Veterinary Microchips Market Size, Share & Trends Analysis Report By Animal Type, By Scanner Type (134.2 KHz, 125 KHz, 128 KHZ), By Distribution Channel, By Region, And Segment Forecasts, 2024 - 2030

Veterinary Microchips Market Size & Trends

The global veterinary microchips market size was estimated at USD 0.68 billion in 2023 and is projected to grow at a CAGR of 9.98% from 2024 to 2030. Key factors expected to drive the market include the increasing adoption of companion animals, technological advancement in animal microchips, growing animal health expenditure, and increasing adoption of microchips. For instance, according to AVMA, dog ownership has increased by 39% over the decade prior, with an estimated 78 million dogs kept as pets in the United States as of 2022. Hence, the increasing adoption of companion animals significantly drives the market growth. As more people welcome pets into their homes, there's a growing emphasis on pet safety, identification, and traceability. Microchipping provides a reliable and permanent method of identifying pets, which is crucial for reuniting lost animals with their owners and ensuring proper pet management.

The COVID-19 pandemic significantly impacted the global population as well as industries and sectors across all domains. Moreover, the animal health market was heavily impacted. The disruption of the supply chain, a drop in sales, poor demand, and operational challenges brought on by changing regulations & policies are only a few of the primary negative effects of COVID-19 on the animal health sector. The market for veterinary microchips was affected by the COVID-19 pandemic. During lockdown, local authorities microchipped 77% fewer dogs. Across the country, veterinarians discontinued offering non-emergency care during the COVID-19 outbreak.

Moreover, microchips have numerous benefits, including cost-effectiveness, lifetime protection, and a reduction in pet theft. For pet ID, microchipping is an affordable option. The initial cost of microchipping is typically low, ranging from USD 25 to USD 50, depending on the veterinary hospital and location. Microchipping seems like a cost-effective solution when one takes into account the expenses that might be triggered by lost pets, such as the cost of publishing fliers, providing rewards, and searching for them. Furthermore, a lot of animal shelters and rescue groups provide inexpensive microchipping services during special occasions or as a component of adoption packages.

Market Concentration & Characteristics

The market exhibits a moderate market concentration, and the pace of the market growth is accelerating. One of the key factors fueling the market growth is the increasing animal health expenditure. As pet owners become more concerned about their pets' well-being, they're willing to invest in advanced veterinary care, including microchipping. This trend is fueled by the rising awareness of pet safety, the benefits of microchipping for identification, and the increasing regulations mandating microchip implants for pets. In addition, as veterinary care becomes more sophisticated and accessible, the demand for microchipping as a preventative measure against lost or stolen pets is expected to rise, further propelling market growth.

The market demonstrates a high degree of innovation. Innovation in the veterinary microchip market has been driven by advancements in technology and increasing demand for more sophisticated solutions in animal identification and health monitoring. For example, a new generation of enhanced pet identity microchips has been manufactured by VetChip. Devices provide pet owners and veterinarians with unprecedented ability to monitor their animals' health virtually anywhere around the world. Through a smartphone app, the "chip" provides owners with a unique perspective into their pet's health by tracking biological data in real time.

Within the market, there exists a moderate to high level of mergers and acquisitions activity, indicative of ongoing consolidation and strategic acquisition and partnerships among industry players. For instance, in September 2022, Datamars acquired Prattley Industries Ltd., a manufacturer of animal handling equipment. Through this strategic move, Datamars integrates its own livestock traceability and productivity solutions with Prattley's world-leading handling systems, offering a full package for livestock farmers across the world.

The market experiences a moderate to high impact of regulations. In many countries, governments have enacted laws that require mandatory microchipping of pets, especially dogs and cats. These laws drive demand for microchips and create a more standardized market. For example, the UK has mandated microchipping for all dogs, and the European Union has similar regulations for pets traveling across borders.

Moderate to high levels of regional growth operations in the market are caused by initiatives by major competitors in the market. Companies in this region, like Pethealth and HomeAgain, are expanding into neighboring regions like Latin America due to high pet ownership rates and stringent microchipping regulations. To cater to different regional needs, companies are diversifying their product offerings. For instance, Virbac offers a range of microchip sizes and types to meet the specific requirements of different regions.

Animal Type Insights

Based on animal type, the dogs segment led the market with the largest revenue share of 46.07% in 2023. This dominance is due to the widespread adoption of dogs as pets and the growing awareness among pet owners regarding the importance of microchipping for identification and recovery in case of loss. In addition, regulations in various regions mandating the microchipping of dogs contribute to this trend. The strong emotional bond between owners and their dogs further drives the demand for microchipping to ensure their safety. Furthermore, an increase in the importance of pet health & high veterinary healthcare costs is expected to aid further market growth. According to the World Population Review, the U.S. has the highest number of pet dogs, with 90 million in 2024.

