Veterinary Software Market Size, Share, Growth, Trends, and Global Industry Analysis: By Product (Practice Management Software, Veterinary Imaging Software, and Other Products), By Delivery Mode (On Premises and Cloud-Based), By Animal Type (Companion Animals and Farm Animals), By End Users (Hospital/Clinics, Reference Laboratories, and Others), and Region Forecast 2020-2031

Veterinary Software Market size was valued at US$ 1,445.5 million in 2024 and is expected to reach US$ 1,067.6 million by 2031, growing at a significant CAGR of 13.1% from 2025-2031. Moreover, the U.S. Veterinary Software Market is projected to grow significantly, reaching an estimated value of US$ 1,067.6 million by 2031. The market is focused on the development, distribution, and use of specialized digital solutions designed to streamline and optimize the operations of veterinary practices, clinics, hospitals, and reference laboratories. The market is evolving rapidly, primarily fueled by rising pet ownership and growing demand for advanced, tech-enabled veterinary care. As pet parents seek preventive care, diagnostics, and wellness services, veterinary clinics are adopting digital tools to streamline operations and improve patient outcomes. This digital shift is most prominent in developed regions, supported by cloud-based platforms, AI integration, and rising investments from animal health firms.

A key trend in this market is the widespread adoption of cloud-based, all-in-one practice management systems that unify scheduling, billing, patient records, and client communication, alongside growing use of mobile apps, telemedicine, and predictive analytics. These innovations are helping clinics enhance service delivery while enabling remote care. A major opportunity lies in telehealth and remote monitoring, especially in underserved areas and for pet owners seeking convenience. Integration of wearable health devices and real-time data access further supports clinical decision-making and client engagement.

However, the market still faces restraints such as high upfront software costs, low digital adoption among small or rural practices, and data interoperability issues. Concerns about cybersecurity and insufficient standardization across platforms also hinder adoption. Despite these challenges, the market outlook remains strong, with technology and pet care trends aligning to fuel sustained global growth.

Facts & Figures

• Surge in Pet Ownership and Humanization of Animals: Pet ownership has surged globally, especially post-pandemic, with pets increasingly treated as family members. This behavioral shift has raised expectations for quality healthcare, timely medical records, and better service from veterinary clinics, necessitating software adoption for streamlined operations. For instance, according to APPA (American Pet Products Association) in the U.S. alone, 66% of households own a pet as of 2023, and the global pet care industry is projected to reach $500 billion by 2030. Clinics are upgrading systems to meet higher service expectations and volume.
• Rapid Growth in Telemedicine and Remote Monitoring: Pet owners increasingly prefer convenience and accessibility, especially for follow-ups and non-emergency consultations. This is driving demand for telehealth-enabled veterinary software that supports video calls, e-prescriptions, and digital record access. For instance, Companies like Otto and IDEXX are launching AI-integrated telehealth modules, and states like Michigan are introducing legislation to regulate and expand their use.
• Technological Advancements in AI, Wearables, and Cloud-Based Systems: Clinics are adopting cloud-based software for real-time data access, mobile capabilities, and reduced IT costs. Meanwhile, AI-powered diagnostics and pet health wearables provide actionable data, which veterinary software platforms can integrate to support proactive care. For instance, Alerte Digital’s “Atrio Pet Pulse” Holter device uses AI to detect canine cardiac issues in-clinic. Otto launched a new AI Suite in North America, offering automated SOAP notes and workflow aids.
• Shift Toward Preventive and Chronic Pet Care: The focus in veterinary medicine is moving from reactive treatment to preventive and chronic condition management, requiring software to manage long-term care plans, vaccination schedules, and automated follow-ups. For instance, according to the American Animal Hospital Association, conditions like obesity, arthritis, and CKD are increasing in aging pets. Software platforms now integrate automated alerts and reminders to support proactive treatment strategies.

Key Developments:

• In February 2025, VetRec partnered with IndeVets to deploy AI?powered clinical documentation scribe software across veterinary hospitals, streamlining admin tasks.
• In January 2025, Agilio partnered with the British Veterinary Receptionist Association to support veterinary reception staff through specialized practice management integrations.
• In December 2024, Covetrus was taken private in a $4?billion acquisition by Clayton Dubilier & Rice and TPG, underscoring high-value investor confidence in integrated veterinary software and supply solutions.
• In December 2024, Instinct Science acquired veterinary education provider VetMedux, reinforcing its diagnostic software and training capabilities.

Veterinary Software Market Segmentation:

Based on the product:

• Practice Management Software
• Veterinary Imaging Software
• Other Products

Practice Management software holds the largest market share in the market due to its broad utility across daily clinic operations. This software streamlines appointment scheduling, billing, patient records, inventory, and client communication, making it essential for clinics of all sizes aiming to improve workflow efficiency and client satisfaction. Its widespread adoption is further fueled by the shift toward cloud-based platforms and the rise of corporate veterinary chains seeking centralized systems. In contrast, veterinary imaging software, while gaining traction with growing demand for diagnostic accuracy, currently holds a smaller share due to its higher cost and niche usage in specialized or well-equipped facilities.

Based on the delivery mode:

• On Premises
• Cloud-Based

In the market, the cloud-based segment holds the largest and fastest-growing market share due to its flexibility, scalability, and lower upfront costs. Cloud solutions enable clinics to access patient records, manage appointments, and process billing from any location, supporting mobile access and real-time data synchronization. This is especially advantageous for multi-location practices and veterinary chains aiming for centralized operations. Additionally, automatic updates, data backups, and improved cybersecurity make cloud platforms increasingly attractive. While on-premises solutions are still used in some traditional or rural clinics due to data control preferences, their growth is limited by higher maintenance costs and a lack of remote accessibility.

Based on the animal type:

• Companion Animals
• Farm Animals

Companion animals dominate the market in terms of market share, driven by the surge in pet ownership, especially in urban households across North America, Europe, and emerging economies in Asia. As pets are increasingly treated as family members, clinics are investing in digital tools to manage wellness checkups, vaccination reminders, diagnostics, and telehealth services. The demand for personalized, preventive care has led to widespread adoption of practice management software for dogs, cats, and other household pets. On the other hand, the Farm Animals segment holds a smaller share, though it is gradually expanding with the rising need for livestock health monitoring, herd management, and regulatory compliance in agriculture-focused regions.

Based on the end user:

• Hospital/Clinics
• Reference Laboratories
• Others

Hospitals/Clinics hold the largest market share in the market due to their direct role in providing day-to-day veterinary care, managing high patient volumes, and requiring comprehensive digital tools for scheduling, billing, records, and diagnostics. The growing number of small animal practices and corporate veterinary chains further boosts the adoption of cloud-based and integrated practice management software in this segment. Additionally, telehealth integration and mobile access are enhancing clinical efficiency and client engagement. In contrast, Reference Laboratories hold a smaller share but are crucial users of veterinary imaging and diagnostic software, especially for advanced test processing and integration with clinic systems. Their demand is expected to rise with increasing diagnostic outsourcing.