VETERINARY SOFTWARE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Veterinary Software Market Size and Trends

The veterinary software market is estimated to be valued at USD 1.24 Bn in 2024 and is expected to reach USD 2.02 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 7.2% from 2024 to 2031.

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The veterinary software industry is experiencing significant growth, driven by factors such as increasing pet ownership, the rising demand for advanced veterinary services, and the adoption of telehealth solutions. These software programs enhance operational efficiency by streamlining appointment scheduling, managing electronic patient records, tracking lab samples, and overseeing pharmacy inventories. However, the market faces challenges including insufficient government incentives and a lack of awareness about veterinary healthcare infrastructure in developing regions, which can hinder adoption rates.

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Insights By Type - Convenience and Compliance Drive Practice Management Software Adoption

In terms of type, practice management software segment is expected to contribute the highest market share of 54.8% in 2024, due to its convenience and compliance benefits for veterinary practices. This software streamlines essential functions such as appointment scheduling, patient check-ins, billing, and inventory management, allowing staff to focus on patient care. By facilitating accurate record-keeping and generating audit-ready reports, it ensures compliance with industry standards.

Insights By Delivery Mode – Cloud/Web Based Delivery Models Boost Telehealth and Imaging Software Uptake

In terms of delivery mode, cloud/web based segment is expected to contribute the highest market share of 61.9% in 2024, fueled by the rising adoption of telehealth and imaging solutions. This delivery mode simplifies installation and maintenance, as vendors automatically manage updates, reducing IT overhead for practices, which further drives demand, making cloud solutions an attractive option for veterinary practices seeking efficient and modern management tools.

Insights By Animal Type - Emphasis on Preventive Care Drives Companion Animal Software Segment

In terms of animal type, companion animal segment is expected to contribute the highest market share of 58.1% in 2024, driven by an increasing focus on preventive healthcare. Pet owners now view dogs and cats as family members, resulting in higher spending on routine vaccinations, checkups, and tailored medications. Features like integrated diet and wellness plans further align with preventive care models, improving the client experience for busy pet owners and propelling demand in this segment.

Regional Insights

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Dominating Region: North America

North America is expected to hold the highest market share of 36.8% in 2024, due to factors such as stringent regulations regarding pet healthcare, growing ownership of companion animals, presence of leading veterinary software providers, and availability of advanced veterinary facilities.

Fastest-Growing Region: Asia Pacific

Asia Pacific region exhibits the fastest growth with 23.6% market share in 2024, owing to increasing pet adoption, rising animal welfare expenditure, growing veterinary healthcare infrastructure, and support from government initiatives in countries like India and China.

Veterinary Software Market Outlook for Key Countries

Presence of key market players in the U.S.

The U.S. veterinary software industry is led by major players like IDEXX Laboratories, reflecting a trend toward advanced software solutions that cater to diverse practice needs. These solutions enhance operational efficiency, streamline workflows, and support telehealth initiatives, driving further adoption among veterinary practices seeking to improve patient care and management capabilities.

Canada’s supportive policies for the veterinary sector

The veterinary software sector in Canada is experiencing growth due to supportive government policies and initiatives aimed at enhancing animal care standards through technology. These favorable conditions encourage investment and innovation, allowing leading companies to expand their presence and improve veterinary services, ultimately benefiting animal health and welfare across the region.

Growing demand for integrated software in the U.K.

The U.K. is leading the Europe veterinary software industry, driven by increasing demand for integrated and cloud-based solutions that facilitate telehealth consultations. This trend reflects a shift towards remote veterinary care, enabling practitioners to enhance service delivery and patient engagement through digital platforms, ultimately improving overall animal healthcare standards across the region.

Increasing awareness about veterinary healthcare in Germany

Germany veterinary software industry is thriving due to heightened awareness about veterinary healthcare and ongoing digitization efforts by multinational veterinary groups. These initiatives promote better animal care standards and encourage the adoption of advanced technologies, enhancing operational efficiency in veterinary practices and ultimately improving overall animal health outcomes across the country.

Market Concentration and Competitive Landscape

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Top Strategies Followed by Key Market Players

• Established players in the veterinary software industry focus heavily on research and development to stay ahead of the competition. Industry leaders like IDEXX Laboratories, Henry Schein, and Patterson Companies inject millions annually into R&D to develop cutting-edge products. They innovate advanced diagnostic tools, practice management tools, and client engagement platforms to enhance efficiency and care outcomes.
• Mid-level players in the market adopt competitive pricing strategies to attract price-sensitive consumers. Companies provide basic yet reliable software suites at affordable rates. Examples include ClienTrax, eVetPractice, and Cendro. They collaborate with regional resellers and distributors to penetrate local markets cost-effectively.
• Small-scale players carve niches in specific areas like feline/equine care or mobile-based services. Companies like Vetter and Pawfinity focus on product development around these specialized sectors. They leverage open-source tools and cloud-based systems to remain cost-competitive against larger brands. Some form local partnerships in their host regions for joint marketing and sales promotions.

