The global smart food logistics market (henceforth, referred to as the market studied) was valued at USD 7. 3 billion in 2019 and it is expected to reach USD 14. 8 billion by 2025, registering a CAGR of 12.
New York, Dec. 21, 2020 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Smart Food Logistics Market - Growth, Trends, Forecasts (2020 - 2025)" - https://www.reportlinker.com/p05999334/?utm_source=GNW
7%, during the period of 2020-2025. The market for smart logistics in food industry has emerged from benefits of facilitating the ‘Ease of procuring’ to tracking packages in transit. The ability to receive the items fresh with a real-time access to the movement of food is where smart logistics powered by internet of things (IoT) is making a huge difference.?
- Convergence of logistics and technology, along with cloud-based collaborative solutions that extend through the entire supply chain, has enabled a tight integration of warehouse, transport, and end consumer information, and transparency through the supply chain, this in turn, has been identified as a key driver towards the growth of the market studied.??
- As the digital economy continues to grow, the IoT technology has transitioned from futuristic idea to tactical tool for logistics companies to implement in their supply chain. Sensors and IoT tools are transforming traditional asset tracking to intelligent supply chains that are capable of earning logistics companies a higher ROI. For the food industry, these IoT-enabled sensors are offering real-time knowledge of asset/fleet location, fleet motion speed, temperature conditions and other crucial data sets.?
- The sensors additionally help the allied stakeholders to closely monitor food safety data points, thus, ensuring efficient cold chain management. This data enables compliance adherednce with local and global regulations. For instance, by using automated Hazard Analysis Critical Control Points (HACCP) checklists during the production, manufacturing, and transporting processes, companies attain access to consistent, meaningful data to implement food safety solutions.?
- Likewise, varying food laws and regulations across regions, one being the Food and Drug Safety Act has been realized as putting significant pressure on supply chains to record more information and increase transparency. ?
- The COVID-19 pandemic severely disrupted almost all the end-user industries globally, affecting the supply chain management of businesses due to remote working conditions or complete lockdown, resulting in the halt of operations.? The disruption proliferated the use of technology and digitalization to its maximum to survive the pandemic and help prevent the disruption of their operations.??
- The pandemic affected the logistics industry in various ways, as the Logistics Managers’ Index (LMI) for April 2020 fell to an all-time low. The LMI is based on eight unique components that involve inventory (levels and costs), warehousing (capacity, utilization, and prices), and transportation (capacity, utilization, and prices).??
Key Market Trends
Cold Chain Monitoring to Hold a Significant Share
- Rapidly changing food habits, heightened demand for packaged food, and stringent regulations regarding packing and storage have resulted in a power shift from manufacturers to retailers. Processes focusing on zero contamination, precise storage, and high-speed storage and retrieval operations are the key reasons driving automation and the adoption of the technologies in the food and beverage logistics process.?
- A cold chain monitoring solution helps the food manufacturers efficiently manage the storage, shipment, and distribution of products requiring a temperature-controlled environment. Incomplete cooling chains caused by mechanical breakdowns, traffic delays, and other factors create changing temperatures that can affect perishable foods’ spoilage and safety. Also, a lack of real-time visibility of goods locations can contribute to inefficient operational processes.?
- Hence, the adoption of cold chain monitoring ensures stable temperatures for the transport and storage of goods. Technologies like Bluetooth Low Energy (BLE) beacons with temperature sensors enable tracking goods locations at relevant checkpoints and tracing temperature data continuously and seamlessly, during shipment, or throughout the supply chain.?
- Multiple food logistics companies are engaging in expansion activities. For instance, in September 2020, third-party food logistics company FreezPak Logistics has announced its plans to build a 140,000 square-foot facility in the United States equipped with an automated storage and retrieval system. The location to be outfitted with 12 robots that can automatically retrieve and store goods.?
North America Holds Major Share
- The region is anticipated to hold the largest share in adopting smart logistics due to many vendors’ presence and increasing concern to eliminate wastage and optimize resources. North America is one of the prominent asset tracking markets due to the strong presence of the manufacturing and transportation, and logistics industries, with several technological advancements in the region. Also, government initiatives and regulations in various end-user industries are expected to increase the region’s market growth.??
- For instance, the Federal Highway Association (FHWA), along with the American Association of State Highway and Transportation Officials (AASHTO), and state and local departments of transportation (DOTs), has been encouraging the application of asset tracking in the transportation and logistics industry.?The logistics industry is going through a transformation due to eCommerce giants like Amazon; their logistics solutions allow them to deliver items to your doorstep the same day. This same-day shipping magic is made possible by the smart logistics powered by the Internet of Things.?
- The region has a robust presence of players offering IoT solutions. For instance, Bridgera is a custom software development and service company specialized in building Internet of Things solutions. The company offers an app, Bridgera TrackMe, and IoT platforms, like Bridgera IoT, which offer benefits like smart warehouse system, autonomous Fleet, to companies in the delivery and dispatch business. Particularly those in the food delivery, towing truck, or ambulance services.?
- The region witnesses partnerships between government agencies and leaders’ engagement in the public, private, and non-profit organizations in solving food wastage issues due to increasing concerns regarding food wastage. For instance, in April 2019, USDA, EPA, and FDA signed a formal agreement with ReFED, Inc. to collaborate on efforts to reduce food waste in the United States.?
The smart food logistics market is moderately fragmented. The major players with prominent share in the market are focusing on expanding their customer base across foreign countries. These companies are leveraging on strategic collaborative initiatives to increase their market share and increase their profitability. Some of the key developments in the market are:
- Oct 2020 - LYNA Logics AI automatic vehicle dispatch engine was adopted in "ZENRIN Logistics Service", as it provides a comprehensive support from AI-based vehicle dispatch planning to route guidance using Zenrin’s housing map data, and management and analysis of business progress. By combining the technologies of both companies, Lyna Logics plan to realize optimal vehicle allocation planning and operation management that considers various restrictions at the site, and strongly promote the efficiency of a wide range of transportation and delivery operations from EC / home delivery to B2B transportation
- Aug 2020 - Hacobu Co., Ltd. renewed its telematics service "MOVO Fleet" for the logistics industry. Hacobu is developing a cloud service "MOVO" with the aim of optimizing inter-company logistics. "MOVO Fleet", is a telematics service for the logistics industry that aims to grasp the vehicle position using a GPS terminal, reduce the work burden of operation managers, and streamline delivery work.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
Read the full report: https://www.reportlinker.com/p05999334/?utm_source=GNW
ReportLinker is an award-winning market research solution. Reportlinker finds and organizes the latest industry data so you get all the market research you need - instantly, in one place.
CONTACT: Clare: email@example.com US: (339)-368-6001 Intl: +1 339-368-6001