Global IT Spending in Cold Chain Logistics Market 2016-2020

Overview of the global IT spending in cold chain logistics market

According to the market research analyst at Technavio, the global IT spending in cold chain logistics market will grow steadily and post a CAGR of around 8% by 2020. The increasing wastage of temperature sensitive food, vaccine, and other products will lead to an augmented demand for an effective management system for temperature sensitive products. The majority of the cold chain storage lack adequate temperature management systems and do not maintain the desired temperature level as per regulatory guidelines, which leads to increased wastage of temperature-sensitive drugs and vaccines. Also, food wastage causes critical damage to the environment due to inadequate waste disposal methodologies. This has compelled manufacturers to invest in technologies, such as smart refrigerator system powered by IoT (internet of things), analytics, and cloud computing solutions. Also, perishable logistics are specifically designed to manage the temperature sensitive products in fluctuating climatic conditions and will drive this market’s growth during the estimated period.

The recent emergence of IoT will help in the growth of the market. The installation of smart connected devices and sensors in cold storage facilities and movable containers captures will send real-time temperature data to the SCM (supply chain management) management team. With the help of IoT technology, high variations in temperature can be detected at early stages due to system malfunctions and firms can take necessary steps to avoid damage to the products stored in cold storage facilities. IoT-enabled devices and applications will be implemented to track the movement of refrigerated containers also known as reefer on cargo ships.

Competitive landscape and key vendors