Northbrook, IL -- (SBWIRE) -- 03/29/2021 -- The precision livestock farming market is estimated to be USD 3.1 billion in 2020 and projected to reach USD 4.8 billion by 2025, at a CAGR of 9.0%. The implementation of IoT- and AI-enabled devices for livestock monitoring, surging labor costs and rising demand for automation in livestock industry, increasing focus on real-time monitoring and early disease detection, and growing demand for protein and dairy products have become the prominent factors for the growth of the precision livestock farming market globally.

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Precision Livestock Farming Market Dynamics

Driver: Transition from precision livestock farming to decision livestock farming
The demand for automation in the livestock industry is increasing significantly to increase productivity, improve farm management, tackle the challenge of high labor cost, as well as to address the need for real-time analysis and better decision making. The integration of AI and IoT in livestock monitoring is substantially impacting the efficiency and output of farm operations. Sensors and smart RFID tags help to track farm animals and detect signs of lameness, enabling farmers to take appropriate actions at the right time. In addition, these devices also send real-time alerts to farmers via mobile apps, text messages, or voice mails. Automation results in efficient use of several resources, such as electricity, water, and feed, and helps reduce labor expenses.

Restraint: High upfront cost and marginal return on investment

A key factor restraining the adoption of precision livestock farming is the high initial investment. Monitoring and tracking equipment, milking robots, feeding systems, IoT modules, sensors, and herd management software are high-cost technologies. Farmers have to make high investments in the installation of these devices and systems, which can affect the return on investment. The majority of the farmers are poor, who find it difficult to invest in these technologies. Moreover, as livestock monitoring products have high maintenance costs, they still remain unappealing among small-scale farmers. Similarly, in the case of poultry farms, which are mostly unorganized with a large number of small or mid-sized farms, the deployment of various poultry automation systems can affect the returns of poultry farmers.

Opportunity:Increasing adoption of livestock monitoring technology in developing countries

Currently, the adoption of livestock monitoring technologies in developing countries is slow, primarily due to high installation costs and low awareness among farmers. However, factors such as the growing demand for milk and dairy products, increasing per capita income of farmers, increasing herd size, and growing focus of government on livestock farming and the agricultural sector are expected to propel the demand for livestock technologies such as milking robots, feeding robots, and livestock monitoring devices in developing countries in the coming years. Emerging markets such as India, China, Brazil, and Turkey are expected to offer significant opportunities to key players operating in the livestock farming market. Developing countries with their large population base, especially in India and China, are expected to emerge as potential growth avenues for livestock farming products, owing to the increasing demand for better quality and quantity of milk, dairy and poultry meat.

Challenge: Stringent government regulations and trade barriers

Livestock farming is one of the most regulated industries in most parts of the world. Regulations control the quantity and quality of dairy products and establish minimum prices and parameters for their storage and supply. Various trade barriers and government programs are prohibiting several developing countries from attempting to establish trade in regulated markets. These barriers are preventing multilateral and bilateral trade negotiations from progressing, thereby decreasing export opportunities and impeding the growth of the dairy industry. Moreover, fragmented dairy farms and unorganized market structure in developing countries is another challenge for the precision livestock farming market. This has resulted in the low penetration of robotics and livestock farm equipment across small and mid-sized farms in developing parts of the world.