Dairy Herd Management Market Forecast to Grow to USD 6.92 Billion by 2031, Driven by Europe's Strong 33% Market Presence | DataM Intelligence

Leander, Texas - The Global Dairy Herd Management Market reached approximately USD 4.18 billion in 2022 and is projected to reach about USD 6.92 billion by 2031, growing at a healthy compound annual growth rate (CAGR) of around 6.51% during the forecast period from 2024 to 2031.

This growth is driven by increasing demand for high-quality milk and dairy products, rising adoption of automated and precision livestock farming technologies, and enhanced focus on animal welfare and sustainable farming practices. Expansion is also fueled by technological advancements such as automated milking systems, herd health monitoring, and feeding management, which help improve productivity and animal health in dairy farming globally.

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United States: Key Industry Developments
✅ October 2025: Lely launched Vector MFR Next, a robotic feeding system with a 35% increase in feed loading capacity, enhancing feeding performance and automation in dairy farms.

✅ Throughout 2025: Companies like BouMatic and Afimilk Ltd. released advanced herd management software integrating real-time data from sensors, milking units, and feeding systems to optimize milk production and herd health.

✅ In 2025, dairy farms in the US increasingly adopted automated systems such as milking robots, smart collars, and sensor-based devices, driven by the need for operational efficiency and precision livestock management.

Japan: Key Industry Developments
✅ October 2025: Japanese manufacturers and researchers continued to focus on innovations involving AI and IoT for consumer behavior analysis, product development, and supply chain efficiencies in dairy-related technologies.

✅ 2025: The dairy sector in Japan saw advancements in eco-friendly and health-oriented dairy management solutions, including allergen-free and organic product development in line with local preferences for sustainability and quality.

✅ Government initiatives in Japan have supported technological advancements in dairy farming, emphasizing automation, data-driven herd management, and sustainable practices throughout 2025.

Key Merges and Acquisitions (2025):
✅ Lactalis - acquired General Mills' U.S. yogurt business for USD 2.1 billion, expanding its North American market presence and downstream capabilities in dairy production and distribution.

✅ Arla Foods and DMK Group - announced a merger to form Europe's largest farmer-owned cooperative, combining resources of around 12,000 members and generating projected revenue of USD 20.8 billion, enhancing competitive scale and innovation capacity.

✅ Godrej Agrovet - moved to acquire full control of Creamline in India to deepen its dairy presence and strengthen technology offerings, supporting growth in domestic dairy herd management capabilities.

✅ Uniform-Agri - UK-based dairy farming software provider that acquired DairyLive, a U.S.-based herd management software company, to enhance its product portfolio and competitive position in the software segment of the dairy herd management market.

Market Segmentation Analysis:
-By Crop: Automated Dairy Herd Management Systems dominate with about 57% market share driven by milk management, reproductive health, feeding/nutrition, cattle management, and herd disease management systems. These automated systems provide real-time data, improve productivity, and reduce labor costs, making them preferred in advanced dairy operations.

-By Software Type: Web-based/Cloud-based Software leads the software segment with roughly 47% share due to flexibility, remote access, and cost benefits. On-premise software and data analytics/AI are growing but trail behind web/cloud solutions in adoption.

-By Application: Milk Harvesting is the leading application segment holding around 36% market share. It is critical due to the need for efficiency and quality in milk production, supported by automated milking systems that reduce labor and stress on animals. Feeding and breeding management follow but with smaller shares.

-By End-User: Large-scale Dairy Farms dominate with about 64% market share, reflecting their higher adoption of advanced herd management technologies and ability to leverage economies of scale. Small-scale and cooperative farms are growing but currently hold less share.

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Growth Drivers:
-Increasing demand for high-quality dairy products and rising global milk production.

-Growing herd sizes and expansion of large-scale dairy farms leading to adoption of automated management systems.

-Technological advancements, including automation, sensor integration, data analytics, and AI/IoT solutions for monitoring and optimizing herd health, feeding, and reproduction.

-Rising focus on improving animal health, welfare, and sustainable farming practices, supported by government policies and subsidies.

-Growing consumer demand for transparency, traceability, and ethical dairy farming.

-Expansion of the market in emerging economies like India, China, and Brazil due to dairy industry modernization and rising milk demand.

Regional Insights:
-Europe: Europe is the leading region in the dairy herd management market, with a share of approximately 33% in 2023. This dominance is attributed to well-established dairy farming traditions, modern farming practices, and the strong presence of leading market players. Stringent regulations regarding animal welfare and sustainability also drive the high adoption of advanced, data-driven management solutions in countries like Germany, the Netherlands, and the UK.

-North America: North America holds a significant share of the market, driven by the early adoption of precision farming technologies and the high prevalence of large-scale dairy farms. The U.S., in particular, is a major contributor, with a focus on using automated systems and software to optimize milk production, health, and feeding efficiency. This region is supported by technologically advanced infrastructure and high investment capabilities among farmers.

-Asia-Pacific: The Asia-Pacific region is projected to be the fastest-growing market, with a high compound annual growth rate (CAGR) forecast. This growth is fueled by increasing dairy consumption, a large and growing population, and substantial government initiatives and subsidies to modernize the dairy sector in countries such as China and India. The region is witnessing a rapid shift towards automation and the adoption of IoT-enabled devices, creating significant growth opportunities.

-Latin America: This region is expected to grow steadily, driven by increasing demand for dairy products, a rising middle class, and efforts to modernize agricultural practices. Brazil is a key market with potential for increased adoption of dairy management solutions.

-Middle East & Africa: The Middle East & Africa region holds a smaller share but is growing due to rising healthcare expenditures and an increasing focus on food security and self-sufficiency measures in the dairy sector.

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Key Players:
DeLaval | Merck & Co., Inc. | Afimilk Ltd. | Pearson Milking Technology | GEA Group | Fullwood JOZ | DAIRYMASTER | Lely | VAS | SUM-IT

Key Highlights (Top 5 Key Players) for Dairy Herd Management Market:
-DeLaval reported net sales of approximately €1.4 billion (about USD 1.5 billion) in 2022, marking an 11% increase driven by capital equipment and aftermarket business growth.

-Merck & Co., Inc. is recognized as a major player in the market, although precise 2025 revenue figures specific to its dairy herd management segment are not publicly detailed.

-Afimilk Ltd. is a global leader specializing in computerized herd management systems, contributing significantly to the market with solutions that boost dairy farm efficiency; exact revenue data is not publicly available.

-GEA Group Aktiengesellschaft, a key competitor, operates globally with a major focus on dairy herd solutions, yet specific revenue numbers for the herd management segment are undisclosed.

-Lely Holding S.A.R.L. is an innovative player known for robotic milking systems and farm automation, playing a strong role in the market without publicly revealed segment-specific revenue.

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