Veterinary Hospital Market Size & Growth Forecast

The Global Veterinary Hospital Market size was USD 58 Billion in 2023 and is expected to reach USD 107.73 Billion by 2032, growing at a CAGR of 7.13% over the forecast period 2024-2032.

This report provides key statistical insights and trends shaping the Veterinary Hospital Market. It covers the incidence and prevalence of common animal diseases, highlighting regional variations and emerging health concerns. The study examines prescription trends, including the most prescribed medications and the regional veterinary treatment trends. It also provides data on the volume of veterinary drugs, looking deeper into production and use. The report also delves into veterinary healthcare spending, describing spending by government, insurers and out-of-pocket sources. Then, the growing implementation of digital technologies like EMRs and AI diagnostics are talked about and how they improve efficiency. Finally, the report discusses the growth of specialty veterinary services like oncology and orthopedics, indicating the widening spectrum of modern veterinary care.

The veterinary hospital market is driven by increasing pet ownership and advancements in veterinary medicine. This phenomenon is reflected in the latest government statistics which show that people are increasingly treating their pets like family members not least in having become increasingly aware of animal health and welfare. In the U.S., about 3.5 to 4.1 million dogs and cats are adopted each year according to the ASPCA, helping to drive demand for veterinary services. With strong technological advancement, high customer demand, and robust infrastructure, the US market has consistently grown, achieving USD 16.74 billion in 2023 and demonstrating a strong growth with 6.92% CAGR during the forecast period. The US dominates due to its strong R&D capabilities, early adoption of emerging technologies, and presence of major industry leaders driving innovation and investment.

Veterinary Hospital Market Dynamics

Key Market Drivers

• Increasing pet ownership has led to heightened demand for veterinary services, as more individuals seek comprehensive healthcare for their companion animals. ​

​​The increase in pet ownership remains one of the key drivers in the veterinary hospital market, reflecting a deepening bond between humans and their animal companions. As of 2024, 66% of U.S. households, equating to approximately 86.9 million homes, own a pet, a notable increase from 56% in 1988. Worldwide, the pet population has hit about 1 billion, with cats edging out dogs. ​Pet ownership has jumped particularly among the younger generations. Thirty-three percent of all pet owners are millennials, followed by Gen X at 25% and Baby Boomers at 24%. Moreover, nearly 47% of current pet owners are first-time pet parents, pointing to a widening demographic embracing pet companionship. ​

Financially, pet owners are investing significantly in their animals' well-being. Dog owners will spend $1,600 to $3,000 per year on average on their pets, including veterinary care, while cat owners will spend $1,500 to $4,000 annually. Americans spent a total of $186 billion on pets in 2024, an increase of 11% each year since 2019, according to projections the amount will reach $260 billion by 2030. ​This increased spending reflects the growing perception of pets as part of the family. For example, 97% of pet owners see their pets as family, and 51% say their pets are as much part of the family as human members. This cultural shift is evident in various aspects of life, including travel, where over 1 million pets fly annually in the U.S., prompting airlines to adapt policies to accommodate this growing trend.

Market Restraints

• Rising costs of advanced veterinary treatments and services pose financial challenges for pet owners, potentially limiting access to necessary care. ​

Rising costs of veterinary services pose an increasingly prohibitive barrier for pet owners seeking medical care for their animals. The Bureau of Labor Statistics reported in September 2023 that veterinary service costs have risen 7.5% year over year in 2023, following an 8.8% increase in 2022. This surge resulted in a decline in the usage of veterinary services, with only 71% of households owning a dog or cat using these services in 2023. The economic pressure is especially pronounced among younger pet owners. Surveys show that 53% of Millennials and Gen Z are highly worried about being able to afford emergency pet healthcare, compared to 43% of Baby Boomers. Similarly, 42% of younger pet parents are concerned about prescription medication costs versus 27% of older generations. ​

This financial burden has tangible consequences. A 2024 survey found that 16% of pet owners lost a pet due to inability to afford veterinary care. More than 30% avoided taking animals to the vet for cost reasons, leading to expensive bills, while almost 29% said cost prevented them from offering emergency care. ​Those rising costs have also fueled a surge in stray animals. In cities such as Los Angeles, the feral cat population has exploded in recent years, due to the expensive nature of pet ownership and subsequent abandonment.

