The global veterinary software market size was valued at USD 322.8 million in 2016 and is expected to grow with a CAGR of 8.9% during the forecast period. Increasing demand for Practice Management Systems (PMS) from veterinary practitioners is expected to fuel the market growth. In addition, growing awareness about the benefits of use of software solutions is contributing toward the market growth.
The animal health industry is affected by increase in companion pet ownerships and concern for pet health. Growing focus on efficiency and safety of livestock production is also another growth propeller for the demand of veterinary software. Manufacturers of such systems offer complete solutions for the management of a veterinarian’s office including maintaining schedules and records.
U.S. veterinary software market revenue by product, 2014 - 2025 (USD million)
Furthermore, according to the American Veterinary Medical Association, approximately 68,000 veterinarians and around 22,000 in the UK are practicing privately in North America, and this number is anticipated to grow over the forecast period. This indicates the increasing demand for these solutions for managing operations in clinics and reference laboratories.
Moreover, introduction of technologically advanced software that offer solutions in one platform for all processes in veterinary clinics is expected to further contribute to the increasing adoption rate. Cloud-based practice management systems are the best examples of technologically advanced and cost-efficient software solutions for pet health practices.
PMS accounted for the largest market share as of 2016 due to growing demand from consumers and cost-effective nature of these systems. These systems help practitioners to support and record different standard of care protocols, healthcare recommendations, keep track of the patient's health with invoicing & billing, resource management, inventory tracking, and overall management of treatment procedures. Such benefits of PMS are anticipated to propel the segment growth over the forecast period. PMS help deliver better animal health care by offering efficient solutions for workflow management in veterinary care facilities. Growing adoption of information systems in healthcare practices has significantly changed the way of care delivery to patients over the past decades. This is anticipated to boost the adoption of PMS.
In addition, this segment is primarily driven by the growing animal health expenditure across the globe, rising pet population, increase in number of veterinary practitioners, and high demand for animal-derived food products, coupled with the availability of pet insurance. Introduction of innovative solutions that offer accurate and rapid results is also expected to fuel the adoption of PMS over the following years.
Delivery Mode Insights
On demand solutions dominated the overall industry as of 2016, owing to their low cost and widespread availability of these services. However, the cost of these platforms is higher as it includes cost of the overall system and hardware & software package. This is expected to act as a restraining factor for the growth of on demand services.
The cloud/web-based solutions segment is anticipated to grow with lucrative CAGR owing to its associated benefits. Users get remote access to health information and these solutions help in reducing threat of information misuse. Moreover, ease of access with proper IT infrastructure used in the deployment of these services helps in increasing productivity and generating more profits for the organization. High cost associated with its deployment is expected to limit its adoption by emerging players.
However, deployment of cloud-based solutions is expected to change the dynamics. These services offer a single platform through which patients, researchers, and practitioners access medical information. These platforms minimize the risk of data theft by offering a secure platform for sharing information and enable the veterinarians to keep track of information. This is further expected to boost the adoption of cloud/web-based services over the following years.
Practice Type Insights
Food-producing animals segment held the dominant share as of 2016, due to higher demand for cost-effective products to maintain livestock health. Increasing demand for such products from vet medicine manufacturers to control the process of manufacturing, maintain information related to product storage & quality, and monitor activities such as pharmacovigilance are contributing toward the dominance of this segment.
According to Food and Agriculture Organization, in the emerging economies, food animal products account for one third of human protein consumption. This leads to an increase in the demand for improving livestock productivity, which is critical to meet the dietary needs of the growing human population. These factors cumulatively are responsible for the significant share held by food-producing animals.
In addition, introduction of veterinary control management systems that help in identification & registration of livestock and maintenance of records of farms including owner details is expected to propel the adoption of these solutions over the coming years. Some of these systems are also capable of mapping prevalence of diseases, treatment rates, and vaccinations. Thus, wide applications of these software in food-producing animal health care is predicted to fuel the growth.
