The Cold chain monitoring market
is expected to grow at a CAGR of 16.6 %, from USD 4.7 billion in 2021 to USD
10.2 billion in 2026.
The primary reasons for this rise in
demand for cold chain monitoring products in pharmaceuticals & healthcare
application.
Driver: Increasing global demand for
temperature sensitive-drugs
There is an increase in demand for
temperature-sensitive drugs such as vaccines and products that are dependent on
particular temperature ranges for chemical stability. According to the
International Institute of Refrigeration (IIR), the demand for heat-sensitive
health products such as drugs, vaccines, insulin, derived blood products, and
oncology products is rising globally every year. Hence, the transportation of
these drugs is the most critical phase in the cold chain due to the possibility
of unforeseen environmental variations. Any change in temperature during
transportation can affect the medicines, losing their potency to cure the
ailments they are meant for, thereby leading to ineffective treatment in many
cases. To avoid the degradation of any pharmaceutical product, it is crucial to
maintain parameters with respect to the product-specific environment, including
air quality levels and temperature ranges. Further, providing end-to-end
visibility and condition monitoring at the packaging stage of the products
throughout the pharma supply chain operation is of utmost importance. As
manufactured drugs contain high-value active ingredients that have a shorter
shelf life and strict temperature requirements, the need for temperature
control and monitoring through the entire supply chain has increased.
Therefore, temperature-sensitive pharma products require cold chain monitoring
solutions. Cold chain monitoring and tracking refer to controlling devices
equipped with sensors that ensure the transportation of temperature-sensitive
products at a given temperature range, that is, between 2 and 8°C.
Restraint: High cost of
implementation
The installation cost of cold chain
monitoring systems is significantly high. Deploying sensors and putting the
connectivity network in place requires a high cost. Shipping high-value
consignments over long distances within their prescribed temperature range
require a huge investment. Therefore, companies involved in cold storage and
cold transportation remain skeptical about spending on developing monitoring
networks. Cost is the major hindering factor to introducing real-time cold
chain monitoring systems, particularly for small- and medium-sized players, and
many participants in the food industry are SMEs, which are often operating on
lean margins. The massive size of the cold chain market requires high
investments in cold chain monitoring solutions. These solutions are of two
types: active refrigeration systems and passive cooling devices. Although
passive cooling solutions may seem basic, the cost for setting up the cold
chain is quite high. Large-scale players involved in the cold chain network can
spend the necessary amount and get the benefit from the increased reliability
over a much shorter timeframe. However, smaller players generally refrain from
spending on such monitoring devices as they cannot recover their money. The
impact of this restraint is high. The high cost of cold chain monitoring solutions
would be holding back the growth of the cold chain monitoring market.
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Opportunity: Better control of assets
in warehouses using automation and cold storage technologies
A large warehouse witnesses different
temperature zones. Hence, continuous temperature monitoring is essential to
check the temperature at which goods are stored and the actual condition of
these goods. For the best utilization of warehouses, complete control over
valuable equipment can be achieved by the adoption of automation, including the
use of robotic equipment to carry out inter-warehouse stock movements and
loading and unloading activities. Warehouse automation aids efficient storage
space utilization, reduces wear and tear, increases reliability, and reduces
operating costs. Real-time visibility about shipment location, temperature,
humidity, and other environmental factors enables manufacturers and
distributors to take faster preventive actions, thereby reducing the risk of
spoilage or contamination. Maintaining temperature at an optimum level, coupled
with efficient energy management, that is, the use of automated storage and
retrieval systems (ASRS), can reduce warehouse energy costs from 35 to 50% as
automated warehouses offer more storage in less refrigerated space. The
long-term storage of frozen foods and other perishable consumer products is one
of the largest problems in the cold storage supply chain. By automating
processes such as stock rotation, monitoring goods in transit, transport, and
location management processes, warehouses can ensure that they are always
distributing fresh items. RFID chips and scanners track expiry dates, and
automated picking systems can locate these expired goods for separation and
disposal. Several kinds of medicines, vaccines, and various types of farm
products such as fruits, vegetables, and eggs are preserved at constant
temperatures due to their sensitive nature as they are prone to spoilage during
transport and storage due to physical wear and tear. Contamination and spoilage
can cause substantial losses. Thus, automation in warehouses can reduce such
losses.
Challenge: Complexities involved in
the installation and monitoring of cold chain monitoring solutions
Cold chain monitoring has become even
more complex in recent years because of the rapid increase in customer
expectations. Globalization has increased customer choices and the complexity
of multi-sourcing supply chains. Cold chain networks can be spread out in terms
of area as they can extend from manufacturing plants, laboratories, and storage
warehouses to various transportation modes and end users such as retail chains
and restaurants. Installing various sensors across all these locations can be a
daunting task. Additionally, the distributed network needs to be mapped to
efficiently manage the data generated from these sensors. Further, this data
has to be analyzed, and actionable data has to be generated to maximize the
profit. It is generally difficult to map such a vast network and derive useful
data from it. Hence, issues such as scale visualization, error type
pinpointing, and the formulation of responses could prove to be challenging.
Sensors, data loggers, and other
devices need to be calibrated for specific applications as per their
requirements. Networking devices are also required to provide ample
connectivity support in various locations, thereby increasing the burden on
installation service providers in the cold chain monitoring market. The market
players need to overcome these challenges to provide better monitoring services
across cold chains.
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