Blockchain seen to grow refrigerated transport market

Blockchain seen to grow refrigerated transport market

Market research firm Technavio sees the transportation of refrigerated goods by land to grow at a compound annual rate of 7% from 2018 to 2022.

Aiding in such growth is the increase of blockchain worldwide, which, according to the firm, will promote transparency and reduce the likelihood of data corruption or alteration.

In its press release, Technavio said, “The technology is attaining the growth stage in developed countries. But, the blockchain technology is still in its introduction stage in developing regions such as APAC and the Middle East.”

Countries such as China and Japan, it added, have begun using the technology for the pharmaceutical industry, information technology, and transportation, among other industries.

A senior analyst of the company said that using blockchain will allow transportation and logistics firms to better monitor data on storage temperatures “at every point in the product supply chain.”Technavio noted that a key driver for refrigerated land transport was fresh meat consumption, which totaled 320 million tons worldwide in 2017, and is expected to grow 1.25%-1.5% yearly.

“The rise in fresh meat consumption is likely to increase the market opportunities of global refrigerated road transportation service providers,” the company said.

In 2017, refrigerated trailers constituted almost 52% of the refrigerated road transportation market, and is expected to continue to maintain its share over the next few years.

Among regions, the Asia-Pacific held 40% of the market share, and will continue to dominate until 2022.

A separate report, also released by Technavio, foresees blockchain extending its influence to the refrigerated sea transport market, which was projected to grow at a compound annual rate of 4% from 2018-2022.

By 2025, the research firm said, 9% of world gross domestic product will be secured through blockchain, and marine transport in particular stands to benefit due to “substantial documentation including charter party agreements, bill of lading, letters of credit, sales contracts, port documents, and others that pass through a long chain of parties” requiring transparency that blockchain provides.

In 2017, food and beverages constituted the largest market share among products transported by sea in refrigerated containers, at 40%. The Americas hold the largest market share among regions, at 40%.

New to blockchain? Check out CoinGeek’s Blockchain for Beginners section, the ultimate resource guide to learn more about blockchain technology.