Veterinary Practice Management Software Market

The global veterinary practice management software market size was valued at USD 539.3 Bn in 2022 and is likely to reach USD 1,073.7 Bn by 2031, expanding at a CAGR of 9.3% during the forecast period, 2023 – 2031.

Veterinary practice management software is a comprehensive software solution that designed specifically for veterinarian to streamline and enhance their operational processes in clinics. It serves as a centralized platform that combines various functionalities, such as appointment scheduling, electronic medical records (EMR), billing and invoicing, and inventory management.

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Veterinary practice management software enables veterinarians to optimize their productivity by automating tasks and reducing human errors. This software is used in various range of settings, including clinics, specialty practices, and even large veterinary hospitals or veterinary teaching hospitals. Rapid increase in the veterinary practice contribute to the market expansion.

• According to the American Veterinary Medical Association, an estimated 78,717 clinical veterinarians were practicing in the US in 2022.

The rising pet adoption resulting in the higher veterinary clinics, which significantly boosting the demand for veterinary practice management software to streamline and enhance their operational process. For instance, according to the pet ownership statistics 2023, pet ownership in the US has increased over the past three decades. Around 66% of US households own a pet, of which 65.1 million households own a dog, followed by cats (46.5 million households).

The COVID-19 pandemic had a moderate impact on the veterinary practice management software market. The strict lockdowns imposed by governments across the globe slow down the operation of veterinary medical settings during the initial wave of the pandemic, which further decreased the demand for veterinary practice management software. Moreover, the pandemic led to a surge in pet adoption and ownership, as people started looking for companionship during lockdowns and quarantines. This resulted in a higher demand for veterinary services and consequently increased the need for efficient practice management software to handle the growing patient volume.

Veterinary Practice Management Software Market Dynamics

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Major Drivers

Increasing number of veterinary hospitals and clinics, due to the rising pet ownership is anticipated to drive the market during the forecast period. The surge in pet ownership coupled with the growing awareness of the importance of regular veterinary care boosts the need for efficient practice management software to handle the large patient volume. Veterinary software streamlines and automates various administrative tasks, such as appointment scheduling, billing, and inventory management. This reduces manual effort, eliminates paperwork, and allows staff to focus more on providing quality care to animals.

Rising need for telemedicine and remote services such as cloud-based veterinary software is another factor driving the market. The COVID-19 pandemic increased the adoption of telemedicine and remote services in veterinary care. The convenience and accessibility of virtual consultations and remote monitoring propel the demand for veterinary practice management software with integrated telemedicine features. This allows veterinarians to provide care remotely, which reduces the need for in-person visits and improves access to veterinary services for remote or underserved areas.

Existing Restraints

The lack of veterinary infrastructure in underdeveloped countries and the high cost associated with veterinary practice management software is expected to hinder the market. The implantation and maintenance of veterinary practice management software require significant upfront costs. This includes expenses related to software licenses, hardware upgradation, staff training, and ongoing technical support.

Emerging countries may face financial constraints, due to the lack of veterinary infrastructure, which creates challenges to invest in such software solutions. Moreover, the integration of veterinary management software with existing systems and devices within a clinic can be complex. Compatibility issues and the need for data migration or synchronization pose challenges during the implementation, which further reduces the demand for this management software system.   

Emerging Opportunities

The proliferation of new technologies in veterinary service is likely to create immense opportunities for the prominent players competing in the market. The practice management software providers are enhancing their telemedicine capabilities by enabling real-time video consultations, remote monitoring of patients, and integration with wearable devices for data collection. These features help veterinarians to extend their reach, improve access to care, and offer convenient services to pet owners. Moreover, the adoption of web-based and cloud-based veterinary software is increasing, due to its several benefits such as reduced upfront costs, low operational costs, enhanced mobile functionality, and enhanced analytics and reporting.

Increasing mergers and rising investments among market players to develop advanced software solutions for hospitals are booting the market. For instance, on November 28, 2022, Instinct Science, a leading veterinary software platform, received fund from Mainsail Partners, a growth equity firm that invests in software companies. This investment allows Instinct Science to accelerate the development of advanced product and further enhance services to support veterinary hospitals worldwide.

Scope of Veterinary Practice Management Software Market Report

The report on the market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Veterinary Practice Management Software Market Segment Insights

Mode of Delivery Segment Analysis

Based on mode of delivery, the veterinary practice management software market is divided into on-premises, cloud-based, and others. The on-premises segment is expected to hold a major market share during the projection period, owing to its low cost, enhanced data security, and complete control compared to others. On-premises software allows veterinary clinics to have full control over their data and security. This software is hosted on their own servers, which offers customized security protocols and ensures compliance with data protection regulations. This level of control allows clinics to manage sensitive patient information.

On-premises veterinary software allows practitioners to store and share data with other healthcare professionals within the same network, which further boosts reliability. The on-premise software solutions can be accessed from any location via a web browser. Furthermore, it has direct control over software updates, maintenance schedules, and backups which provides a sense of autonomy and security to veterinary clinics.

