Companion Animal Diagnostics Market by Technology (Immunodiagnostic, Clinical Biochemistry, Molecular Diagnostics, Hematology), Application (Clinical Pathology, Bacteriology, Virology), Animal, End User (Diagnostics Labs, Clinics) - Global Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2022-2030

According to Nova one advisor, the global Companion Animal Diagnostics market size is expected to hit around USD 6.8 billion by 2030 from valued at USD 2.9 billion in 2022 and growing at a CAGR of 11.1% from 2022 to 2030.

The global companion animal diagnostics market offers significant growth opportunities for market players. Market growth can largely be attributed to the increasing companion animal population, increasing incidence of transboundary and zoonotic diseases, rising demand for pet insurance, growing animal health expenditure, and rising number of veterinary practitioners and income levels in developed economies. On the other hand, increasing pet care costs are expected to restrain the growth of this market to a certain extent. The growing demand for rapid tests and portable instruments for point-of-care (POC) services alongside the use of advanced technologies, such as machine learning, in improving disease diagnosis offer growth opportunities for players in the companion animal diagnostics market. On the other hand, a lack of animal health awareness and a shortage of veterinarians in emerging markets pose significant challenges in the market.

Report Scope of the Companion Animal Diagnostics Market

Impact of Covid-19 on Companion Animal Diagnostics Market

To know the impact of COVID-19 pandemic and provide market forecasts, following approaches are considered.

COVID-19—or coronavirus disease 2019—is the disease that people get from being infected with the severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). Domestic animals do not get COVID-19 as humans do, but under natural conditions, pet cats—and, to a lesser extent, pet dogs—may, albeit rarely, become infected with SARS-CoV-2 after close and prolonged contact with a COVID-19-positive person. In other words, a person with COVID-19 might transmit the virus that causes this disease to pet cats and dogs (and perhaps pet ferrets) in the same way a human might transmit it to another person. Since the initial outbreak of COVID-19, multiple countries have reported infections of SARS-CoV-2 in non-human animals.

At the height of the pandemic, many countries stipulated that only urgent or emergency procedures absolutely necessary for the veterinary healthcare of companion animals could take place. Delays in routine care (e.g., vaccination, parasite prevention, etc.) has led to some serious health and welfare problems, as well as an overflow of work after the restrictions were lifted, which, in turn, has created additional delays in the delivery of these services. The number of vet visits and diagnostic testing drastically reduced in March, April, and May 2020 but started increasing from the third quarter of 2020 with a high growth rate.

Companion animal ownership has increased significantly due to loneliness during the pandemic period. Moreover, the pandemic has strengthened the bond between pet owner and pet, which has increased vet visits after lockdown. The increased pet ownership due to loneliness during the pandemic period, rise in vet visits, increased pet care during the pandemic, and increased cost of diagnostic consumables boosted the overall companion animal diagnostics market in 2020 and 2021.

Companion Animal Diagnostics Market Dynamics:

DRIVERS: Rising demand for pet insurance and growing animal health expenditure

Spending on pet healthcare, which includes the purchase of pet food, supplies/over-the-counter medications, veterinary care, pet insurance policies, and other services (such as companion animal diagnostic services), has increased significantly in recent years. A large number of pet owners, especially in major markets across North America and Europe, are purchasing pet insurance because of the significant growth in pet care expenditure in recent years.

The North American Pet Health Insurance Association (NAPHIA) reported that the pet health insurance sector in the US and Canada posted a combined gross premium of USD 1.99 billion in 2020, up from USD 1.56 billion in 2019, which is an increase of 27.5%. In North America, the total number of pets insured reached 3.45 million at the end of 2020 from 2.82 million in 2019. In the US, the total insurance paid for embedded wellness (includes diagnostics), accidents, and illnesses in dogs and cats was USD 1.855 billion in 2020.

RESTRAINTS : Rising pet care costs

In the last ten years, pet care costs have increased significantly. According to the APPA 2020 report, veterinary care is the second-highest source of spending in the pet care community. The US, for example, spent over USD 31.4 billion on veterinary care and related products sales in 2020. This is expected to reach USD 32.3 billion in 2021. PetMD also reported that low-to-medium pet care costs had reached USD 250 to USD 4,500 in veterinary practices, with a high-end procedure priced anywhere between USD 5,000 and USD 20,000.

According to the APPA National Pet Owners Survey 2021–2022, the average household in the US spent USD 242 on routine vet visits for dogs (USD 212 in 2019) and USD 178 for cats in 2021-2022. (USD 160 in 2019). The average range of diagnostic revenue per clinical visit in the US was around USD 85?90 in 2020. This is mainly due to the availability of advanced monitoring, diagnostic, and therapeutic procedures in veterinary practices, which, though effective, come with high price tags. Advanced products and procedures play a significant role in treatments; however, the cost of materials and equipment used in these procedures is very high. For instance, diagnostic procedures for identifying sensitivity to antimicrobials, or the presence of infection using PCR or any other advanced technologies, are costlier than the actual treatment. Hence, pet owners and veterinarians are reluctant to invest so much for diagnostic purposes.

Although the pet insurance market is expanding, the number of animals covered for treatments is still very low. As a result, animal owners generally bear the majority of the cost of treatments. In addition, according to the Society for Practicing Veterinary Surgeons, along with the increasing pet insurance, the cost of veterinary treatment is rising by about 12% a year. The number of consultations with veterinary specialists for pet care is another factor responsible for the increasing pet healthcare costs. Furthermore, the lower income in this profession compared to other advanced-degree professions such as dentistry and law puts pressure on veterinary professionals to increase their fees. High pet care costs directly impact the number of visits by pet owners to veterinary facilities, thereby restraining the growth of this market.