Opportunities in the Veterinary Hospital Industry

• Advancements in veterinary medicine, such as the adoption of 3D printing for prosthetics and implants, present opportunities to enhance treatment outcomes and expand service offerings. ​

Advances in 3D printing technology are revolutionizing veterinary medicine by providing bespoke options for surgical operations and prosthetics. This technology has gained considerable attention for its application in orthopedic surgeries. For example, VCA Animal Hospitals has opened its own 3D Printing Lab, which produces accurate, patient-specific implants and surgical guides, designed to match the anatomy of individual pets. This personalization improves surgical accuracy, lowers the chances of complications during surgery, and encourages shorter recovery periods. 3D printing is also being incorporated into veterinary medicine programs in educational institutions. The University of Florida College of Veterinary Medicine uses 3D printing to design bone models so veterinarians can practice surgeries ahead of time and improve accuracy during actual procedures. This approach not only enhances surgical outcomes but also serves as a valuable teaching tool for veterinary students. The rising incidence of orthopedic diseases among animals and the adoption of 3D printing for developing customized surgical solutions. ​Moreover, a growing need for 3D-printed prosthetics is providing amputees or animals with limb deformities the opportunity to regain mobility. These lower-cost, customized, and lightweight prosthetics were developed to fit the personal needs of each animal, and revolutionized their quality of life.

Challenge

• A shortage of skilled veterinarians, particularly in regional areas, leads to overworked staff and limited access to care, impacting the quality and availability of veterinary services.

​The shortage of veterinarians, especially in rural and regional areas, is currently one of the most serious challenges facing the veterinary hospital market. In the US, this shortage has reached a breaking point, with more than 500 counties in 46 states deemed as critically undersupplied with large animal veterinarians. This deficiency impacts not only livestock health but also threatens the nation’s food supply and agricultural economy. ​ Demographic trends within the profession compound the problem. Approximately half of rural veterinarians are expected to retire within the next five years and only 3% to 4% of veterinary graduates are going into livestock practice. This gap in experienced veterinarians and clinical staff only adds additional strain on veterinary providers in underserved locations. ​A similar crisis is emerging in Australia. Veterinarians in rural areas have heavy workloads and receive little compensation, resulting in high job vacancies and burnout. The Australian Veterinary Association has urged measures including cutting or abolishing debt incurred while at university and strengthening support services to entice vets into country practices.

Veterinary Hospital Market Segmentation Analysis

By Animal

The companion animals segment held the largest market share of 62% in 2023 and this is anticipated to increase due to growing pet humanization and increasing pet ownership across the world. This trend mirrors the increasing recognition that pets are part of the family and thus will incur greater healthcare and wellness expenses. In 2024, the industry estimated that nearly 70% of U.S. households owned at least one pet, a number that’s steadily growing each year, according to the American Pet Products Association. Even government initiatives have played a significant role in enhancing this segment. For example, The U.S. Department of Agriculture has created programs to strengthen veterinary hospital infrastructure and cement advanced healthcare services for companion animals. Likewise, India initiated the Animal Husbandry Infrastructure Development Fund in August 2023 to enhance veterinarians' healthcare platforms. These applications target the increasing need for specialized therapies such as diagnostics, vaccinations, and preventive treatments.

Technological advancements are further driving growth in this segment. Artificial intelligence (AI) tools are revolutionizing veterinary medicine by enabling precision diagnostics and personalized treatment strategies. Another factor driving the growth of the market is the increase in chronic diseases among companion animals. Changes in pet lifestyles are leading to more common health conditions such as arthritis, diabetes, and obesity. In response, veterinary hospitals are rolling out customized wellness programs and progressive therapeutic options.

By Type

The medicine segment held the highest market share at 45% in 2023 due to growing consciousness regarding animal well-being and the increasing need for preventive care. This category includes drugs used to treat infectious diseases, chronic illnesses, and preventive measures like vaccines. This segment is indeed critical in combating zoonotic diseases that pose threats to both humans and animals as highlighted by government stats. Regulators such as the FDA have approved various new veterinary drugs that can achieve parasitic control and improve animal health. These approvals have stimulated more innovation in the medicine segment, resulting in more effective treatments.

The growing adoption of pet insurance is another factor driving demand for veterinary medicines. Insurance coverage often includes routine check-ups and prescribed medications, making it easier for pet owners to access quality healthcare services. Also, the development of veterinary pharmaceuticals including but not limited to anti-infective drugs and vaccines improve treatment efficacy with reduced side effects. This segment has also been dramatically transformed by technological integration. Digital monitoring devices help veterinary professionals to monitor patient progress and apply treatment when necessary. Such innovations improve diagnosis accuracy and facilitate medication management.

