Global Cold Chain Monitoring Market is Expected to Register a Healthy CAGR in the Forecast Period of 2019 to 2026


Rising Health Issues:

It has been observed that foodborne diseases are one of the major causes for public health problem that is growing at a rapid rate. Foodborne illnesses are infections or irritations which are caused by eating food, containing harmful bacteria, parasites, viruses, or chemical. Therefore, eating contaminated food causes various foodborne illnesses such as vomiting, diarrhea, abdominal pain, fever, and chills.

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  • It has been observed that every year, approximately 48 million people in the U.S are experiencing a foodborne illness, out of which 128, 000 are hospitalized and about 3,000 are dying.
  • According to the WHO, approximately 2.1 million children of developing countries die due to diarrheal- related illnesses annually.
  • According to the WHO analysis, every year 33 million people suffering from food borne disease, in which 42000 people lose their life, globally.

Thus, rising foodborne illness has generated awareness among consumers to eat healthy and fresh foods. Moreover, food organizations such as Agri Fresh Foods are taking initiatives to supply safe food which further minimizes the death rate caused by foodborne illness. Therefore, to overcome these challenges, food industries are replacing traditional supply chain with cold chain.

Cold Chain is a temperature-controlled supply chain. These chains are equipped with several temperature controlling devices that further maintains the temperature throughout supply chain. This chain is widely used for fragile items/products such as meat, milk, ice cream, tablets, medicine and medical instruments. One of the major benefits of keeping food products in the supply chain is that it maintains food products in controlled environment as long as possible, reducing the possibility of product quality degeneration and spoilage. Therefore, usage of cold chain helps food business to deliver fresh and high quality of foods.

From this it has been concluded, that the increasing demand for fresh and hygienic foods has proportionally driven the growth of the global cold chain monitoring market.

Stringent Government Rules and Regulations:

Food safety and quality is attaining a considerable importance at the national and international level since food safety is one of the key factors for improving the health and nutrition. The increased food safety reduces the cost of food borne diseases, enhances the food security, results in increased trade, expands income generation and thus assists in poverty alleviation, raise living standard, thereby stimulating economic development. Moreover, improvement in the food quality has further minimized negative attributes of food such as spoilage, contamination with filth, discoloration, etc., and enhanced positive aspects of food, such as its colour, flavor or texture. Thus, some of the agencies such as Food Standards Agency, Food Safety and Standards Authority of India are taking initiative for setting the standards of food safety that will further help the food manufacturer to supply high quality of food products to the consumers. In addition to it, government also introduces regulation for drugs and vaccines so that patients get right treatment at right time.

For instance, U.S. government has introduced the Drug supply chain security act 2013. According to the act, inspection operators will detect and remove any dangerous drugs is supplied in the drug supply chain in order to protect U.S. consumers from hazardous drugs.

The Food Safety & Standards Act (2006) ensures that food stored in warehouse, and storage distribution, must be of high quality. FSSAI had revised guidelines every year. As per 2018, the food sample must be tested before delivering to the customer; government has mandated to add indicative images of the food on e-commerce websites so that the consumer is able to identify the food before ordering which further removes misinterpretation and government mandates that all e-commerce websites are need to deliver fresh food.  Those foods that kept remaining 30% of shelf life needs to be delivered before forty-five days prior.

According to The Food Safety Modernization Act (FSMA), (2011) the Food and Drug Administration (FDA) enables better protection of public health by strengthening the food safety system. It allows FDA to focus more on preventing food safety problems, rather than reacting to problems after they occur.

Hence, the rising government involvement has spurred the demand for cold chain monitoring devices, thereby supplementing the growth of the global cold chain monitoring market.

