Veterinary Software Market Size, Share & Trends Analysis Report By Product (Practice Management Software, Imaging Software), By Delivery Mode (On-premise, Cloud/Web-Based), By Practice Type, By End-use, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global veterinary software market size was valued at USD 538.1 million in 2022 and is expected to grow at a CAGR of 9.0% from 2023 to 2030. Increasing demand for Practice Management Systems (PMS) from veterinary practitioners is a key contributor to the market growth. In addition, growing awareness regarding the benefits of the use of software solutions and an increasing number of clinical visits by pet owners are expected to boost the adoption of software solutions in veterinary practices in the coming years. The animal health industry is impacted by an increase in companion pet ownership and concerns over pet health. A growing focus on the efficiency and safety of livestock production is also another growth propeller.

Developers of PMS systems offer complete solutions for the management of a veterinarian’s office including maintaining schedules and records. As per the data published by the American Veterinary Medical Association in 2022, there were approximately 78,717 clinical veterinarians in U.S. North America practicing privately. This number is further expected to increase over the forecast period. This increase in the number is anticipated to propel the demand for these solutions for managing operations in clinics and reference laboratories.

The outbreak of COVID-19 is estimated to have a considerable impact on the growth of the market. In most regions, veterinary services are considered essential services and remained functional even during the lockdown. This has contributed notably to the continuation of revenue generation across veterinary practices, in turn, leading to the growth of this market. The COVID-19 pandemic brought drastic changes to patients’ normal routine with lockdown and social distancing measures across the world. Understandably due to loneliness and disturbed mental health experienced by most of the population during the pandemic, the adoption of companion animals witnessed an upsurge. For instance, as per the June 2021 PDSA PAW report, between March 2020 and May 2021, 2.0 million individuals in the UK kept pets. Accordingly, the need for veterinary software was very strong during the pandemic as a result of the high adoption rate, and it is anticipated that this trend will continue over the forecast period.

Citing an example, according to the Japan Pet Food Association survey, there has been a 10% increase in dog and cat ownership in 2022, as compared to the previous year. There were an estimated 426 million dogs and 432 million cats being kept as pets in Japan as of October 2022. This thereby resulted in an increase in the demand for virtual pet care visits during the pandemic and thus high adoption of veterinary software solutions.

Product Insights

The practice management software segment accounted for the largest revenue share of over 66.0% in 2022 due to the growing demand from consumers and the cost-effective nature of these systems. These systems help practitioners to support and record different standards of care protocols, healthcare recommendations, keep track of the patient's health with invoicing and 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 helps deliver better animal health care by offering efficient solutions for workflow management in veterinary care facilities. For instance, in April 2022, DaySmart Software’s practice management system for veterinarians collaborated with LifeLearn Inc. The ClientEd a pet medical education library that promotes effective client training for veterinary practices was launched LifeLearn Inc. The users of DaySmart Vet were able search ClientEd's collection of 2,100+ veterinary handouts, the bulk of which cover the medical, surgical, and behavioral needs of dogs and cats.

The growing adoption of information systems in healthcare practices has significantly changed the way of care delivery to patients over the past decades. Novel veterinary practice management software permits hospitals and clinics to directly access results from diagnostic labs, hence bringing down the treatment time considerably and making life easier for pet proprietors. Such sharing of data through the web also advances treatment efficiency and brings down the possibility of a medical error. Moreover, the introduction of technologically advanced software that offers solutions in one platform for all processes in veterinary clinics is expected to 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. The veterinary field has been following the paths of the human healthcare sector, which further supports the overall market growth. In addition, the practice management software segment is primarily driven by the growing animal health expenditure across the globe, rising pet population, an increase in the number of veterinary practitioners, and high demand for animal-derived food products, coupled with the availability of pet insurance. The 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

The on-premise solutions segment dominated the overall industry in 2022 and accounted for revenue share of over 50.0% owing to their low cost and widespread availability of these services. However, the cost of these platforms is higher as it includes the cost of the overall system and hardware and software package. This is expected to act as a restraining factor for the growth of on-premise services.

The cloud/web-based solutions segment is anticipated to expand at a lucrative CAGR over the forecast period owing to its associated benefits. Users get remote access to health information and these solutions help in reducing the threat of information misuse. Moreover, the ease of access with proper IT infrastructure used in the deployment of the cloud/web-based solutions helps in increasing productivity and generating more profits for the organization. The high cost associated with their deployment is expected to limit their adoption by emerging players.

