Veterinary Diagnostics Market

Veterinary Diagnostics: An Essential Component of Animal Healthcare

Veterinary diagnostics are the methods and tools used to diagnose and monitor diseases and conditions in animals. They are essential in providing accurate and timely diagnoses, which enable veterinarians to treat animals effectively. With the advancements in technology, veterinary diagnostics have become more advanced and sophisticated, allowing for more accurate and efficient diagnoses.

One of the most commonly used diagnostic tools in veterinary medicine is blood testing. Blood tests can provide information on the animal's overall health, including their immune system function, organ function, and hormonal balance. Blood tests are also useful in diagnosing specific diseases, such as heartworm disease, feline leukemia virus, and canine parvovirus.

Another common diagnostic tool is radiography, which uses X-rays to visualize the internal structures of an animal's body. Radiography is useful in diagnosing bone fractures, identifying foreign objects in the digestive tract, and detecting tumors or other abnormalities in the chest or abdomen.

Ultrasound is another diagnostic tool commonly used in veterinary medicine. It uses high-frequency sound waves to produce images of internal structures. Ultrasound is particularly useful in diagnosing pregnancy, identifying tumors or cysts, and evaluating organ function.

In addition to these traditional diagnostic tools, veterinary medicine also utilizes advanced technologies such as magnetic resonance imaging (MRI) and computed tomography (CT) scans. These tools are particularly useful in diagnosing neurological conditions, as they provide detailed images of the brain and spinal cord.

When it comes to veterinary diagnostics, accuracy is crucial. Misdiagnosis can result in ineffective treatment or even harm to the animal. That's why it's important to choose a qualified veterinarian who has experience in diagnosing and treating the specific condition your animal is facing.

Dynamics of Veterinary Diagnostics Market

Drivers in Veterinary Diagnostics Market

The veterinary diagnostics market is expected to grow significantly due to increasing disease control and prevention measures. With previous outbreaks of diseases that have been declared eradicated, such as Rinderpest, there has been increased vigilance regarding the possibility of their re-emergence. This has led to the development of preventive measures, including constant diagnostic checks, to help in emergencies. In addition, there have been numerous zoonotic breakouts reported every year, making it crucial for countries to strengthen their capabilities to prevent and respond to these diseases. As a result, the demand for innovative diagnostic products to detect, monitor, and limit disease outbreaks is expected to increase. The availability of advanced diagnostic technologies will enable veterinarians to provide better diagnosis and treatment, driving the overall market for veterinary diagnostics worldwide.

Other factors contributing to the growth of the veterinary diagnostics market include increased expenditure on animal health, rising incidence of zoonotic diseases, and technological advancements in point of care diagnostics. Additionally, the growing acceptance of innovative techniques in most laboratories is driving the market growth. For example, AeroCollect technology developed by FORCE Technology in Denmark, which offers a picture of diseases in a herd using simple air samples, is presently used in the swine, poultry, and mink industries.

However, the global COVID-19 pandemic has impacted the veterinary diagnostics market. While animals cannot spread the virus, human-to-animal transmission has been reported in a few countries. The limited operation of veterinary clinics due to stringent lockdown norms has resulted in a decline in veterinary visits, thereby impacting the market.

Opportunities in Veterinary Diagnostics Market

The ongoing COVID-19 pandemic has prompted animal health authorities to conduct tests to understand the impact of the virus on animals. According to research studies, felines appear to be more vulnerable to the virus compared to other animals. However, it has been observed that the virus spreads less from animal-to-animal as compared to human-to-human or human-to-animal.

Recently, IDEXX and Zoetis introduced a Polymerase Chain Reaction (PCR) panel in April 2020, which can be used to detect the COVID-19 virus in animals. These PCR tests are now commercially available to veterinarians and pet owners. Although the American Veterinary Medical Association (AVMA) does not recommend routine diagnostic use of these tests, they can be ordered after all other possible diseases have been ruled out. It is expected that with time, more pet owners will opt for PCR testing panels to rule out the COVID-19 virus in their pets, thus creating new opportunities for molecular diagnostic panels in the industry.

Restraints in Veterinary Diagnostics Market

The high cost of advanced veterinary diagnostic tests poses a significant challenge to their widespread adoption. According to the Centers for Disease Control and Prevention (CDC), the estimated cost of public health expenditure on rabies disease diagnostics, prevention, and control in the US ranges from USD 300 million to USD 550 million per year. This cost includes expenses related to vaccinating companion animals, national rabies diagnostic testing, and biologics for rabies postexposure and preexposure prophylaxis. However, the total cost of rabies, including healthcare expenses and animal control measures, is much higher.