Rapid Increase in Imports and Exports:

It has been witnessed that the rising urbanization and industrialization in developing countries enforces many businesses to start competing on a global scale. In the current scenario, India is one of the largest producers of milk, rice, groundnuts, various fruits and vegetables such as mangoes and eggplant. Owing to this factor, India is now exporting fresh and processed food products to a number of developed and developing country markets which includes the United States (US), European Union (EU), Vietnam and the Middle Eastern countries. India has a positive trade balance in this sector, which is an important contributor to India’s trade earnings.

According to the World Trade Organization (WTO), in 2015, India was the 9th largest exporter of agricultural products after EU, the US, Brazil, China, Canada, Indonesia, Thailand and Australia.

In addition to it, pharmaceutical companies of developing countries has increased the export of pharmaceutical products, such as vaccines, medicines among others. Germany has exported USD 54.2 billion which was 15.9% of total drugs and medicines exports; U.S. has exported 6.3%; U.K has exported 6.2%; India has exported 3.5% and Switzerland 12.9% and many more.

For instance, according to the report published by USDA (United States Department of Agricultures) had published report on export of fruit and vegetables. According to it, in 2015 the U.S. has exported USD 3,069 millions of fruit and vegetables which has risen to USD 3,286 in 2016.

According to the Agricultural and Processed Food Products Export Development Authority, India has exported processed fruits, juices & nuts in 2017 in terms of quantity it was 3, 00,006.48 which has raised to 3,17,353.16 in 2018, globally.

According to the export government, the U.S. has exported the USD 92 million of poultry products to the South Africa which has risen to USD104 million in 2017.

Thus, transporting perishable foods products requires refrigerated transport vehicles. These are vehicles, which are equipped with temperature-controlled devices, sensors or equipment. It has been seen that out 105 million ton of perishable goods transported across India each year, approximately up to 4 million ton is transported using refrigerated vehicles via reefers route. In which the percentage of fruits and vegetables movement thro’ cold chain in the US is 85%, Thailand 40%.

From this, it has concluded that the increasing demand for temperature-controlled equipment has positively propelled growth of the global cold chain monitoring market.

RESTRAINTS:

High Price of Temperature Monitoring Devices:

In current scenario, temperature measurement plays a vital role in various end-user industries such as pharmaceuticals, food and beverages. Industrial operator uses these temperature sensors for managing the entire process of supply chain which further helps the food organizations to minimize the spoilage of food during Sn. Price of the devices mentioned below:-

Products Prices/piece
Monnit ALTA AA Wireless thermocouple Sensors USD 300
Monnit ALTA Industrial Wireless thermocouple Sensors USD 449
Monnit ALTA Wireless AA Temperature Sensor  USD 210
Monnit MOWI WI-FI Temperature Sensor USD 298

Since, the small and medium enterprises have limited the budget, which inadvertently restrict these enterprises to invest money on purchasing these devices for supply chain. Hence, this factor restricts growth of the market.

Absence of Skilled Workforce:

All the testing equipment used in the supply chain process has a high level of complexity in terms of setting alarm for different temperature; setting temperature according to the food products or drugs; integration data with testing equipment and among other. Owing to this factor, food and beverages industries may not be able to deliver food products in a given time that adversely affect overall revenue and company recognition among consumers.

It has been observed that small enterprises do not have budget to hire high technical person which means that this enterprise is not able to afford this new technology in their supply chain. Hence, this factor negatively impacts the growth of the cold chain monitoring market.

OPPORTUNITIES:

Growing Technological Advancement in the Devices:

In current scenario, changing lifestyle of urbanized consumers and rising consumer disposable income has led to increased adoption of frozen foods. Today, consumers are recognizing that frozen food is a healthier option as compare to the packaged products as packaged food products have lesser nutrition value compare to frozen foods.

This in turn creates lucrative opportunities for the market players to increase the innovation in the existing equipment, which further increases its functionalities as well as it, helps food inspector to determine all bacteria, or contamination which spoil the quality of food products.

