Veterinary Hospital Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Animal Type (Companion Animals, Farm Animals), By Type (Surgery, Medicine, Consultation), By Sector (Public, Private) Region and Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 86.98 Billion
CAGR (2026-2031)	6.18%
Fastest Growing Segment	Companion Animals
Largest Market	North America
Market Size (2031)	USD 124.65 Billion

Market Overview

The Global Veterinary Hospital Market will grow from USD 86.98 Billion in 2025 to USD 124.65 Billion by 2031 at a 6.18% CAGR. Veterinary hospitals are specialized medical facilities providing preventive, diagnostic, and surgical care for companion and livestock animals. The market’s expansion is fundamentally driven by the heightened prioritization of animal welfare and increasing ownership rates, which necessitate comprehensive medical solutions. According to the American Pet Products Association, in 2024, spending on veterinary care and product sales in the United States reached $39.8 billion, evidencing the substantial financial commitment owners are now willing to make toward animal health.

Conversely, a significant impediment to market expansion is the escalating cost of clinical services, which creates financial barriers for price-sensitive clients. High operational expenses often result in increased service fees, negatively impacting the frequency of care. According to the American Veterinary Medical Association, in 2024, patient visits to veterinary practices decreased by 2.3% compared to the previous year, illustrating how economic pressures and pricing challenges can constrain service utilization.

Key Market Drivers

The Expansion of Pet Health Insurance Coverage and Penetration is a pivotal driver, mitigating financial barriers to advanced clinical care. Insurance empowers owners to authorize costly treatments and diagnostics that were previously declined due to budget constraints, thereby increasing average transaction values for hospitals. This financial safety net is becoming essential as service fees rise; according to the American Animal Hospital Association, in 2024, the price of veterinary services in the United States increased by 7.6% over the previous year. Reflecting this growing reliance on coverage, according to the North American Pet Health Insurance Association, April 2025, in the 'State of the Industry Report 2025', the number of insured pets in North America reached 7.03 million by the end of 2024, creating a reliable revenue channel for practices.

The Surge in Companion Animal Ownership and Pet Humanization further propels the market by expanding the global patient base and intensifying care requirements. Owners now view pets as integral family members, necessitating comprehensive medical solutions from wellness exams to geriatric management rather than episodic treatment. This demographic scale is significant; according to the European Pet Food Industry Federation, September 2025, in the 'Facts & Figures' report, the European cat population stands at approximately 108 million, representing a vast pool of potential patients. This humanization trend ensures hospitals remain essential, as owners prioritize high-quality healthcare to extend the lives of their companions, driving consistent demand for specialized medical services.

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Key Market Challenges

The escalating cost of clinical services constitutes a primary impediment hampering the growth of the Global Veterinary Hospital Market. As veterinary facilities face rising operational expenses—including higher wages for specialized staff, increased pharmaceutical costs, and expensive medical equipment—these financial burdens are frequently passed on to pet owners through higher service fees. This inflationary pricing structure creates a significant barrier for price-sensitive clients, often forcing them to delay essential preventive care or forgo diagnostic procedures entirely. Such financial hesitation reduces the frequency of patient interactions and lowers the overall utilization of available medical capacity, thereby stalling revenue momentum for hospitals.

This economic friction directly impacts the ability of veterinary practices to expand their customer base. When the cost of entry for professional care becomes prohibitive, the market experiences a slowdown in the recruitment of new pet owners into the formal veterinary healthcare system. According to the Veterinary Hospital Managers Association, in 2024, new client acquisition rates across surveyed practices declined by 8.6% compared to the previous year. This contraction in new patient intake illustrates how pricing pressures are not only limiting current service volumes but also actively restricting the market’s potential for organic expansion and long-term development.

Key Market Trends

The Integration of Artificial Intelligence in Clinical Diagnostics is revolutionizing veterinary medicine by enhancing diagnostic precision and optimizing practice workflows. Advanced algorithms are increasingly being deployed to interpret radiographic images, analyze cytology samples, and automate administrative tasks like medical record transcription, thereby reducing the cognitive load on practitioners. This technological shift allows veterinarians to deliver faster, more accurate diagnoses while mitigating staff burnout. Demonstrating this rapid uptake, according to Digitail and the American Animal Hospital Association, February 2024, in the 'AI in Veterinary Medicine: The Next Paradigm Shift' survey, 39.2% of veterinary professionals reported using AI tools or software in their veterinary setting to support clinical and operational tasks.

