Companion Animal Diagnostic Services Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Companion Animal Diagnostic Services Market is projected to expand from USD 2.94 billion in 2025 to USD 4.49 billion by 2031, registering a CAGR of 7.31%. These services, which include clinical pathology, molecular diagnostics, and imaging, are utilized by veterinarians to diagnose and treat pets such as dogs, cats, and equines. Growth is largely fueled by the rising prevalence of chronic conditions in aging animal populations and the trend of pet humanization, where owners prioritize human-grade healthcare. Additionally, the increasing threat of zoonotic diseases necessitates strict surveillance and testing, further cementing the importance of these diagnostic tools in modern veterinary practice.

Despite these growth drivers, the market faces hurdles due to a severe global shortage of qualified veterinary professionals and pathologists, which limits service capacity and raises operational costs. This labor gap slows down diagnostic interpretation, potentially capping revenue generation for providers in high-demand areas. However, market demand remains strong; according to the American Pet Products Association, the sector saw robust activity in 2024, with spending on veterinary care and product sales reaching $39.8 billion in the United States.

Market Drivers

The trend of pet humanization is a major catalyst for diagnostic service demand, as owners increasingly view their companion animals as integral family members. This cultural shift leads to a greater willingness to incur veterinary expenses for early disease detection, wellness screenings, and advanced pathology, directly increasing the utilization of clinical services to ensure animal health. Supporting this high demand, data from the FEDIAF EuropeanPetFood 'Facts & Figures 2024' report indicates that approximately 91 million European Union households owned at least one pet as of June 2024, creating a substantial need for veterinary care infrastructure and ensuring a steady stream of cases for diagnostic providers.

Concurrently, the expansion of pet insurance coverage is eliminating financial obstacles that historically restricted access to comprehensive diagnostic procedures. Broader insurance options encourage owners to authorize costly tests like MRI scans and molecular assays without the burden of immediate out-of-pocket expenses, fostering a shift from symptomatic treatment to evidence-based medicine. This trend is reflected in the North American Pet Health Insurance Association's 'State of the Industry Report 2024,' which noted a historic high of $4.27 billion in total premiums in North America by May 2024. The impact is visible corporately, with Idexx Laboratories reporting a 7 percent increase in global Companion Animal Group diagnostic recurring revenues in the third quarter of 2024.

Market Challenges

The scarcity of qualified veterinary professionals and pathologists presents a critical obstacle to market expansion by causing severe operational bottlenecks. When clinics and laboratories lack sufficient staff to perform procedures or interpret complex diagnostic images and molecular tests, turnaround times for critical results increase substantially. These delays force veterinarians to defer treatment decisions and reduce the volume of cases that can be managed effectively, preventing service providers from fully capitalizing on the surging demand for tests and effectively capping potential revenue growth.

Furthermore, this labor shortage creates intense financial pressure that erodes profit margins and restricts investment in service expansion. Veterinary practices are compelled to increase overhead costs to compete for limited talent, often resorting to higher wages or expensive temporary staffing. A 2024 survey by the British Veterinary Association highlighted this issue, revealing that clinical practices averaged 2.1 unfilled full-time equivalent veterinary roles, representing approximately 23% of their total workforce capacity. Such high vacancy rates directly constrain the physical ability of facilities to process diagnostic samples, thereby stalling the market's overall upward trajectory.

Market Trends

Artificial Intelligence (AI) is increasingly being integrated into veterinary workflows to enhance predictive diagnostics and alleviate the strain caused by workforce shortages. By automating complex image analysis, AI allows for immediate second opinions in radiology, thereby speeding up diagnostic processes and mitigating operational bottlenecks. This adoption is gaining momentum; the American Veterinary Medical Association’s February 2025 report, 'Familiarity with artificial intelligence drives optimism and adoption among veterinary professionals: 2024 survey,' found that 39.2% of respondents are now utilizing AI tools for professional tasks, which helps optimize case management and facilitate faster treatment interventions.

In parallel, the rise of non-invasive liquid biopsy is revolutionizing oncology by permitting cancer screening through simple blood draws instead of invasive tissue sampling. This innovation addresses the need for accessible, early-stage monitoring, particularly for aging pets where traditional biopsy risks are prohibitive. The commercial scalability of this technology is evident in VolitionRx Limited's 'Full Fiscal Year 2024 Financial Results' from March 2025, which reported sales of approximately 120,000 Nu.Q Vet Cancer Tests in 2024. This growth signifies a broader pivot toward proactive wellness monitoring, allowing for therapeutic intervention before clinical symptoms escalate.

Key Players Profiled in the Companion Animal Diagnostic Services Market

• IDEXX Laboratories, Inc.
• Zoetis Inc.
• Virbac
• Heska Corporation
• Neogen Corporation
• Bio-Rad Laboratories, Inc.
• INDICAL Bioscience GmbH
• Agrolabo SpA
• ID.vet
• bioMerieux S.A.

Report Scope

In this report, the Global Companion Animal Diagnostic Services Market has been segmented into the following categories:

Companion Animal Diagnostic Services Market, by Testing:

• Clinical Chemistry
• Microbiology
• Parasitology
• Histopathology
• Cytopathology
• Hematology
• Immunology & Serology
• Imaging
• Molecular Diagnostics
• Others

Companion Animal Diagnostic Services Market, by Type:

• Point-of-Care (POC)
• Laboratory-based

Companion Animal Diagnostic Services Market, by Animal Type:

• Dogs
• Cats
• Horses
• Others

Companion Animal Diagnostic Services Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Companion Animal Diagnostic Services Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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