The veterinary Artificial Insemination (AI) market size was USD 4.74 Billion in 2021 and is expected to register a revenue CAGR of 7.4% during the forecast period. Rising consumer awareness about benefits of animal protein and increasing issues of Sexually Transmitted Diseases (STD) in animals and improving animal productivity.
Veterinary artificial insemination is the process of placing semen manually in reproductive tract of female animals. Artificial insemination improves genetics and reproduction of farm animals and helps to reduce many of the transmitted diseases among veterinary animals. It allows greater efficiency in terms of genetics and crossbreeding of animals. This technique has been available in the market for over 60 years and has been successfully employed in dairy and livestock industries. A number of factories that support market growth, such as artificial insemination (AI), can reduce some danger associated with animal breeding and disease transmission, hence usage of AI technology is helping the sector become more efficient. Compared to their natural descendants, female descendants produced by artificial insemination are more likely to be lactating females. In addition, use of semen expanders based on antibiotics stops spread of bacterial illnesses. The complete AI system is regarded as being considerably more advanced than a natural mattress. Moreover, when market conditions and farmer needs change, many livestock breeds are no longer adequate for majority of farms. However, for many species, artificial insemination is a preferred method of reproduction since it allows species to persist in its natural environment. Increasing populations also increase requirement for ongoing livestock development. Furthermore, the market for artificial insemination of animals is expanding along with rising demand for genetically superior kinds of animals. However, industry companies are continually working to develop new goods along with partnerships and collaborations to maintain their market position.
Driver: Increasing issues of STDs in animals
A major factor driving market revenue growth is increasing complications of sexually transmitted diseases in animals. According to a March 2022 article titled Controlling Sexually Transmitted Diseases in Cattle, STDs including bovine trichomoniasis (trich) and vibriosis can become serious issues and lead to significant production losses. As a result, the market is anticipated to be driven by need to safeguard farm animals from transmission of sexually transmitted diseases. In addition, desire for superior breeds of animals is rising globally, which is driving demand for artificial insemination treatments for animals. Moreover, it is projected that future expansion of the industry will be fueled by increasing human population and its benefits such as lower housing costs, increased bull usage efficiency, safety for farmers and animals, genetic selection, and bull handling. Artificial insemination method aids in reduction of numerous contagious diseases in veterinary animals by increasing efficiency of genetic and animal crossbreeding . According to an article titled ‘Success rate of artificial insemination, reproductive performance, and economic impact of the failure of first service insemination: a retrospective study,’ that was published in June 2022. Artificial insemination (AI) is regarded as the best method for boosting reproductive capacity and has been widely used in farm animals in Ethiopia. Furthermore, endometrial thickness, artificial insemination timing, artificial insemination frequency, and ovarian stimulation regimens are other factors that affect AI success. In the next years, this is anticipated to drive demand for artificial insemination (AI) and propel market expansion.
Restraint: High Costs Involved
High costs involved in artificial insemination is a major drawback for the global market as it requires specialized tools and qualified personnel. To correctly practice AI, one needs an artificial vagina, thermostats, heated receptacles, non-spermicidal gel and equipment to evaluate motility (warmed stage microscope), and spermatozoa. This is pricey with a well-equipped laboratory possibly costing around USD 40,000 simply in equipment.
Multiple obstacles were provided to the market for veterinary artificial insemination by COVID-19 pandemic. This included difficulties with implementing AI operations on-site, decreased demand for AI goods and services, and dangers and unpredictability brought on by shifting consumer trends in a number of important marketplaces. However, pandemic brought attention to necessity for producing superior cattle to ensure food source, as well as other disease outbreaks, such as African Swine Fever (ASF). The Animal Husbandry Department of India began a program in June 2020 to protect workers and farmers from Covid-19. This agency was providing telephone support to owners of animal farms as a part of this program. During lockdown, farmers were also receiving artificial insemination services at their doorstep. As a result, these activities have expended the market for veterinary artificial insemination.
Based on product, the global market has been segmented into normal semen and sexed semen. The normal semen segment is expected to register a steady growth rate over the forecast period. Due to strong segmentation sales, regular semen is less expensive than sex semen. According to a study published in the Italian Journal of Animal Sciences, proportion of sexed semen to normal semen ranged from 71.8% to 78.5%, indicating that normal semen is more fertile than sexual semen.
