|
Forecast Period
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2025-2029
|
|
Market Size (2023)
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USD 0.64 Billion
|
|
Market Size (2029)
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USD 1.05 Billion
|
|
CAGR (2024-2029)
|
8.76%
|
|
Fastest Growing Segment
|
Dogs
|
|
Largest Market
|
North America
|
Market Overview
Global Veterinary Microchips Market was valued at USD 0.64 Billion in 2023 and is expected to reach USD
1.05 Billion by 2029 with a CAGR of 8.76% during the forecast period.
The Global Veterinary Microchips Market is
experiencing significant growth due to the increasing adoption of pets,
livestock identification requirements, and the rising need for efficient pet
tracking and recovery systems. Veterinary microchips, which are implanted under
the skin of animals, allow for unique identification, enhancing animal welfare
by facilitating reunification with owners in case of loss or theft. The growing
awareness about pet safety and the importance of identification in livestock management
is also contributing to market expansion. Petlog, one of the largest
microchipping databases in the UK, has reported that over 25,000 pets have gone
missing since January 2023. Between January 2023 and June 2024, nearly 5,000
dogs and over 20,000 cats were reported lost. During this timeframe, more than
3,500 dogs and over 13,000 cats were successfully located and reunited with
their owners. Notably, 74% of dogs and 62% of cats were returned to their
families due to accurate and current microchip information. . This
statistic underscores the critical role of microchips in pet identification and
recovery, highlighting a significant driver for the Global Veterinary
Microchips Market. Microchips provide a more reliable and permanent method of
identification compared to traditional collars and tags, which can be lost or
damaged. In addition to pet owners, government regulations in various regions
are mandating the use of microchips for specific animals, particularly
livestock, to ensure traceability and disease control. This has further driven
demand in the market. The use of microchips in wildlife conservation efforts,
including tracking endangered species and studying animal migration patterns,
is also increasing, adding another dimension to market growth.
Technological advancements in microchip design,
such as the incorporation of temperature sensors, have expanded their functionality,
enhancing their appeal to veterinary clinics and animal shelters. The
veterinary microchips market is expected to witness sustained growth due to
continuous innovation and expansion in pet ownership, especially in emerging
economies. However, challenges such as the need for standardization across
regions and concerns over data privacy could potentially affect the market's
trajectory.
Key Market Drivers
Growing Pet Ownership and Companion Animal
Population
The rising global trend of pet ownership,
particularly among companion animals such as dogs and cats, has become a key
driver for the Global Veterinary Microchips Market. This surge is largely
fueled by an increasing awareness of the mental and physical health benefits
that pets offer, including emotional support, stress relief, and companionship.
As pets are increasingly regarded as family members, pet owners are more
willing to invest in their health, safety, and well-being. This shift in
perception has led to growing demand for advanced pet care solutions, including
reliable identification systems like veterinary microchips.
Urbanization, changing family structures, and
higher disposable incomes, particularly in emerging economies, have also
contributed to this trend. More people in urban environments are adopting pets
as part of smaller family units or as sole companions, leading to higher
adoption rates. The COVID-19 pandemic played a significant role
in boosting pet ownership, as many individuals and families turned to pets for
comfort during periods of isolation and social distancing.
Microchips offer a dependable, cost-effective
solution for identifying and tracking pets, addressing concerns about lost or
stolen animals. Unlike traditional collars and tags, which can be easily lost
or damaged, microchips are implanted under the pet’s skin and provide a
permanent form of identification. This enables quick recovery and reunification
of pets with their owners. Various governments have implemented
regulations advocating or mandating microchipping for pets, which has further
accelerated market growth. As the global companion animal population continues
to grow, particularly in regions with rising disposable incomes and increasing
urbanization, the demand for veterinary microchips is expected to remain
strong. Pet owners' desire for enhanced safety and security, alongside
supportive government regulations, will continue to drive the adoption of
microchips as a preferred identification method.
