Milking Robot Market by Product, Component and Geography - Forecast and Analysis 2023-2027

Milking Robot Market Forecast 2023-3037

The Milking Robot Market size is estimated to grow by USD 615.93 million at a CAGR of 8.07% from 2022 to 2027. The market's growth is underpinned by several key factors. Firstly, there is a notable shift towards adopting technologies that help address skill shortages in the dairy industry. This trend is driven by the need for efficient and reliable milking processes amidst a changing labor landscape. Additionally, the adoption of milking robots offers distinct advantages over traditional milking methods, such as increased efficiency, reduced labor requirements, and improved animal welfare. 

Moreover, ongoing technological innovations in milking robot hardware and software are driving market growth. These innovations focus on enhancing functionality, performance, and user-friendliness, further increasing the appeal of milking robots to dairy farmers. The integration of advanced sensors, automation, and data analytics capabilities in milking robots has significantly improved their efficiency and reliability, contributing to their widespread adoption.

 It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the Size of the Milking Robot Market During the Forecast Period?

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Market Segmentation

This report extensively covers market segmentation by Product (standalone units, multiple store units, and rotary units), Component (hardware, software, and services), and Geography (Europe, North America, APAC, South America, and Middle East and Africa).

By Product 

The standalone segment will contribute a major share of the market, as standalone units or single-stall units are the most commonly available robotic system and relatively cheaper than other advanced systems for dairy farms. The standalone units segment showed a gradual increase in the market share with USD 431.14 million in 2017. Their simplistic design and lower installation and maintenance costs are other major features that will drive the adoption rate of these products. Also, unlike alternative systems, they allow for flexibility and can be easily installed without any drastic changes needed in the barn layout.

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Unlike alternative systems, standalone units allow flexibility and can be easily installed without any drastic changes needed in the barn layout. Most end-users in North America and Europe have adopted standalone units to capitalize on factors such as the ability to milk about 65-70 cows several times a day, along with the simplicity of the process. The segment has seen relatively lower penetration in Australia and New Zealand due to the inclination of farm owners for other systems. Furthermore, our report provides a brief analysis of the historical and forecast market share and their segments along with the reasons for growth from 2017 to 2027.

By Component

The component segment includes subsegments such as teat cup attachment, individual quarter detach, single box systems, multi-box systems or rotary milking parlors, free milking times, guided cow traffic or fixed milking times controllers, milk cooling systems, cell count sensors, power systems. It is expected that the development of electronic components and technologies will have a positive impact on the growth of the global milking robot market during the forecast period. The major companies in the market are continuously investing in developing advanced technologies to enhance the functionalities of milking robots. The main aim of smart robot manufacturers is to enhance the thinking abilities of milk robots, for which they require advanced microprocessors. Hence, various companies are working on developing advanced microprocessors specifically for milking robots. As the capabilities of milking robots are continuously increasing, end-users started shifting from traditional robots to milking robots, which is driving the demand for hardware for milking robots.

By Region

Europe is projected to contribute 33% of market growth by 2023. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. 

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The market in Europe has grown tremendously over the years, with countries such as Denmark, the Netherlands, and the UK contributing a major proportion of the revenue. This is due to the adoption of robotic technology in several field applications, along with government support. During the forecast period, the demand for milking robots is expected to stem from countries such as Switzerland, Germany, and France. This is because these countries are expected to be the major production sources for global dairy supply. Germany is among the leading producers of milk and milk products in Europe. The marshy lands of the northern and the upland regions, such as the Central Uplands and the Alps comprise several dairy farms, which are expected to see the adoption of milking robots to achieve production efficiency.

Key Market Customer Landscape

The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Market Customer Landscape

Market Dynamics

The market is driven by the increasing adoption of automation and technological advancements in dairy farms. These robots are equipped with hardware components, control devices, and sensing and monitoring devices to automate the milking process. Cloud-based and on-premise software solutions are used to manage and monitor milking operations efficiently. Services such as maintenance, support, system integration, and consulting play a crucial role in the implementation and operation of milking robots. The market growth is particularly significant in developing countries, where the focus is on improving milk quality, hygiene, and dairy farm efficiency while ensuring the welfare of dairy cattle.  Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The adoption of advanced technologies to combat skill shortages is the key factor driving global market growth.  To boost profits in the dairy industry, it is crucial to maximize daily milk production. Research has indicated that using robots to milk herds can result in a 5%-10% increase in productivity compared to traditional methods that rely on human labor to attend to individual animals. Robotic milking systems such as multiple stalls and rotary units can handle multiple animals, leading to greater efficiency and yield. Additionally, automated processes require less labor, making them an attractive option for dairy farms looking to increase productivity and output, thereby maximizing profits. The main cost drivers in the dairy industry are milk production and labor charges, and effective management of these factors can lead to a profitable business outcome. This includes factors such as dairy farms, automation, technological advancements, livestock farms, hardware components, control devices, and sensing and monitoring devices.

The outlook for implementing robotic milking systems appears positive, with rising labor costs and increasing food demand driving the adoption of this technology. As labor shortages continue to impact industrialized countries, there is a growing demand for milking staff to meet the increasing demand for milk. Therefore, it is anticipated that more dairy farms will opt for milking robots to maintain hygiene standards, enhance productivity, and achieve cost efficiency.

