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The animal transportation market size is estimated to grow at a CAGR of 5.07% between 2023 and 2028. The market size is forecast to increase by USD 600.02 million. The growth of the market depends on several factors such as increased demand for animals from slaughterhouses and the dairy industry, growth in the global pet population and decline in fuel prices increasing profit margins of LSPs.
The report offers extensive research analysis on the animal transportation market with a categorization based on Application, including livestock, pets, and others. It further segments the market by Type, encompassing personal and commercial. Additionally, the report provides Geographical segmentation, covering APAC, Europe, North America, Middle East and Africa, and South America. Market size, historical data (2018-2022), and future projections are presented in terms of value (in USD million) for all the mentioned segments.
Animal Transportation Market Forecast 2024-2028
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Our researchers studied the data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
In recent years, there has been a substantial decline in fuel prices globally due to oversupply. Jet fuel prices constitute 35%-45% of the operating cost of airlines; thus, with the reduction in fuel prices, airfares became cheaper, resulting in driving air passenger traffic and profit margins of airlines. In 2019, the net profit margin for the global airline industry was around USD 42.5 billion, which reached around USD 48.2 billion in 2020. The decline in jet fuel prices, the strong performance of the airline industry, and strong economic conditions will boost the market for animal transportation via air.
Also, the decline in fuel prices for trucks will boost the market for animal transportation via road. Since half a decade back, there has been a steady decline in gasoline and diesel fuel prices, prompting shippers and freight forwarders to reduce invoice prices. This reduction benefitted LSPs in terms of better profit margins and prompted LSPs to improve the efficiency of the animal transportation supply chain. Such factors will drive the growth of the global animal transportation market during the forecast period.
Some logistics service providers have started adopting the loT for optimal asset utilization, geofencing, fleet management, and smart inventory management. IoT-based technologies help logistics companies with a large fleet in preventing sudden breakdowns. The integration of connected devices, such as electronic log devices (ELD), with the loT, enhances the efficiency of logistics operations. Furthermore, the companies that offer freight and logistics services are increasingly using the IoT in fleet management systems to perform a wide range of functions, such as aircraft maintenance, licensing and compliance, supply chain management, asset transfer, safety management, and fuel management.
Moreover, the next generation of successful supply chain management, known as logistics 4.0, will leverage edge computing and the IoT to yield real-time, automated sense-and-respond feedback mechanisms. In the coming years, there will be an increase in the implementation of the loT in the global animal transportation market, thereby propelling the growth of the global animal transportation market during the forecast period.
The animal transportation market is highly dependent on the trucking industry for transportation via road for 300-350 miles. At a global level, there is a shortage of skilled truck drivers in the logistics industry, which is expected to grow steadily during the forecast period. A shortage of skilled truck drivers in the global animal transportation market can disrupt the supply chain. Livestock haulers are responsible for driving the truck safely with live load and play a critical role in animal husbandry. ELD implementation requires haulers to stop their vehicles after fixed service hours and unload animals at the nearest facility, as animals or livestock cannot stay in vehicles during rest hours. This poses a challenge for livestock haulers, as it increases the operational cost of animal transportation. European countries such as the UK and Germany witnessed a shortage of skilled drivers in 2020.
Additionally, logistics in rural areas is highly complex due to underdeveloped logistical infrastructure, which increases the requirement for experienced truck drivers who can adapt to such challenges while ensuring timely delivery. A shortage of skilled truck drivers will affect the global animal transportation market negatively during the forecast period.
The market share growth of the livestock segment will be significant during the forecast period. The livestock segment includes animals such as horses, sheep, camels, pigs, goats, cattle, and poultry. Globally, livestock is transported for slaughtering, breeding fairs, livestock shows, auctioning, and domestication.
