Veterinary Diagnostic Services Market Size, Share & Trends Analysis Report By Test Type (In Vitro Diagnosis, In Vivo Diagnosis), By Testing Category, By Animal Type, By Sector, By Service Provider, By Type, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global veterinary diagnostic services market size was estimated at USD 11.57 billion in 2022 and is estimated to grow at a compound annual growth rate (CAGR) of 7.73% from 2023 to 2030. The market growth is primarily driven by several factors such as the rising need for early disease diagnosis coupled with growing animal population and ownership rates; increasing initiatives by government organizations, animal welfare associations, and veterinary industry key players to tackle zoonosis, technological advancements in veterinary diagnosis; and rising uptake of pet insurance.

The constantly rising pet population and growing adoption of dogs and cats are the key drivers of market growth. Most common pet animals, such as dogs and cats, are valued for providing better companionship to humans. Pets have become a part of each household due to their associated benefits, such as psychological comfort, stress reduction, and depression among adults, and helping overcome anxiety in humans. Such factors have increased pet ownership and pet humanization in various countries.

Furthermore, due to social isolation and psychological advantages, the COVID-19 lockdowns have greatly raised pet adoption rates globally. For instance, the UK experienced a boom in the adoption rates of pets, which during the pandemic, exhausted the shelters, according to a Frontiers Media S.A. report published in May 2021. Therefore, the growing pet population subsequently increases the demand and admission rates for veterinary diagnostic services in hospitals.

The COVID-19 pandemic had a positive impact on the veterinary diagnostic market by bringing about new ideas and trends and causing a sharp increase in admissions rates in the last quarter of 2020. A dramatic rise in the percentage of people owning cats and dogs, animal humanization tendencies, rising awareness of early detection of disease, and the expansion of telemedicine platforms are a few notable trends. Banfield Pet Hospital reported in January 2021 that there had been a 12.4% increase in kittens and a 9.2% increase in puppies brought into Banfield for veterinary consultations in 2020 compared to 2019.

Growing investments by key players to develop advanced diagnostic products for better and faster laboratory diagnosis are likely to propel the market. For instance, Heska (Mars, Inc.) recently unveiled a comprehensive line of diagnostics products, including Element i+, Element RC, and Element UF, all of which are expected to advance diagnostic services in the associated reference laboratories. For its Catalyst Dx, Catalyst One, and SediVue Dx urine sediment analyzers, as well as Catalyst Dx and Catalyst One chemical analyzers, IDEXX Laboratories released new updates in January 2020 in an effort to expand its product line and provide better reference lab diagnostic services. Moreover, increasing demand for point-of-care diagnostic services will propel market growth. It offers rapid clinical test findings and can be quickly evaluated. More than 80% of the 26,000 veterinary hospitals and clinics in the U.S. in 2018 offered point-of-care diagnostics, according to the AVMA.

Test Type Insights

In terms of test type, the in vitro diagnosis segment dominated the market with a revenue share of over 86% in 2022. Veterinary in vitro diagnosis (IVD) services are used to diagnose several animal diseases and monitor the health status of animals & therapeutic procedures by analyzing samples, such as blood, tissue, urine, feces, and other biological fluids. IVD services use various methods, including sequencing technology, polymerase chain reaction, mass spectrometry, and microarray techniques, to test the sample preparation. IVD tests are essential for managing normal animal health. Appropriate diagnosis and testing enable early-stage interventions, saving late-stage healthcare spending; thus, pet parents prefer IVD testing services. Therefore, demand for IVD services is expected to increase during the forecast period.

The in vivo diagnosis segment is projected to grow at the fastest CAGR of around 8.40% during the forecast period. In vivo diagnostics services mainly consist of imaging technologies. Customer needs for veterinary in vivo diagnostics services have increased due to recent advancements in veterinary imaging. Demand has increased particularly for dual imaging technologies (PET/CT, PET/MR, and SPECT/CT), cross-sectional methods (MRI and CT imaging), and nuclear medicine techniques (PET and SPECT). Moreover, the surge in pet ownership rate, the growing need for efficient veterinary imaging, and advancements in in vivo diagnostic solutions are expected to boost the market growth during the forecast period.

Animal Type Insights

Based on animal type, the companion animals segment dominated the market in 2022 with a revenue share of over 59 % in 2022. This can be attributed to increasing pet adoption during the COVID-19 pandemic and growing awareness about early disease diagnosis & health management. The adoption of companion animals, particularly dogs, is sharply rising in the U.S. According to the American Pet Products Association's National Pet Owners Survey 2021-2022, in the U.S., 69 million households (or approximately 54%) owned dogs, up from 50% of homes registered in 2018. As many people in North America treat dogs as devoted family members, awareness about dog health management and the adoption of diagnostics services is expected to grow during the forecast period.