Significant Market Trend

The improvements in sensors used in milking robots will fuel the market growth. Throughout the projected timeframe, milking robots will integrate advanced sensors to regulate milk quality and prevent abnormal milk from entering the raw milk collection system. Abnormal milk, which may contain antigens from sick or infected animals, has traditionally been identified through manual inspections during udder and teat preparation. However, the adoption of milking robots equipped with intelligent sensors is expected to increase during this period. These sensors can analyze milk quality and detect abnormalities based on parameters such as conductivity, composition, and cell counts. Farm owners are also anticipated to invest in software that can interpret the data collected by these sensors to derive insights.

The utilization of biosensors in milking robots is expected to be a significant market trend. These sensors detect changes in milk's chemical composition and color and can identify even slight variations in the visible light spectrum or chemical makeup of milk.

Major Market Challenge

The high initial investment can majorly impede the growth of the market. The field of robotics involves advanced technologies, sensors, and software, resulting in high prices and a significant initial investment for professional service robots. The hardware cost of standalone milking robots typically ranges between USD 130,000 and USD 180,000, with additional expenses for installation and infrastructure requirements for robotic housing. These startup costs and required changes in barn layout pose significant entry barriers for companies in large farms. Additionally, cows that take the time or fail to adapt to the robotic environment in conventional barns add to operational costs for farm owners.

The slow adoption of milking robots is mainly due to a lack of awareness among potential end-users regarding their long-term cost benefits in operations. This factor poses a challenge to market growth, especially for small and medium-sized enterprises. With increased adoption and economies of scale globally, the average implementation and maintenance costs of milking robots are expected to decrease. However, at present, these costs are a deterrent to the adoption of milking robots by small and medium-sized farms.

Who are the Major Milking Robot Market Companies?

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.

Afimilk Ltd. - The company offers milking robot services such as parlor automation, including milk sensors. Also, the company is involved in developing cow monitoring solutions that include software, monitoring, and automation management for dairy farms.

Allflex Group - The company provides services like livestock identification, livestock monitoring, smart data solutions, and milking automation technologies. Also, the company offers milking robots such as Allflex Livestock Intelligence milking controllers.

The report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• AMS Galaxy USA
• AS SA Christensen & Co.
• BouMatic
• Dairymaster
• Fabdec Ltd.
• Fullwood Ltd.
• GEA Group AG
• Hokofarm Group
• Lely International NV
• Livestock Improvement Corp. Ltd.
• Milkplan SA
• Milkwell Milking Systems
• Read Industrial Ltd.
• System Happel GmbH
• Tetra Laval S.A.
• Waikato Milking Systems NZ LP

The report offers clients a deeper understanding of the market and its players through a combined qualitative and quantitative analysis of the companies. The analysis classifies companies into categories based on their business approach, including pure-play, category-focused, industry-focused, and diversified. companies are specially categorized into dominant, leading, strong, tentative, and weak to understand the dos and don’ts of business which in turn can help a client make the best decision.

Recent Development of the Market

•  In June 2020, BouMatic launched its new variants of the Gemini milking robot. The new products offered by the company are equipped with additional features. For instance, these products ensure rapid identification and monitoring of health problems with the extension of automatic inline measurement of somatic cell count, and they are equipped with a clever hose guidance system to ensure proper hose position under the cow. 

Segment Overview

The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the market growth and trends opportunities from 2017 to 2027. 

• Product Outlook 
  • Standalone units
  • Multiple store units
  • Rotary units
• Component Outlook 
  • Hardware
  • Software
  • Services
• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is driven by the demand for cloud-based software solutions that enhance dairy farm operations. These solutions are complemented by maintenance and support services to ensure optimal performance. Connectivity services and system integration services play crucial roles in integrating milking robots into existing farm infrastructure. Additionally, consulting services and managed services assist farmers in adopting automated milking systems (AMS). Factors such as cow welfare and herd movement are monitored using advanced technologies, improving milk yield and dairy segment efficiency. The market is also influenced by the adoption of robotics in dairy farming, reducing labour costs and enhancing operational efficiency.

The market is experiencing growth driven by various factors. Assisted professional services help farmers integrate milking robots, while installation costs are considered for cost-effective implementation. Farmers benefit from behavioral insights and improved management of udder size in goats and sheep. Automated milking rotaries cater to large herds, offering efficiency in free stall and loose housing systems. Pasture-based dairying enhances milk quality and quantity, ensuring herd health. Technological advancements like SCC monitor sensors improve dairy commodities, aiding dairy farm management. However, challenges such as small herd sizes and trade regulations impact market growth, necessitating strategic decision-making and innovation in milking robot systems.

Market Scope
Report Coverage	Details
Page number	169
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 8.07%
Market growth 2023-2027	USD 615.93 million
Market structure	Fragmented
YoY growth 2022-2023(%)	7.6
Regional analysis	Europe, North America, APAC, South America, and Middle East and Africa
Performing market contribution	Europe at 33%
Key countries	US, Canada, China, Japan, Germany, and UK
Competitive landscape	Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks
Key companies profiled	Afimilk Ltd., Allflex Group, AMS Galaxy USA, AS SA Christensen & Co., BouMatic, Dairymaster, Fabdec Ltd., Fullwood Ltd., GEA Group AG, Hokofarm Group, Lely International NV, Livestock Improvement Corp. Ltd., Milkplan SA, Milkwell Milking Systems, Read Industrial Ltd., System Happel GmbH, Tetra Laval S.A., and Waikato Milking Systems NZ LP
Market dynamics	Parent market analysis, Market Forecasting, 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 forecast period
Customization purview	If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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