Rising Awareness of Pet Safety and Identification
Technologies
The rising awareness of pet safety and the
importance of identification technologies has significantly contributed to the
growing demand for veterinary microchips. With increasing incidents of pet
theft and the risks of pets becoming lost, owners are seeking more reliable
solutions for safeguarding their animals. Microchipping has emerged as a
preferred method, offering a permanent, tamper-proof form of identification
compared to traditional options such as collars and tags, which can easily be
removed or lost. The ability of microchips to provide lifelong identification
with minimal failure risk greatly enhances the likelihood of reuniting lost
pets with their owners, thus elevating their appeal. For instance, from
January 2023 to June 2024, over 21,000 cats registered with Petlog have been
reported missing in the UK, with 62% (13,231) successfully located and reunited
with their families due to their microchip.
Animal welfare organizations, veterinary clinics,
and pet shelters play a pivotal role in promoting the importance of
microchipping as part of responsible pet ownership. These organizations often
run awareness campaigns and offer discounted or free microchipping services to
encourage adoption. Through educational programs and partnerships, they stress
the long-term benefits of microchipping, such as increased safety, reduced
stress in finding lost pets, and compliance with local regulations. These
initiatives have effectively raised public awareness about the importance of
pet identification, further driving the adoption of veterinary microchips.
In addition to growing awareness, technological
advancements in microchips are also fueling demand. Recent innovations, such as
integrating GPS trackers and storing vital health and vaccination data within
the microchip, offer added convenience and functionality to pet owners. These
enhanced features not only help locate lost pets but also provide quick access
to medical records, which can be crucial in emergencies or when traveling. This
added layer of utility has broadened the appeal of microchips, making them a
more comprehensive solution for pet safety and management.
Technological Advancements in Veterinary Microchips
Technological advancements in veterinary microchip
products and related services are significantly driving growth in the Global
Veterinary Microchips Market. These innovations are making microchips more
efficient, reliable, and user-friendly for both pet owners and veterinary
professionals. One major improvement is the development of microchips with
enhanced durability and smaller sizes, making them easier to implant with
minimal discomfort to animals. These modern microchips are also increasingly
compatible with global identification standards, allowing for seamless
identification across borders and enhancing their appeal to a broader consumer
base.
A notable trend is the integration of GPS tracking
technology within certain microchip models, offering real-time location
tracking for pet owners concerned about their pets’ safety. This functionality
goes beyond traditional identification, providing owners with peace of mind by
allowing them to monitor their pets' whereabouts continuously. The
incorporation of GPS technology has significantly enhanced the value
proposition of microchips, especially for pet owners in areas prone to pet
theft or for those with particularly adventurous animals.
Innovations in microchip scanning technology have
also played a crucial role in boosting the adoption of veterinary microchips.
More accurate and widespread scanning capabilities now allow animal shelters,
veterinary clinics, and other relevant professionals to quickly and easily
identify microchipped pets. This advancement has streamlined the process of
reuniting lost pets with their owners, further strengthening the market’s
growth. Another emerging trend is the ability to store vital
medical information, such as health records and vaccination details, within
microchips. This feature provides added convenience for pet owners, ensuring
that crucial medical data is readily accessible in emergencies or during
routine veterinary visits. As these technological enhancements continue to
evolve, they are likely to increase the adoption of microchips among pet owners
and professionals alike, ensuring that veterinary microchips remain an integral
part of pet safety and healthcare management.
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Key Market Challenges
High Cost of Microchipping Services
One of the significant challenges in the Global
Veterinary Microchips Market is the relatively high cost of microchipping
services, which can be a deterrent, particularly for pet owners in low- to
middle-income regions. The cost of the microchip itself may be affordable, but
the additional charges for implantation and registration can accumulate, making
it a significant expenditure for many. Pet owners, especially in developing
economies, may prioritize more immediate and visible care options, such as vaccinations
or food, over microchipping, which is seen as an optional, non-urgent service.
This cost sensitivity is exacerbated by the lack of public awareness regarding
the long-term benefits of microchipping, leading to lower adoption rates. The recurring costs associated with registration and updating
ownership information in databases can also discourage some pet owners from
opting for microchipping. In some countries, regulatory frameworks requiring
mandatory microchipping have helped to mitigate this challenge, but in areas
without such regulations, the cost remains a significant barrier to widespread
adoption. To overcome this challenge, market players may need to focus on
making microchipping services more affordable or introducing subsidized
programs in collaboration with governments or non-profit organizations to
encourage adoption.
