Veterinary Software Market Size, Share & Trends Analysis Report By Product Type (Practice Management Software, Imaging Software, Telehealth Software, Others), By Delivery Mode (Cloud-Based, On-premise), By Practice Type (Exclusive Small Animal, Mixed Animal, Exclusive Large Animal, Others), By End-User (Veterinary Hospitals & Clinics, Research Laboratories & Academic Institutes, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2031

Market Overview

The global veterinary software market size was valued at USD 1.85 billion in 2023. It is expected to reach USD 3.21 billion in 2032, growing at a CAGR of 6.35% over the forecast period (2024-32). There is a growing trend of pet ownership globally, accompanied by increased spending on pet healthcare and veterinary services. Pet owners are seeking advanced veterinary care and management solutions, driving the adoption of veterinary software to streamline operations and enhance service delivery.

Veterinary software goes above and beyond practice management optimization to meet the needs of veterinary professionals. Integrations with animal clinics and hospitals, a drug database for use by veterinary-focused pharmacies, streamlined processes and compliance monitoring, and client interaction tools are just some features available in veterinary software. For veterinarians to concentrate on their jobs, veterinary software must improve efficiency and productivity when caring for animals. The veterinary software options range from those designed to work with veterinary practice management systems to those that can function alone.

Market Dynamics

Global veterinary software market drivers

Increase in companion animal ownership

A companion animal, also known as a pet, is an animal that lives with humans to provide companionship and entertainment while also fostering an emotional bond between the pet and its owner. The worldwide adoption of pets has been on the rise in recent years. Positively affecting human health, companion animals improve people's overall physical well-being and significantly raise the standard of living. As more and more people worldwide view their pets as part of the family, the number of households with pets has increased dramatically. The market is expanding due to rising pet ownership awareness and concern. An increase in the number of households with pets is a significant driver of the veterinary software industry.

Global veterinary software market restraints

Inadequate veterinary care due to lack of resources in developing countries

Countries with low per capita income and GDP tend to lack the basic infrastructure to support their citizens. Because of affordable pet insurance availability, Americans are spending more money than ever on their pets' medical care. The global market is hindered by several factors, including the shortage of qualified veterinary professionals and hospitals and the need for more awareness regarding the significance of using veterinary software like veterinary practice management systems and veterinary imaging systems. Moreover, the shortage of veterinary imaging equipment is a significant factor in slowing the industry's expansion.

Global veterinary software market opportunities

Growth opportunities in emerging markets

Due to rising awareness of animal health in countries like China, Brazil, and India, opportunities in these underserved emerging markets are expected to drive the expansion of the market. As a result, the global market for veterinary software and veterinary imaging systems is expected to expand. Further, the rising number of qualified veterinary professionals in countries like India adds to the expansion of the market through increased knowledge of the significance of using imaging and practice management systems. The low cost of these solutions also contributes to expanding the market in developing countries.

Regional Analysis

The global veterinary software market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

North america dominates the global market

North America is the most significant shareholder in the global market. Growing numbers of people are using cloud services, which has raised the demand for faster Internet connections. In addition, the need for veterinary software is projected to increase as data centers' adoption of lockdown has created a new revenue opportunity for those specializing in software-based balancing solutions. It is the most lucrative region of the Americas and a well-established market. In addition, the expansion of the pet health insurance industry and the implementation of more lenient pet insurance policies are anticipated to drive growth in the market.

Europe is expected to grow during the forecast period. The European market is examined across Germany, France, the United Kingdom, and the rest of Europe. There has been significant development in Europe's healthcare infrastructure, allowing for the introduction of numerous veterinary applications that improve the quality of care for animals in the region's population. The expansion of the market in Europe can be attributed to several factors, including the rising prevalence of domestic and companion animals, the availability of veterinarians, and the rising cost of animal healthcare.

