The companion animal diagnostics market size is projected to reach US$ 8.80 billion by 2031 from US$ 4.61 billion in 2024. The market is expected to register a CAGR of 9.8% during 2025–2031. Integration of digitalization and artificial intelligence in veterinary healthcare is likely to bring new market trends during the forecast period.
The humanization of pets is growing, and the global population is reshaping the veterinary healthcare landscape. Pet owners are increasingly willing to pay for their pets’ health, boosting the demand for accurate and minimally invasive diagnostic solutions.
Companion animals are highly prone to infectious and chronic diseases. Several references highlight the growing adoption of dogs and their related expenditure on healthcare services. The pet industry is comprehensive, and the demand for companion animal diagnostic products is expected to increase during the forecast period. According to the American Pet Products Association's 2023–2024 National Pet Owners Survey, in 2023, over 46.5 and 65.1 million households in the US owned cats and dogs, respectively. According to HealthforAnimals' report, over two million people adopted pets during the UK’s pandemic lockdowns, while in Australia, over a million pets were adopted during the pandemic. Moreover, families in the US, EU, and China have adopted more than half a billion dogs and cats. Dogs are the most popular pets in around one in three homes. Nearly a quarter of pet owners have a cat. Increasing demographic changes, rising income levels, and growing preferences post-pandemic have increased the number of people adopting pets. Pet owners in well-developed economies seek protection against the escalating veterinary treatment costs by applying for a pet insurance policy. In countries such as Sweden and the UK, the penetration rate of pets in households is very high, usually at a rate that covers significant numbers of pets under insurance plans.
Thus, the growing pet ownership and their humanization boost the companion animal diagnostics market growth.
The companion animal diagnostics market is rapidly expanding due to the upsurging companion animal healthcare expenditure and the growing pet humanization and ownership. Prominent players operating in the market are focusing on innovation and collaboration for enhanced availability of products. However, the high cost of diagnostic products and infrastructure hinders the companion animal diagnostics market growth.
The expenditure on veterinary healthcare is rising across the world. Spending on pet healthcare is surging dramatically, including purchasing pet food supplies, over-the-counter pharmaceuticals, veterinarian treatment, and pet insurance coverage. The considerable increase in pet care expenditure is leading to the growing demand for pet insurance, especially in major markets throughout North America and Europe. According to the American Pet Products Association 2023–2024, there is an upsurge in expenses in the pet industry in the US. Pet industry expenses in the US accounted for US$ 143.6 billion in 2023, compared to US$ 136.8 billion in 2018. This rise in pet expenditure accelerates the demand for their care products. According to the North American Pet Health Insurance Association Inc. data, the total US pet insurance volume in 2023 was US$ 3.2 billion. The total number of pets insured in the country at the end of 2022 was US$ 4.8 million, a 22% increase since 2021.
Pet owners in Europe are spending more on food, products, services, and veterinary care for their pets. For instance, France spends an average of 1,224 euros (US$ 1,411) per pet annually. These aim to expedite clinical decisions with greater confidence by offering enhanced insights and tailored assistance. Several pet owners spend significantly on animal healthcare, particularly veterinary care, diagnostics, and pharmaceuticals. Pet health and preventive diagnostic testing are still in their early stages.
Chronic ailments such as cancer, arthritis, and allergies are prevalent in animals similar to humans. In pets, chronic diseases have become more evident, which is eventually impacting people's spending on their pets' well-being and health. According to Animal Medicines Australia data, the six most common pet varieties account for ~US$ 22 billion in annual expenditure on pet-related goods and services in the country. Further, spending on veterinary services accounts for the second highest (14%) after food (51%), and veterinary services accounted for ~US$ 3.11 billion in 2022. According to HealthforAnimals globally, an estimated US$ 4.6 billion was spent on companion animal diagnostics in 2022.
