PUBLISHER: Grand View Research | PRODUCT CODE: 1362983
PUBLISHER: Grand View Research | PRODUCT CODE: 1362983
The global companion animal diagnostic services market is expected to reach USD 12.25 billion by 2030, registering a CAGR of 7.35% over the forecast period, according to a new report by Grand View Research, Inc.. The market is driven by increasing advancements in pet diagnostics, expansion of service offerings by key market players, pet insurance penetration, rising pet expenditure, and growing pet health concerns. The North American Pet Health Insurance Association (NAPHIA) for instance, reported that about 3.88 million dogs in the U.S. are insured, while about 0.96 million cats have insurance policies. This represented about 22% growth in total insured pets over 2022. As more pet owners opt for insurance coverage, the demand for veterinary services, including diagnostic services is anticipated to increase in the coming years.
The COVID-19 pandemic had both positive and negative impacts on the market. This included limited access to veterinary care, operational challenges, awareness about pet health, concerns over zoonoses, and supply chain bottlenecks. In 2022, however, the market experienced a dampened growth rate owing to the macroeconomic challenges brought on by high input costs and other factors. For example, Neogen Corporation reported a decrease in domestic pet genomics services revenue owing to a difficult comparison from strong 2021 sales growth. While IDEXX reported a notable impact on its gross profit in 2022 owing to higher service costs (including facility, labor, and product costs) and high freight and distribution costs. However, as diagnostic and healthcare standards that people expect for themselves continue to extend to their pets, it is estimated to drive the demand for sophisticated diagnostic services over the forecast period.
Increasing adoption of pet insurance is a key market driver. Diagnostic services can sometimes be expensive, particularly for advanced procedures like MRI scans or genetic testing. Pet insurance mitigates the financial burden on pet owners, making it more feasible for them to opt for these services when recommended by veterinarians. Also, pet insurance policies often cover a portion of or the entire cost of diagnostic services, including laboratory tests, imaging, and other medical procedures. Pet owners who have insurance are more likely to take their pets to the veterinarian regularly, increasing the likelihood of early disease detection through diagnostics. This proactive approach not only improves the pet's health outcomes but also reduces the overall cost of treatment by addressing issues in their early stages.