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The livestock segment was the largest and was valued at USD 903.65 million in 2018. Transportation of livestock is a crucial part of the meat production cycle, starting from farms to slaughterhouses. Any stress or injury to animals during the transportation phase affects the overall yield and meat production. In addition, bruising of animals during handling and transportation leads to injuries and marks on the animal's skin. Useful leather can be obtained only from undamaged and properly treated skin. Furthermore, the long-distance transportation stress in animals may result in induced changes in the secretion of pituitary hormones, thus leading to altered metabolism, immune competence behaviour-related issues, and reproduction failure. Hence, more focus is given to the transportation of livestock, considering aspects such as proper ventilation of the container, space, hygienic environment, travel duration, and availability of proper food and water. All such factors are expected to propel the growth of the livestock segment, which, in turn, is anticipated to drive the growth of the global animal transportation market during the forecast period.
Based on type, the market has been segmented into personal and commercial. The personal segment by type of the global animal transportation market dominated in terms of market share in 2023. It is expected to grow at a faster rate than the commercial segment owing to the growing adoption of pets for personal purposes in urban settlements. Passenger personnel, when shipping live animals for transport by air, must know how to comply with the International Air Transport Association (IATA) Live Animals Regulations. This makes it necessary for animal transportation services for personal use. Major factors such as the growing transportation of pets for transportation and the growth of the global pet population are the major drivers anticipated to drive the growth of the personal segment of the global animal transportation market during the forecast period.
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North America is estimated to contribute 29% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. The animal transportation market in North America is expected to witness substantial growth during the forecast period. The growth of the logistics infrastructure in the region and an increase in demand for various animal products such as milk, meat, fur, leather, and eggs will drive the animal transportation market in the region.
For instance, Canada and the US are some of the top beef and veal-consuming countries in the world. The US is the major revenue contributor and the largest market for logistics services in the region. The US is expected to grow during the forecast period due to better economic conditions despite the economic slowdown in 2008. Logistics service providers (LSPs) are developing sustainable business models such as blockchain technology that drive down the cost factor and improve operational efficiency and thus adapt to changing industry dynamics.
In addition, regulations vary with states in the US, which poses a challenge to LSPs in North America. For instance, Vermont state law only addresses the issue of overcrowding in carrier vehicles, whereas Arizona state law is limited to the transportation of equines to slaughterhouses. Such factors are expected to restrict the growth of the regional animal transportation market during the forecast period.
The COVID-19 pandemic drastically impacted consumer demand for animal products, restricting the growth of the regional animal transportation market at a significant level in 2020. However, the initiation of vaccination drives led to the restoration of the supply chain of animal transportation and the reopening of travel units in the region, which stabilized the growth of the market in 2021. Furthermore, the increase in demand for animals for slaughtering and the growing adoption pet population are expected to drive the growth of the regional animal transportation market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
American Airlines Group Inc - The company offers animal transportation such as American PetEmbark which provides industry leading policies and procedures to ensure your pet receives the best care in the air.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
American Airlines Group Inc., Amerijet International Inc., Carry My Pet, Copa Airlines, Inc., Delta Air Lines Inc., Deutsche Lufthansa AG, DSV AS, EMO Trans Inc., GRADLYN Petshipping, Happy Tails Travel, Inc., HERFURTH GROUP, International Consolidated Airlines Group SA, Paws Pet Travel, Pets Transport, Southwest Airlines Co., SpiceJet Ltd, Starwood Pet Travel, United Parcel Service Inc., World Care Pet Transport, LLC, and China Eastern Airlines Corp. Ltd.
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The animal transportation market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Animal Transportation Market Scope |
|
Report Coverage |
Details |
Page number |
162 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.07% |
Market growth 2024-2028 |
USD 600.02 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.95 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 29% |
Key countries |
US, Canada, China, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
American Airlines Group Inc., Amerijet International Inc., Carry My Pet, Copa Airlines, Inc., Delta Air Lines Inc., Deutsche Lufthansa AG, DSV AS, EMO Trans Inc., GRADLYN Petshipping, Happy Tails Travel, Inc., HERFURTH GROUP, International Consolidated Airlines Group SA, Paws Pet Travel, Pets Transport, Southwest Airlines Co., SpiceJet Ltd, Starwood Pet Travel, United Parcel Service Inc., World Care Pet Transport, LLC, and China Eastern Airlines Corp. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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