Increased awareness of veterinary health reflects how preventive medicine, advanced treatments, and veterinary point-of-care diagnosis can assist in safeguarding their well-being. Pet owners in mature economies seek protection against the escalating veterinary treatment costs by applying for a pet insurance policy. In countries such as Sweden and the UK, the penetration rate is very high, usually at a rate that covers significant numbers of pets under insurance plans.
Although the penetration rate in the US and Canada is lower compared to some European countries, its growth is progressive and fueled by increased awareness of the benefits of pet insurance, coupled with humanization. This is increasingly the case in diagnostics, thus allowing a veterinarian to make prompt decisions on treatment. Regular checkups and the early detection of possible health issues have become standard practice, increasing the demand for companion animal diagnostic tools applied during routine visits for early-stage condition detection. Therefore, the rising expenditure on companion animal healthcare drives the companion animal diagnostics market growth.
Small and big companies operating in the companion animal diagnostics market are increasingly adopting strategies such as geographic expansion, product development, and technological advancements for their revenue growth. A few recent developments in the companion animal diagnostics market are mentioned below:
Therefore, the active participation of market players in product launches, expansions, partnerships, and mergers & acquisitions is expected to create lucrative growth opportunities in the companion animal diagnostics market in the coming years.
Key segments that contributed to the derivation of the companion animal diagnostics market analysis are product, companion animal, technology, application, and end user.
The geographic scope of the companion animal diagnostics market report mainly focuses on five regions: North America, Asia Pacific, Europe, South and Central America, and the Middle East and Africa. In terms of revenue, North America dominated the market in 2024. It is expected to continue its dominance in the global market during the forecast period. The US is the largest market for companion animal diagnostics in the world. The US companion animal diagnostics market is growing, driven by increasing pet ownership, rising veterinary healthcare expenditures, and advancements in diagnostic technologies. Consumables, such as reagents and test kits, maintain a higher market share due to the rising prevalence of various diseases in companion animals.
A surge in pet ownership has been observed in the US. According to the National Pet Owners Survey 2021–2022 by The American Pet Products Association, the pet population in the US has reached an exceptional high, with ~70% of households (~91 million homes) currently owning a pet. Similarly, according to NielsenIQ data, pet owners in the US spent US$ 66 billion on their pets in 2022. Moreover, as per the data of the American Pet Product Association in 2023, pet ownership is rising, with 90 million dogs in the US. This surge in pet ownership is driven by increasing societal dynamics and more understanding of pet companionship's emotional and health benefits. This has led to a substantial increase in the demand for advanced diagnostic services to detect, monitor, and manage the growing spectrum of chronic diseases affecting companion animals. The rise in the pet population and the increasing incidence of pet diseases, which require various diagnostic procedures for accurate diagnosis and treatment of chronic and acute diseases, drive the companion animal diagnostics market growth in the US.
The regional trends and factors influencing the Companion Animal Diagnostics Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Companion Animal Diagnostics Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2024 | US$ 4.61 Billion |
| Market Size by 2031 | US$ 8.80 Billion |
| Global CAGR (2025 - 2031) | 9.8% |
| Historical Data | 2021-2023 |
| Forecast period | 2025-2031 |
| Segments Covered |
By Product
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Companion Animal Diagnostics Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Companion Animal Diagnostics Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The companion animal diagnostics market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. Below are a few of the key developments witnessed in the companion animal diagnostics market:
The "Companion Animal Diagnostics Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:
North America dominated the market in 2024.
Upsurging companion animal healthcare expenditure and the growing pet humanization and ownership are among the most significant factors fueling the market growth.
The market is expected to register a CAGR of 9.8% during 2025–2031.
The companion animal diagnostics market value is expected to reach US$8.80 billion by 2031.
Zoetis Inc., IDEXX Laboratories, Inc., Demeditec Diagnostics GmbH, Tianjin LOCMEDT Technologies Co., Ltd, Innovative Diagnostics SAS, and ARI Medical Technology Co., Ltd are among the key players operating in the market.
Integration of digitalization and artificial intelligence in veterinary healthcare is likely to emerge as a new trend in the market in the coming years.