Cold Chain Market in Europe to grow by USD 76.8 Billion (2024-2028), driven by RFID adoption in logistics, report with market evolution powered by AI - Technavio

NEW YORK, Jan. 28, 2025 /PRNewswire/ -- Report on how AI is driving market transformation - The global cold chain market in europe size is estimated to grow by USD 76.8 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 12.5% during the forecast period. Use of rfid in cold chain logistics is driving market growth, with a trend towards use of IoT with cold chain. However, fluctuating fuel prices poses a challenge. Key market players include Abu Dhabi Ports PJSC, AP Moller Maersk AS, Arbon Equipment Corp., Baltic Logistic Solutions, Beno Trans GmbH, Blue Water Shipping AS, DHL Express Ltd, DSV AS, FRIGO Coldstore Logistics GmbH and Co. KG, GARTNER KG, Kraftverkehr Nagel SE and Co. KG, Kuehne Nagel Management AG, Lineage Logistics Holdings LLC, MSC Mediterranean Shipping Co. SA, NewCold Cooperatief UA, NORDFROST GmbH and Co. KG., Pacific Logistics Group., Pfenning Logistics, SNCF Group, and WILMS Transport GmbH.

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Market Driver

The European cold chain market is experiencing significant growth due to rising consumer preferences for temperature-sensitive products, particularly in the food and healthcare sectors. E-commerce sales and organized retail stores are driving the demand for cold chain solutions, including refrigerated storage and transportation. Developing economies and overseas markets are also creating opportunities for expansion. Technological advances, such as RFID, automation, cloud computing, and IoT, are improving warehouse management, inventory accuracy, and supply chain efficiency. Temperature-controlled warehouses and cold-insulated transport vehicles are essential for maintaining the quality and shelf life of perishable products, including fresh agricultural products, dairy, meat, marine products, and convenience foods. Regulations, such as quality assurance and food control systems, are crucial for ensuring the safety and reliability of cold chain solutions. Investment in cold chain technology requires consideration of land acquisition, building construction, permissions and licensing, utilities, cooling machinery, and startup and working capital expenses. The benefits of cold chain solutions include assured freshness, product distribution, and reduced spoilage and contamination. The healthcare sector, particularly pharmaceutical drugs and medical vaccines, requires stringent temperature control for maintaining their efficacy and shelf life. Cold chain systems are essential for cost optimizations, risk management, and regulation compliance in the face of technical and operational constraints. The cold chain sector is a critical component of the global food system, with implications for food sector development, agricultural trade, and the food industry as a whole. 

The Internet of Things (IoT) is revolutionizing the European cold chain market by connecting physical objects in the supply chain through the internet. This technology enables enterprises to enhance product performance by securing IoT data and analyzing it for improved results. IoT solutions are integrated into the cold chain to streamline logistics processes for perishable goods like fruits, meat, and medicines. By remotely adjusting temperature settings in vehicles and warehouses, enterprises can optimize their cold chain operations, ensuring cost savings and efficiency. 

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Market Challenges

• The European cold chain market is experiencing significant growth due to rising consumer preferences for temperature-sensitive products, increasing e-commerce sales, and the expansion of organized retail stores. Developing economies and overseas markets also present opportunities for cold chain solutions. Challenges include the need for refrigerated storage and transportation, IT spending for warehouse management and monitoring components, and regulations for temperature-controlled warehouses and transport vehicles. Key industries, such as healthcare and food & beverage, require cold chain logistics for assured freshness, palatability, and extended product shelf life. Cold chain solutions are essential for temperature-sensitive products like fresh agricultural products, manufactured food, medical vaccines, and pharmaceutical drugs. Technological advances, including RFID, automation, cloud computing, and IoT, offer cost-effective operations, improved inventory management, and real-time monitoring. Cold chain technology investments include land acquisition, building construction, permissions and licensing, utilities, cooling machinery, and maintenance. Regulations, technical and operational constraints, and cost optimizations are critical considerations for cold chain systems. Benefits include reduced spoilage, contamination, and increased supply chain efficiency. The cold chain sector plays a vital role in the food sector, agricultural trade, and the global food system, ensuring the quality and safety of imported and exported food products.
• Cold-chain logistics in Europe relies heavily on fuels like petrol and diesel for both vehicle propulsion and refrigeration unit power. The main traction engine, which runs on these fuels, generates electricity to operate the refrigeration unit's electric motor. Medium to large vehicles typically utilize self-contained refrigeration units with diesel engines. However, the price volatility of Brent crude oil, the primary source of petrol and diesel, poses a significant challenge. This oil price instability can impact the overall cost structure and profitability of cold-chain logistics providers in Europe.

