LIVESTOCK IDENTIFICATION MARKET ANALYSIS

The livestock identification Market size is valued at US$ 3.83 Bn in 2024 and is expected to reach US$ 7.35 Bn by 2031, growing at a compound annual growth rate (CAGR) of 9.8% from 2024 to 2031. Livestock identification refers to methods that are used to track and identify farm animals by using tags, microchips, brands, tattoos, boluses, and other tracking devices. It helps in managing livestock inventory, preventing disease outbreaks, monitoring animal welfare, and more. The market is segmented into  product type, animal type, technology, application, component, and region. By technology, radio frequency identification (RFID) tags are the largest and fastest growing segment due to their accuracy, reliability, and usage in multiple applications like farm management, animal tracking, and others.

Livestock Identification Market Regional Insights

• North America is expected to be the largest market for livestock identification market during the forecast period, accounting for over 41.2% of the market share in 2023. The growth of the market in North America is due to increasing focus on cattle monitoring and growing adoption of IoT and RFID.
• The Europe is expected to be the second-largest market for livestock identification market, accounting for over 25.2% of the market share in 2023. The growth of the market in is due to rising livestock population and need for disease outbreak control in the region.
• The Asia Pacific is expected to be the fastest-growing market for livestock identification market, with a CAGR of over 22.5% during the forecast period. The increasing livestock production in Europe has heightened the demand for efficient management systems, which is poised to significantly boost the growth of the livestock identification market in the region.

Figure 1. Livestock Identification Market Share (%), By Region, 2023

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Analyst view Point

The livestock identification market holds strong growth potential in the near future. With rising concerns over livestock health and traceability of animals and animal products across various countries, demand for livestock identification solutions is set to surge. Advanced identification methods like RFID tags are expected to gain widespread adoption compared to conventional tags owing to benefits such as improved accuracy and automation.

North America  dominates the global market and is likely to continue its leading position given the presence of progressive livestock management practices and supportive government policies in the region. However, Asia Pacific is identified as the fastest growing regional market with China and India at the forefront on back of improving standards of animal farming as well as increasing meat exports from these countries. Growing global consumption of livestock products is a major catalyzer driving implementation of identification systems worldwide. Overall, the market is set to witness healthy expansion over the coming decade on account of rising focus on livestock health, food safety, and quality standards compliance.

Livestock Identification Market Drivers

• Adoption of IoT and RFID technology for livestock monitoring: With the increasing integration of advanced technologies like IoT and RFID, livestock monitoring and identification has become more efficient. RFID tags and sensors enable real-time tracking and identification. Companies like Allflex have RFID ear tags with temperature sensors and motion tracking. For instance, the adoption of 5G networks and advanced IoT sensors is expected to further fuel the livestock monitoring market between 2020-2023. 5G will offer low-latency connectivity for real-time data collection even from remote sites. Sensors are getting smaller in size, cheaper and more reliable over time.
• Need to prevent livestock fraud and theft: Livestock fraud through cattle substitution, theft, and illegal slaughter causes heavy losses to farmers. Livestock identification helps prevent such frauds and thefts, thus enabling authorities to track animals, improving transparency in supply chain. Increased cases of livestock theft and frauds globally are driving uptake of animal ID methods. For instance, false insurance claims and stolen stock are some of the issues affecting the cattle industry. Companies are using facial recognition and machine learning to tackle these problems.
• Growing focus on livestock productivity and health: Livestock identification enables farmers to monitor animal health, nutrition intake, vaccinations, and others closely. It provides actionable insights to take timely actions and improve productivity. E.g. real-time monitoring helps detect diseases early. Growing focus on improving livestock health and productivity is boosting demand for ID solutions. For instance, utilizing artificial intelligence (AI) algorithms to interpret live data from wearable gadgets such as fitness trackers and medical sensors enables both veterinarians and animal owners to detect alterations in health early on. This capability allows for early action and preventive measures, which in turn supports more efficient veterinary care. The convenience and valuable data provided by AI-powered wearable technology and remote monitoring services are fueling expansion within this market sector.
• Implementation of mandates for animal identification: Many countries have implemented mandates for animal identification to enable tracking for disease control and food safety. For instance, U.S. requires all cattle traded across state lines to carry RFID tags and EU implemented electronic identification of cattle in 2021. Such regulations are contributing to market growth.                 