Data Privacy and Security Concerns
As the world becomes more digitally connected,
concerns around data privacy and security have become prevalent, and the
veterinary microchips market is no exception. Microchips store critical data
such as pet identification information and owner details, which are stored in
central databases that can be accessed by veterinarians, animal shelters, and
other authorities. However, the management of this sensitive information raises
concerns about the security of the data and the potential for breaches or misuse.
Pet owners may worry about their personal information being compromised,
especially if the databases are not well protected or regulated. In some
regions, there are no clear legal protections or guidelines governing the use
and storage of microchip data, which exacerbates these concerns. The interoperability of databases across borders can create further
complications when pets travel internationally, as pet owners may fear that
their data is being shared without their consent. These privacy concerns,
coupled with the lack of robust data protection frameworks, can create
reluctance among pet owners to adopt microchipping solutions. Addressing these
concerns would require the implementation of stricter data protection measures,
the creation of transparent data usage policies, and ensuring that pet owners
have control over their information.
Key Market Trends
Increasing Adoption of Microchips in Livestock and
Wildlife Tracking
The increasing adoption of microchips in livestock
and wildlife tracking is significantly driving the growth of the veterinary
microchips market. In agricultural settings, microchips offer farmers a
reliable and efficient method for tracking and monitoring livestock. These
chips help manage crucial aspects of farming, including health monitoring,
breeding, and animal identification. By embedding microchips in livestock,
farmers can track animal movements and access vital data on health conditions,
enabling early detection of diseases, improving animal welfare, and ensuring
compliance with regulatory standards related to food safety. For instance,
In October 2022, Merck Animal Health's minority investment in LeeO Precision
Farming B.V. exemplifies the growing interest in innovative solutions within
the Global Veterinary Microchips Market. By assuming distribution of LeeO's
digital swine traceability solution in selected markets, Merck Animal Health
underscores the increasing demand for advanced identification technologies in
livestock management. This strategic move aligns with the market's trend
towards enhanced animal tracking and monitoring, demonstrating how industry
leaders are leveraging technological advancements to improve animal health and
safety. The collaboration with LeeO's founders and existing shareholders,
including Prairie Systems, Inc., a strategic investment of United Animal Health,
Inc., and MIQ B.V., highlights the importance of partnerships in driving growth
and innovation within the veterinary microchips sector. The data
collected from microchipped livestock can provide insights into productivity,
such as milk production rates or breeding cycles, allowing farmers to optimize
their operations and make informed decisions that enhance profitability.
Beyond agricultural applications, microchips are
also gaining traction in wildlife conservation and management. Conservationists
are increasingly using microchips to track endangered species, monitor
migration patterns, and study animal behavior in the wild. These tracking
efforts provide invaluable information that helps researchers understand the
dynamics of wildlife populations, habitat use, and environmental impacts. For
instance, microchips have been used to track species such as sea turtles, elephants,
and birds, providing critical data that aids in the development of strategies
for species preservation and habitat protection. Microchips are
used to prevent illegal poaching by allowing authorities to track and identify
animals at risk.
The versatility of microchips in both livestock and
wildlife sectors extends their utility far beyond companion animals. In both
cases, microchips offer not only a method for identification but also a tool
for collecting and analyzing important health, movement, and behavioral data.
This multi-functional use of microchips is driving their broader adoption,
contributing to the expansion of the global veterinary microchips market. As
demand for efficient animal tracking systems increases, particularly in livestock
management and wildlife conservation, the market is poised for further growth.
Growth of Veterinary Clinics and Animal Shelters
The growth of veterinary clinics, animal shelters,
and animal welfare organizations worldwide is significantly driving the
expansion of the Global Veterinary Microchips Market. These institutions are
vital in promoting microchipping as a standard practice for ensuring pet safety
and identification, leading to a broader adoption of this technology.
Veterinary clinics increasingly offer microchipping as part of routine health
check-ups or alongside spay and neuter procedures, making it an accessible and
convenient option for pet owners. By integrating microchipping into standard
care protocols, veterinary clinics play a pivotal role in educating owners on
the benefits of permanent identification, thus boosting the market's growth.
