U.S. Companion Animal Diagnostics Market - Focused Insights 2024-2029

MARKET INSIGHTS

The U.S. companion animal diagnostics market was valued at USD 2.88 billion in 2023 and is projected to reach USD 4.28 billion by 2029, experiencing a CAGR of 6.81% over the forecast period. The increasing demand for companion animal diagnostics is driven by several factors, including heightened awareness of infection prevention and control in animals, increased healthcare expenditure for pets, and a rising number of pet owners. The expanding pet population and the growing prevalence of diseases requiring diagnostic procedures for accurate identification and treatment of both chronic and acute conditions further contribute to market growth.

MARKET DEFINITION

Companion animal diagnostics encompass diagnostic analyzers, imaging systems, consumables, and software designed to perform diagnostic tests on cats and dogs. These tools aid in preventing, managing, and treating a range of acute and chronic ailments.

MARKET TRENDS & GROWTH FACTORS

Rising Adoption of Molecular Diagnostics

The molecular diagnostics segment is poised for significant expansion, driven by pet owners' preference for swift test results and cost-effective solutions. This growth is fueled by an increasing number of tests designed to detect common animal diseases, such as feline leukemia, canine parvovirus, heartworm, and infectious peritonitis. Additionally, factors such as the rise in pet ownership, increasing concerns over animal welfare, the growing incidence of companion animal diseases, and the availability of affordable immunoassay tests that facilitate frequent at-home testing contribute to the market's expansion. As the number of companion animals continues to increase, the prevalence of associated diseases rises accordingly, further boosting the demand for advanced animal care solutions.

Increasing Pet Ownership and Demand for Veterinary Care

The rising trend of pet ownership, particularly in the U.S., significantly drives the expansion of the companion animal diagnostics market. The growing number of households integrating pets as family members has contributed to this shift. Factors such as urbanization, changing lifestyles, and an increased understanding of the emotional benefits of pet companionship further propel this trend. As more individuals adopt pets, there is a corresponding surge in demand for companion animal diagnostics. Pet owners are increasingly committed to ensuring their pets receive comprehensive healthcare, including timely diagnostic evaluations. Additionally, pet insurance plays a crucial role in safeguarding pet health and managing unexpected medical costs. This rise in pet ownership not only broadens the market landscape but also highlights the necessity of accessible and advanced diagnostic solutions to cater to evolving pet care needs.

MARKET CHALLENGES

Intensifying Competition in the Animal Health Sector

The pet diagnostics industry has become increasingly competitive, with recent trends in mergers, acquisitions, and divestitures reshaping the market landscape. New forms of competition have emerged, including the vertical integration of activities among large distributors, the rise of niche market innovators, and strategic collaborations between smaller market players. Unlike the human pharmaceutical industry, where generics significantly impact pricing and availability, the animal health sector faces less influence from generics. This is primarily due to the absence of intermediaries, such as insurance providers or employer programs, that mandate the use of lower-cost alternatives when available.

US COMPANION ANIMAL DIAGNOSTICS MARKET INSIGHTS

• By Product Type: The U.S. companion animal diagnostics market is segmented by product into diagnostic analyzers & imaging equipment, consumables, and software. The consumables segment held the dominant market share of over 66% in 2023. This segment's growth is primarily attributed to the increasing prevalence of conditions such as allergies, infections, diabetes, dental issues, and obesity in cats and dogs. Consumables, including substrates, enzymes, electrolytes, specific proteins, lipids, and various test kits, play a crucial role in delivering accurate diagnostic results.
• By Animal Type: The U.S. companion animal diagnostics market is categorized based on animal type into dogs and cats. The dog segment is experiencing the highest growth rate, with the fastest-growing CAGR during the forecast period. The increasing number of companion animals, particularly in developed regions of the U.S.., is expected to drive market expansion. Additionally, dogs are more susceptible to a range of illnesses, and their veterinary care costs are generally higher than those of cats.
• By Technology Type: The diagnostic imaging market segment is anticipated to grow at the highest CAGR of 7.74% over the forecast period. This growth is primarily due to the widespread use of imaging techniques such as radiography and ultrasound for assessing the health status of cats and dogs. According to the American Pet Products Association, pet ownership is on the rise, with 90 million dogs in the U.S. as of 2023. Commonly used imaging modalities for companion animals include radiography, ultrasound, MRI, and CT scans.
• By End-User: The veterinary reference laboratories segment accounted for the largest market share in the U.S. companion animal diagnostics sector. This segment's growth is driven by increasing pet adoption rates, rising pet care expenditures, higher demand for pet insurance, a growing number of veterinary professionals, and heightened awareness of zoonotic and pet-related diseases. Veterinary reference laboratory testing facilities are primarily concentrated in the Southeast, West, Mid-Atlantic, Great Lakes, and Southwest regions, where a significant volume of diagnostic testing for companion animals takes place.

COMPETITIVE LANDSCAPE

The U.S. companion animal diagnostics market report provides exclusive data on 35 vendors. The market is characterized by a mix of global, regional, and local players offering various diagnostic analyzers, imaging equipment, and consumables. The industry is relatively concentrated, with major players holding substantial market shares. Leading global companies focus on developing innovative products and expanding their product portfolios to maintain competitiveness. Key market participants, including IDEXX Laboratories, Antech, and Zoetis, continuously integrate new technologies to enhance their market presence.