The sexed semen segment is expected to register a steady revenue growth rate. This growth is expected to be driven by rising adoption to accelerate rate of herd expansion and helpful government initiatives. Cost of sexed semen straws was reduced in June 2021 by the Indian government. This agreement between the government and Genus ABS would benefit dairy producers in Maharashtra, by lowering cost of sex-sorted semen from USD 17.50 to USD 1. A rise in sexed semen sales was also recorded by Agriculture and Horticulture Development Board in the UK in 2020 as a result of higher success rates and competitive pricing.
Based on animals, the global market has been segmented into cattle, swine, sheep, canine, equine, and others. The cattle segment is expected to register a steady growth rate over the forecast period. Genetic base change statistics, which quantify actual progress made for each attribute within a breed, can be used to assess advancements in bovine genetics. The modified Predicted Transmitting Abilities (PTAs) for each characteristic and animal in a breed make up the base change. Every five years, the number is reset to 0. For instance, from 2015 to 2020, Alta Genetics Inc. reported observable improvements for production attributes in both Jerseys and Holsteins. The company's Holstein and Jersey breeds received favorable ratings for production parameters such as Daughter Pregnancy Rate (DPR), milk, fat, and protein.
Based on end-use, the global market has been segmented into veterinary hospitals, animal husbandry and others. The animal husbandry segment is expected to register a steady growth rate over the forecast period. Growth can be linked to the fact that most semen collecting and artificial intelligence (AI) processes are carried out on-site at breeding farms. Use of AI technology is also growing as a result of rising government initiatives, technological breakthroughs, and consumer demand for dairy and protein. For instance, the Indian government approved approximately USD 2.06 billion for Animal Husbandry Infrastructure Development Fund in June 2020. (AHIDF).
The veterinary hospitals segment is expected to register a moderate growth rate. This is due to increase in hospitals performing artificial insemination treatments in both developed and developing nations, encouraging initiatives, and increase in veterinarians. For instance, according to the AI Development Plan that was announced in China in 2017, Chinese government proclaimed itself open to the world's top AI innovation center by 2030. It describes artificial insemination as a new focus point of international competitiveness.
The Asia Pacific market accounted for largest revenue share in 2021. Asia Pacific has a sizable market share due to presence of a huge animal population in this region. In addition to legislative changes, rising demand for dairy and animal protein propels economic expansion. For instance, the Indian government proposed USD 2.13 billion in funding for initiatives to produce infrastructure for animal husbandry in May 2020. In addition, China has the third-largest stock of cattle and actively uses artificial insemination on farms to increase profits.
The North America market is expected to a register steady growth rate over the forecast period. This is due to development of the animal husbandry sector, rising interest and use of AI in cattle breeding, and presence of important businesses, such as STgenetics, a global leader in sexed semen. For various types of cattle and buffalo, the company's sex sorted semen gives an average of 93.0% female purity.
The Latin America market is expected to register for a moderate growth rate over the forecast period. Brazil is one of the countries where this method has been applied widely to increase their revenue and, adopted Fixed-time Artificial Insemination techniques (FTAI). The Brazilian Association of Artificial Insemination reports that between 2005 and 2019, marketable semen dose increased from almost 7 million to almost 14 million.
Competitive landscape of the global veterinary artificial insemination market is consolidated with a few key players operating on global and regional levels. Key players are engaged in strategic alliances to expand their respective portfolios and gain a robust footing in the global market. Major companies in the global market report include Select Sires, Inc., Swine Genetics International, SEMEX, Zoetis, Cooperative Resource International (GENEX), Cogent, Viking Genetics, Genus PLC, Polar Genetics India, and Fox Fire Farm.
Segments Covered in the report
This report offers historical data and forecasts revenue growth at a global, regional, and country level, and provides analysis of market trends in each of sub-segments from 2019 to 2030. For the purpose of this report, Reports and Data has segmented the global veterinary artificial insemination market based on product, animals, end-use, and region:
Veterinary Artificial Insemination (AI) Market Report Scope
Segments covered By Product Mode Outlook, Animals Outlook, End-Use Outlook, Regional Outlook
By Product Mode Outlook
By Animals Outlook
By End-Use Outlook
Middle East & Africa