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Segment Overview

This cold chain market in Europe report extensively covers market segmentation by

1. Application 
• 1.1 Meat fish and seafood
• 1.2 Fruits vegetables and beverages
• 1.3 Dairy and frozen desserts
• 1.4 Bakery and confectionery
• 1.5 Healthcare
2. Type 
• 2.1 Refrigerated warehouse
• 2.2 Refrigerated transportation
3. Geography 
• 3.1 Europe

1.1 Meat fish and seafood- The European cold chain market is primarily driven by the meat, fish, and seafood segment. These perishable products require refrigeration or freezing to maintain their quality and extend their shelf life. Meat, with a high water, protein, and fat content, is highly perishable and must be kept at low temperatures to prevent spoilage. Fresh meat products have a short shelf life and should not be transported over long distances, while processed and frozen meat products can be transported globally. Seafood consumption is increasing due to the rise in aquaculture, making Europe the largest importer of this commodity. Key markets include the UK, Germany, France, and Italy for canned fish. The increasing demand for meat and seafood will drive the need for refrigerated warehouses and transportation facilities, thereby fueling the growth of the meat, fish, and seafood segment in the European cold chain market.

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Research Analysis

The Cold Chain Market in Europe is witnessing significant growth due to increasing consumer preferences for temperature-sensitive products, particularly in the healthcare and food & beverage sectors. The market is driven by the rise of e-commerce sales and organized retail stores, which require efficient cold chain solutions for storing and transporting temperature-sensitive goods. Developing economies in Europe are also fueling market growth as they adopt modern cold chain technologies. Advancements in cold chain technologies, such as RFID, automation, and IoT, are revolutionizing warehouse management and inventory management systems. IT spending on cold chain logistics is increasing, with a focus on cloud computing and real-time temperature monitoring components. The refrigerated storage market is expanding, with a growing demand for chilled, frozen, and deep-frozen storage solutions. Regulations regarding temperature-controlled transportation and storage are strict in Europe, ensuring the safety and quality of temperature-sensitive products. The refrigerated transportation segment is also growing, with an increasing focus on reducing transit times and maintaining optimal temperature ranges during transportation. Overall, the European cold chain market is expected to continue its growth trajectory in the coming years.

Market Research Overview

The European cold chain market is witnessing significant growth due to increasing consumer preferences for temperature-sensitive products, particularly in the food and healthcare sectors. The rise of e-commerce sales and organized retail stores is driving the demand for efficient cold chain solutions. Developing economies in Europe are also contributing to the market's growth, as they adopt modern cold chain technologies to meet local demand and export to overseas markets. Refrigerated storage and warehouse management systems are key components of the cold chain market, with temperature-controlled warehouses being crucial for maintaining the quality and shelf life of perishable products. Technological advances, such as RFID, automation, cloud computing, and IoT, are revolutionizing cold chain operations, enabling real-time monitoring and inventory management. The refrigerated transportation sector is also essential, with temperature-controlled vehicles ensuring the safe and timely delivery of temperature-sensitive products. The healthcare sector relies heavily on cold chain solutions to maintain the efficacy of medical vaccines and pharmaceutical drugs, which have strict temperature requirements. The cold chain market faces challenges such as regulatory compliance, technical and operational constraints, and high costs. However, investment in reliable solutions and technological advances are helping to optimize costs and improve supply chain efficiency. The market for cold chain solutions is expected to continue growing, driven by the increasing demand for perishable products, including fresh agricultural products, dairy, meat, marine products, and convenience foods. The food sector, particularly agriculture, is a significant contributor to the cold chain market, with traditional farming practices giving way to modern, temperature-controlled storage and transportation systems. The global food system is becoming increasingly interconnected, with trade liberalization and FDI laws driving the growth of the domestic food industry and cold chain sector. The benefits of cold chain solutions are numerous, including assured freshness, palatability, extended product shelf life, reduced spoilage and contamination, and improved supply chain efficiency. The cold chain market is expected to continue growing, driven by changing consumption habits, urban population growth, and the increasing importance of food safety and quality assurance systems.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application
• Meat Fish And Seafood
• Fruits Vegetables And Beverages
• Dairy And Frozen Desserts
• Bakery And Confectionery
• Healthcare
• Type
• Refrigerated Warehouse
• Refrigerated Transportation
• Geography
• Europe

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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