Veterinary Artificial Insemination Market

Market Overview

The global veterinary artificial insemination market size was valued at USD 4.46 billion in 2022. It is estimated to reach USD 7.27 billion by 2031, growing at a CAGR of 5.58% during the forecast period (2023–2031).

Artificial insemination is the method of collecting sperm from a male and introducing them at the appropriate moment into a female's reproductive tract using instruments. This has been discovered to produce normal progeny. In this method, the female is inseminated with sperm by mechanically inserting a portion of collected or diluted sperm into the cervix or uterus at the appropriate time and under the most hygienic conditions.

Artificial insemination in veterinary medicine is a reproductive technique that facilitates breeding and enhances animal genetic traits. Cattle, pigs, sheep, goats, horses, cats, dogs, rabbits, ferrets, guinea pigs, birds, and exotic creatures use it frequently. It facilitates selecting and propagating desirable traits, such as increased productivity, enhanced conformation, disease resistance, and particular coat patterns. The procedure also contributes to the preservation of endangered species and the optimization of reproductive efficiency.

Market Dynamics

Global Veterinary Artificial Insemination Market Drivers

Improving Animals' Productivity

Artificial insemination plays a significant part in enhancing the productivity of an animal, especially for milk products. This holds for developing countries with a precise breeding strategy and a proper technical base for implementing the technology per the needs. Artificially inseminated female progeny produce more milk than natural female offspring. The income from the excess milk produced by this method will likely cover the extra costs of extended calving intervals that occurred because of low heat detection.

Breeding may occur in case of physiological, behavioral, or physical abnormalities. In such cases, artificial insemination is a powerful technology linked to other technologies such as sperm sexing and sperm cryopreservation. Artificial insemination can be used to conserve endangered species or rare breeds. The use of semen extenders containing antibiotics also aids in preventing the transmission of bacterial diseases. Consequently, these benefits of artificial insemination are expected to drive market expansion.

Increased Efficiency

During natural breeding, male animals may deposit a higher quantity of semen than what is required to produce a pregnancy. Natural breeding can be physically demanding. These factors limit the number of times a male can mate naturally. As per the International Society for Animal Genetics (ISAG), artificial insemination is preferred over natural mating because the stored semen can be easily transported, which allows females in other geographical sites to be impregnated simultaneously.

Moreover, it is worth noting that semen can be retained for extended periods of time. This characteristic enables males to potentially produce progeny even beyond the typical reproductive lifespan. Semen can be diluted to create hundreds of doses to inseminate hundreds of females from a single ejaculate. All these factors fuel market growth.

Global Veterinary Artificial Insemination Market Restraint

Stringent Regulatory Policies

The market follows standards set by ISAG and animal research laboratories like the University of California Davis (U.C. Davis). The standard panel of ISAG contains 18 STR markers. In addition, all animal genetics companies have to abide by the rules set by the regulatory organizations as well as this panel. High investment in technology development and time gap in product launch are major factors leading to the market's steady growth.

On the other hand, the rising population is anticipated to pose a constant challenge to the requirement of animal protein and food availability, leading to developments and advancements in the animal genetics market.

Global Veterinary Artificial Insemination Market Opportunities

Increasing Consumer Awareness About Benefits of Animal Protein

As urbanization increases, consumers are becoming more aware of the nutritional value of animal protein. There is a growing demand for healthy, sustainable, and high-quality meat products, particularly those containing relatively few or no pharmaceuticals. As a result, the demand for genetically superior breeds of animals is increasing, which in turn is surging the demand for artificial insemination procedures in animals.

Consumers are also becoming aware of micronutrients, whose richest natural sources are animal-based proteins. These micronutrients include vitamin D (ocean fish, cheese, and eggs) and vitamin B12, whose only natural source is animal proteins. Thus, the high demand for these micronutrients increases the demand for animal meat, creating market growth opportunities. Technologies such as gene editing and other breakthrough technologies are likely to allow farmers to breed animals that are more resistant to most chronic diseases.

Regional Analysis

Based on region, the global veterinary artificial insemination market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant global veterinary artificial insemination market shareholder and is anticipated to exhibit a CAGR of 6.14% during the forecast period. The region held the biggest veterinary artificial insemination market share due to the huge livestock population in this region. Increasing demand for milk, animal-based protein, and government initiatives are propelling market growth in this region. Moreover, increasing adoption of pet animals, growing health concerns about pets, and rising prevalence of STDs in animals are the factors driving the Asia-Pacific countries, such as Japan and China.

Furthermore, market growth in the region can be attributed to the significantly high cattle population. For instance, China and India constitute more than 30% of the global cattle population. According to the Brazilian Association of Artificial Insemination, commercialized semen doses increased from more than 7 million in 2003 to nearly 14 million in 2017. Growing healthcare expenditure on animal health and veterinary services further increases the market's growth. The market is expected to experience increased demand for meat consumption, genetic and high-quality livestock, and large-scale production.

North America is estimated to exhibit a CAGR of 5.81% over the forecast period. The market in the North American region is mainly driven by the presence of leading players in this region, who are involved in new product launches and strategic collaborations. For instance, Select Sires, Inc. 2017 introduced SELECTed SexedULTRA 4M semen with double the number of sperm cells. The company is focused on improving sperm survival through sex sorting. In addition, in April 2018, Select Sires introduced the Elite sexed fertility product line. This helped identify sires with sex-sorted semen and superior fertility under the Elite Sexed Fertility designation. These initiatives undertaken by the company and their continuous involvement in improving breeding procedures among animals are expected to drive market growth.

Moreover, the high prevalence of zoonotic diseases contributes to market growth. According to the CDC, animals can transmit six infectious diseases out of every 10 in humans. Furthermore, three emerging or new infectious diseases out of every four in humans come from animals.

