The pet ID microchips market involves the implantation of a subcutaneous microchip that provides a unique identification number for domestic pets. Microchipping is a convenient method to identify lost or stolen pets by scanning them and has largely replaced collars and tags. The microchips are small transponders that are injected under the skin, between the shoulder blades, using a syringe.

They integrate with radio-frequency identification (RFID) technology to broadcast a unique identification number when scanned by a compatible scanner. Beyond identification, microchips are also used to link the pet with its owner's contact details stored in a database. They provide greater security than collars or tags that can fall off or be removed.

The growth of companion animal adoption along with increased legal requirements mandating microchipping in certain countries is fueling Pet ID Microchips Market Growth gains. The Global Pet ID Microchips Market is estimated to be valued at US$ 96.4 Mn in 2024 and is expected to exhibit a CAGR of 5.8% over the forecast period from 2024 to 2031.

Key Takeaways

Key players operating in the pet ID microchips market are Avid Identification Systems, Inc., Animalcare Group Plc, Datamars SA, Elanco Animal Health, Inc., HomeAgain, Merck ; Co., Inc., Microchip4solutions Inc., Pethealth, Inc., PeddyMark Ltd, Trovan Ltd, Virbac SA, MICROCHIP ID SYSTEMS, INC., Bayer, FidoTag, and PetLink. Avid Identification Systems is a leader in RFID pet microchip identification technology.

The growing adoption of pets worldwide is driving the demand for identification microchips. According to the American Pet Products Association, the total U.S. pet industry expenditures are estimated to be over $99 billion in 2022, indicating rising spending on pets. Microchipping provides a convenient way to permanently identify companion animals and reunite lost pets with their owners.

Major companies are focused on global expansion to capitalize on the growth opportunities. For instance, Microchip4solutions expanded into new geographies including the UK, Europe, and Australia in 2022. Similarly, Virbac acquired pet databases PIXELS and Anibase to strengthen its presence across different European countries. Technologies combining microchips with IoT are also gaining traction to enable advanced tracking and monitoring applications.

Market drivers

The key driver influencing the pet ID microchips market is the rising adoption of pets globally. According to the APPA, about 90.5 million cats and 79.7 million dogs were kept as pets in the US alone in 2021. As more families acquire companion animals, there is increasing awareness about proper identification through microchipping which is a legal mandate in several regions. Growing incidents of pet theft and stricter regulations regarding identification are further propelling the demand for microchips. Rising concerns about animal welfare and availability of affordable microchipping services will continue driving the market over the forecast period.

The current geopolitical situation is significantly impacting the growth of the pet ID microchips market. With rising conflicts and tensions between various nations, international travel is becoming more restricted. However, pets often accompany their owners during international travel or relocations. Microchipping pets has thus become crucial to help reunite lost or displaced pets with their owners across borders. The data stored on a pet's microchipID including owner information can be accessed worldwide. This eases cross-border travel with pets and provides assurance during uncertain times. Growth in international travelling is consequently boosting demand for microchips.

As countries implement stricter quarantine rules for imported animals due to diseases, microchipping also allows efficient tracking of inoculation and health records digitally. This streamlines the import process. Mandates by various animal welfare organizations additionally necessitate identification of pets through microchips. 

The pet ID microchips market in terms of value is currently concentrated most in North America and Western Europe. According to data, the United States hosts the largest share of microchipped pets owing to enactment of mandates across several states. Countries like the United Kingdom and Germany also have high levels of penetration with growing concerns for animal welfare. However, the Asia Pacific region excluding Japan is emerging as the fastest growing market for pet ID microchips. With rising pet adoption and increased recognition of microchipping benefits in the region, the market is experiencing exponential gains led by countries such as India and China. As travel from these nations grows extensively, microchipping will increasingly become a necessity to ease mobility with companion animals outside national borders.

Pet ID Microchips Market Regional Analysis is concentrated most in North America and Western Europe. North America has the largest share of microchipped pets due to mandates being enacted in many states in the US. Key countries in North America driving the market include the US and Canada. Western Europe follows as another major geographical concentration led by countries like the UK, Germany, France etc due presence of stringent animal welfare laws necessitating identification of pets. However the Asia Pacific region excluding Japan is projected to see the fastest growth for the pet ID microchips market over the forecast period. Countries like India, China, South Korea, Australia etc are witnessing rising pet adoption accompanied by increased awareness about benefits of microchipping. This coupled with rapidly growing international travel from Asia Pacific will significantly boost uptake of microchips for companion animal identification in the region.

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