Practice Type Segment Analysis

On the basis of practice type, the market is fragmented into companion animals, mixed animals, food-producing, equine, and others. The companion animals segment is expected to expand at a considerable CAGR in the coming years, due to increasing pet ownership, rising awareness of pet care, and the growing prevalence of diseases in domestic companion animals. The growing requirement for quality veterinary services for companion animals, such as dogs, cats, and small mammals boosts the adoption of practice management software to provide efficient solutions for managing patient records, appointments, treatments, and billing.

Building strong relationships with pet owners is crucial in companion animal practices. Practice management software facilitates effective communication and engagement with pet owners through features, including appointment reminders, online portals, secure messaging, and educational resources. These communication tools help companion animal practitioners to maintain consistent contact with pet owners to strengthen the veterinarian-client relationship.

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End-user Segment Analysis

Based on end-user, the market is classified as veterinary hospitals, veterinary referral/specialty practices, ambulatory veterinary services, and veterinary clinics. The veterinary hospitals segment is expected to hold a large market share in the coming years, owing to their comprehensive pet care and advanced treatment capabilities. Veterinary hospitals provide a wide range of medical services, such as diagnostics, surgeries, and specialized treatments for animals. The complex nature of hospital operations requires robust practice management software to handle patient records, scheduling, billing, inventory management, and other administrative tasks.

Veterinary hospitals are highly equipped with advanced diagnostic equipment and specialized treatment facilities. Practice management software that integrates with diagnostic devices, laboratory systems, and imaging equipment streamlines the process of capturing, storing, and interpreting test results. This integration enhances the efficiency of diagnostic workflows, supports treatment decision-making, and improves overall patient care. 

Regional Analysis

In terms of region, the global veterinary practice management software market is segmented into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the projected period, due to the well-established veterinary healthcare system, technological advancements, and increasing spending capacity of pet owners.

North America has a highly developed veterinary healthcare system with a significant number of veterinary practices and clinics. These establishments are often well-equipped with modern technologies and facilities, which enables efficient management of animal healthcare services. Rising pet ownership at a rapid pace is further likely to fuel the market in the region.

• For instance, as per the National Pet Owners Survey conducted by the American Pet Products Association (APPA) in 2021-2022, about 90.5 Mn families, which means 70% of US households own a pet. This is up from 67% of US households in 2019.

The market in Asia Pacific is anticipated to expand at a rapid pace in the coming years, owing to the increasing awareness of pet healthcare and growing veterinary infrastructures in developing countries. Pet owners are increasingly seeking quality veterinary care for their pets, including preventive care and vaccinations. The trend of regular check-ups has fueled the demand for veterinary practice management software as veterinary clinics strive to provide efficient and comprehensive services to meet the growing needs of pet owners. Furthermore, rising veterinary clinics in developing countries is likely to boost the market.

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Segments

The global veterinary practice management software market has been segmented on the basis of

Mode of Delivery

• On-premises
• Cloud-based
• Others

Practice Type

• Companion Animals
• Mixed Animals
• Food Producing
• Food Producing Animal Practices
• Equine
• Others

End User

• Veterinary Hospitals
• Veterinary Referral/Specialty Practices
• Ambulatory Veterinary Services
• Veterinary Clinics

Region

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• Advanced Technology Corp.
• AmerisourceBergen Corporation
• Animal Intelligence Software™
• ClienTrax
• Covetrus, Inc.
• DaySmart Software
• ezofficesystems Ltd.
• ESAOTE SPA
• ezyVet Limited
• FirmCloud Corp.
• Hippo Manager Software, Inc.
• Patterson Companies, Inc.
• Timeless Veterinary Systems International Limited
• VETport LLC.

Competitive Landscape

Key players competing in the global veterinary practice management software market are Advanced Technology Corp.; AmerisourceBergen Corporation; Animal Intelligence Software™; ClienTrax; Covetrus, Inc.; DaySmart Software; ezofficesystems Ltd.; ESAOTE SPA; ezyVet Limited; FirmCloud Corp.; Hippo Manager Software, Inc.; Patterson Companies, Inc.; Timeless Veterinary Systems International Limited; and VETport LLC.  

These companies adopting various strategies such as mergers, partnerships, improved technical support, launching new software, and implementing advanced technologies to boost their global presence. For instance,           

• On April 11, 2023, DaySmart Software, one of the leading providers of business management software solutions, announced the acquisition of a developer & provider of recreation management software ReCPro Software based in Warren, MI. DaySmart and ReCPro Software will expand their customer base within the recreation management software space through this acquisition. For the last two decades, ReCPro Software is the pioneer in providing extraordinary software and support to customers.

• On May 5, 2022, Covetrus, a global leading provider of animal health technology and service solutions, introduced a powerful cloud-based veterinary practice management software (PMS). These improved systems enable efficient streamlines of internal communications and collaboration in veterinary clinics to create a better experience for staff and clients. Furthermore, PMS offers a highly visualize dynamic interface to bring multiple systems together into one user-friendly platform.