Number of pages: 100 | Report Format: PDF | Published date: March 15, 2023
Historical Years – 2021 | Base Year – 2022 | Forecasted Years – 2023-2031
According to the deep-dive market assessment study by Growth Plus Reports, the global veterinary software market was valued at US$ 543.86 million in 2022 and is expected to register a revenue CAGR of 6.9% to reach US$ 991.48 million by 2031.
Veterinary Software Market Fundamentals
Unlike other types of medical software, veterinary software helps practices track patients and manage their everyday administrative activities. Veterinarian practices must be able to collect patient records, track treatments, manage scheduling, and handle invoicing. Veterinary software automates these operations, resulting in a more pleasant patient experience. Veterinary software characteristics are very comparable to those of human-based medical procedures. The goal is to automate some routine manual operations and improve veterinary capabilities to improve patient care and increase convenience for their owners.
Besides the many types of veterinary clinics (equine, farm animal, and pet clinics all have significantly diverse customers), practice management software can be deployed on-premise or in the cloud. While many veterinary practice management choices are moving to the cloud for deployment (for ease of remote access, efficient patient communication, and medical data centralization), on-premises systems remain available. Server-based applications must be installed on a physical server in a single location. On-premises systems have advantages such as they protect sensitive patient data, and secondly, they do not require an internet connection to function. While server-based solutions do not have bandwidth constraints, consumers should consider hiring an expert to handle any technical issues or backups required by on-premises software. Cloud-based software eliminates the requirement for a physical server and any maintenance costs associated with a physical server. Cloud-based software is ideal for veterinarians who frequently travel or meet patients outside the office. Veterinarians can access and update patient files in real-time from anywhere.
Veterinary Software Market Dynamics
Product advancements, software integration, and expanding prospects for practice management are the primary factors driving market revenue growth. For instance, according to 2021 Veterinarian Hospital Managers Association research, the need for more complex equipment, processes, and, most crucially, systems and software has expanded in response to increased demand for pet care. According to the same source, veterinarians have recognized and acknowledged professional management of veterinary offices through the use of increasingly complex and integrated software. As a result of veterinarians’ interest in software management in veterinary healthcare, leading players are introducing new product lines to the market. For instance, Zoetis bought the veterinary engagement software startup Virtual Recall in July 2020. With this acquisition, Zoetis was expected to broaden its complete offering for veterinary clinics across the continuum of care and improve the level of pet owner services available to its customers in the United Kingdom, Australia, and New Zealand, as a result of such encouraging advances.
The growing number of veterinarians and their increased adoption of veterinary software are boosting the industry. According to statistics published by the American Veterinary Medical Association in 2021, there were over 68,000 veterinarians in North America and over 22,000 in the United Kingdom operating privately. This number is expected to rise higher over the projection period. This increase is expected to stimulate demand for these solutions for clinic and reference laboratory operations management.
Veterinary Software Market Ecosystem
The global veterinary software market has been analyzed from five perspectives: product, type, practice type, end user, and region.
Veterinary Software Market by Product
Based on product, the global veterinary software market has been segmented into veterinary practice management software, veterinary imaging software, and others.
The veterinary practice management software segment is likely to dominate the market during the forecast period. Veterinary practice management software assists veterinary practices with their day-to-day operations. Veterinarians use veterinary practice management software to manage patient information, treatment planning, scheduling, and back-office operations, such as accounting. This software assists veterinary clinics with patient diagnosis and treatment management, allowing nurses or technicians to offer therapy more efficiently. Furthermore, the administrative team manages patient communication, intake, and payments using veterinary practice management software. Advanced veterinary practice management software is available for veterinary hospitals, while smaller versions are accessible for small clinics or private practices.
Veterinarians use veterinary practice management software for patient information, treatment planning, and appointment scheduling. Client-patient databases, billing, boarding/grooming, recording missing charges, client communications, client reminders, electronic medical records, electronic whiteboards, inventory control, and many other functions are common elements of practice management software.
Veterinary Software Market by Type
Based on type, the global veterinary software market has been segmented into integrated software and stand-alone software.
The integrated software segment is expected to dominate the market during the forecast period. This is attributed to the advantage of facilitating integration scheduling, charting, testing, billing, test reports, and patient reminders onto a single platform. Due to this, veterinary practices can gain significant time and cost savings, increase productivity and improve patient care. Such benefits are expected to contribute toward the growth of this market significantly.