According to an article in Multidisciplinary Advances in Veterinary Science in 2017, approximately 80% of European domestic livestock was bred intensively through artificial insemination. Therefore, the increased adoption of artificial insemination in developed countries to improve livestock production drives the market's growth. With growing awareness and environmental issues, Europe is experiencing growth in adopting artificial insemination techniques for milk-producing cattle. In 2015, most of the population moved to a vegan diet when the WHO announced an increased risk of cancer in individuals consuming a meat diet. This has raised the demand for milk and its derivatives to fulfill calcium and protein requirements, creating new avenues for regional market growth.

In Latin America, the veterinary artificial insemination market is driven by the increased prevalence of STDs in animals and improved livestock production. The rising usage of technologies in breeding and increasing meat consumption also boost market growth.

In the Middle East and Africa, the increasing number of artificial insemination procedures drives the veterinary artificial insemination market. Based on animal type, cattle dominate and hold most of the market share, thereby driving the market. Companies use artificial insemination to produce resistant breeds to help them survive under different environmental conditions. For instance, Sion—an Israel-based company focusing on artificial insemination and breeding of cattle—started a unique breeding program that succeeded in supplying genetics capable of dealing with wet and hot conditions, with technicians inseminating nearly 95% (i.e., more than 450,000) dairy cows in Israel.

Segmental Analysis

The global veterinary artificial insemination market is segmented by animal type, product, and end-user.

Based on animal type, the global market is divided into cattle, swine, sheep, canine, equine, and others. 

The cattle segment is the largest revenue contributor to the market and is expected to exhibit a CAGR of 5.29% over the forecast period. Artificial insemination for cattle has been standard practice in most developed and developing countries. It is a highly successful and conventional method of propagating traits of breeding bulls. Success with artificial insemination requires frozen semen straws in cattle at an appropriate time during a cow's heat cycle. Proper timing of artificial insemination is necessary to achieve a high percentage of conception rate in cows bred artificially.

In addition, increased adoption of cattle for artificial insemination procedures, rising milk consumption, and beef production are factors responsible for the significant market growth. For instance, as per the data published by the UN FAO in 2018, beef and buffalo production grew from 69.56 million tons in 2017 to 71.61 million tons in 2018. The increasing consumption of milk and milk products has a beneficial effect on market expansion.

Artificial insemination in sheep is less accomplished than in cattle and swine because it is technologically intensive and costly. Methods used for artificial insemination in sheep include laparoscopic intrauterine, transcervical intrauterine, vaginal, and cervical. Sheep are mostly inseminated for meat, milk, and fleeces. According to the UN FAO, the number of sheep slaughtered for meat globally increased to 573.81 million in 2018 from 564.14 million in 2017. Hence, the rapid growth in the livestock sector, coupled with increasing meat production in emerging countries, is driving the market.

Based on the product, the global market is bifurcated into normal semen and sexed semen. 

The normal semen segment dominates the global market and is projected to exhibit a CAGR of 5.03% over the forecast period. Normal semen is widely used to artificially inseminate the female reproductive tract in animals to improve the reproduction and genetics of farm animals. This practice has led to an increase in the rate of genetic development and production of animals, thereby propelling market growth. For instance, according to a study published by the Italian Journal of Animal Science in May 2017, the conception rate of sexed semen as a percentage of normal semen ranged from 71.8% to 78.5%, which was indicative that normal semen had a higher fertility rate than sexed semen.

Sexed semen is processed to identify and remove or kill "Y" chromosomes through a sorting process of sperm cells. Sexed semen technology is relatively new and is being adopted to increase the rate of herd expansion. It has reliable effects on the gender of the offspring. Sexed semen was commercialized in 2001 in the U.S., and a license was granted to Sexing Technologies. Factors such as the consolidation of elite breeding herds, adoption of the latest technology, and high consumption of animal protein are driving the growth of the sexed semen segment.

Based on end-user, the global market is segmented into veterinary hospitals, animal husbandry, and others. 

The animal husbandry segment owns the market and is estimated to boost at a CAGR of 5.22% during the forecast period. Small and large breeding farms execute the majority of sperm collection and artificial insemination procedures, which contribute to expanding the animal husbandry industry. Moreover, increasing government initiatives and demand for milk and protein further increase the adoption of AI technology. For instance, in October 2018, the Indian government approved around USD 330 million for the Animal Husbandry Infrastructure Development Fund (AHIDF).

Similarly, in February 2018, Alibaba Cloud, DEKON Group, and Sichuan Tequ Group collaborated to use ET Brain technology for pig breeding in China. Brazil is actively using AI technology in firms to increase the reproductive efficiency of dairy and beef herds. Currently, around 86% of doses of semen are prepared using timed artificial insemination (TAI) as of 2018. With the help of AI, farmers can achieve more uniform calves by having a shorter calving season, which bolsters the growth. Moreover, startup companies are entering the market with innovative technologies, which are expected to propel the market soon.

Recent Developments

• April 2023- The government of Himachal Pradesh is launching a new initiative called 'Sanjeevani' to ensure that livestock receives quality treatment within a specified time frame and that farmers are spared additional costs, such as traveling to the site of care and purchasing quality medicines. The local veterinary services will include curative treatment, vaccination, artificial insemination, preventative care, and all animal husbandry-related knowledge.

• August 2023- Animal health company Zoetis expanded its production of monoclonal antibodies (mAbs) in Lincoln, Nebraska. The new facility will enhance the production of pain-relieving products for dogs and cats with osteoarthritis, the company's fastest-growing market segment. The location will also function as a veterinary medicine R&D registration facility for the company, seeking to expand its portfolio through future innovations.