Veterinary Diagnostic Services Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Test Type (In Vitro Diagnosis, In Vivo Diagnosis), By Animal Type (Companion Animals, Production Animals), By Testing Category (Clinical Chemistry, Microbiology, Parasitology, Histopathology, Cytopathology, Hematology, Immunology & Serology, Imaging, Molecular Diagnostics, Others), By Service Provider (Veterinary Hospital/Clinic Laboratories, Reference Laboratories), By Sector (Public, Private), By Region and Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 12.78 Billion
CAGR (2026-2031)	8.41%
Fastest Growing Segment	In Vivo Diagnosis
Largest Market	North America
Market Size (2031)	USD 20.75 Billion

Market Overview

The Global Veterinary Diagnostic Services Market will grow from USD 12.78 Billion in 2025 to USD 20.75 Billion by 2031 at a 8.41% CAGR. Veterinary diagnostic services encompass the clinical pathology, molecular testing, and imaging solutions utilized to identify pathogens and metabolic disorders in companion and production animals. The market is fundamentally driven by the escalating threat of zoonotic diseases, which mandates stringent health screening for livestock to ensure global food safety, and the growing trend of pet humanization that encourages owners to invest in preventive medical care. This robust financial commitment to animal wellbeing is substantiated by recent sector performance. According to the American Pet Products Association, in 2024, veterinary care and product sales reached 39.8 billion dollars in the United States alone, reflecting the high value placed on animal health.

However, the industry encounters a significant impediment due to the acute shortage of qualified veterinary professionals and pathologists needed to interpret complex diagnostic results. This workforce scarcity, compounded by the substantial capital expenditure required for advanced instrumentation, restricts service accessibility in cost-sensitive regions and poses a considerable risk that could impede the overall trajectory of market expansion.

Key Market Drivers

The rising animal health expenditure, particularly through the increasing penetration of pet insurance, acts as a primary catalyst for the Global Veterinary Diagnostic Services Market. As owners increasingly mitigate financial risks through insurance policies, they are more willing to authorize comprehensive diagnostic panels and imaging procedures that were previously deemed cost-prohibitive. This shift transforms veterinary care from reactive treatment to proactive monitoring, directly increasing the volume of billable tests. According to the North American Pet Health Insurance Association, April 2025, in the 'State of the Industry Report 2025', the total premium volume for pet health insurance in the U.S. reached $4.7 billion in 2024. This financial infrastructure ensures that clinics can consistently perform necessary diagnostics, securing a steady revenue stream for service providers.

Technological advancements in point-of-care and molecular diagnostics further drive market expansion by enhancing clinical decision-making speed and accuracy. The proliferation of automated in-house instrumentation allows veterinarians to obtain real-time results for critical cases, significantly reducing the reliance on external reference laboratories for time-sensitive conditions. This adoption of rapid testing solutions is evidenced by the growing footprint of installed diagnostic hardware. According to IDEXX Laboratories, May 2025, in the 'First Quarter 2025 Earnings Release', the company reported a 9 percent year-over-year growth in its global premium instrument installed base. The broader utilization of these services is also reflected in reimbursement data; according to the Association of British Insurers, in 2025, pet insurance claims reached a record £1.23 billion in 2024, underscoring the high frequency of insured veterinary interventions.

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Key Market Challenges

The acute shortage of qualified veterinary professionals and pathologists acts as a substantial obstruction to the expansion of the Global Veterinary Diagnostic Services Market. This scarcity directly limits the operational capacity of clinics and reference laboratories, as the accurate interpretation of diagnostic data relies heavily on specialized human expertise. When facilities lack sufficient personnel to manage increasing caseloads, they experience operational delays that retard diagnosis and treatment, effectively reducing the total volume of billable services. Consequently, the market’s ability to capitalize on the rising demand for animal healthcare is mechanically restricted by this lack of human capital.

This structural limitation is substantiated by recent data regarding the widening labor gap. According to the American Association of Veterinary Medical Colleges, in 2024, a commissioned study projected a shortage of nearly 17,000 veterinarians by 2032 in the United States. Such a deficit implies that diagnostic service providers may struggle to scale operations or utilize high-throughput instrumentation fully. If the workforce cannot expand at a rate commensurate with technological adoption, the financial return on advanced diagnostic investments diminishes, thereby hampering the sector's broader financial trajectory.

Key Market Trends

The Integration of Artificial Intelligence and Machine Learning is fundamentally reshaping veterinary diagnostic workflows by augmenting clinical interpretation capabilities. AI algorithms are increasingly deployed in radiology and pathology to detect abnormalities with higher precision than manual review, thereby addressing the critical bottleneck of specialist shortages. This technological adoption is gaining rapid traction among practitioners seeking to enhance diagnostic accuracy. According to the American Veterinary Medical Association, February 2025, in the 'Familiarity with artificial intelligence drives optimism and adoption among veterinary professionals: 2024 survey', 39.2 percent of veterinary professionals reported utilizing AI tools for professional tasks, underscoring the sector's shift toward computational diagnostic support.

