Livestock Monitoring and Identification Market Size, Share & COVID-19 Impact Analysis, By Component (Hardware, Software, and Services), By End-use (Dairy Farm, Beef Farm, Sheep Farm, Deer Farm, and Goat and Pig Farm), and Regional Forecast, 2020-2027

The global livestock monitoring and identification market size was USD 1,545.0 million in 2019 and is projected to reach USD 3,690.4 million by 2027, exhibiting a CAGR of 11.6% during the forecast period.

In recent years, there has been a high number of animal disease outbreaks in recent years, which has led to the demand for animal tracking solutions. Thus, allowing farmers to rapidly treat and curb the spread of deadly diseases. The market participants have positively impacted the upgrade of their tracking technologies in order to accurately track and identify livestock. Furthermore, government initiatives for animal traceability programs are likely to play a critical role in adopting effective hardware solutions such as neck/collar tags, RFID tags, and injectable tags, among others. The rising population of cattle and acceptance of cattle monitoring technologies in developing countries will provide substantial opportunities for the market in the forthcoming years.

Reduced Demand for Monitoring Solutions Amid Coronavirus

Due to the spread of COVID-19, the livestock industry is likely to be hampered in the short term. The newly emerged COVID-19 disease caused an incredible crunch on animal products, especially meat and dairy products across the globe. This resulted in declined investments for animal monitoring solutions. Additionally, in various countries across the global hotel and catering business, closures culminated in decreased demand for meat and dairy products affecting the global market adversely.

The global market is expected to witness steady growth in the long term. Governments and food organizations across the globe are taking active initiatives for animal tracking and health monitoring. For instance, by January 2022, the United States Department of Agriculture (USDA) would not approve metal or other ear tags that do not contain RFID components for animal tracing.

The rising prevalence of significant animal disease outbreaks, increased demand for meat and dairy product launches, coupled with interstate cattle import/export law, is expected to restrict further the growth of the market in the forthcoming years.  

LATEST TRENDS

High Penetration of the Internet of Things (IoT) is a Key Trend in the Market  

IoT technology is expected to play a significant role in enhancing the livestock & farming industry and meeting food demand. In livestock monitoring, innovative IoT-based technology and applications are implemented to increase operating performance, optimize returns, and reduce loss by gathering data on the cattle in real-time, data analytics, and control mechanisms. IoT solutions enable farmers and livestock keepers to closely monitor livestock health that can be a preventive way to prevent losses occurring because of diseases.

Connected sensors and wearables technology can monitor heart rate, blood pressure, digestion, respiratory rate, temperature, and other physical vitals that help farmers be alerted at the initial stage of illness. IoT developments would make it easier for livestock owners to obtain greater farm efficiencies. Farmers should follow the livestock tracks, including cows, pigs, goats, beef, and others. This will also promote positive improvements. Smart IoT sensors will most likely transform the conventional processes of livestock production.

DRIVING FACTORS

Increasing Prevalence of Major Animal Disease Outbreak Have Created Need for Livestock Monitoring and Identification Solutions

With population and global income set to continue to increase, demand for meat and livestock food will rise dramatically. Therefore, the industry's goal should be to satisfy potential demand, ensure good quality, and achieve it sustainably without creating irreparable environmental harm or exceeding global resources. Threats from pathogens begin to evolve with rising urbanization, combined with the ever-changing environment, which results in infectious disease outbreaks in the livestock industry. The growing number of heat stress, floods, and drought events could result in the spread and proliferation of transmitting models and new diseases through emerging macro-parasites and vector-borne diseases.

• For instance, in June 2019, farmers and livestock keepers across Asia witnessed the spread of African Swine Fever (ASF) that forced them to slaughter millions of pigs.

Thus, the need for livestock monitoring solutions has grown in recent years, enabling farmers to track and monitor animal health and maintain a timely response for any disease. Adoption of livestock and monitoring solutions are helping farmers to maintain better health of livestock and thus resulting in higher farm yields. Therefore, an increased number of animal diseases is driving the livestock monitoring and identification market growth.

Implementation of Animal Disease Traceability (ADT) Programs to Boost Market  

Farmers and livestock keepers worldwide have the necessity of animal traceability solutions to maintain animal health better. Government mandates, coupled with food quality obligations, have contributed to the need to implement animal tracing solutions. The government promotes Sustainable Development Goals, and customers become more aware of their foods sources and environmental footprint. Governments are proposing new frameworks for the adoption of animal tracing solutions.

Thus, government mandates are promoting the adoption of livestock monitoring solutions across the globe.   

RESTRAINING FACTORS

Environmental Concerns Associated with Livestock Farming Will Hamper the Market Growth

According to the Food and Agriculture Organization of the United Nations, greenhouse gas (GCG) emissions with livestock supply chains are estimated to be 7.1 gigatonnes per annum and represent 14.5% of human-induced emissions. In the future scenario, growing environmental concerns are expected to limit certain species' farming in some countries across the world. This, as a result, is expected to hamper the market growth over the future scenario.

SEGMENTATION

By Component Analysis

Hardware Segment to Capture Maximum Share in the Global Market

Based on component type, the market is segmented into hardware, software, and services.

The hardware segment is further bifurcated into RFID tags and injectable tags. The rising population and increased consumption of meat and dairy products put unprecedented pressure on farmers and food processing companies. Thus, farmers opt for better monitoring solutions such as EID tags, RFID, and ear tags. Adopting these solutions enables farmers to automate repetitive tasks and improve food quality by continuously monitoring animal health.

The livestock management software segment is expected to gain exponential growth over the forecast period. Data collected from endpoints such as RFID tags and injectable tags are stored in the software that aids in pasture and location management and feed management.

