According to a recent report published by Trends Market Research, titled, “Cold chain logistics Market by Type, and Application: Global Opportunity Analysis and Industry Forecast, 2018-2026,” the global cold chain logistics market size was valued at $159,988.1 million in 2018, and is projected to reach $585,105.6 million by 2026, registering a CAGR of 17.9% from 2019 to 2026.
Asia-Pacific dominates the market, followed by Europe, North America, Europe, and LAMEA. China dominated the global cold chain logistics market share in 2018, whereas Africa is expected to grow at a significant rate during the forecast period.
Cold chain logistics industry can be defined as the science or technology and process, which requires the understanding of biological and chemical processes which are linked with perishability. In addition, it is necessary to maintain the appropriate temperature conditions in the supply chain and monitor temperature sensitive products. Cold storage, cooling systems, cold transport, and cold processing & distribution are the main elements in cold chain logistics market forecast.
In cold chain logistics market, the major technologies that are used to provide temperature-controlled environment during transportation involves dry ice, gel packs, Eutectic plates, liquid nitrogen, quilts, and reefers. Dry ice (solid carbon dioxide) is around -80°C and has the capability to keep the shipments at a low temperature for an extended time. Major share of medicinal and pharmaceutical shipments is classified as chilled products, which are required to be stored in the range of 2 and 8°C.
Gel pack which consist of phase changing substance that can go from liquid to solid and vice versa is a common method to provide low temperature. Eutectic plates also known as cold plates works on the same principal as gel packs. Instead, liquid used in these plates can be reused many times. Liquid nitrogen is mainly used for the transportation of biological cargo such as organs and tissues. It is very important that the refrigeration units are designed to maintain the temperature within the preferred range and avoid variation in the temperature. As any deviation would hamper the cold chain logistics market growth.
The market is segmented based on end use industry and region. Based on end use industry, market is categorized into fruits & vegetables, bakery & confectionary, dairy & frozen desserts, meat, fish & sea food, drugs & pharmaceuticals, and others. Based on region, cold chain logistics market analysis is done across North America, Europe, Asia-Pacific, and LAMEA.
In cold chain logistics market, intermodal transportation of good requires dedicated storage yards on the transport terminals, namely ports, which accounts for around 1-5% of the total terminal capacity and can be higher in the region with an important reefer trade such as Philadelphia region. The task is labor dependent as each container should be plugged & unplugged manually and monitor the temperature inside the reefers should be monitored regularly. Reefer stacking areas are usually dependent on the three approaches such as wheeled storage, stacked storage, and rack storage.
In wheeled storage reefers are placed on the chassis and are moved to the parking where each parking slot has a plug for electric reefers. In addition, yard equipment such as reach stackers are used to stack the reefers up to three in height in stacked storage. Furthermore, in rack storage, reefers are stacked and stored in the rack systems that can hold around 20-30 reefers. The need of cold storage and refrigerated transportation is propelling the cold chain logistics market trends.
Factors such as increase in number of refrigerated warehouses and growth in pharmaceutical sector drive the growth of the market. In addition, surge in processed food sector is anticipated to drive the growth of cold chain logistics industry. However, lack of standardization and high operational cost restrain the market. Furthermore, RFID technologies for cold chain applications and adoption of automated software are anticipated to provide a remarkable growth opportunity for the players operating in the market.
Key Findings of the Cold chain logistics Market:
· Based on end use industry, the meat fish & sea food segments generated the highest revenue in 2018.
· Based on country, Africa is anticipated to exhibit the highest CAGR during the forecast period.
· Based on region, Asia-Pacific contributed the highest market revenue in cold chain logistics market size in 2018, followed by North America, Europe, and LAMEA.
The key players including AmeriCold Logistics, LLC, Lineage Logistics Holdings, LLC, VersaCold Logistics Services, AGRO Merchants Group, LLC, Nichirei Logistics Group Inc., Preferred Freezer Services, Congebec Logistics Inc., Burris Logistics Inc., Conestoga Cold Storage, Tippmann Group, and others hold major share in cold chain logistics market.