The global cold chain logistics market is valued at $ 159,988.1 million in 2018, with a CAGR of 17.9% from 2019 to 2026, estimated to reach $ 585,105.6 million by 2026. The Asia Pacific region maintains leadership throughout the forecast. The period from 2019.
Cold chain refers to the combination of temperature-controlled transportation and supply chain essential for extending product shelf life, avoiding excess capacity, reducing in-transit waste, and maintaining product quality. This process involves using temperature-controlled warehouses for storage and cold storage vehicles for the distribution of products. Cold chain logistics solutions are widely used in the transportation and storage of agricultural products, seafood, frozen foods, chemicals, and pharmaceuticals. These products are shipped in refrigerated trucks, refrigerated railroad cars, refrigerated freight, and air freight.
Cold chains generally help reduce the waste of products and decomposable raw materials and provide farmers with a profitable price. In the pharmaceutical industry, drug capacity will increase throughout the end-user supply chain. The increase in the number of refrigerated warehouses in the food and pharmaceutical sector is estimated to drive the growth of the cold chain logistics trend market.
The Indian cold chain market was worth Rs 1,121 million in 2018. In addition, the market is projected to reach Rs 2.618 billion by 2024 and grow at a CAGR of 14.8% between 2019 and 2024.
Factors such as non-uniformity and high operating costs are hindering the market growth. However, the adoption of RFID technology and software for cold chain applications provides cold chain logistics players with favourable growth opportunities.
Factors Affecting Cold Chain Growth:
The peak of refrigerated warehouse
Warehouses, including cold chain systems, are designed to ensure ideal storage and shipping conditions for temperature-sensitive products. Some export industries rely on such cold chain systems. Because end-to-end cold chain security is a delicate link in the system, companies invest millions in cold chain operations to design effective and efficient processes. In addition, growth in online grocery sales in the US market could increase demand for up to 100 million square feet of refrigerated space over the next five years, according to the latest CBRE report.
Pharmaceutical Logistics Division
Pharmaceutical companies are primarily focused on product quality and sensitivity. Increased development of more complex bio-based drugs, hormonal therapy shipments, vaccines, and complex proteins that require improvements in the cold chain must be transported within controlled temperatures.
Temperature Controlled Supply Chain of pharmaceuticals and devices is experiencing significant growth in the healthcare logistics industry. The cold chain logistics industry needs to respond quickly to increasing volumes and ever-increasing product quality standards and regulations. In addition, the entire cold chain supply chain and logistics of the pharmaceutical industry are becoming more strategic and reliable.
Bio pharmacy is growing at a faster rate than small-molecule drugs. Vaccine growth is why temperature-controlled medicines are doubling the pharmaceutical industry as a whole. Therefore, pharmaceutical growth is expected to drive the size of the cold chain logistics market.
Factors that limit the growth of the cold chain market:
Operations in the cold chain logistics industry require significant power consumption, making it difficult for cold chain service providers to minimize operating costs. In addition, high energy and real estate costs can push the operational process difficult. The high operating expenses are expected to impede the cold chain logistics market's growth.
Lack of uniformity.
Lack of standardization and reliability is a significant challenge for the cold chain logistics industry. The cold chain logistics industry is currently concerned about the quality and availability of refrigerated spaces. Enterprises often need to make additional investments to upgrade space and its specifications to standards that support individual industry segments based on requirements.
The standards set by policymakers put pressure on developers. From a temperature compliance standpoint, it isn't easy to upgrade a facility or accommodate automated equipment. In addition, technical and product handling training and human resource development are capital intensive.
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