Veterinary Reference Laboratory Market Size (2024 - 2029)

Veterinary Reference Laboratory Market Analysis

The Veterinary Reference Laboratory Market size is estimated at USD 4.97 billion in 2024, and is expected to reach USD 7.86 billion by 2029, growing at a CAGR of 9.58% during the forecast period (2024-2029).

The major factors driving the market's growth are the increase in companion animal/pet adoption, the increasing demand for pet insurance, the growing animal healthcare expenditure, and the growing demand for PCR testing, rapid testing, and other testing procedures.

The rising adoption of companion animals is a significant factor driving the market's growth. For instance, according to the data published by the European Pet Food Industry: Facts and Figures 2023 report, Germany had 10.6 million dogs and 15.2 million cats in 2022. As per the same source, the percentage of German households owning at least one cat was 24%, and one dog was 21% in 2022. This shows that the adoption of cats was higher among the population than dogs.

Similarly, according to the above-mentioned source, 13 million dogs and 12 million cats were reported in the United Kingdom in 2022. As per the same source, the estimated percentage of United Kingdom households owning at least one dog was 34%, and one cat was 28% in 2022. Thus, the increasing adoption of pets is expected to increase the demand for veterinary reference laboratories.

As pet adoption surges, the demand for veterinary reference laboratory services grows accordingly, encompassing routine checkups, preventive care, and illness diagnosis. This heightened demand includes tests such as clinical chemistry, immunodiagnostics, and molecular diagnostics, which are essential for accurate diagnoses. For instance, in March 2023, according to the data published by the American Pet Products Association Inc. (APPA), there was a significant rise in pet spending in 2022; pet expenditures surpassed USD 136.8 billion and were anticipated to reach USD 143.6 billion in 2023, marking a 5% annual increase in the United States. This surge in pet healthcare spending is poised to drive the growth of the veterinary reference laboratory market during the forecast period.

The developments by key market players are expected to increase the market's growth. For instance, in November 2022, VolitionRx Limited agreed on a supply agreement with Fujifilm Vet Systems Co. Ltd to provide Nu. Q Vet cancer tests to veterinarians in Japan. In June 2022, IDEXX Laboratories Inc. introduced new reference laboratory tests and services designed to empower veterinarians with crucial insights for wellness screenings, personalized treatment plans for cats with chronic kidney disease, and swift, conclusive diagnoses in critical cases. Thus, such market player initiatives are anticipated to contribute to market growth during the forecast period.

Thus, factors such as the rising pet adoption and the increasing developments by key market players are expected to boost the market's growth. However, rising demand for portable devices for point-of-care (POC) services and high pet care costs are expected to hinder this growth.

Veterinary Reference Laboratory Industry Segmentation

As per the scope of the report, veterinary reference laboratories are institutions where various critical functions related to veterinary sciences, such as the diagnosis, determination of treatment options, prevention, and monitoring of animal health and diseases, are undertaken.

The veterinary reference laboratory market is segmented by service type, application, animal type, and geography. By service type, the market is segmented into clinical chemistry, immunodiagnostics, molecular diagnostics, and hematology. By application, the market is segmented into pathology, bacteriology, virology, parasitology, and other applications. By animal type, the market is segmented into livestock animals and companion animals. By geography, the market is segmented into North America, Europe, Asia-Pacific, the Middle East and Africa, and South America. For each segment, the market size is provided in terms of USD value.