AUDIT, DESIGN, SUPPLY, BUILD & MONITOR
The COVID-19 epidemic that has swept the globe this year has wreaked havoc on people's health and the global economy. Several countries have implemented and continue to implement massive lockdowns in order to slow the spread of the virus through their people. This has generated huge demand and supply disruptions all around the world. Naturally, firms that provide 'vital' products and services faced significant hurdles as a result of the lockdowns. Internal teams, industry groups, and governments responded quickly, allowing these industries to minimize damage.
The terminology "cold chain" refers to food handling and distribution in which the product is kept at a safe temperature throughout the process of harvesting, chilling, or freezing, and finally to the point of sale. This necessitates transportation, storage, and exposure. The nature of the cold chain differs depending on the product.
The pandemic has had a favorable influence on the cold chain business, with the demand for cold chain warehouses increasing. The growing popularity of packaged food and beverage items bodes well for the expansion of the cold chain in the food sector. Because of the limited commerce during the pandemic, the COVID-19 had an influence on every industry's supply chain. As a consequence, food producers are focusing not only on food goods but also on their storage to extend their shelf life, which is likely to drive the cold chain market. COVID-19 has prompted a movement toward a more structured retail industry in order to prevent the virus from spreading further. Consumers have placed processed items with a prolonged shelf life next to perishable items, and limited trade movements between nations have resulted in certain nations' cold chain storage capacity being exceeded. These trends highlight the importance of transitioning the food value chain from open-air marketplaces to a cold-chain paradigm that preserves perishable foods for extended periods of time. During the projection period, these factors are projected to drive up demand for cold chains.
Hardware market to have the biggest market share.
During the projected period, the hardware category is likely to continue to maintain a bigger market share. To monitor cold chains for varied purposes, a large range of devices with the variable cost is used. For successful network monitoring, cold chain monitoring systems need a lot of sensors and other technology, some of which might be costly. Due to the COVID-19 pandemic, the suspension of transportation and logistics services, as well as lockdowns in significant geographic areas, is predicted to limit the creation and distribution of new hardware components.
The transportation market is rising at a faster rate.
During the projection period, the transportation segment is predicted to have a higher CAGR. The expansion of the cold chain distribution network is propelling the transportation segment forward. Modern supply chain solutions rely on cold chains to deliver higher volumes of more sensitive or critical cargo over longer distances and across a variety of environmental conditions. Because cargo is sensitive to environmental changes, it must be kept at specified temperatures or within an acceptable temperature range, which is fueling the transportation segment's expansion.
Pharmaceutical and healthcare applications would have the biggest market share.
Because of the rising requirement for temperature monitoring in the pharmaceutical and healthcare cold chains, the pharmaceutical and healthcare industry is predicted to have the greatest market size throughout the projection period. Temperature requirements differ depending on the medicinal substance. The ability of pharmaceuticals or vaccines to deteriorate due to temperature changes in the supply chain is a major driving force behind the demand for cold chain monitoring systems. Furthermore, government laws have a substantial influence on the pharmaceutical and healthcare industries, facilitating the adoption of cold chain monitoring solutions throughout the value chain.
In the following years, the worldwide cold chain monitoring market is expected to increase significantly. It is predicted to grow at a CAGR of 12.5 per cent from 2020 to 2025, reaching USD 8.2 billion. The key factors driving the growth of the cold chain monitoring market are rising global demand for temperature-sensitive drugs, rising demand for better food quality, increasing need to reduce food waste, rising demand for generic drugs due to increased accessibility, and rising government focus on issuing policies affecting the supply chain efficiency of the fast-growing pharmaceutical industry.