Veterinary Practice Management Software Market Size, Share, Forecast, & Trends Analysis by Delivery Mode (On-Premise, Cloud) Practice (Companion Animals, Mixed, Equine) Functionality (Billing, EMR, Scheduling, Inventory) End User - Global Forecast to 2031

The Veterinary Practice Management Software Market was valued at $375.5 million in 2023. This market is expected to reach $674.5 million by 2031, from an estimated $401.4 million in 2024, at a CAGR of 7.7% during the forecast period 2024-2031.

Veterinary Practice Management Software Market Size & Forecast

The growth of this market is driven by the increasing veterinary visits, growing livestock population, the growing risk of developing chronic & infectious diseases in companion & livestock animals, the growing number of strategic partnerships resulting in product innovation and software integration, and increasing animal health expenditure & pet insurance in developed countries. Moreover, emerging markets are expected to offer growth opportunities for the players operating in this market.

Veterinary Practice Management Software Market Growth Drivers

Growing Number of Strategic Partnerships Resulting in Product Innovation and Software Integration

With global pet ownership and livestock production growing, the demand for pet care is rising. Veterinary practitioners in developed countries adopt advanced healthcare IT solutions, including veterinary practice management software, to improve their management.

The demand for advanced and integrated software for practice management has increased to meet the changing market needs, improve workflow efficiency, and control veterinary healthcare spending. The software providers are entering into partnerships with other market players or stakeholders to innovate software offerings to fulfill this market need. For instance, in September 2021, Vetter Software (U.S) announced its partnership with Midwest Veterinary Laboratory (U.S.). According to this partnership, Vetter Software introduced a bi-directional integration between its software and Midwest Veterinary Laboratory’s laboratory services.

In addition, in February 2021, Hippo Manager Software, Inc. (U.S.) announced a new integration partnership with Zoetis Inc. (U.S.). According to this partnership, the Hippo Manager Software will connect with Zoetis VETSCAN FUSE, a bidirectional communication system that will allow veterinary professionals to quickly access their Zoetis diagnostic test results and upload those results to the patient’s medical record in HIPPO Manager. Such market developments enhance innovations and integrations to aid more efficient workflow at the veterinary practices.

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Growing Livestock Population

The livestock sector is the pillar of the global food system and contributes to diversified farming systems. According to the Food and Agriculture Organization of the United Nations (FAO), livestock contributes to 40% of global agriculture value output. The FAO aids in supporting the food security and livelihoods of the global population. Increasing incomes, population growth, and changing diets have increased the demand for agricultural subsectors, including livestock, in low-income and middle-income countries. The growing demand for food globally is the primary reason for rising livestock production.

In addition, according to FAS.usda.gov, in 2023, there were 307.5 million cattle heads, out of which 194.2 million head of bovine dairy cattle and 113.3 million water buffaloes in India. Further, according to the USDA National Agriculture Statistics Service data, in 2023, there were 28.2 million beef cows in the U.S. Thus, the growing livestock population is driving the demand for veterinary management software.

Veterinary Practice Management Software Market Opportunity

Emerging Markets

Developed nations like the U.S. and some of the European countries are the major contributors to the veterinary practice management software market. These markets are relatively better penetrated, and thus, players in this market are increasingly shifting their focus on underpenetrated emerging economies. Increasing companion animals and livestock population, rising risk of chronic and infectious diseases, and increasing demand for livestock-derived food products are the factors likely to increase the number of veterinarian visits, owing to which emerging countries like India, China, and Brazil are likely to offer high growth opportunities for veterinary practice management software.

In addition, according to a report by FAO, the per capita chicken consumption in India is set to grow from 3.2 Kg in 2020 to 9.1 Kg by 2030 on account of individuals' rapidly changing consumer behavior. Poultry & other meat’s share in household food consumption is expected to grow from 12% in 2020 to 24% by 2030. Thus, to meet this ever-increasing demand for livestock-derived food, the adoption of better reproductive strategies and improving the health of livestock animals has become important. This, in turn, is expected to drive the demand for practice management software in veterinary settings.