  • In August 2017, ORBCOMM, Inc., had launched the next generation cold chain monitoring solution named as ORBCOMM’s PT 6000. This system provides facility of complete visibility and control over the cold chain operation, which further ensures temperature of cargo during supply chain. This device integrates with three temperature sensors and has a rechargeable battery that requires charging only after 10 days. In addition, the device is fully integrated with third-party dispatch and in-cab software providers, including Innovative Computing Corp., TMW Systems, McLeod Software, Add On Systems, PeopleNet, SSI, and Prophesy.
  • In August 2018, Masternaut has launched a new telematics platform which offers real time insights. This will further improve business efficiency and cold chain operation.
  • In December 2017, Oceasoft had launched Bluetooth-enabled data loggers. These devices can easily be accompanied with OCEASOFT’s mobile sensor management application. Using this data loggers food companies are able to timely deliver the food to their clients.

Hence, the continuous development made by the existing players in the industry has resulted into increased adoption of cold chain devices, which act as a growth opportunity for the market.

Growing Construction of Temperature Controlled Warehouse:

The growing trend of e-commerce has brought tremendous changes in the food and beverages industries. Owing to this factor, almost all online retailers in present are offering semi-cooked food; ready-to-eat food, meat, and soups apart from other food products as storing perishable food products in the refrigerated warehouse helps in preserving foods from spoilage. Refrigerated warehouse are warehouse that are equipped with different types of temperature monitoring devices which manages the overall temperature of warehouse.

In addition to it, pharmaceutical sectors also increase the production of temperature-controlled vaccines and biologic drugs such conditions as rheumatoid arthritis and Type 2 diabetes, among other that require to maintain under specified conditions.

For instance, it has been observed that more than 90% of all vaccines require a temperature-controlled supply chain (the “cold chain”) that begins with the manufacturer and ends with the administration of the vaccine to the patient.

From this, it has been concluded that the rising development of refrigerated warehouses in the coming future will act as opportunity factor for global cold chain monitoring market.

CHALLENGES:

Require Large Storage Space in the Emerging Nations:

It has been observed that the low-income countries such as Afghanistan, Kenya, Burundi and many more are not having sufficient budget for the construction of large storage space. However, in the small storage space these devices may not be able to track data in the regular basis, which inadvertently affects food quality as well as inventory of the food products. However, the large storage space operator is able to move and install the cold chain monitoring devices efficiently which in turn helps the operator in controlling the environment of warehouse, which further reduces the degeneration of product quality and securing the shelf –life of the food products.

Hence, the above factor it states that the lack of storage space for managing food and pharmaceutical foods will negatively affect the demand for cold chain monitoring devices. This will in turn act as a challenging factor in the growth of global cold chain monitoring market.

High Installation Cost:

Todays, all the verticals such as chemical industries; pharmaceutical and others replace their traditional supply chain with cold chain monitoring solutions. Cold storage is a critical part of the food supply chain. If the temperature of cold storage is not maintained properly it directly, affects nutritional value of food products increasing the wastage of food products. Thus, preserving food products in the cold storage helps in minimizing the wastage of food products. However, cold chain monitoring is offering several advantages but still the cost of installation is quite high. In cold storage all the parts such as doors, windows, boxes are required to integrate with temperature control devices. In addition to it, all devices need to work according to the requirement of food products. Moreover, the installation cost also depends upon the size of warehouse, as warehouse size increases the deployment of temperature controlled device, which inadvertently increase the installation cost.

From this it has been concluded that high level of complexity acts as major challenging factor for the growth of the global cold chain monitoring market.

Some of the major players operating in this market are Sensitech Inc., ORBCOMM, Berlinger & CO., Monnit Corp., Controlant, ELPRO-BUCHS AG, SecureRF Corporation, Savi Technology, Zest Labs, Infratab Inc, LINEAGE LOGISTICS HOLDINGS LLC, Klinge Corporation, DAIKIN INDUSTRIES Ltd, Nimble Wireless, Tagbox, Verigo, FreshSurety, Safetraces and others


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