Veterinary Software Market by Practice Type
Based on practice type, the global veterinary software market has been segmented into exclusive small animal practices, mixed animal practices, and exclusive large animal practices. The mixed animal practices segment is sub-segmented into predominantly small animal practices and predominantly large animal practices. Moreover, the exclusive large animal practices segment is also sub-segmented into exclusive equine practices and exclusive bovine practices.
The exclusive small animal practices segment is expected to dominate the market during the projection period. This segment’s rapid rise can be attributed to an increase in small pet owners and a rise in annual pet care spending in industrialized countries.
Veterinary Software Market by End User
Based on end user, the global veterinary software market has been segmented into hospitals/clinics, reference laboratories, and others.
The hospitals/clinics segment is likely to dominate the market during the forecast period. The usage of these services is being driven by technological developments in pet care, which is expected to be a growth opportunity. Among these developments are the introduction of effective information management systems and pet owner mobile technology. A strong emphasis on innovation in animal health has resulted in specific measures that are being taken or are in the process of being implemented, which are boosting the market revenue growth prospects.
The reference laboratories segment is predicted to grow rapidly in the coming years. These laboratories are working on various technologies for disease detection and monitoring. Government animal welfare authorities and policymakers are pushing farmers to adopt veterinary care methods for food-producing species through specific incentives. As a result, the need for animal healthcare facilities rises. Government organizations are becoming more active in developing guidelines for the global promotion of reference laboratories, which is projected to contribute to market revenue growth.
Veterinary Software Market by Region
Based on region, the global veterinary software market has been segmented into North America, Europe, Asia Pacific, Latin America, the Middle East and Africa.
The North America region is likely to dominate the market during the forecast period. The expanding adoption of companion animals and rising per capita animal healthcare spending are two main reasons driving market expansion. According to the American Pet Products Association’s (APPA’s) 2020-2021 National Pet Owners Survey, 67.0% of U.S. households, or around 85.0 million families, own a pet. Similarly, according to the American Veterinary Medical Association, around US$ 29.3 billion was spent in the country on veterinary care and services in March 2020. Hence, with increased knowledge and expenditure on animal health, as well as high pet ownership rates, the market in North America is likely to rise significantly throughout the forecast period. Some of the reasons driving the growth of the veterinary software market in the country are key product launches, a high concentration of market participants or manufacturers’ presence, acquisitions and collaborations among significant players, and the increase in the adoption of pets. According to the 2021-2022 National Pet Owners Survey conducted by the APPA, approximately 69.0 million Americans own a dog, 45.3 million own cats, 11.8 million own freshwater fish, 9.9 million own birds, 6.2 million own small animals, 5.7 million own reptiles, 3.5 million own horses, and 2.9 million own saltwater fish.
The Asia Pacific market is expected to develop at a lucrative revenue CAGR during the projected period due to the rise in the need for veterinary practice management owing to the region’s constantly growing livestock population, rising demand for animal-derived food items, and growing pet adoption rates. Unmet clinical needs and a rise in awareness among patients and practitioners are projected to drive market expansion in the future years. Furthermore, the urgent need to address healthcare challenges caused by the increase in the prevalence of zoonotic illnesses and the necessity to manage disease outbreaks are expected to drive market expansion.
Veterinary Software Market Competitive Landscape
The veterinary software market is highly competitive. Because of the increased need for practice management software, the market is experiencing severe rivalry. This sector has grown due to substantial expansion strategies, regional expansions, new product development, mergers and acquisitions, and collaborative research activities. Corporations spend heavily on R&D for veterinary software development to keep a competitive edge. To strengthen their position in the worldwide market, established businesses are investing in imaging software, pursuing tactics such as mergers and acquisitions, and engaging in joint operations with hospitals and local players. In August 2021, for instance, Petabyte Technologies announced a collaboration to improve the lives of veterinarians, their employees, and pet parents with revolutionary software. The two companies proposed working together to create the next generation of Petabyte’s software to modernize animal hospital operations and transform the pet parent experience.
The prominent market players in the global veterinary software market include:
Veterinary Software Market Strategic Developments
Asia Pacific is the key growth region in the global veterinary software market.
Product innovation, software integration, and a rise in the opportunities for practice management are the prime market driving factors.
The veterinary software market is expected to be valued at 991.48 million by 2031.
The veterinary software market is expected to register a revenue CAGR of 6.9% during the forecast period.
Some prominent players in the global veterinary software market include Animal Intelligence Software Inc., Carestream Health, and IDEXX Laboratories, Inc.
*Insights on financial performance are subject to the availability of information in the public domain