Global IT Spending In Cold Chain Logisitics Market 2016-2020
About Cold Chain Logistics Services
The management of cold chain logistics services is a complex process compared to general logistics services. Cold chain logistics carry temperature-sensitive assets, which are prone to product damage if the assets are not maintained under specified temperatures. The management of temperature sensitive products is more complex in cross-border logistics services due to fluctuations in climatic conditions. Temperature controlled logistics services are availed by firms operating businesses based on perishable commodities across different verticals (such as pharmaceuticals, food, and the retail industry). Temperature controlled logistics technology requires IT solutions to capture, store, and analyze real-time information retrieved from cold chain containers and vehicles.
Technavio’s analysts forecast the global IT spending in cold chain logistics market to grow at a CAGR of 8.36% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global IT spending in cold chain logistics market for 2016-2020. To calculate the market size, the report considers the hardware, and IT services spending on cold chain logistics services provided by pure-play and 3PLs temperature controlled firms.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global IT Spending in Cold Chain Logistics Market
Technavio recognizes the following companies as the key players in the global IT spending in cold chain logistics market: Accenture, AT&T, Cisco, SAP, and Oracle.
Other Prominent Vendors in the market are: BT9, Gemalto, IBM, Infosys, ORBCOMM, Siemens, TCS, Tech Mahindra, and Vitria.
Commenting on the report, an analyst from Technavio’s team said: “Advent of cloud computing is a key trend for market growth. Cloud computing solutions enable organizations to reduce their supply chain cost and increase business agility. The shift from on-premise software solutions to cloud-based is increasing among organizations. Such solutions not only reduce the total cost of ownership (TCO) over a certain period of time but also improve logistics performance. The majority of vendors are offering cloud-based SCM software solutions that comprise cold chain management solutions. Some of the vendors have now started offering cloud computing solutions specific to cold storage operations.”
According to the report, enhanced visibility and control in the supply chain systems will be a key driver for market growth. Cold chain storage systems are important components of supply chain and logistics systems. The cold chain solutions are strategically designed to increase operational performance and to minimize supply chain risks. These risks include counterfeiting, damaged products, and the expiry of perishable goods. Organizations that are using cold chain services need to increase visibility in the supply chain management systems, to minimize supply chain risks. The IT solutions provide greater control and visibility in the cold chain management systems, and so investments in technology are rising. Cold chain solutions that are sensor enabled and connected to centralized monitoring systems send alert messages if any changes in temperature inside the cold chain are detected. In response, cold chain managers can quickly reconfigure the required temperature range and preserve the merchandise.
Further, the report states that cyber security in the IT solutions is one of the major challenges of the global supply chain and distribution system. The cold chain logistics systems use IT solutions that are exposed to online security threats. Information security in cold chain systems, majorly in retail, biopharma, and clinical trial logistics services, is one of the critical factors. Cold chain logistics service providers need to implement IT solutions that adhere to the IT security guidelines of the NIST and other regulatory bodies. Vendors in the market have to continuously upgrade their IT systems in accordance with the latest IT security guidelines. Continuous upgrading of IT systems can exact a heavy cost from organizations depending upon the kind of security systems in use. Complexities in the cyber security framework scale higher if IT systems are deployed on outdated IT security infrastructure or guidelines. Therefore, vendors in the market should provide cold chain logistics services based on the latest cyber security guidelines.
Accenture, AT&T, Cisco, SAP, Oracle, BT9, Gemalto, IBM, Infosys, ORBCOMM, Siemens, TCS, Tech Mahindra, Vitria.