Precision Livestock Farming Market Size, Share and Growth Analysis

Updated on : October 22, 2024

Precision Livestock Farming Market Size & Growth

The precision livestock farming market size is estimated to be USD 6.9 billion in 2023 and projected to reach USD 11.2 billion by 2028, growing at a CAGR of 10.2% between 2023 to 2028.

Some of the major factors contributing towards growth of precision livestock farming market includes surging deployment of IoT- and AI-enabled devices on livestock farm, rising labor costs leading to automation in livestock industry, increasing focus on real-time monitoring and early disease detection, and growing demand for quality dairy products across the globe due to increasing awareness among consumers towards protein-rich diet and health consciousness.

Precision Livestock Farming Market Forecast to 2028

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Precision Livestock Farming Market Trends and Dynamics:

Driver: Surging labor costs and rising demand for automation in the livestock industry

Labor costs worldwide have been increasing perpetually, prompting farmers to substitute expensive labor with cost-efficient, advanced digital solutions for livestock farming. Western countries, especially in Europe, rely upon immigrant laborers from Eastern Europe for farming operations. Similarly, the North American region relies on migrant laborers from South American countries to work in their fields. According to the US Department of Agriculture (USDA the average wage paid to hired workers by farm operators in April 2022 was USD 17.22 per hour, which represented an increase of 8% from April 2021. Field workers received an average wage of USD 16.50 per hour, a 9% increase, while livestock workers earned USD 15.82 per hour, up by 7%. The demand for automation in the livestock industry is increasing significantly to increase productivity, improve farm management, tackle the challenge of high labor cost, facilitate real-time analysis, and better decision-making.

Restraint: Availability of plant-based alternative products for dairy milk

Dairy milk production has raised concerns about animal welfare and the environment, which is driving consumers to seek alternatives. This will hamper global dairy milk production, thereby impeding the growth of the precision livestock farming market. According to Univar Solutions (US), in 2020, the demand for plant-based milk is growing by more than 10% yearly, while dairy milk is growing at a rate of 3% annually. Soymilk was first introduced in 1996, but the plant-based trend began to catch on in early 2010, and since then, it has expanded and changed. Plant, grain, and nut milk currently comprise over 10% of the total milk market. Milk substitutes have already seized market share and now make up 13% of retail milk sales in the US, in which almond milk has the most significant share among the substitutes.

Opportunity: Growing popularity of poultry robots and BSC smart cameras

A breakthrough in the precision livestock farming market is the emergence of poultry robots, which are used for several purposes such as monitoring, manure removal, egg collection, etc. Poultry robots have successfully received the attention of poultry farm owners and commercial poultry farms to facilitate poultry production with more precision. These robots can monitor flocks, detect dead birds, stress, and any other anomaly among poultry birds, and provide real-time information to farm operators. This could lead to better monitoring of birds, thereby improving farm hygiene, and bird comfort.

Body condition scoring (BSC), which is done to estimate fat in cattle, is done manually in dairy farms across the world. This process is labor-intensive and requires much time to evaluate the right amount of fat among cattle. Smart cameras can be used for the same; however, the penetration of these cameras is low. Nevertheless, these cameras are likely to be adopted at large in the coming years, which will offer opportunities for the players in the precision livestock farming market. DeLaval, LIC, and Afimilk are some of the key companies offering BCS smart cameras.

Challenge: Emergence & re-emergence of diseases and environmental concerns

Infectious diseases are quite common in the livestock farming industry. The African Swine Fever (ASF) outbreak resulted in significant monetary losses in South Africa and hit its exports by 20%. Factors affecting livestock's health include the livestock house structure, ventilation, temperature management, feed, water supply, and other hygienic conditions. The resistance of poultry birds toward antibiotics is affecting the overall industry, and hence, the use of vaccines to prevent the spread of diseases can impact poultry farming. According to the UN Food and Agriculture Organization, the demand for meat is expected to rise by 73% between 2010 and 2030; the demand for milk is expected to rise by 58% during the same period. Due to the increasing demand for livestock products, more pressure on the environment is expected to be visible by 2030.

Dairy farms likely to dominate the overall precision livestock farming market between 2023 and 2028

Based on farm type, the market has been segmented into dairy farms, poultry farms, swine farms, and others. In 2023, the dairy farms segment held the largest share of the precision livestock farming market and is continuing to account for the largest market size during the forecast period. Increasingly strict regulations on the use of antibiotics and other medications in livestock production and environmental protection regulations are likely to drive the adoption of precision livestock farming technologies in the dairy industry. Further, government support and initiatives can significantly impact the dairy farming market by providing financial assistance, improving infrastructure, and offering technical guidance to farmers. This assistance can include subsidies, loans, insurances, and grants to invest in modern technologies and high-quality livestock, leading to improved milk production.