The other segment is anticipated to grow at the fastest CAGR over the forecast period. The segment comprises of small mammals, cattle, pigs, and other livestock animals. Microchips are essential for the identification and tracking of livestock. They help in managing animal records, tracking their movements, and ensuring they are returned if lost or stolen. Microchips facilitate better farm management by providing data on animal movements, breeding, and health, helping farmers make more informed decisions and optimize operations. Moreover, as international trade in livestock and livestock products grows, microchipping helps in meeting export requirements and ensuring the health and traceability of animals across borders.

Scanner Type Insights

Based on scanner type, the 134.2 KHz segment led the market with the largest revenue share of 63.64% in 2023. The 134.2 kHz is the most common frequency used for veterinary microchips. This frequency is standardized for pet identification in many regions, including Europe and North America. The 134.2 kHz frequency is part of the ISO standards, which help ensure compatibility and interoperability of microchip readers and microchips across different countries and systems. This standardization is crucial for effective pet identification and recovery, making it the dominant choice in the global market.

Most modern pet scanners are designed to read microchips operating at 134.2 kHz. This widespread compatibility ensures that pets can be identified regardless of where they are found, or which scanner is used. Moreover, the technology used for 134.2 kHz microchips is designed for longevity, ensuring that the information stored remains accurate and accessible for many years, which is crucial for the long-term identification of pets.

Distribution Channel Insights

Based on distribution channel, the veterinary hospitals/clinics segment led the market with the largest revenue share of 57.02% in 2023. Veterinary clinics and hospitals are often at the forefront of adopting new technologies, including advanced microchip systems with enhanced features. Moreover, many veterinary practices now routinely offer microchipping services as part of their care packages, especially during routine check-ups or spaying/neutering procedures. In addition, veterinarians often educate pet owners about the advantages of microchipping, such as permanent identification and improved chances of reuniting lost pets with their owners.

The other segment is anticipated to grow at the fastest CAGR over the forecast period. The other segments include pharmacy store, online stores, and others. Many pharmaceutical stores collaborate with veterinary clinics to offer microchipping services. This can include providing microchips, tools, and even training for veterinarians. Such partnerships make it easier for pet owners to access microchipping services. Veterinary pharmaceutical stores may stock microchip products and related supplies, making it more convenient for veterinary professionals to purchase and use them. This accessibility can encourage more widespread adoption. Overall, veterinary pharmaceutical stores play a crucial role in increasing the visibility and accessibility of microchipping, thereby driving its adoption.

Regional Insights

North America dominated the veterinary microchips market with the largest revenue share of 33.34% in 2023 and is expected to grow at a significant CAGR over the forecast period. The market is driven by the presence of established players and increasing demand for microchips. Moreover, the market is growing because of rising veterinary healthcare expenditures and per capita income. The pet insurance market in this region is governed by the North American Pet Health Insurance Association (NAPHIA). As per the National Pet Owners Survey conducted by the American Pet Products Association in 2023, 66% of U.S. households owned a pet, which is equivalent to 86.9 million homes.

U.S. Veterinary Microchips Market Trends

The veterinary microchips market in U.S. is anticipated to grow at the fastest CAGR during the forecast period. The stringent government regulations governing dog microchipping is the main factor driving the market growth in U.S. In order to prevent the transmission of rabies, all dogs entering the United States from other countries must be microchipped and at least six months old, according to an article published by Mike Stobbe, The Associated Press and Adriana Gentil in May 2024. Hence, the regulations mandating the microchipping of dogs can significantly drive the market growth. When a country or region enforces compulsory microchipping, it usually leads to a surge in demand for microchips and associated services.

Europe Veterinary Microchips Market Trends

The veterinary microchips market in Europe is expected to grow at a significant CAGR during the forecast period, due to favorable government regulations. Moreover, a rise in the number of companion animals and a high per capita income are two components driving market growth. According to an article published in September 2023 by the Pet Food Industry, in 2022, cats were the most popular pet in Europe, accounting for 127 million or 26% of all households. Dogs followed by just 1%, with 25% of homes in Europe owning a pet dog.

The UK veterinary microchips market is expected to grow at a significant CAGR over the forecast period. According to an article published by RSPCA, In Wales and England, it is legally required for any dog older than eight weeks to have a microchip. A notification directing to microchip a pet may be given to owners if it isn't already registered on an authorized database and the dog is microchipped. Owners could be charged with a crime and have to pay a £500 (USD 658.46) fine if they don't comply within the next 21 days. Thus, laws requiring pets to be microchipped can greatly increase adoption rates, which further fuels market growth.