Animal shelters also contribute to the rising
demand for veterinary microchips by mandating microchipping for all animals
prior to adoption. This ensures that animals can be easily tracked and returned
if they become lost, reducing the strain on shelters while improving animal
welfare. Many shelters also collaborate with rescue organizations and conduct
awareness campaigns to educate potential pet adopters on the long-term benefits
of microchipping. Through outreach programs, shelters help dispel common misconceptions
and highlight the importance of microchips as a reliable, tamper-proof method
of identification.For instance, The HASS (Humane Animal Services and Solutions)
service model is a framework designed to improve the welfare and management of
animals, particularly in the context of shelters and animal control.
Partnerships between non-profit
organizations, government bodies, and veterinary clinics or shelters play a
crucial role in making microchipping more accessible. These collaborations
often offer subsidized or free microchipping services during community events
or pet adoption drives, encouraging pet owners to participate. Such initiatives
are key in expanding microchip adoption, particularly in underserved or
lower-income communities, further fueling market growth. As veterinary clinics,
shelters, and animal welfare organizations continue to grow and broaden their
services, the awareness and adoption of microchips are expected to rise in
tandem. These institutions are instrumental in establishing microchipping as a
routine and essential aspect of responsible pet ownership, driving the overall
expansion of the veterinary microchips market globally.
Segmental Insights
Animal Type Insights
Based on the animal type, dogs dominated the most
dominating segment in the Global Veterinary Microchips Market, primarily due to
the increasing pet ownership rates, heightened awareness of pet safety, and the
effectiveness of microchips as a permanent identification solution. The surge
in dog ownership globally has been influenced by changing lifestyles,
urbanization, and a growing recognition of the mental and physical health
benefits associated with pet companionship. According to various studies, dog
owners often consider their pets as integral family members, leading to
increased spending on pet care, including health services and identification
systems. This trend is particularly evident in regions like North America and
Europe, where dogs are among the most popular pets. As the number of dog owners
rises, so does the demand for veterinary services, including microchipping. Microchips
are viewed as a reliable and permanent means of identifying dogs, providing a
significant advantage over traditional identification methods such as collars
and tags, which can easily be lost or removed. With microchips, dog owners can
ensure their pets are always identifiable, significantly improving the chances
of recovery if a dog goes missing. The peace of mind offered by microchipping,
knowing that a dog can be traced back to its owner, is a key factor driving the
demand among dog owners.
Increasing awareness about responsible
pet ownership has led to more dog owners recognizing the importance of
microchipping. Veterinary clinics, animal shelters, and animal welfare
organizations frequently advocate for microchipping as a standard practice,
emphasizing its role in enhancing pet safety and reunification efforts. Many
veterinary clinics offer microchipping services during routine check-ups or
spaying/neutering procedures, further facilitating the adoption of this
technology among dog owners.
Scanner Type Insights
Based on the scanner type segment, the 134.2 kHz
frequency is currently the most dominant type in the market, primarily due to
its compliance with international standards, widespread acceptance, and
increased adoption across various regions. The 134.2 kHz frequency is part of
the ISO 11784 and ISO 11785 standards, which establish a global framework for
the identification of animals using microchips. These standards facilitate the
interoperability of microchips and scanners across borders, making it easier for
lost pets to be identified and reunited with their owners, regardless of where
they are found. The global harmonization of microchip technology has led to
increased consumer confidence, resulting in a higher adoption rate of 134.2 kHz
microchips in various countries. Many veterinary clinics, animal shelters, and
animal control agencies are now equipped with scanners compatible with this
frequency, further driving its popularity.
The rise in regulatory mandates for pet
microchipping also significantly contributes to the dominance of 134.2 kHz
microchips. Various countries, particularly in Europe and parts of North
America, have established laws requiring the microchipping of pets,
specifically dogs and cats. The legal frameworks often specify the use of
ISO-compliant microchips, which predominantly operate at the 134.2 kHz
frequency. As a result, pet owners are increasingly opting for these microchips
to comply with local regulations, thereby bolstering the market share of 134.2
kHz scanners.
