According to a recent Fact.MR study, the global sales of milking machines were upward of 10 thousand units in 2018, and are estimated to record 7% Y-o-Y growth in 2019. Price volatility in the dairy industry shows no signs of abating, however the global milk production has been on an upward spiral in the recent past. Additionally, there has been a marked rise in adoption of milking machines among dairy farmers to stay ahead of the curve in this fiercely competitive landscape.
The Fact.MR study opines that the demand for cow milk is steadily exceeding the global supply, and eventually milking machines will replace labor-intensive operations in cow milk businesses. Leading manufacturers in the milking machine industry are increasingly focusing on small-scale businesses that are engaged in cow milk production, as local dairy businesses are primary suppliers to households in most developing countries.
The report finds that that cow milking machines accounted for nearly 80% sales in 2018. According to the International Farm Comparison Network (IFCN), outlook on the cow milk alludes a 20% rise in demand in the near future, whereas an average dairy farm would require to boost output by over 50%. In 2017, the average milk yield per cow reached 7 tons in Europe alone, and the global demand for cow milk continues to surge.
Stakeholders Vie to Tap Potential Opportunities in APEJ
The study finds that Europe remains the most lucrative market for milking machines, accounting for over 30% sales. However, APEJ is expected to emerge as an attractive region for stakeholders in the milking machine market to tap, with the rapid growth of the dairy industry in the region. It is highly likely that gains from milking machine sales in the APEJ will outpace those from the European Union (EU), alongside the rapid surge in milk production.
According to the study, growth of the milking machine market in the APEJ is mainly attributed to two factors—a dramatic upsurge in the milk production in developing Asian nations, and the negative impacts of the 2018 European drought and heat wave on its dairy industry. The EU-drought of 2018 caused lower milk yields in the region, causing the EU milk prices to soar. This is restricting European dairy businesses from adopting expensive milking machines in order to maintain competitive milk prices in the region.
A key trend gaining utter traction in the milking machine market is growing demand for fully automatic variants, as the requirement for time-effective production and enhanced productivity continues to intensify among dairy farmers. The efficiency in milking multiple animals in a single go, which increases the milking efficiency while reducing the dependency on labor and leading to quality improvement, continues to advocate adoption of automatic milking machines in the dairy industry.
The study opines that the milking machines will witness burgeoning demand in the foreseeable future, as improving business profitability with cost-competitive and tech-driven dairy farms is becoming a desideratum. Dairy businesses are more inclined towards investing in automatic milking machines in lieu of manual milking techniques to attain higher milk yields per labor hour. Increasing inclination of dairy farmers towards tech-driven investments in cutting edge robotic milking machines with tightening labor market will augur well for growth of the milking machine market.
This Fact.MR study offers a long-term perspective of the milking machine market during the period, 2019 to 2027. The milking machine market is projected to record a CAGR of approximately 8% CAGR through 2027.
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