The production animals segment is projected to grow at the fastest CAGR of approximately 8.26% during the forecast period, primarily owing to rising livestock productivity. Cattle, pigs, chickens, and other livestock are considered production animals. Rising zoonotic disease occurrence and a high livestock population are the main drivers of the production animal diagnostic services market. In addition, major market players are diversifying their product & service portfolios of diagnostic solutions and providing their services globally, which is anticipated to accelerate market growth.

Testing Category Insights

In terms of the testing category, the clinical chemistry segment held the largest market share in 2022 at over 23%. The increasing volume of veterinary analytical services is the main factor driving the demand for diagnostic services for clinical pathological applications. Clinical chemistry examinations are crucial for determining the function of various animal organs, such as the liver, kidneys, and other organs. They can aid in diagnosing diseases like pancreatitis or diabetes in animals. The effectiveness of a pet’s treatment can also be tracked using these tests. The segment growth is also attributable to the accessibility of various clinical chemistry diagnostic services and their affordability. Major players such as IDEXX and Zoetis are engaged in the development and introduction of clinical chemistry diagnostic testing services necessary to diagnose numerous animal diseases.

The cytopathology segment is estimated to witness the fastest CAGR of approximately 11% during the forecast period. Cytopathology testing services can help identify cancerous cells or determine if a tumor is benign or malignant. It can also detect infectious microorganisms and others, such as yeast, with a unique appearance. The growing incidences of cancer in companion animals and the increased use of cytopathological cancer diagnosis services are expected to boost the segment share during the forecast period.

Sector Insights

In terms of sector, the private sector held the largest market share in 2022 and is anticipated to grow at the fastest CAGR of nearly 7.9% over the forecast period. The private sector includes corporate reference laboratories and privately owned clinics/hospital-based laboratories. Private laboratories often focus solely on veterinary diagnostics, allowing them to develop specialized expertise. This specialization enables them to offer a wide range of advanced diagnostic tests & services specifically tailored to the needs of veterinarians and their patients.

Furthermore, rather than investing in costly equipment and personnel training, veterinary clinics & hospitals may find it more cost-effective to outsource certain diagnostic procedures to private laboratories. Private laboratories can conduct these tests on a large scale, distributing the expenses among numerous customers and making their services cheaper for individual veterinary practices. These factors drive market growth.

Service Provider Insights

In terms of service provider, the veterinary hospital/clinic laboratories segment dominated the market in 2022 with a revenue share of over 89%. Owing to the increasing demand for diagnostics and readily accessible advanced diagnostic technologies in hospitals. This segment represents the revenue of veterinary hospitals, clinics, and academic institutions from the diagnostic services they provide to pet owners and livestock farmers. Veterinary hospitals often invest in advanced diagnostic technologies to enhance their diagnostic capabilities. These may include digital radiography, ultrasound, MRI, CT scans, and advanced laboratory equipment. The adoption of such technologies drives the growth of the diagnostic market as these hospitals become potential customers for diagnostic manufacturers.

The reference laboratories segment is projected to grow at the fastest CAGR of around 9% during the forecast period. The sector represents revenue from diagnostic services directly offered to pet owners by independent or corporate-affiliated laboratories, such as Zoetis Reference Laboratories and World Organization for Animal Health/OIE-certified laboratories. For example, Zoetis Reference Laboratories offers full-service diagnostics, covering most species, with microbiology, hematology, serology, endocrinology, chemistry, and other advanced assays and comprehensive clinical and anatomic pathology testing.

Type Insights

In terms of type, the point-of-care (POC) segment held the largest revenue of over 57% in 2022. The segment focuses on testing services offered at the POC, such as a farm, veterinary establishment, or home. Results are delivered within minutes or a few hours (much faster than sending out lab results), allowing veterinarians to provide efficient diagnoses and decide future steps (such as additional testing or treatment) within the same appointment. Overall, POC diagnostics in veterinary medicine transformed how veterinarians approach diagnosis and treatment, resulting in better patient outcomes and growing demand for such testing solutions in the market.

The laboratory-based segment is estimated to witness the fastest CAGR of about 8% during the forecast period. The laboratories are owned and operated by companies or public entities. Veterinary laboratories provide a comprehensive range of diagnostic tests and services to diagnose and monitor various animal diseases & disorders. Blood work, urinalysis, imaging investigations (X-rays, ultrasounds), cytology, histology, and specialized tests for infectious disorders such as parvovirus, heartworm, and feline leukemia are some of the tests that are regularly performed. Moreover, laboratories are necessary to monitor disease trends and outbreaks in animals.

