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

There is fierce completion in the market, and the players compete to provide IT solutions that have added features and competitive pricing. Many leading vendors have launched cloud-based supply chain and logistics solution to maximize their market shares. They will also have to invest in developing unique and customized smart connected devices to support industrial IoT and building capabilities to maintain exclusivity in the market.

The key vendors in the market are -

• Accenture
• AT&T
• Cisco
• SAP
• Oracle

Other prominent vendors in the market are BT9, Gemalto, IBM, Infosys, ORBCOMM, Siemens, TCS, Tech Mahindra, and Vitria.

Segmentation based on technology spending and analysis of the IT spending in cold chain logistics market

• Software spending
• IT services spending
• Hardware spending

Market researchers predict that the software spending segment will dominate the market and post a CAGR of more than 8% by 2020. The increasing implementation of on-premise cloud computing solutions will be one of the primary factors contributing to the growth of the market. These solutions include advanced IT innovations such as predictive analytics, IoT enabled applications, and M2M applications in a cloud-based IT architecture.

Segmentation based on geography and analysis of the IT spending in cold chain logistics market

• Americas
• APAC
• EMEA

During 2015, the Americas dominated the market by accounting for approximately 48% of the total market share. The robust ICT infrastructure and superior connectivity to global locations will the key enablers of high IT spending in the region. Cold chain services providers will need to follow regulatory guidelines while implementing IT solutions for quality assurance and safety and this will increase the demand for IT solutions like IT security and smart sensors, which adhere to the such guidelines.

Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving global IT spending in cold chain logistics market?
• What are the key market trends impacting the growth of global IT spending in cold chain logistics market?
• What are the challenges to market growth?
• Who are the key vendors in global IT spending in cold chain logistics market?
• What are the market opportunities and threats faced by the vendors in global IT spending in cold chain logistics market?
• Trending factors influencing the market shares of the Americas, APAC, and EMEA.
• What are the key outcomes of the five forces analysis of global IT spending in cold chain logistics market?

Technavio also offers customization on reports based on specific client requirement.

Related reports

• Global Food and Beverage Cold Chain Logistics Market 2016-2020
• Cold Chain Logistics Market in India 2015-2019
• Cold Chain Logistics Market in North America 2015-2019
• Global Cold Chain Logistics for Pharmaceuticals Market 2015-2019
• Cold Chain Market in Europe 2015-2019

Cold chain refers to an incessant series of warehouse distribution and storage activities that maintain a given temperature range. It helps in extending and maintaining the shelf life of products including fresh agricultural produce, frozen food, seafood, photographic film, chemicals, and pharmaceutical drugs. Technological advancements, such as internet of things, cloud computing, analytics, and smart sensors technologies in the cold chain logistics market have prompted the use of IT services. The surging demand from online grocery stores to manage cold chain logistics services will boost the requirement for IT. The cold chain logistics services for online groceries stores have necessitated the use of effective mobile technology and M2M applications to trace and track the condition of perishable items. SAP, Oracle, and AT&T will be some of the prominent vendors in this market space.

The report, global IT spending market in cold chain logistics sector, is part of Technavio’s ICT research portfolio. This portfolio provides a comprehensive market analysis along with the market share, market sizing, and market segmentations covering areas such as automatic identification system, cloud computing, data center, enterprise application, IT security, ITO and BPO, and product lifecycle management. These market research reports provide a perspective on the various market opportunities and market threats along with the key trends that would influence the market growth during the forecast period. It presents insights into the changing competitive landscape and a detailed profiling and market analysis of the vendors. Also covered in the research are the key regions or countries that would have an impact on the market during the assessment years.