Growth prospects for the veterinary imaging market are promising in the Asia-Pacific region because of the increasing popularity of keeping pets as companions and the corresponding increase in public awareness of the importance of animal care. Market growth in Asia-Pacific is mainly attributable to rising disposable income, better animal health spending, the rising importance of livestock animals, rising demand for protein-rich animal food, increasing meat and dairy product consumption, and a surge in the number of veterinary hospitals equipped with advanced imaging systems. In addition, the rising demand for cutting-edge imaging systems and the rising prevalence of pet ownership is anticipated to fuel market expansion.

Segmental Analysis

The global veterinary software market is segmented by product, type, deployment, practice type, and end-user.

Based on product, the global market is bifurcated into veterinary practice management software, veterinary imaging software, and others.

The veterinary practice management software segment is the highest contributor to the market. Software for managing a veterinary clinic's day-to-day activities is called "veterinary practice management software." Essential veterinarian administrative duties such as appointment scheduling, patient demographic capture, and more are made possible. Veterinary hospitals and clinics can improve their efficiency with the help of practice management software, which also helps veterinarians stay in touch with their patients and their owners. In addition to reducing paperwork and ensuring conformity with numerous health regulations, it provides consolidated data storage and reports. These programs also have automated billing processes and the option to accept payments online. Therefore, these features fuel the rising demand for veterinary practice management software.

Based on type, the global market is bifurcated into integrated software and standalone software.

The integrated software segment is the highest contributor to the market. The veterinary sector now has access to integrated software that allows for sorting by appointment dates, conditions, and seasons. Unified veterinary software allows for the consolidation of formerly separate processes, such as appointment scheduling, patient records, diagnostic procedures, billing, results reporting, and patient reminders. Because of this, veterinary hospitals can save a lot of money, work faster, and provide better care for their patients. To a large extent, this market's expansion can be attributed to these advantages.

Based on deployment, the global market is bifurcated into on-premise and cloud.

The on-premise segment is the highest contributor to the market. Implementing such veterinary software is made more accessible because on-premises software is known for superior server maintenance. The on-premise deployment model is also extensively beneficial in large firms, even though it requires a sizable financial outlay to implement. It necessitates the acquisition of both servers to be networked together and management software. Organizations prefer on-premises software due to its higher security level than cloud-based solutions.

Based on practice, the global market is bifurcated into exclusive small animal practices, mixed animal practices, and exclusive large animal practices.

The exclusive small animal practices segment is the highest contributor to the market. The largest share of the veterinary software industry comes from small animal operations, where many pets and their owners make regular appointments. Revenue from pet-related businesses has been rising along with the rising tide of pet owners. The AVMA found the most considerable gross revenue generated by the "exclusive companion practice" category, at nearly USD 80,000. As a result of these factors, this subsector of the market is expanding at a healthy rate.

Based on end-user, the global market is bifurcated into hospitals/clinics and reference laboratories.

The hospitals/clinics segment is the highest contributor to the market. Modern veterinary hospitals and clinics can diagnose and treat patients on-site. Veterinary hospitals and clinics are the market's primary income source and will likely maintain their dominant position during the forecast period. It is due to the rising number of veterinary hospitals and clinics and the availability of low-cost imaging systems in these facilities, all fueling the rise of the market.

Recent Developments

• May 2024 - In order to meet the issues facing the veterinary business head-on, Evette, the pioneer in veterinary relief staffing, announced a partnership with Shepherd Veterinary Software, the Practice Information Management System (PIMS) with the fastest growth in the United States. Veterinarians and veterinary technicians are experiencing extreme burnout and turnover because of the veterinary industry's decades-long lag behind human healthcare.
• February 2024 - The world leader in innovative pet healthcare, DEXX Laboratories, Inc. (NASDAQ: IDXX), announced the release of Vello. This software program uses cutting-edge digital tools to provide a smooth connection between veterinary clinics and their customers. Vello is the only pet owner engagement solution designed specifically for IDEXX practice management software. It allows veterinarian practices that utilize ezyVet®, Neo®, and Cornerstone® software to interact with pet owners effectively through a unified, user-friendly platform.