Livestock Identification Market Opportunities

• Integration with block chain for enhanced supply chain traceability: Integration of block chain technology with livestock identification methods can transform supply chain transparency and traceability. It allows apt documentation of animal movement, health events and others immutable. Market players are collaborating on block chain integrated solutions, thereby opening new possibilities. For instance, in 2022, in Thailand, the adoption of blockchain technology in the livestock supply chain has the potential to greatly enhance traceability and transparency by offering immutable and secure records. The implementation of blockchain guarantees verifiable and tamper-proof documentation from the farming stage through to the end consumer, thus affording the industry a substantial competitive advantage with its integration with blockchain for enhanced supply chain traceability.
• Development of solutions for wildlife tracking and conservation: Wildlife conservation is an emerging opportunity for the livestock identification market. Solutions like GPS collars, biometrics ID are being applied for activities like tiger census in India, elephant tracking in Africa and othes. Players can tap this area. For  instance, wildlife drones has VHF tagging and sensor technology that significantly bolster wildlife conservation by facilitating precise monitoring, data gathering, and expansive area surveys. Their global compatibility ensures standardized data collection for international research collaboration. This integration into conservation strategies aids in managing wildlife populations and protecting ecosystems effectively.
• Growing potential in developing countries due to rising livestock population: Developing regions like North America, Europe and Asia Pacific have huge livestock populations and underpenetrated markets. Rising demand for meat products, focus on improving farm productivity and disease control in these countries provide significant growth opportunities. In 2021, according to the FAO, the livestock sector holds significant potential for growth in developing countries due to the expanding livestock population. This increase supports the livelihoods and food and nutrition security of nearly 1.3 Bn individuals, accounting for 40% of global agricultural output value. Moreover, there exists a considerable opportunity to refine practices within this sector to enhance sustainability, ensure greater equity, and minimize risks to both animal and human health.
• Use of diagnostic data collected for preventive care: The diagnostic data like health parameters collected can be utilized for predictive analysis to enable timely preventive care in animals. Companies can integrate technologies like AI and machine language (ML) to unlock value from data for preventive healthcare, opening new avenues. For instance, HealthforAnimals champions the animal health industry by promoting the use of diagnostics in preventive care to enhance well-being and productivity. This organization advocates for data-driven approaches that empower proactive management of animal health through vaccines, parasiticides, and other health products. They emphasize the importance of early disease detection and intervention to support sustainable livestock and pet care practices.

Livestock Identification Market Trends

• Transition towards digital identification methods globally: The market is witnessing a major transition from conventional visual ID methods like tattoos, tags, brands to electronic ID methods like RFID, GPS enabled tags globally due to benefits like real time monitoring, reduced labor costs. Adoption of electronic ID methods is a key trend. According to scientific report in 2023,the SmartGlove invention is an emblematic of the global shift towards digital identification methods, where the convergence of RFID technology and augmented reality (AR) smart glasses underscores a significant market trend toward more interactive, efficient, and integrated systems. This product's blend of RFID and AR positions it at the forefront of innovations aimed at improving and streamlining identification processes across various industries. The market trend shows a growing appetite for such advanced technologies, thereby potentially leading to a wide adoption of SmartGlove-like devices as standard tools in the era of digital transformation that companies guided by Ms. Shraddha Rana at Coherent Market Insights might advise their clients to invest in.
• Increasing integration with farm management software: Livestock ID systems are increasingly integrated with farm management software to allow consolidated data analysis for insights into overall farm operations. Market players are collaborating with farm management companies or developing integrated platforms enabling this integration. For example, the burgeoning integration of cutting-edge technologies such as VRT, GPS, and various mapping and data management software into farm management systems represents a notable trend driving the expansion of the global farm management. These tools assist in optimizing land fertility and escalating profitability by enabling precise and efficient farming practices that aim to maximize yield while simultaneously minimizing costs. This trend significant investment opportunities as the industry continues to innovate and adopt smart farming solutions.
• Growing demand for multi-application ID tags: Rising demand for livestock ID tags which serve multiple applications beyond identification like health monitoring, herd management and others  through use of sensors, connectivity with farming software and others. For instance, in 2022, Antelliq company is an animal intelligence group, providing world-class devices for animal identification and traceability, launched subscription-based version of its SenseHub monitoring system tags measure motion, and temperature along with ID.