In addition, veterinary diagnostic imaging systems are also costly, with small portable machines starting at around USD 2,000-3,000 and higher-end models reaching USD 50,000. Additional costs, such as backup transducer probes and printers, can also add up quickly. These high costs can be prohibitive for many small and medium-sized veterinary practices that have limited budgets. Furthermore, the lack of reimbursement for veterinary procedures further limits the uptake of veterinary diagnostics, thus restraining the growth of the market.

Despite these challenges, the veterinary diagnostics market has shown a V-shaped recovery during the third quarter of 2020, driven by the resumption of pet clinic visits and the easing of pandemic-related restrictions. According to IDEXX, U.S. clinic visits increased by 6% in the fourth quarter of 2020, which is expected to drive market growth over the forecast period. Additionally, an increase in pet adoption will further support market growth, as shelters, nonprofit rescues, and private breeders have reported high consumer demand post-COVID-19 in the U.S.

Strong product pipelines from companies such as IDEXX, Zoetis, and Heska Corp. are expected to propel market growth in the coming years. For example, Zoetis acquired Scandinavian Micro Biodevices in 2020 to expand its revenue in veterinary diagnostics. Furthermore, veterinarians have been gradually increasing the frequency of diagnostic testing, a trend that was highlighted during the COVID-19 pandemic when hospitals had to focus on essential pet services. Continued growth in the pet population and increased penetration of veterinary diagnostic products in veterinary clinics are expected to further promote market growth.

Challenges in Veterinary Diagnostics Market

The lack of awareness about animal healthcare services in emerging countries such as India, China, Brazil, and Southeast Asian countries is posing a challenge for the growth of the veterinary diagnostics market. Despite having a large population of companion and farm animals, these countries allocate lower animal health expenditure compared to North American and European countries. The lack of awareness among pet owners and veterinarians about the availability of animal healthcare services is the primary reason for this. Additionally, farm animal health expenditure in these countries is mostly focused on therapeutic treatment, and veterinary diagnostics are not extensively used in large animal practices. Although these regions hold a high growth potential for the veterinary diagnostics market, the lack of awareness among the people regarding animal healthcare will hinder the growth of the market in these areas.

Ecosystem of Veterinary Diagnostics Market

The veterinary diagnostics market is divided into various segments based on products, technology, and end-users. The consumables and instruments are two products segments, and among them, the consumables segment is expected to witness the highest CAGR during the forecast period. The market growth is driven by the increasing incidence of new infectious diseases, such as the SARS-CoV-2 viral infection, and the rising demand for rapid diagnostics in animals.

In terms of technology, the market is segmented into various categories, including clinical biochemistry, immunodiagnostics, molecular diagnostics, hematology, urinalysis, and other veterinary diagnostic technologies. The clinical biochemistry segment is expected to register the highest CAGR during the forecast period. In the veterinary industry, clinical biochemistry analysis is utilized to diagnose diseases, screen disease progression, and monitor responses to therapy, leading to the highest growth in the global market.

Among end-users, the veterinary reference laboratories segment accounted for the largest share of the global veterinary diagnostics market. These laboratories are major end-users in the global market, and they perform complex and highly specialized diagnostic tests that may not be possible in clinics and hospitals. As a result, they offer a wide range of testing services, which leads to the largest share in the global market. Other end-users in the veterinary diagnostics market include veterinary hospitals & clinics, point-of-care testing/in-house testing, and veterinary research institutes & universities.

The global market for veterinary diagnostics has been divided into product categories, which include test consumables, reagents & kits, and instruments & devices. Among these, the consumables, reagents & kits segment held the largest market share during the forecast period. It is projected to maintain its dominant position throughout the forecast period and expand at the fastest CAGR of approximately 13.6%. The demand for these products in veterinary clinics, hospitals, labs, and other settings is a key factor in determining the overall market.

There has been an increasing demand for point-of-care diagnostics from pet owners, which commonly include blood glucose monitors, pregnancy kits, and urinalysis strips for companion animals. In contrast, diagnostic tests for livestock are mostly confined to labs due to high sensitivity and efficacy requirements. The consumption and usage of consumables & reagents in diagnosis are increasing, driven by the growing awareness of zoonotic diseases and the increasing number of pet adoptions & concern for their health.