However, the 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 enabling veterinarians to keep track of information. This is further expected to boost the adoption of cloud/web-based services over the following years. For instance, in May 2022, a novel cloud-based veterinary operating system (vOS) called Covetrus Pulse was released by Covetrus, allowing veterinarians more time to spend with the animals under their care by easily connecting them to the technology they need to run their procedures.

End-use Insights

The hospitals/clinics segment dominated the market for veterinary software and held a revenue share of over 50% in 2022. The 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. A high focus on 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 the 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 market growth.

Practice Type Insights

The food-producing animals segment held the dominant share of over 42.0% in 2022 due to the 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 and quality, and monitor activities such as pharmacovigilance is fueling the segment growth. According to the report published by Food and Agriculture Organization in 2019, in the emerging economies, food animal products account for 13% of human protein consumption. This leads to an increase in the demand for improving livestock productivity, which is critical to meeting the dietary needs of the growing human population. These factors cumulatively are driving the segment.

In addition, the introduction of veterinary control management systems that help in the identification and 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 the prevalence of diseases, treatment rates, and vaccinations. Thus, wide applications of this software in food-producing animal health care are predicted to fuel the growth. For instance, in March 2022, National Digital Livestock Mission (NDLM) was launched by Government Of India. The goal of the mission was to develop a "farmer-centric system" where farmers may easily access services and information through a purposefully built national digital architecture using current information infrastructure and apps.

Regional Insights

The North American market held the largest revenue share of over 44.0% in 2022 and is expected to maintain its position throughout the forecast period. The presence of well-established companies, advanced healthcare IT infrastructure, and 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 the World Small Animal Veterinary Association, coupled with the rising pet care expenditure by individuals and governments, is further expected to boost the market growth in this region.

Moreover, the growing mergers and acquisition among the market key players for product portfolio expansion boosts the market. For instance, in July 2020, Virtual Recall, a provider of veterinarian engagement software, was purchased by Zoetis. With this, Zoetis broadened its complete offering for veterinary hospitals across the entire range of care and raise the quality of services available to pet owners in the UK, Australia, and New Zealand. Therefore, as a result of these encouraging trends, it was projected that the market will expand significantly over the next several years.

The Asia Pacific market is anticipated to register a lucrative CAGR of over 10.0% during the forecast period due to the growing demand for veterinary practice management, which is a result of a continuously growing livestock population, increasing demand for animal-derived food products, and rising pet adoption in this region. The presence of unmet clinical needs and growing awareness levels amongst patients and practitioners are expected to fuel the market growth in the coming years. In addition, the alarming need to curb healthcare issues due to the high incidence of zoonotic diseases and the requirement to manage disease outbreaks are anticipated to propel the market growth. 

Key Companies & Market Share Insights

The key companies are concentrating on strategic initiatives such as mergers and acquisitions, collaboration, new delivery mode development, and geographical expansions. In May 2022, Covetrus, launched Ascend, a robust, cloud-based Practise Management software designed to help veterinary practices across the UK, EMEA, and Asia Pacific. Ascend is anticipated to enhance the productivity by simplifying internal communication and cooperation, thereby easing the task for both workers and clients. Some of the prominent players in the global veterinary software market include:

• IDEXX Laboratories, Inc.

• Hippo Manager Software, Inc.

• VetZ Limited

• Esaote SpA

• Henry Schein, Inc.

• Patterson Companies, Inc.

• ClienTrax

• VIA Information Systems

• Onward Systems, Inc.

• DaySmart Software

• VitusVet

• Provet Cloud

• ezyVet

• Animal Intelligence Software

• NaVetor

Veterinary Software Market Report Scope

Global Veterinary Software Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this report, Grand View Research has segmented the global veterinary software market report on the basis of product, delivery mode, practice type, end-use, and region:

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

  • Practice Management Software

  • Imaging Software

• Delivery Mode Outlook (Revenue, USD Million, 2018 - 2030)

  • On-premise

  • Cloud/Web-Based

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

  • Small Animals

  • Mixed Animals

  • Equine

  • Food-producing Animals

  • Others

• End-use Outlook (Revenue, USD Million, 2018 - 2030)

  • Hospitals/Clinics

  • Reference Laboratories

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

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

    • Netherlands

    • Ireland

    • Russia

    • Switzerland

    • Sweden

    • Poland

  • Asia Pacific

    • Japan

    • India

    • China

    • South Korea

    • Australia

    • Thailand

    • Indonesia

    • Philippines

    • Malaysia

    • Singapore

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East and Africa (MEA)

    • South Africa

    • Saudi Arabia

    • Israel

    • UAE

    • Iran

    • Turkey