By Sector

The private sector held the largest share of the veterinary hospital market at 64% in 2023, attributed to improvements in socio-economic factors as well as increasing disposable income all over the world. The industry provides a premium service that caters to pet owners demanding quality care for their pets. The North American market for private veterinary hospitals was driven by the growing awareness of animal healthcare and an increase in pet insurance coverage. Government data emphasize the nature of private hospitals, which should provide specialized oncological, cardiological, and neurological services to cater to complex needs. Mobile pet care hospitals, too, are gaining popularity in this segment, as evidenced by the fact that Premium Vet Care in Florida has mobile veterinarians to offer complete services.

The improved technology in private hospitals leads to advanced treatments. For example, digital imaging systems enhance diagnostic accuracy while telemedicine platforms facilitate remote consultations. Pet owners are also willing to spend for premium services, further enabling private sector growth. The treatment is also only available through private facilities, and the improved state of the economy means people are willing to invest in themselves. This trend mirrors the increasing focus on individualized care for specific pet requirements.

Veterinary Hospital Market Regional Insights

In 2023, North America accounted for the largest share of the veterinary hospital market, primarily due to the large pet-owning population and the existence of a well-established healthcare infrastructure in the region. The region made up a larger part. This growth is fuelled by the rising rates of pet ownership, whom the medical technology industry has developed new instruments and devices for. This leads North America with a strong foundation in this industry, backed by organizations such as AVMA (U.S.) and CVMA (Canada) to maintain the highest standards of care.

Asia-Pacific is expected to be the fastest-growing region with a notable CAGR during 2024–2032. Countries such as China and India are experiencing fast growth, driven by improving economic conditions and government efforts to upgrade animal healthcare infrastructure, notably with the involvement of specialized veterinary hospitals that provide oncology or neurology services. Asia-Pacific is estimated to register the fastest growth during the forecast period owing to rising awareness among pet owners to spend on preventive care routines due to government initiatives such as the launch of the Animal Husbandry Infrastructure Development Fund by the Indian government in August 2023.

Veterinary Hospital Market Key Players

• Covetrus (Prescription Management Software, Diagnostic Imaging Equipment)​

• Medtronic (Pulse Oximeters, Ventilators)​

• B. Braun Vet Care GmbH (Infusion Pumps, Surgical Instruments)​

• Avante Animal Health (Surgical Tables, Anesthesia Machines)​

• Shenzhen Mindray Animal Medical Technology Co., LTD. (Patient Monitors, Ultrasound Systems)​

• Midmark Corporation (Examination Tables, Dental Operatory Equipment)​

• Vetland Medical Sales & Services, LLC (Anesthesia Systems, Monitoring Equipment)​

• Masimo (Pulse Oximetry Devices, Capnography Monitors)​

• Dispomed Ltd (Veterinary Dental Units, Anesthesia Machines)​

• Nonin (Pulse Oximeters, CO2 Detectors)​

• IDEXX Laboratories (Catalyst Dx Chemistry Analyzer, ProCyte Dx Hematology Analyzer)​

• Lojer (Hospital Beds, Operating Tables)​

• Stryker Corporation (Surgical Equipment, Imaging Systems)​

• Karl Storz Endoskope (Endoscopy Equipment, Surgical Instruments)​

• SunTech Medical, Inc. (Vet40 Surgical Vital Signs Monitor, Blood Pressure Monitors)​

• ARVS (Veterinary Medical Equipment, Technical Services)​

• DRE Veterinary (now Avante Animal Health) (Surgical Equipment, Imaging Systems)​

• Hygia Health Services (Reusable Medical Devices, Sterilization Services)​

• SafeAir AG (Air Purification Systems, Surgical Smoke Evacuators)​

• HyperBranch Medical Technology, Inc. (Surgical Sealants, Adhesion Barriers)

Recent Developments in the Veterinary Hospital Market

• In May 2024, The U.S. Department of Agriculture announced initiatives to boost animal health infrastructure support including for veterinary hospitals to improve and develop their services and facilities.

• In August 2023, The Indian government announced new schemes under the Animal Husbandry Infrastructure Development Fund to improve veterinary healthcare infrastructure like hospitals, etc.