During the forecast period, the canine species segment captured the largest share of more than 35% of the global revenue. The increasing spending on animal healthcare, particularly in developed regions, is driving this trend. The rising prevalence of major diseases such as obesity, diabetes, and cancer in dogs is also contributing to the growth of the market. According to a report by APOP, around 53% of dogs in the US are obese, which increases their risk of chronic conditions such as joint diseases and diabetes.

The feline segment is expected to grow at the fastest CAGR of about 12% in the near future. This is due to the increasing concern of pet owners, which has led to regular diagnosis of glucose levels and consequently increased demand for glucose monitors. The porcine segment also held a substantial share of the market during the forecast period, owing to the growing consumption of pork and demand for better diagnostic procedures. MatMaCorp has launched MYRTA, a hand-held real-time polymerase chain reaction device that provides over-the-counter and point-of-care molecular diagnostic solutions for human and animal health. The MYRTA system has the potential to detect porcine reproductive and respiratory syndrome virus, making it useful for veterinary health.

During the forecast period, the non-infectious diseases segment accounted for over 23% of the global revenue. The veterinary diagnostics market has seen an increase in the number of innovative technologies for disease detection in animals. For instance, Lab on a Chip technology can analyze electrolytic imbalances in body fluids like blood, urine, and milk. Meanwhile, the hereditary, congenital, and acquired diseases segment is expected to grow the fastest, at a rate of approximately 17% over the forecast period. These types of diseases are becoming more prevalent.

Genetic diseases are not easily detectable in the beginning, making molecular screening a recommended method of diagnosis. Infectious diseases in animals pose a significant threat to global human and animal populations. Controlling these diseases is critical in preventing epidemics and the spread of infections from animal to animal or animal to humans. Some prevalent animal diseases include brucellosis, influenza, respiratory and reproductive diseases, herpes, and tuberculosis.

The global veterinary diagnostics market has been divided into different end-use segments, including laboratories, hospitals, clinics, in-house testing, and research institutes & universities. Among these, laboratories held the largest revenue share of over 32% during the forecast period. This can be attributed to the increasing demand for veterinary diagnostic services in these facilities. Veterinary hospitals & clinics were the second-largest end-use segment, as they provide a wide range of diagnostic options to pet owners. Furthermore, the use of advanced analyzers for diagnostic purposes in veterinary hospitals has also increased, driving the market's growth.

The point of care (POC) segment is expected to exhibit the fastest CAGR of 13% over the forecast period. The convenience and quick results offered by technologically advanced diagnostics such as in-house analyzers and POC tests have made them increasingly popular among end consumers, including pet owners. As veterinary diagnostics continue to advance, there is a growing trend of POC testing in livestock and other animals, which provides an opportunity for market players to expand their POC portfolio and tests segment.

Research institutes also play a crucial role in the development and usage of veterinary diagnostics. They are involved in identifying, deploying, and developing new diagnostic methods or procedures for research and monitoring purposes of newly emerging or existing diseases in animals. In conclusion, the global veterinary diagnostics market is expected to continue to grow owing to the increasing demand for advanced diagnostic services in different end-use segments.

Regional Insights

North America has been identified as the largest market for veterinary diagnostics, with the region holding the largest share in the global market. The North American market is expected to maintain its dominance due to various factors such as the increasing population of companion and food-producing animals, the availability of advanced veterinary reference laboratories, rising expenditure on veterinary healthcare, and growth in pet insurance coverage. Meanwhile, the Asia Pacific market is projected to exhibit the highest growth rate, with an estimated growth rate of over 14% during the forecast period. Factors such as the rise in middle-class households, increased disposable income, growing acceptance of pet animals, and high demand for animal proteins are expected to boost the growth of the regional market.

Overall, the veterinary diagnostics market is predicted to grow in all regions due to the increasing trend of pet ownership and demand for livestock products. In Europe, the veterinary diagnostics market is projected to reach $2.9 billion during the forecast period, growing at a CAGR of 10.5%. In North America, the market is expected to reach $5.9 billion during the forecast period, growing at a CAGR of 8.2%. In South America, the market is projected to reach $556 million during the forecast period, growing at a CAGR of 7.8%. In Africa, the market is expected to reach $451 million during the forecast period, growing at a CAGR of 7.1%. Lastly, in the APAC region, the market is projected to reach $4.2 billion during the forecast period, growing at a CAGR of 9.1%. The growth in these markets is being driven by several factors such as the increasing demand for animal-derived food products, the rising incidence of zoonotic diseases, and growing awareness of animal health.

