Northbrook, IL 60062 -- (SBWIRE) -- 11/28/2022 -- The smart container market is projected to grow from USD 3.9 billion in 2022 to USD 9.7 billion by 2027, at a CAGR of 19.7% during the forecast period.
The pharmaceutical industry has the highest demand for smart containers as these containers help to manage distribution channels, boosting visibility, security, and reliability, which are key for pharmaceutical product management. The rapid deployment of smart containers in the pharmaceutical supply chain is a key driver for the growth of the market. However, the implementation of a large number of IoT devices results in interoperability issues, which may pose a challenge to the market's growth.
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Smart containers are shipping containers used in the freight and logistics industry. They are integrated with Internet of Things (IoT) technology, sensors, GPS tracking, and telecommunication and telemetry devices. Such electronic equipment installed on the containers helps to collect near real-time data about several parameters such as temperature, humidity, pressure, light, and location inside the containers. Additionally, smart containers come with preinstalled software and services which provide data storage, data analysis, and fleet management, among others. With the help of these features, smart containers offer advanced security, reliability, tracking, and monitoring capabilities.
The smart container market by vertical has been segmented into food and beverages, chemicals, pharmaceuticals, oil and gas, and others. Among these, the pharmaceuticals segment is estimated to hold the largest market share during the forecast period. Pharmaceutical logistics is highly sensitive to time and quality assurances. Products in the pharmaceutical industry demand temperature-controlled storage and distribution, along with strict regulatory control. Pharmaceutical supply chains are very demanding as a large number of shippers are required to maintain cold chain practices in addition to avoiding theft during transport. They also employ special provisions to move specialized pharmaceutical products. As a result, the industry aims to deliver critical products to customers, in a secure manner, and at a competitive operational cost. Smart containers have emerged as the most reliable and efficient form of shipping sensitive pharmaceutical products. Smart containers offer various benefits to the pharmaceutical industry such as improved adherence to pharmaceutical regulations, improved location tracking, near real-time temperature, humidity and pressure monitoring, and heightened security. Owing to their benefits, the pharmaceutical industry is rapidly employing smart containers.
The smart container market has been segmented into four regions—North America, Europe, Asia Pacific, and the Rest of the World (RoW). Europe is estimated to hold the largest share of the smart container market during the forecast period. Europe has the largest presence of players in the smart container market. The market players in Europe are not only offering hardware solutions but also IoT software platforms to improve data storage and data analytics. Players offering such solutions in Europe include Nexxiot AG, Sensolus, and Arviem. Additionally, the higher technology adoption in the European region has led to the increasing implementation of smart container technologies such as IoT, AI, ML, Bluetooth Low Energy, and LoRaWAN. Furthermore, through its funding programs, such as the EU Horizon 2020 (which has a long-term research and innovation framework from 2021 to 2027), the European region has been providing support for the development, testing, and deployment of innovative technologies and novel transportation solutions to boost the digitalization of mobility and the shipping industry. Such factors have led to the rapid adoption of smart containers in the European region.