OPPORTUNITIES : Growing demand for rapid tests and portable instruments for point-of-care diagnostic services

In the past few years, portable diagnostic instruments for point-of-care (PoC) services have emerged as a critical component for diagnosing animal diseases. Major players in the companion animal diagnostics market focus on launching portable instruments for field veterinarians. Portable systems are used extensively in remote locations such as the patient’s home or shelter home, as well as during an emergency. The growing adoption of such instruments is mainly due to the rising demand among veterinarians to conduct on-field diagnosis and their ease of use in transferring data from one department to the other within large veterinary hospitals and academic & research institutes.

Rapid tests are also gaining popularity among end users, owing to advantages such as ease of use, specificity, reproducibility, and low cost. This has, correspondingly, driven companies to increase their focus on introducing rapid tests in the market that can deliver definitive results in less than 24 hours or even during the course of the initial examination of the animal. The growing demand for new technologies that can ensure rapid result generation and real-time convenience of diagnosis is expected to provide significant growth opportunities for players operating in this market.

CHALLENGES : Shortage of veterinary practitioners in developing countries

The global animal healthcare industry is marked by a shortage of skilled veterinarians and pathologists. This is particularly evident in the emerging markets across the Asia Pacific and Latin America, which show a huge gap in the demand and supply of veterinary professionals. According to the World Animal Health Information Database (2017), there were 180,821 veterinary professionals in India. The general norm is to have at least one veterinary doctor for every 5,000 animals. India requires at least 110,000–120,000 professionals. Similar shortages are observed in developing countries of Brazil and China. The shortage of veterinarians is expected to challenge the growth of the animal health industry, inclusive of the companion animal diagnostics market.

Currently, the lack of skilled veterinarians and diagnostic infrastructure, especially in developing countries, is one of the major factors limiting the uptake of advanced diagnostic solutions among veterinarians. The high cost of advanced diagnostic tests is another major barrier to its widespread adoption.

“Clinical Biochemistry segment holds largest share in the companion animal diagnostics market in 2021”

The companion animal diagnostics market is segmented into clinical biochemistry, immunodiagnostics, hematology, urinalysis, molecular diagnostics, and other companion animal diagnostic technologies on the basis of technologies. The clinical biochemistry segment holds the largest share of of the companion animal diagnostics market in 2021. Diseases and disorders evaluated using this technology can range from studying kidney function, diabetes, electrolyte & hormone evaluation, and liver function to evaluate systemic inflammation caused by infectious agents such as bacteria, viruses, and parasites. The clinical biochemistry market is segmented into clinical chemistry analysis, glucose monitoring, and blood gas electrolyte analysis.

“Dog segment holds the largest share of by animal type of companion animal diagnostics market”

The companion animal diagnostics market is segmented into dogs, cats, horses, and other companion animals based on the animal type. Companion animal diagnostics for dogs holds the largest share of of this market in 2021. The large share and high growth in this segment is attributed to factors such as the increasing dog population and ownership rate, an increasing prevalence of zoonotic diseases, and increase in adoption of canine pet insurnace in the US.

“The diagnostics laboratories holds the largest share of companion animal diagnostics market in 2021”

The companion animal diagnostics market is segmented into diagnostic laboratories, veterinary hospitals & clinics, research institutes & universities,and home care settings based on the end user type. The diagnostic laboratories segment holds the largest share of of this market in 2021. The large share of this segment owing to a large number of samples received for analysis in these laboratories from small and large animal practices.

“North America accounted for the largest share of the companion animal diagnostics market in 2021”

The companion animal diagnostics market is segmented into North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa based on the region type. North America holds largest share of of the companion animal diagnostics market in 2021. The large share of this segment can be attributed to the increasing animal population, growing pet insurance, and rising animal health expenditure in North America.

Some of the prominent players in the Companion Animal Diagnostics Market include:

 Idexx Laboratories, INC. (US), Zoetis, INC. (US), Heska Corporation (US), Thermo Fisher Scientific, INC. (US), Biomérieux SA (France), Virbac (France), Neogen Corporation (US), Fujifilm Holdings Corporation (Japan), Indical Bioscience GmbH (Germany), Idvet (France), Randox Laboratories, LTD. (UK), Shenzhen Mindray Animal Medical Technology Co., Ltd. (China), and BioNote, Inc (South Korea).

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Nova one advisor, Inc. has segmented the global Companion Animal Diagnostics market

By Technology

• Immunodiagnostics
• Clinical Biochemistry
• Hematology
• Urinalysis
• Molecular Diagnostics
• Other Companion Animal Diagnostics Technologies

By Application

• Clinical Pathology
• Bacteriology
• Virology
• Parasitology
• Other Applications

By Animal

• Dog
• Cat
• Horse
• Other Companion Animals

By End User

• Diagnostics Laboratories
• Veterinary Clinics and Hospitals
• Research Institute and Universities
• Home-care Settings

By Regional Outlook

North America

• U.S.
• Canada

Europe

• Germany
• France
• United Kingdom
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Southeast Asia
• Rest of Asia Pacific

Latin America

• Brazil
• Rest of Latin America

Middle East & Africa (MEA)

• GCC
• North Africa
• South Africa
• Rest of Middle East & Africa

Key Benefits for Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the global Companion Animal Diagnostics industry analysis from 2022 to 2030 to identify the prevailing Companion Animal Diagnostics industry opportunity.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the global Companion Animal Diagnostics industry segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global Companion Animal Diagnostics industry trends, key players, market segments, application areas, and market growth strategies.