The veterinary artificial insemination market is projected to achieve a market value of US$3.16 Bn in 2022, registering a positive CAGR of 5.2% and reach a value of US$5.24 Bn in the forecast period 2022-2032.
From 2017 to 2021, the demand for veterinary artificial insemination grew at a CAGR of 4%. During the COVID-19 pandemic, the market’s growth prospects have declined significantly. Enforcement of stringent lockdowns to contain the spread of infection has led to a decline in animal husbandry activities in the first half of 2020. However, as the intensity of the infection decreased, the possibilities have increased again.
Increased need to multiply livestock for increased yield potential
Artificial insemination technology has been commercially available for over 60 years and has been used very effectively in the cattle and dairy industry. Various factors such as risks associated with animal breeding and disease transmission are the key factors driving the market growth.
Increasing productivity using AI technology is fueling the market for veterinary artificial insemination. Female offspring born through artificial insemination produce more milk than normal offspring. The use of antibiotic-containing semen expanders is also helpful in preventing the transmission of bacterial diseases. In addition, the whole process of AI is said to be much cleaner than natural intercourse
In addition, as production conditions and farmers’ needs develop, many animal breeds are no longer suitable for most farms. However, artificial insemination is used as a preferred breeding method for such breeds and makes it possible to continue to cultivate the breed in situ.
Seeking to enter cattle efficiency to widen artificial insemination
The adoption of artificial insemination is expected to increase in the coming years due to factors such as increased efficiency of bull use, genetic selection, reduction in housing costs, handling of bulls and protection of farmers and animals. The rising cost of calf is also a major factor in the adoption of AI technology.
According to a report published by the Beef Cattle Research Council in March 2018, the price of bulls in Canada ranged from US$5,500 to US$8,000 from 2015 to 2016. These prices dropped from US$4,500 to US$6,500 from 2017 to 2018 due to the adoption of AI.
There is a growing demand for genetically superior breeds of animals, which in turn is driving the demand for artificial insemination procedures in animals. Industry players are constantly striving to develop new products along with partnerships, collaborations and acquisitions to maintain their market share. For example, in August 2020, Cogent collaborated with AB Europe, a sheep breeding company, to launch a new sexed semen service for sheep producers in the UK.