Pet ID Microchips Market Research Report and Outlook by 2028

The pet ID microchip market is anticipated to reach a value of US$ 111.35 million by 2028, with a projected compound annual growth rate (CAGR) of 5.8% from 2022 to 2028.

Pet ID microchips utilize radio-frequency identification (RFID) technology, allowing veterinarians and animal shelters to access pet information by scanning the microchip embedded in the animal's body. The RFID scanner identifies the manufacturer of the chip and provides a unique account number, enabling the veterinarian to contact the ID company for further details. These microchips are roughly the size of a grain of rice and weigh only 0.025 grams. They are compact electronic devices that carry unique identification numbers but do not include GPS or other hardware components. The adoption of microchip implantation in pets has become increasingly popular worldwide. There is a growing demand for personalized pet ID microchips that feature specific alphanumeric identification codes of up to 15 characters. Each microchip is securely encrypted and tailored to the owner's specifications regarding radio frequencies, licensing, and unique identification numbers. Additionally, these microchips are designed to be small and robust, ensuring longevity and functionality in various conditions. With different countries implementing ISO standards for animal identification, pet owners are seeking customized ISO-compatible microchips for their pets. For instance, MICROCHIP ID SYSTEMS, INC. produces ISO-certified microchips that are safely and humanely implanted in pets, including a specialized "EquineChip" designed for equestrians to ensure their horses are fit for competitions. Consequently, the rising demand for tailored pet ID microchips is driving market growth.

Effects of the COVID-19 Pandemic on the Pet ID Microchips Market
The restrictions imposed by governments to mitigate the spread of COVID-19 during the early stages of the pandemic significantly impacted the daily operations of many businesses. Numerous economies experienced a sharp decline in GDP in 2020 due to the abrupt halt of economic activities. The Organization for Economic Co-operation and Development (OECD) reported that the pandemic negatively affected major economies, including the US, UK, India, Italy, France, China, Australia, and Japan. Furthermore, the timing of outbreak waves varied across regions, forcing multinational companies to adapt their operations to accommodate remote work arrangements. This shift led to a notable increase in the adoption of companion animals, which in turn stimulated the pet ID microchips market. Many of these pets were microchipped prior to adoption. For example, the Royal Society for the Prevention of Cruelty to Animals (RSCPA) Victoria reported receiving 61,000 applications for pet adoptions since April 2020. Thus, the pet ID microchips market in countries like the UK, Australia, and New Zealand, where dog microchipping is mandatory, experienced positive growth. However, the pandemic's impact varied in countries such as India, Pakistan, and Bangladesh, where the penetration rate of pet ID microchips remains relatively low. Overall, the COVID-19 pandemic had a favorable effect on the pet ID microchips market in the Asia Pacific region.

China holds the largest share of the pet ID microchips market in the Asia Pacific, followed by Japan and Australia. The market in Australia is expanding rapidly, with microchipping for cats and dogs being mandatory in several regions, including the Australian Capital Territory (ACT), New South Wales (NSW), Queensland (QLD), Victoria (VIC), and Western Australia (WA). In Tasmania (TAS), microchipping is compulsory only for dogs. According to Section 14 of the Animal Management (Cats and Dogs) Act 2008, all cats and dogs must be microchipped by the time they reach 12 weeks of age. Additionally, Section 84 of the Domestic Animals Act 2000 and Regulation 7 of the Domestic Animals Regulation 2001 mandate microchipping of cats and dogs before sale or transfer and by 12 weeks of age. These regulations contribute to the revenue growth of pet ID microchip providers in Australia, such as OzMicrochips.

Historically, the majority of revenue in the pet ID microchips market has come from dog microchipping. However, this trend is rapidly changing, with the cat segment expected to experience the highest growth rate due to increased awareness of the benefits of microchipping and new regulations from government authorities. The European Pet Food Industry Federation (FEDIAF) reported that Europe had over 113 million pet cats in 2021, up from 103.8 million in 2018, indicating the region's high cat ownership ratio. Consequently, regulatory bodies are beginning to require the microchipping of cats to facilitate owner tracking and reduce stray populations. For instance, the UK government mandated cat microchipping in 2021, requiring compliance by the end of 2022. Similarly, Turkey enacted a new animal rights law in 2021 that mandates cat microchipping by the end of 2022 to discourage pet abandonment. Such regulations are expected to further enhance the growth of the pet ID microchips market in the coming years.

Key players in the pet ID microchips market include Pethealth, Inc.; Merck & Co., Inc.; Elanco Animal Health, Inc.; Avid Identification Systems, Inc.; Datamars SA; Trovan Ltd; Virbac SA; Animalcare Group Plc; Microchip4solutions Inc.; and PeddyMark Ltd.

The overall size of the pet ID microchips market has been determined through both primary and secondary research methods. The research process began with extensive secondary research using both internal and external sources to gather qualitative and quantitative data related to the market. This approach also aimed to provide an overview and forecast of the pet ID microchips market across all segments. Additionally, multiple primary interviews were conducted with industry participants and experts to validate the data and gain deeper analytical insights. Participants included VPs, business development managers, market intelligence managers, national sales managers, and external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the pet ID microchips market.