The equine segment is expected to grow lucratively owing to increase in companion animal ownership, awareness, and demand for efficient pet care. Increase in pet ownership is a consequence of associated health benefits for humans. This is expected to contribute toward the growth of other sub segments over the forecast period. These health benefits include blood pressure maintenance, psychological stability, reduced frequency of cardiac arrhythmias & anxiety attacks, which helps improve the overall well-being of humans.
End Use Insights
Hospitals/clinics are the largest end users of veterinary software solutions. Adoption of these services is driven by technological advancements in pet care and this is anticipated to serve as a growth opportunity. These advancements include the advent of efficient information management systems and pet owner mobile technology.
Global veterinary software market revenue, by region, 2016 (%)
High focus toward innovation in animal health has given rise to certain measures that are being implemented or in the process of implementation, which are fueling the market growth prospects. The reference laboratories segment is expected to witness lucrative growth in the following years. These labs are developing various technologies for the detection and monitoring of various diseases.
Government animal welfare authorities and policymakers are encouraging farmers through targeted incentives about adoption of veterinary care practices for food producing species. This thereby increases the demand for animal health care facilities. Government organizations are increasingly involved in issuing guidelines for the promotion of reference laboratories globally, which is expected to contribute to the market growth.
The North American regional market for veterinary software held the largest revenue share as of 2016 and is expected to maintain its position throughout the forecast period. Presence of well-established companies, advanced healthcare IT infrastructure, and a high spending capacity of pet owners are responsible for the largest revenue share of this segment.
There are substantial opportunities for the implementation of PMS in this region, which offers lucrative opportunities for investors in this industry. The increasing volume of pet health organizations such as World Small Animal Veterinary Association coupled with rising pet care expenditure by individuals & governments are further expected to boost the growth in this region.
The Asia Pacific regional market is anticipated to witness lucrative CAGR during the forecast period due to growing demand for veterinary practice management, which is a result of continuously growing livestock population, increasing demand for animal-derived food products, and rising pet adoption in this region.
Presence of unmet clinical needs and growing awareness levels amongst patients & practitioners are expected to fuel the market growth in coming years. In addition, the alarming need to curb healthcare issues due to high incidence of zoonotic diseases and the requirement to manage disease outbreaks are anticipated to propel the market growth.
The veterinary software market is competitive in nature. The market is dominated by market participants such as IDEXX Laboratories, Inc.; Patterson Companies, Inc.; and Henry Schein, Inc. The other market players are Hippo Manager Software, Inc.; VetZ Limited; Esaote SpA; ClienTrax; Onward Systems, Inc.; and VIA Information Systems.
The industry is witnessing fierce competition owing to increasing demand for practice management software. The registered growth in this sector is a consequence of undertaking extensive expansion strategies, geographical expansions, new product development, mergers & acquisitions, and collaborative research initiatives.
The companies are focusing on investing heavily in R&D for veterinary software development in a probe to maintain the competitive edge. The established players are investing in imaging software, adopting strategies such as merger & acquisitions, and entering into collaborative activities with the local players to increase their foothold in the global market.
For instance, Patterson Veterinary entered into partnership agreement with VetSuccess and Vet2Pet to offer “software as a service” products with subscription-based, attractive pricing models. These products offer marketing solutions, data, insights, and client communication services to veterinarians.
Base year for estimation
Actual estimates/Historical data
2014 - 2016
2017 - 2025
Revenue in USD Million and CAGR from 2017 to 2025
North America, Europe, Asia Pacific, Latin America, Middle East & Africa
U.S., Canada, UK, Germany, Japan, China, India, Brazil, Mexico, South Africa
Revenue forecast, company share, competitive landscape, growth factors and trends
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Segments covered in the report
This report forecasts revenue growth at global, regional, & country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global veterinary software market on the basis of product, delivery mode, practice type, end-use, and region:
Product Outlook (Revenue, USD Million, 2014 - 2025)
Practice Management Software
Delivery Mode Outlook (Revenue, USD Million, 2014 - 2025)
Practice Type Outlook (Revenue, USD Million, 2014 - 2025)
Food Producing Animals
End-use Outlook (Revenue, USD Million, 2014 - 2025)
Regional Outlook (Revenue, USD Million, 2014 - 2025)
The Middle East and Africa
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