Dominating Companies in Veterinary Diagnostics Market

• IDEXX LABORATORIES, INC.
• ZOETIS, INC.
• THERMO FISHER SCIENTIFIC, INC.
• HESKA CORPORATION
• BIOMÉRIEUX SA
• NEOGEN CORPORATION
• BIO-RAD LABORATORIES, INC.
• VIRBAC
• FUJIFILM HOLDINGS CORPORATION
• SHENZHEN MINDRAY ANIMAL MEDICAL TECHNOLOGY CO., LTD.
• INDICAL BIOSCIENCE GMBH
• BIONOTE INC.
• BIOGAL GALED LABS
• AGROLABO S.P.A.
• IDVET
• RANDOX LABORATORIES LTD.
• BIOCHEK
• FASSISI GMBH
• ALVEDIA
• SKYER, INC.
• SHENZHEN BIOEASY BIOTECHNOLOGY CO., LTD.
• BIOPANDA REAGENTS
• PRECISION BIOSENSOR, INC.
• SKYLA CORPORATION
• EUROIMMUN MEDIZINISCHE LABORDIAGNOSTIKA AG
• Covetrus
• iM3Vet Pty Ltd.

Recent Developments in Veterinary Diagnostics Market

• In 2020, IDEXX Laboratories acquired a veterinary diagnostic laboratory in India called Madras Veterinary Diagnostic Services. This acquisition allowed IDEXX to expand its presence in the Indian market and offer its diagnostic services to more customers.
• In 2020, Zoetis Inc. announced a partnership with Dairy Farmers of America (DFA) to bring diagnostic and predictive analytics to the dairy industry. This partnership aimed to provide dairy farmers with advanced diagnostic tools to improve herd health and productivity.
• In 2020, Virbac, a French animal health company, acquired EMBRAPA, a Brazilian biotechnology company specializing in animal health diagnostics. This acquisition allowed Virbac to expand its presence in Latin America and strengthen its diagnostics capabilities.
• In 2019, Heska Corporation acquired scil animal care company GmbH, a European provider of veterinary diagnostic solutions. This acquisition allowed Heska to expand its presence in the European market and offer a wider range of diagnostic solutions to its customers.
• In 2018, IDEXX Laboratories announced a partnership with Agfa HealthCare to provide cloud-based diagnostic imaging solutions for veterinary practices. This partnership aimed to provide veterinarians with faster and more accurate diagnostic imaging solutions to improve patient care.
• In December 2021, global diagnostics company Zoetis announced its acquisition of Ethos Diagnostic Science, a leading provider of advanced diagnostics and pathology services for veterinarians in the United States. The acquisition will expand Zoetis' portfolio of diagnostics offerings and enhance its ability to provide comprehensive solutions to veterinarians.
• In November 2021, IDEXX Laboratories announced a strategic partnership with Ceva Santé Animale, a global veterinary pharmaceutical company, to develop and distribute in-clinic point-of-care diagnostic tests for companion animals. The partnership aims to improve the accuracy and speed of diagnosis for common infectious diseases in dogs and cats.
• In June 2021, animal health company Heska Corporation announced its acquisition of Scil Animal Care Company, a provider of in-clinic diagnostic solutions for veterinarians in Europe. The acquisition will expand Heska's global footprint and strengthen its position in the European veterinary diagnostics market.
• In January 2021, animal health company Idexx Laboratories announced a partnership with E.I. Medical Imaging, a leader in veterinary ultrasound technology. The partnership aims to develop and market innovative diagnostic imaging solutions for veterinarians, with a focus on the use of artificial intelligence to improve image quality and accuracy.
• In October 2020, global healthcare company Roche announced its acquisition of Stratos Genomics, a company specializing in the development of next-generation sequencing technologies for molecular diagnostics. The acquisition will enable Roche to expand its portfolio of diagnostic solutions and accelerate the development of new tests for veterinary medicine.

In conclusion, veterinary diagnostics are an essential component of animal healthcare. With the help of these tools and technologies, veterinarians can provide accurate and effective diagnoses, leading to better treatment outcomes for animals. By staying up-to-date on the latest advancements in veterinary diagnostics, we can ensure that our animal companions receive the best possible care.