Regional Insights

In terms of region, North America held the largest revenue share of more than 38% in 2022. North America has seen a rise in pet ownership, with many households considering pets as family. This growing pet population has increased the demand for veterinary diagnostics services to ensure the health and well-being of these animals. In addition, pet owners are willing to spend more on their pets' healthcare, including diagnostics, surgery, and other medical services. The rise in veterinary healthcare expenditure has contributed to the growth of the market. Moreover, the presence of veterinary diagnostics laboratories in the region contributes to market growth. For instance, Colorado State University offers a variety of diagnostic services, including histology services for tissue samples submitted through the biopsy & necropsy programs, testing services and flock health support for the U.S. poultry industry, diagnostic examination for hematological malignancies in companion animals, primarily dogs & cats, testing on all animal species in the areas of biochemistry, cytology, immunocytochemical staining, immunofixation, hematology, cytochemical staining, and urinalysis.

On the other hand, the Asia Pacific region is estimated to grow at the fastest CAGR of more than 10% from 2023 to 2030. Major reasons anticipated to propel the regional market growth are the rise in middle-class families, increasing disposable income, adopting companion animals, and the growing demand for animal proteins. Countries such as China & India are anticipated to have strong growth potential with the number of industrial facilities in the region increasing. Increasing R&D investment by market players in developing value-added products is expected to boost regional market growth. In addition, rising consumer demand for high-quality food items and growing awareness of animal health are important variables anticipated to boost income in the upcoming years. Moreover, the Asia Pacific veterinary diagnostic services industry growth is anticipated to be driven by rising demand for pet insurance and animal nutrition products.

Key Companies & Market Share Insights

The market is competitive by nature due to the presence of a wide range of players, from small companies to huge global animal health companies such as IDEXX and Zoetis. These involve implementing cutting-edge and efficient diagnostic services to promote animal healthcare outcomes, diagnostic accuracy, efficiency, and cost reduction. As the field continues to advance, other companies are expected to come to the market, contributing to the advancement of novel diagnostic solutions in veterinary medicine. Existing market players keep executing strategic initiatives such as joint ventures, mergers, and acquisitions and introducing new products and product upgrades to strengthen their position in the market. For example, in June 2023, IDEXX Laboratories, Inc. launched the first animal diagnostic test to detect kidney damage in dogs and cats. Later in 2023, the tests will be performed in IDEXX Reference Laboratories in the US and Canada and the test will be rolled out across Europe in 2024. Some prominent players in the global veterinary diagnostic services market include:

• Zoetis Services LLC

• Antech Diagnostics, Inc. (Mars, Inc.)

• IDEXX

• Neogen Corporation

• The Animal Medical Center

• Embark Veterinary, Inc.

• SYNLAB

• NationWide Laboratories

• Ellie Diagnostics

• VETERINARY HEALTHCARE COMPANY (VETHC).

Veterinary Diagnostic Services Market Report Scope

Global Veterinary Diagnostic Services Market Report Segmentation

This report forecasts revenue growth at the regional & country level and analyzes the latest trends and opportunities in each sub-segment from 2018 to 2030. For this report, Grand View Research has segmented the global veterinary diagnostic services market report based on test type, animal type, testing category, sector, service provider, type, and region:

• Test Type Outlook (Revenue, USD Million, 2018 - 2030)

  • In Vitro Diagnosis

  • In Vivo Diagnosis

• Animal Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Companion Animals

    • Dogs

    • Cats

    • Horses

    • Others

  • Production Animals

    • Cattle

    • Poultry

    • Swine

    • Others

• Testing Category Outlook (Revenue, USD Million, 2018 - 2030)

  • Clinical Chemistry

  • Microbiology

  • Parasitology

  • Histopathology

  • Cytopathology

  • Hematology

  • Immunology & Serology

  • Imaging

  • Molecular Diagnostics

  • Other Categories

• Sector Outlook (Revenue, USD Million, 2018 - 2030)

  • Public

  • Private

• Service Provider Outlook (Revenue, USD Million, 2018 - 2030)

  • Veterinary Hospital/Clinic Laboratories

  • Reference Laboratories

• Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Point-of-Care (POC)

  • Laboratory-based

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

    • Netherlands

    • Sweden

    • Denmark

    • Rest of Europe

  • Asia Pacific

    • Japan

    • China

    • India

    • South Korea

    • Australia

    • Rest of Asia Pacific

  • Latin America

    • Brazil

    • Mexico

    • Rest of Latin America

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • Rest of MEA