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Regional Insights
Based on region, In the Global Veterinary
Microchips Market, North America emerged as the dominant region, significantly
shaping the landscape of microchip adoption and implementation. This dominance
can be attributed to several critical factors, including a high pet ownership
rate, strong regulatory frameworks, advanced veterinary healthcare
infrastructure, and a heightened awareness of animal welfare. The rising number
of pet owners in North America, particularly in the United States and Canada,
significantly contributes to the market's growth. With an estimated 70% of
households in the U.S. owning at least one pet, the demand for veterinary services,
including microchipping, is robust. The cultural significance of pets in North
American households leads to increased spending on pet care, including
preventive measures such as microchipping. Pet owners are increasingly
recognizing the importance of microchipping as a way to protect their pets and
ensure their safe return in case they become lost.
North America has implemented strong
regulatory measures promoting microchipping, particularly for dogs and cats.
Several states and provinces have passed laws requiring pet owners to microchip
their animals, especially those adopted from shelters. These regulations create
a solid foundation for the veterinary microchips market, as they not only
increase compliance rates among pet owners but also emphasize the
responsibility of pet ownership. As a result, veterinary clinics and shelters
in the region actively advocate for microchipping, further solidifying its
prevalence among pet owners.
Recent Developments
- In January 2024, the Pune Municipal Corporation's
(PMC) veterinary department initiated a plan to implement microchip technology
for monitoring stray dogs within the city. This initiative aims to track their
movements, verify vaccination statuses, and assess the stray dog population.
The civic body is currently in discussions with private companies to facilitate
this technology. According to the plan, microchips will be implanted around the
necks of stray dogs, and the veterinary department will utilize a mobile
application to gather detailed information about each animal.
- In March 2023, new legislation was introduced in
Parliament to mandate compulsory microchipping for all pet cats. This
initiative aims to simplify the process of reuniting lost or stray cats with
their owners, ensuring their safe return home. The government is fulfilling a
significant manifesto commitment by requiring pet owners to microchip their
cats by June 10, 2024. The implementation of compulsory microchipping is
expected to facilitate the reunification of thousands of lost or stray cats
annually. This development not only enhances pet safety but also represents a
significant opportunity for growth within the Global Veterinary Microchips
Market, as increased regulatory measures are likely to drive demand for
microchipping services and products.
Key Market Players
- Merck & Co., Inc.
- Peeva Inc.
- Virbac
- Trovan Ltd
- Wuxi Fofia Technology Co., Ltd.
- Avid Identification Systems, Inc.
- Datamars SA
- Pethealth Inc.
- Carry My Pet
- Elanco Animal Health Incorporated
|
By Animal Type
|
By Scanner Type
|
By Distribution Channel
|
By Region
|
|
|
|
- Veterinary hospitals/clinics
- Others
|
- North America
- Europe
- Asia Pacific
- South America
- Middle East & Africa
|
Report Scope:
In this report, the Global Veterinary Microchips
Market has been segmented into the following categories, in addition to the
industry trends which have also been detailed below:
- Veterinary Microchips Market, By Animal Type:
o Dogs
o Cats
o Horses
o Others
- Veterinary Microchips Market, By Scanner Type:
o 134.2 kHz
o 125 KHz
o 128 KHz
- Veterinary Microchips Market, By Distribution Channel:
o Veterinary hospitals/clinics
o Others
- Veterinary Microchips Market,
By Region:
o North America
§ United States
§ Canada
§ Mexico
o Europe
§ France
§ United Kingdom
§ Italy
§ Germany
§ Spain
o Asia-Pacific
§ China
§ India
§ Japan
§ Australia
§ South Korea
o South America
§ Brazil
§ Argentina
§ Colombia
o Middle East & Africa
§ South Africa
§ Saudi Arabia
§ UAE
Competitive Landscape
Company Profiles: Detailed analysis of the major companies
present in the Global Veterinary Microchips Market.
Available Customizations:
Global Veterinary Microchips Market report with
the given market data, TechSci Research offers customizations according to a company's
specific needs. The following customization options are available for the
report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
Global Veterinary Microchips Market is an upcoming
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