Asia Pacific Veterinary Microchips Market Trends

The veterinary microchips market in Asia Pacific is expected to exhibit at a lucrative CAGR over the forecast period. This is because of the emergent trend of pet adoption and the development of the economy in this region. Furthermore, an increase in awareness regarding veterinary health and improving veterinary healthcare infrastructure are other factors driving market growth. According to IMF 2019, the per capita income of Asia Pacific is USD 7.35 thousand and is expected to reach USD 10.18 thousand by 2024.

The India veterinary microchips market is expected to grow at a significant CAGR over the forecast period. The presence of microchip databases and registries in a country can significantly influence the market growth. For instance, Whizzles, the initial and only pet microchip registration and restoration service in India. By microchipping a pet, owners can make sure it has a unique identification number that will be used mostly for tracking purposes and to get it back if it is lost or stolen. This is achieved by first informing Whizzles Network centers, veterinarians, and concerned pet authorities about a pet's loss and entering its unique ID number in a global databank.

Latin America Veterinary Microchips Market Trends

The veterinary microchips market in Latin America is expected to grow at the fastest CAGR over the forecast period. Increasing veterinary healthcare penetration, rising per capita income, and growing awareness of the numerous benefits of microchips are expected to fuel market growth in the Latin American throughout the forecast period. One key driver is the increasing pet ownership rates in the region, with dogs being the most popular pets, followed by cats and birds. Pet ownership sales have been evolving across Latin America. As more people move to cities, there is more demand for cats and small dogs, according to an article published by Pet Food Industry in June 2023.

The Brazil veterinary microchip market is driven by factors such as rising pet humanization and increasing pet ownership. Increasing pet ownership in Brazil drives demand for microchipping as pet owners seek to ensure the safety and recovery of their pets in case, they get lost. Furthermore, growing humanization of pets leads to higher spending on pet health and safety measures, including microchipping.

Middle East & Africa Veterinary Microchips Market Trends

The veterinary microchips market in Middle East & Africa is anticipated to grow at a significant CAGR over the forecast period. In the MEA, the rising awareness regarding animal health in developing countries such as Saudi Arabia and South Africa. The disposable income in the region is high, which indicates higher spending capacity on animal healthcare, which is more likely to invest in preventive and wellness measures for their pets, such as microchipping, which can enhance pet safety and help with recovery if they get lost. This trend is likely to boost the demand for veterinary microchips.

The South Africa veterinary microchips market is expected to grow at the fastest CAGR over the forecast period. Livestock is the country’s economic backbone, as several farmers look after their animals for meat and milk to supply across the country and the globe. Farmers and ranchers use microchips to track and manage livestock, which becomes even more important as herds grow. This helps in monitoring health, location, and breeding. Microchips facilitate better disease tracking and biosecurity measures. With larger livestock populations, managing and preventing outbreaks becomes crucial, and microchips can provide valuable data.

Key Veterinary Microchips Company Insights

The market is fairly competitive due to the existence of numerous small to major market participants. Companies are increasingly adopting various strategies, such as mergers & acquisitions, geographic expansion, and launch of products to grow in the market. For instance, in October 2022, A new production facility focused to Animal Health Intelligence was established by Merck Animal Health. This innovative facility will use the latest innovations like RFID and data analytics to produce creative solutions for animal tracking and identification. The opening of this facility demonstrates Merck's dedication to improving animal health and solidifies its position as a major leader in the industry.

Recent Developments

• In May 2023, Datamars acquired Kippy S.r.l., the popular GPS tracker and activity monitoring system for dogs, an appropriate expansion of its current service for pet owners worldwide

Veterinary Microchips Market Report Scope

Global Veterinary Microchips Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global veterinary microchips market report based on animal type, scanner type, distribution channel, and region.

• Animal Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Dogs

  • Cats

  • Horses

  • Others

• Scanner Type Outlook (Revenue, USD Million, 2018 - 2030)

  • 134.2 KHz

  • 125 KHz

  • 128 KHz

• Distribution Channel Outlook (Revenue, USD Million, 2018 - 2030)

  • Veterinary Hospitals/clinics

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

    • Denmark

    • Sweden

    • Norway

  • Asia Pacific

    • Japan

    • India

    • China

    • South Korea

    • Australia

    • Thailand

  • Latin America

    • Brazil

    • Argentina

  • Middle East and Africa (MEA)

    • South Africa

    • Saudi Arabia

    • UAE

    • Kuwait