and maintaining product integrity. It will be especially important as India expands its cold chain network to meet rising demand.

What growth is expected in the cold chain logistics market considering changing behaviour in eating patterns?  

The global cold chain logistics market’s 14 percent CAGR mirrors India’s expected growth of around 14-15 percent. As Indian consumers increasingly demand fresh and frozen foods, TES technologies reduce energy consumption by up to 30 percent and reduce the dependency on diesel-based backup. Reducing last-mile wastage due to temperature non-compliance will be crucial in scaling up cold storage facilities. This growth will support India’s shift towards healthier eating habits while ensuring food safety and quality in the logistics chain.