Livestock Identification Market Restraints

• High costs of electronic identification methods: The electronic livestock identification methods like RFID tags, biometrics and others are relatively costlier as compared to conventional ID methods. The high costs especially for small farms hinder large scale adoption and is a key challenge. While electronic identification allows for advantages like real-time tracking of animal movements and health, the steep price tags end up restricting its use only to larger commercial operations able to bear such costs. This limited adoption in turn impacts the potential revenues and growth prospects of companies providing livestock identification products and services Companies are focused on developing low cost solutions.
• Counterbalance:  The costs of the electronic identification should be affordable as compared to the conventional identification methods for widespread adoption.
• Lack of supporting infrastructure in developing regions: Developing regions often lack the infrastructure like connectivity, technology, and databases that is required to fully implement electronic livestock identification programs. This poses a key challenge in adoption of technology solutions in those markets. The infrastructure challenge is further exacerbated in remote and rural areas which house a major share of livestock in developing nations. Lack of roads, electricity, internet connectivity and skilled local administrators create logistic and administrative nightmares for deployment of technology-based solutions.
• Counterbalance: To address logistics and administrative challenges in the livestock identification market, companies can invest in autonomous tech solutions such as battery-powered RFID tags and offline data systems that require less infrastructure, while also partnering with local agencies to enhance skills and connectivity. On-the-ground training and support can ensure technology that is used effectively despite the lack of resources. It's key to align with initiatives aimed at infrastructure development to ensure long-term sustainability and adoption of identification technologies even in remote areas.
• Security and privacy concerns related to data breach risks: There are apprehensions among farm owners about the misuse or data breaches associated with electronic systems tracking animal locations, health, and others. Concerns around data privacy and security with extensive data collection hamper uptake of advanced systems. Farmers and breeders are hesitant to fully adopt modern livestock tracking systems as they fear their sensitive data including location of farms and barns, animal pedigree and genetic information, treatment history etc. could be exposed and misused if the databases are hacked.
• Counterbalance: To alleviate farmers' fears regarding data security in the livestock identification market, providers can enhance encryption measures and institute robust cybersecurity protocols, while also offering transparency and control over data to the farmers. Educating breeders on the benefits and safeguards of modern systems can build trust and encourage adoption.

Figure 2. Livestock Identification Market Share (%), By Product Type, 2023

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Recent Developments

New Product Launches

• In December 2022, AI which is a leading technology company operating in Dairy, Agriculture and Sustainability space has launched CowGPT. It is the world's first generative AI application purpose built for this space.
• In 2022, a Luoyang Laipson Information Technology Co., Ltd. developing, manufacturing and marketing visual & RFID ear tags, ear tag tools and disease diagnostic test kits, introduced a new UHF RFID handheld reader that functions within the 860-960 MHz frequency range. This device is capable of scanning various UHF RFID ear tags, including models UM301, UM401, US201, UF301, and other compatible UHF ear tags.
• In 2022, Merck Animal Health, a company involved in preserving and improving the health, well-being and performance of animals through science with Allflex Livestock Intelligence, introduced SenseHub Feedlot, an innovative electronic ear tag that is designed to improve early sickness detection in cattle.

Acquisitions and Partnerships

• In October 2023, the law firm Ropes & Gray advised Varsity Healthcare Partners on their investment to expand VetEvolve, a people-first organization that provides industry know-how and reliable support to veterinary teams, a network of 32 veterinary clinics with over 100 veterinarians, located in the U.S. Mid-Atlantic.
• In 2021, Allflex was acquired by MSD Animal Health to leverage complementary capabilities and expand identification products.

Top Companies in Livestock Identification Market

• Allflex
• Datamars
• Leader Products
• Fitbit
• IDEXX Animana
• Ag
• Connecterra
• CowManager
• HerdInsights
• Moocall
• BouMatic
• CSIRO
• Ardes
• LAIPSON
• Stockbrands
• MS Schippers
• Caisley International GMBH

Definition: The livestock identification market refers to the industry and technologies related to systems that is used to accurately identify, monitor and track livestock animals like cattle, poultry, swine etc.