The Expansion of Veterinary Telehealth and Virtual Care Platforms is reshaping service delivery by offering remote triage and consultation options that extend market reach beyond physical clinic boundaries. These platforms address the critical industry shortage of veterinary professionals by enabling asynchronous communication and remote patient monitoring, which increases care accessibility for geographically isolated or mobility-constrained clients. The scale of this adoption is evident; according to the Veterinary Virtual Care Association, February 2024, in the '2024 Veterinary Virtual Care Industry Report', the organization analyzed over 506,000 virtual care interactions globally, highlighting the significant volume of cases now being managed through digital health channels to bridge the gap between pet owners and veterinary providers.

Segmental Insights

The Companion Animals segment registers the fastest growth within the global veterinary hospital market, primarily due to the accelerating trend of pet humanization and increased ownership rates. This cultural shift has resulted in a greater propensity among owners to invest in preventive healthcare and treatments for chronic ailments in dogs and cats. Furthermore, the rising prevalence of age-related disorders in pets necessitates frequent clinical interventions and medical diagnostics. The expansion of this segment is also supported by the growing penetration of pet insurance, which enables owners to access necessary veterinary services without financial hesitation.

Regional Insights

North America maintains a leading position in the global veterinary hospital market, driven by substantial animal healthcare expenditure and rising pet ownership rates. The region benefits from established veterinary infrastructure and the widespread adoption of pet insurance, which facilitates greater access to clinical services. Additionally, the presence of rigorous practice standards endorsed by organizations such as the American Veterinary Medical Association supports consistent industry development. This favorable commercial environment allows veterinary facilities to sustain operations and expand service offerings, securing the region’s primary status in the global marketplace.

Recent Developments

• In April 2025, Mars Veterinary Health released its inaugural Science Impact Report, titled "Pets, Purpose & Progress," which detailed the company's extensive global contributions to veterinary research. The report highlighted that its clinical teams authored more than 450 peer-reviewed publications and conducted clinical trials at over 140 locations worldwide during the previous year. It also featured insights from the Mars Petcare Biobank study, which aims to improve disease prediction and prevention through the analysis of genetic and lifestyle data from thousands of pets. This publication underscored the organization's commitment to advancing evidence-based veterinary medicine and sharing knowledge across the global profession.
• In January 2025, Idexx Laboratories announced the launch of IDEXX Cancer Dx, a revolutionary diagnostic panel designed to facilitate the early detection of canine lymphoma. This innovative blood test was introduced to North American veterinary practices as an affordable and accessible tool for routine wellness screenings and sick pet diagnostics. The company stated that the test delivers actionable results within days, addressing the critical need for earlier intervention in treating one of the most common canine cancers. This product launch represented a significant advancement in veterinary oncology, aiming to extend the lives of pets through timely diagnosis and treatment.
• In December 2024, Zoetis Inc. announced the global launch of the Vetscan OptiCell, a compact and screenless hematology analyzer powered by artificial intelligence. This new point-of-care diagnostic tool was designed to provide veterinary clinics with accurate and complete blood count results in minutes, utilizing advanced cartridge-based technology. The company emphasized that the analyzer's imaging capabilities would help veterinarians identify cell abnormalities more effectively while streamlining clinic workflows. This launch reinforced the company's dedication to providing cutting-edge diagnostic solutions that enhance the quality of care and operational efficiency in veterinary hospitals worldwide.
• In April 2024, Chewy inaugurated its first veterinary clinic, branded as Chewy Vet Care, in Plantation, Florida, marking the digital retailer's strategic entry into the physical veterinary services market. The newly established practice offers a comprehensive range of medical services, including routine wellness exams, urgent care, and surgeries, all supported by the company's proprietary technology platform. This expansion aims to integrate the company's customer-centric approach with high-quality veterinary medicine, providing a seamless healthcare experience for pets and their owners. The launch serves as the foundation for the company's planned rollout of additional veterinary hospitals across the United States.

Key Market Players

• CVS Group Plc
• Greencross Group
• National Veterinary Associates, Inc.
• Pets at Home Group PLC
• Mars Incorporated
• Animal Hospital, Inc.
• All Pets Veterinary Hospital LLC
• Innovative Petcare Holdings LLC
• Blaine Central Veterinary Clinic
• Belltowne Veterinary Center

By Animal Type	By Type	By Sector	By Region
Companion Animals Farm Animals	Surgery Medicine Consultation	Public Private	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Veterinary Hospital Market, By Animal Type:

• Companion Animals
• Farm Animals

• Veterinary Hospital Market, By Type:

• Surgery
• Medicine
• Consultation

• Veterinary Hospital Market, By Sector:

• Public
• Private

• Veterinary Hospital 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