By End-use Analysis

Dairy Farm Segment is Anticipated to Hold Major Share

Based on end-use, the market for livestock monitoring and identification is segmented into dairy farm, beef farm, sheep farm, deer farm, and goat and pig farm.

The implementation of livestock monitoring solutions has seen strong growth in dairy farms as farmers’ are adopting emerging technology to increase requirements of milk and milk products. Livestock technologies allow the cow and milk industry to gather data and detect cow heat, health surveillance, and other variables while ensuring that consumers and farmers benefit from cost.

The adoption of monitoring solutions such as RFID and injectable tags for beef farms is likely to exhibit the highest CAGR during the forecast period. The growth of the segment is mainly owing to the adoption of identification and monitoring solutions among beef producers and farmers.

REGIONAL INSIGHTS

Based on the region, the global livestock monitoring & identification market has been studied across five foremost regions, namely North America, South America, Europe, Asia Pacific, and the Middle East and Africa, and

North America accounted for maximum market share due to high technological developments and increased expenditure on adopting agricultural solutions in countries such as Canada and the United States. The growth rate of animal food and byproduct consumption in North America has increased in recent years, which has insisted local meat and dairy product producers boost their provision lines. Demand for animal products from North America around the world will likely continue to increase if consumer incomes increase and trade barriers are reduced. Meanwhile, the pressure to ensure the safety and quality of products is on both the government and the private sector. Additionally, government mandates on animal disease traceability are expected to play a vital role in the market growth. Thus, the adoption of livestock monitoring solutions is expected to rise in the region.   

The European market is expected to capture a significant share over the forecast period. European countries, mainly France, UK, and Italy are growing at a significant rate as meat and dairy products have grown exponentially. According to European Union, the EU meat market will be accompanied by higher global demand over 2030, leading to higher exports and reaching 4.7mt in 2030 from 4.35mt in 2017. Thus, the adoption of livestock monitoring solutions is expected to grow in the region.

Asia Pacific is expected to grow at the highest CAGR over the forecast period. Government mandates and interstate livestock exchange regulations are projected to lead most regional livestock monitoring growth. In recent years, producers of milk and beef in the region have introduced innovative technology to satisfy the demand for fast-moving animal and dairy products in the region. Asian livestock producers in countries for example India or Australia, opt for advanced technologies for increased animal tracking activities. In growing countries such as India, South Korea, and others, population growth has brought a great deal of strain to bear on farmers to become successful and profitable. It has thus introduced advanced solutions for better animal and cattle by product.

In the Middle East and Latin America, the livestock monitoring market is expected to grow over the forecast period at a significant CAGR. The population growth in the region's developed countries raises the demand for livestock suppliers to be more reliable and profitable, thus driving up livestock monitoring solutions sales.

KEY INDUSTRY PLAYERS

Key Market Players to Enhance Offerings through Partnership Strategies

Market-leading players such as Zee Tags Ltd. (Datamars), Quantified AG, Allflex (SCR Engineers Ltd.), ID Tech Solutions Private Limited, Shearwell Australia, AEG ID (AB Electrolux), and others are planning to launch advanced and innovative product offerings on account of some of the significant technological advancements and developments. On the other hand, some players are planning to enter into strategic partnerships with other companies to maintain their position in the market as well as gain strong brand advertising. For instance,

• February 2020 – Cainthus, an agri-tech company based in Dublin, launched ALUS Nutrition, a solution that incorporates RFIDs and cameras to track animal health and adjust feed management plans accordingly.  

LIST OF KEY COMPANIES PROFILED:

• HerdX, Inc. (Boerne, Texas)


• Afimilk Agricultural Cooperative Ltd. (Afikim, Israel)


• infsoft GmbH (Ingolstadt, Germany)


• Zee Tags Ltd. (Datamars) (Auckland, New Zealand)


• Quantified AG (Nebraska, United States)


• Allflex (SCR Engineers Ltd.) (Texas, United States)


• BouMatic (Madison, Wisconsin)


• Connecterra B.V. (Amsterdam, The Netherlands)


• ID Tech Solutions Private Limited (Haryana, India)


• Shearwell Australia (East Bendigo, Australia)


• Y-Tex Corporation (Wyoming, United States)


• Dairymaster (County Kerry, Ireland)


• GEA Group (Düsseldorf, Germany)


• DeLaval Inc. (County Kerry, Ireland)


• CowManager B.V. (Harmelen, Netherlands)


• Valley Agricultural Software, Inc. (California, United States)


• Cainthus (Dublin, Ireland)


• Lely International N.V. (Maassluis, the Netherlands)

KEY INDUSTRY DEVELOPMENTS

• November 2019 – DeLaval launched DeLaval VMS V310, an automated milking management solution that automatically detects cow heat and pregnancy during the milking and harvesting process.


• May 2020 – CowManager introduced an enhanced cow monitoring solution that can be integrated with the ear sensor technology. The company's new cow monitoring solution shows real-time alerts that can be viewed on smart devices.

REPORT COVERAGE

The livestock monitoring and identification market research report offers qualitative and quantitative insights on the product and a detailed analysis of market size & growth rate for all possible segments in the market.  Along with this, the report provides an elaborative analysis of market dynamics, emerging trends, and competitive landscape.

Key insights provided in the report are the adoption trends of advanced monitoring solutions, recent industry developments such as mergers & acquisitions, consolidated SWOT analysis of key players, partnerships, Porter’s five forces analysis, and business strategies of leading market players, key industry trends, macro, and micro-economic indicators.

Report Scope & Segmentation