Veterinary Practice Management Software Market Analysis: Key Findings

By Delivery Mode: In 2024, the On-Premise Model Segment to Dominate the Veterinary Practice Management Software Market

Based on the delivery mode, the veterinary practice management software market is segmented into on-premise model and cloud/web-based model. In 2024, the on-premise model segment is expected to account for the larger share of 58.7% of the veterinary practice management software market. The large market share of this segment can be attributed to the advantages associated with on-premise veterinary practice management software in terms of security, complete control, and lower total cost of ownership.

By Practice Type: In 2024, the Companion Animal Practices Segment to Dominate the Veterinary Practice Management Software Market

Based on the practice type, the veterinary practice management software market is segmented into companion animal practices, mixed animal practices, food-producing animal practices, and equine practices. In 2024, the companion animal practices segment is expected to account for the largest share of the veterinary practice management software market. The large market share of this segment can be attributed to the rising pet population, the growing prevalence of diseases in companion animals, the consideration of pets as family members to provide the best treatment, and rising awareness regarding pet animal health. For instance, in April 2024, Elanco Animal Health Incorporated (U.S.) launched Elanco's 'Parvo is Poop' Campaign to increase awareness of fatal puppy disease.

By Functionality: In 2024, the Appointment Scheduling Segment to Dominate the Veterinary Practice Management Software Market

Based on the functionality, the veterinary practice management software market is segmented into appointment scheduling, electronic medical records, inventory management, billing and invoicing, and other functionalities. In 2024, the appointment scheduling segment is expected to account for the largest share of the veterinary practice management software market. The large market share of this segment can be attributed to the rising pet population and the growing prevalence of chronic and infectious diseases in companion animals.

By End User: In 2024, the Veterinary Hospitals Segment to Dominate the Veterinary Practice Management Software Market

Based on the end user, the veterinary practice management software market is segmented into veterinary hospitals, ambulatory veterinary services, and referral & specialty practices. In 2024, the veterinary hospitals segment is expected to account for the largest share of 93.8% of the veterinary practice management software market. The large market share of this segment can be attributed to the growing number of veterinary hospitals, the rising number of veterinarians, and the adoption of advancements in veterinary hospitals.

However, the ambulatory veterinary services segment is projected to register the highest CAGR of 4.7% during the forecast period of 2024-2031. This is due to the increasing number of pet diseases and animal health expenditures.

Geographical Analysis

By Geography: North America to Dominate the Veterinary Practice Management Software Market

In 2024, North America is expected to account for the largest share of 37.8% of the veterinary practice management software market, followed by Europe and Asia-Pacific. North America’s significant market share can be attributed to several key factors, including rising pet ownerships, growing pet industry expenditures, rising prevalence of diseases in companion animals, and growing awareness about animal health.

Moreover, the market in Asia-Pacific is slated to register the highest growth rate of 8.5% during the forecast period. This regional market's growth is attributed to rising pet ownership, the growing number of farm animals, the growing prevalence of zoonotic diseases, and rising animal health awareness.

Veterinary Practice Management Software Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last 3–4 years. Some of the key players operating in the veterinary practice management software market are IDEXX Laboratories, Inc. (U.S.), COVETRUS, INC. (U.S.), Hippo Manager Software, Inc. (U.S.), Advanced Technology Corp. (U.S.), VETport LLC. (U.S.), DaySmart Software (U.S.), AmerisourceBergen Corporation (U.S.), Animal Intelligence Software Inc. (U.S.), FirmCloud Corp. (U.S.), ClienTrax (U.S.), and ezofficesystems Ltd. (U.K.).

Veterinary Practice Management Software Industry Overview: Latest Developments from Key Industry Players

• In February 2024, IDEXX Laboratories, Inc. (U.S.) launched Vello, a software solution to connect clients and veterinary practices through modern, digital tools.
• In June 2023, Covetrus, Inc. (U.S.) launched the Covetrus Pulse, a cloud-based veterinary operating system (vOS) to improve and expand veterinary practices.
• In May 2022, Covetrus, Inc. (U.S.) launched Ascend, a cloud-based practice management software (PMS), to improve and enable veterinary practices in the U.K., Asia Pacific, and EMEA.

Veterinary Practice Management Software Market Research Summary

Key questions answered in the veterinary practice management software market report: