The cold chain market is driven by the stringent government regulations imposed on production and supply chains, owing to the increasing number of food safety and pharma counterfeit incidents. Governments, across the globe, have stated various regulations and guidelines for storage and transportation of refrigerated products. For instance, in November 2013, the European Union passed guidelines on good distribution practices for medical products used on humans.
To ensure safety and quality of the food products the service providers are engaged in vertical integration with the customers. The lack of cold chain facilities in developing economies leads retailers to heavily invest in developing their own cold chain logistics systems.
Canada cold chain market, by type, 2015
Global Cold Chain Alliance (GCCA), a non-profit organization headquartered in the U.S., is a platform that enables networking, communication, and education in all the sectors of a cold chain. The core partners of GCCA include International Association of Refrigerated Warehouse, International Association of Cold Storage Construction, and International Refrigerated Transportation Association.
Companies utilize cold chain services to minimize supply chain risks. The advent of cloud technology is expected to spur the IT spending over the projected period. Additionally, the cloud solution reduces the total cost of ownership and improves the logistics performances.
According, to the Food and Agriculture Organization (FAO), annually 1.6 billion tons of food products are wasted, owing to the lack of adequate temperature management systems. To overcome such problems organizations have increased their spending on technologies such as smart refrigerator systems and cloud computing solutions which increased the demand for the monitoring components market.
The increasing need for enhanced connectivity and emergence of IoT solutions is anticipated to further increase the IT spending on cold chain. An organization implementing IT solutions is mandated to adhere to the IT security guidelines of the National Institute of Standards and Technology and other regulations framed by government organizations including the U.S. Food and Drug Administration, WHO, and the EU regulation for food and drug safety. The growing installation of sensors and smart connected devices in refrigerated containers provides real-time information. The key vendors of the market include Accenture PLC (U.S.), AT&T, Inc. (U.S.), Cisco Systems, Inc. (U.S.), and Oracle Corporation (U.S.).
Government across regions are taking initiatives to attract the investment in cold chain infrastructure. For instance, the Indian Ministry of food processing industries implemented central sector scheme of cold chain. The scheme provides financial assistance for setting up the integrated cold chain infrastructure to avoid post-harvest losses.
The adoption telematics system would help the companies to reduce the fuel expenses and number of empty of runs. Increasing government investments in intelligent transportation system and implementing telematics regulations to enable smart traffic management is anticipated to spur the telematics application in fleet management.
North American region is showing highest penetration growth in the cold chain market owing to the prevailing large consumer based and increasing penetration of connected devices are the major factors driving the North American regional market. The industry players are likely to target the emerging economies such as India, Brazil owing to the government initiatives such as digital India, introduction of GST.
In-depth report on global cold chain market by Grand View Research:
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