Precision Livestock Farming Market Ecosystems

The precision livestock farming market ecosystems market mainly includes research & development facilities, technology providers, OEMs & system integrators, suppliers & distributors, end users and post-sale service providers. Technology providers majorly include companies that offer components, robotic solutions, deeding systems, GPS systems, sensors, smart tags, software solutions, IoT and AI technologies. OEMs & system integrators majorly include component manufacturers, device manufactures, system manufactures and packaging, testing and calibration. The end users of precision livestock farming market mainly includes dairy farms, swine farms, poultry farms, food safety and processing labs, and dairy research labs.

Precision Livestock Farming Market Segmentation

Hardware segment likely to account for the largest market size in the global precision livestock farming market during the forecast period

The global market share is segmented into hardware, software, and services based on offering. Hardware devices used in precision livestock farming collect and analyze critical data points both on an individual and herd level. Hardware devices collect data that can provide insights on the health, heat stress, feeding, efficiency, and estrus of the cow and other livestock. The rising adoption of smart sensors, camera systems, robotics, and automation in livestock farming has resulted in better farm management by gathering information pertaining to the livestock. Moreover, the integration of emerging technologies such as artificial intelligence, machine learning, the internet of things (IoT), and the hardware devices have resulted in innovative offerings for the livestock.

Feeding management application segment likely to witness second largest market size from 2023 to 2028

Rising awareness among livestock farm owners for better management of feed inventory and animal diets is likely to contribute significantly to the growth of the feeding management application segment. Sufficient feed intake is one of the most critical requirements for high milk production in dairy cows, of which phosphorus (P) and potassium (K) are essential minerals that must be supplied in sufficient quantities for healthy milk production, maintenance, and the growth of dairy cattle. Feeding management is gaining momentum in poultry farms, with several established companies catering to this demand. The right amount of nutrition is required for birds' proper growth, resulting in efficient poultry production.

Milking robotic systems is expected to dominate the precision livestock farming market from 2023 to 2028.

Milking robotic systems to hold the largest market share throughout the forecast period. Major factors contributing towards a higher market share of milking robots include increasing adoption of milking robots by commercial farms, and rising labor cost across the world has compelled dairy farm owners to move towards automatic milking and improvise farm operations. For instance, according to the Farm Labor Survey (FLS) by the US Department of Agriculture (USDA), the inflation-adjusted wages for nonsupervisory crop and livestock workers (excluding contract labor) increased at an average annual rate of 1.2 percent between 1990 and 2021. However, in the last five years, real farm wages grew at a rate of 2.5 percent per year, reflecting the difficulty that growers faced in finding workers.

Precision Livestock Farming Industry Regional Analysis

Americas likely to be the second-largest market for precision livestock farming throughout the forecast period

Precision Livestock Farming Market by Region

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The Americas is one of the largest markets for precision livestock farming technology. Several factors such as large herd size, technology penetration, government policies pertaining to livestock farming, progressive farmers, and the presence of several companies have paved the way for the development of the precision livestock farming market in the region. The adoption of advanced monitoring and farming techniques in the livestock segment is high in the Americas, especially in North America. Rising labor costs and increasing demand for milk and meat have resulted in the adoption of milking robots, precision feeding systems, livestock identification, monitoring, and tracking systems. In addition, poultry monitoring, and robotic systems are also witnessing heightened adoption in the region.

Top Precision Livestock Farming Companies - Key Market Players

The major players in the precision livestock farming companies are

• DeLaval (Sweden), 
• Allflex Livestock Intelligence (US), 
• GEA Farm Technology (GEA Group) (Germany), 
• Afimilk (Israel),
• Lely International (Netherlands).

Precision Livestock Farming Market Report Scope

Precision Livestock Farming Market Highlights

This research report categorizes the precision livestock farming market based on offering, farm type, system type, farm size, application, and by region.

Recent Developments in Precision Livestock Farming Industry:

• In March 2023, DeLaval launched an autonomous feed distribution robot called OptiWagon.
• In March 2023, Lely International introduced Mijn Boerderij (My Farm) Platform which includes a milk quality module that monitors milk quality parameters such as somatic cell count and bacterial content.
• In March 2023, DeLaval launched the cutting-edge DeLaval Rotary E500 rotary milking system. It increases milking efficiency, streamlines worker routines, automates the selection and sorting of cows, and minimizes stress on dairy cows.
• In October 2022, Merck Animal Health, which is known as MSD Animal Health unveiled the Allflex DataFlow II System mobile application.
• In September 2022, GEA introduced the GEA DairyFeed F4500, an autonomous feeding robot.
• In September 2022, Lely International recently introduced the next generation of its automated feed pushing solution, the Lely Juno.
• In July 2022, Fancom BV partnered with VDL Agrotech (the Netherlands), a leading supplier of innovative systems and solutions for the global poultry and pig farming industries.
• In May 2021, Nedap N.V. partnered with Waikato, a leading company to develop and manufacture dairy technology.

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