Emerging Startups in the Veterinary Software Market

• Promising startups are bringing innovative technologies to the industry. Companies like Anthropic and Computant are leveraging artificial intelligence and computer vision to create advanced virtual assistants, automated reporting tools, and diagnostic aids, which promise to enhance workflows and decision-making processes in veterinary practices over the next decade.
• Startups such as GreenVet and Green Paw are prioritizing sustainability, developing tools like carbon footprint calculators and eco-friendly supply purchasing options. These initiatives not only support larger brands' sustainability efforts but also raise environmental awareness within the industry.
• Many startups succeed by fulfilling specific niche needs. Heartland Veterinary Partners focuses its electronic records and management system on equine practices. Promising startups often partner with associations and suppliers to spur technological and sustainable development.

Veterinary Software Industry News

• On October 2, 2024, VMD Sciences, LLC, a company focused on accelerating biomedical innovation for pets, veterinarians, and pet owners, announced the launch of its Expanded Access Programs (EAPs) for pets and livestock. In collaboration with community veterinarians and animal medicine developers, VMD Sciences, LLC aims to address unmet medical needs by providing access to groundbreaking, life-saving treatments.
• On May 22, 2024, Modern Animal, a veterinary medicine company, announced that it had launched a suite of AI-assisted enhancements to its proprietary medical software, Claude. Designed to streamline administrative tasks that burden veterinary practitioners, these additions will elevate the quality of service for the nearly 60,000 pets and their families who trust the pioneering veterinary health network for care.
• On February 15, 2024, Idexx Laboratories, a pet healthcare company, announced that it had launched Vello, a software solution that seamlessly connects veterinary practices and clients through modern, digital tools. Vello enables veterinary practices using ezyVet, Neo, and Cornerstone software to communicate efficiently with pet owners in a single, easy-to-use system. With software-supported engagement across the life stages of a pet, pet owners become informed partners in care—supporting better health outcomes.

Key Takeaways from Analyst

• The veterinary software industry is experiencing steady growth driven by rising pet ownership and demand for better veterinary services. Modern veterinary practices are increasingly adopting software solutions to streamline their operations and improve customer experience.
• High upfront costs and maintenance expenses associated with software implementations could hamper adoption rates, especially among small private practices. Data security challenges arising from increases in connected devices and medical records also act as a restraint.
• North America dominates the market owing to high pet care spending and rapid technology adoption in the region. The Asia Pacific region is expected to witness the fastest growth in the coming years supported by increasing pet ownership, growing per capita incomes, and rising veterinary infrastructure in emerging countries like China and India.

Market Report Scope

Market Dynamics

Market Driver - Growing animal health expenditure

Growing animal health expenditure is expected to drive the market growth over the forecast period. According to the highlights of NAPHIA's State of the Industry Report 2023, the pet insurance market in the U.S. experienced significant growth. The total premium volume for pet insurance approached US$ 3.2 billion. By the end of 2022, the number of insured pets in the U.S. reached US$ 4.8 million, reflecting a 22% increase compared to the year 2022.

Market Challenge - High costs of veterinary software

A significant challenge for the veterinary software market is the high costs associated with adoption and implementation. Small and medium-sized clinics often face budget constraints, making them hesitant to invest in software due to steep upfront licensing fees and ongoing expenses for customization, maintenance, and upgrades. This financial burden complicates decisions on whether the investment will yield sufficient returns, hindering wider adoption unless providers offer more cost-effective pricing models.

Market Opportunity - Growing animal health awareness programs

A key opportunity in the market arises from the growing focus on animal health awareness programs globally. Governments, non-profits, and private companies are increasingly launching initiatives to educate pet owners and farmers about proper care, nutrition, and preventive healthcare. This heightened awareness drives the demand for efficient management solutions, allowing the software to enhance clinic operations and customer engagement, presenting significant growth potential for software providers.

Key Stakeholders of Market

What does Growth in the Veterinary Software Industry Mean for Different Stakeholders?

The veterinary software industry has multiple players with varied designations and offers multiple opportunities based on their scope of operations.

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Market Segmentation

•  Type Insights (Revenue, USD Bn, 2019 - 2031)
• • Practice Management Software
  • Imaging Software
  • Telehealth Software
  • Others
•  Delivery Mode Insights (Revenue, USD Bn, 2019 - 2031)
• • Cloud/Web Based
  • On-premise
•  Animal Type Insights (Revenue, USD Bn, 2019 - 2031)
• • Companion Animal
  • Livestock Animal
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • Idexx Laboratories
  • Covetrus Inc.
  • Shepherd Veterinary Software
  • DaySmart Software
  • ProVet
  • Asteris
  • Carestream Health
  • Heska Corporation
  • VetStoria
  • Planmeca OY
  • Instinct Science LLC
  • OnwardVet
  • VETport
  • ezyVet
  • PetDesk