Market Consolidation Through Mergers and Acquisitions is further structuring the industry as major corporate entities absorb regional laboratory networks to expand their service footprints. This aggregation allows dominant providers to offer comprehensive, cross-border diagnostic solutions while streamlining logistical operations. By acquiring established European networks, global leaders are effectively securing market share and integrating specialized genetic and molecular testing capabilities into their portfolios. According to Mars, Incorporated, July 2024, in the 'Mars Completes Acquisition of Cerba Vet and ANTAGENE' announcement, the company expanded its Science & Diagnostics division by integrating a network of six veterinary diagnostic laboratories in France, exemplifying the strategic pursuit of inorganic growth.

Segmental Insights

Based on authoritative market research, the In Vivo Diagnosis segment is currently recognized as the fastest-growing category within the Global Veterinary Diagnostic Services Market. This accelerated expansion is primarily driven by the widespread integration of advanced imaging technologies, including magnetic resonance imaging (MRI), computed tomography (CT), and ultrasonography. These non-invasive modalities have become essential for accurately identifying complex internal conditions, such as chronic diseases and orthopedic injuries, which require precise visualization for effective treatment planning. Furthermore, the increasing willingness of pet owners to invest in comprehensive medical care has significantly boosted the accessibility and adoption of these diagnostic services in veterinary facilities globally.

Regional Insights

North America commands the largest share of the global veterinary diagnostic services market, driven by rising animal healthcare expenditure and a well-established veterinary infrastructure. The region benefits from high rates of pet ownership and increasing demand for preventative diagnostic testing. Additionally, the presence of key industry participants and a robust regulatory framework, maintained by entities such as the United States Department of Agriculture and the FDA Center for Veterinary Medicine, ensures high standards for product approval and usage. This combination of economic support and regulatory oversight reinforces North America’s market leadership.

Recent Developments

• In August 2025, Butterfly Network Inc. established a strategic partnership with Clipper Distributing to accelerate the adoption of advanced imaging solutions within the Global Veterinary Diagnostic Services Market. This collaboration focused on commercializing the Butterfly iQ+ Vet, a handheld, single-probe ultrasound system powered by Ultrasound-on-Chip technology, to a wider network of veterinary professionals across the United States. By leveraging the distributor's extensive logistics and sales infrastructure, the agreement aimed to equip veterinarians with portable, high-definition diagnostic imaging tools. The partnership was designed to enhance point-of-care diagnostics, enabling faster and more informed clinical decisions for both companion and production animals.
• In March 2025, IDEXX Laboratories revolutionized cancer management in the Global Veterinary Diagnostic Services Market with the commercial launch of IDEXX Cancer Dx in North America. This novel diagnostic panel was developed to address the urgent need for non-invasive and accurate cancer detection, initially targeting canine lymphoma. The test employed genomic analysis to provide veterinarians with precise diagnostic insights, facilitating earlier intervention and more targeted treatment strategies for pets. The company indicated that this release was part of a broader strategy to expand its oncology portfolio, with plans to broaden the test's capabilities to cover additional cancer types in the future.
• In September 2024, Zoetis Inc. introduced the Vetscan OptiCell, a cartridge-based, AI-powered hematology analyzer, marking a technological advancement in the Global Veterinary Diagnostic Services Market. The new device was engineered to deliver reference laboratory-quality Complete Blood Count (CBC) analysis directly within veterinary clinics by utilizing automated cell-focusing and image recognition technologies. Designed to streamline clinic workflows, the analyzer offered significant time and space savings while minimizing maintenance requirements for veterinary staff. This development underscored the company's commitment to integrating artificial intelligence into diagnostic workflows to improve the accuracy and speed of animal health assessments.
• In January 2024, Antech Diagnostics announced the launch of the Nu.Q Canine Cancer Test, a breakthrough in-hospital screening tool significant to the Global Veterinary Diagnostic Services Market. This innovation, designed to run on the Heska Element i+ Immunodiagnostic Analyzer, enabled veterinary professionals to detect common cancers such as lymphoma and hemangiosarcoma in approximately six minutes. The test utilized advanced technology to measure circulating nucleosomes from a small plasma sample, offering an affordable and non-invasive method for early disease detection. This product launch aimed to support routine wellness exams and enhance clinical decision-making by providing rapid, reference-quality results at the point of care.

Key Market Players

• Zoetis Inc.
• Antech Diagnostics, Inc.
• IDEXX Laboratories, Inc.
• Neogen Corporation
• Agrolabo S.p.A.
• Esaote S.p.A
• Thermo Fisher Scientific, Inc.
• SYNLAB International GmbH
• National Veterinary Services Limited
• Ellie Diagnostics

By Test Type	By Animal Type	By Testing Category	By Service Provider	By Sector	By Region
In Vitro Diagnosis In Vivo Diagnosis	Companion Animals Production Animals	Clinical Chemistry Microbiology Parasitology Histopathology Cytopathology Hematology Immunology & Serology Imaging Molecular Diagnostics Others	Veterinary Hospital/Clinic Laboratories Reference Laboratories	Public Private	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Veterinary Diagnostic Services Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Veterinary Diagnostic Services Market , By Test Type:

• In Vitro Diagnosis
• In Vivo Diagnosis

• Veterinary Diagnostic Services Market , By Animal Type:

• Companion Animals
• Production Animals

• Veterinary Diagnostic Services Market , By Testing Category:

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

• Veterinary Diagnostic Services Market , By Service Provider:

• Veterinary Hospital/Clinic Laboratories
• Reference Laboratories

• Veterinary Diagnostic Services Market , By Sector:

• Public
• Private

• Veterinary Diagnostic Services Market , By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE