[169 Pages Report] MarketsandMarkets forecasts the veterinary software market to grow from USD 442 million in 2017 to USD 594 million by 2022, at a Compound Annual Growth Rate (CAGR) of 6.1% during the forecast period. The major factors that are expected to be driving the veterinary software market are rising companion animal ownership and demand for pet insurance with growing animal health expenditure. However, lack of government incentives for the adoption of veterinary software, reluctance of veterinarians towards adopting new technologies, and lack of awareness about veterinary software in the developing countries are restricting the growth of this market.

The objective of the report is to define, describe, and forecast the veterinary software market size based on delivery model, practice type, type, end user, and region.

By product, the practice management software segment is expected to grow at the highest rate during the forecast period.

On the product, the global veterinary software market is segmented into practice management software, veterinary imaging software, and other software. In 2017, the veterinary practice management software segment is expected to grow at the highest CAGR during the forecast period. Veterinary practice management software helps veterinarians in appointment management, billing & invoicing, boarding management, maintaining patient records, prescription labeling, and treatment management. This software reduces the possibilities of error and the overall cost of a veterinary healthcare facility. Such factors are likely to drive the market for veterinary practice management software.

By delivery model, the on-premise delivery model segment is expected to dominate the veterinary software market.

On the basis of delivery model, the global veterinary software market is segmented into two broad categories�on-premise model, and web-based/cloud-based model. The on-premise model segment is estimated to account for the largest share of the global veterinary software market in 2017. The large share of this segment can be attributed to the advantages of the on-premise delivery model, such as the low risk of data breach, flexible connection bandwidth, and the availability of easy customization options.

By practice type, the exclusive small animal practices segment is expected to register the highest CAGR during the forecast period.

On the basis of practice type, the veterinary software market is segmented into exclusive small animal practices, mixed animal practice, and exclusive large animal practices. The exclusive small animal practices segment is expected to register the highest CAGR during the forecast period. The high growth in this segment can be attributed to the increasing number of small pet owners and rising annual spending on pet care in developed countries.

The North America veterinary software market is expected to grow at the highest CAGR during the forecast period

North America is expected to witness the highest growth from 2017 to 2022, owing to the growing demand for quality pet care. This, in turn, is encouraging veterinarian practices to adopt technology solutions such as digital imaging systems and veterinary practice management software for better diagnosis. Other growth factors include growing awareness about veterinary software and the easy availability of veterinary software and services in this region. This is because most vendors operating in this market have operations in North America. The increasing number of veterinarians is also a major driver for the veterinary software market in North America.

Market Dynamics

Driver:Rising companion animal ownership

Over the years, the number of pet owners has increased significantly across the globe, and this trend is expected to continue in the coming years. According to the American Pet Products Association�s 2017� 2018 National Pet Owners Survey, 68% of households (84.6 million) in the US owned a pet. The canine population in the US increased from 69.90 million in 2012 to 89.70 million in 2016, while the feline population increased from 74.05 million in 2012 to 94.20 million in 2016. Similarly, according to the European Pet Food Industry Federation (FEDIAF), the canine population in Germany increased from 5.30 million in 2012 to 8.60 million in 2016, whereas the feline population in the country increased from 11.80 million in 2014 to 13.40 million in 2016. In the UK, as of 2017, 44% of households own pets (Source: Pet Food Manufacturers Association).

Restraint: Lack of Government incentives

The veterinary software market has minimal support from governments across the globe. In the US, the adoption rate of veterinary software is very low as compared to healthcare IT (HCIT) tools such as human EHR. This can be attributed to the lack of incentives or funding provided for implementing veterinary software. The slow adoption rate of veterinary software will make it difficult for small vendors to break even in the market. Moreover, in developing regions such as the Asia Pacific and Latin America, government support for the implementation of veterinary software is very low. This makes it difficult for companies to operate in these regions. Thus, the lack of government incentives is restraining the growth of the veterinary software market.

Opportunity: Web-based/cloud-based models

In the veterinary software market, web-based/cloud-based software are gaining traction as they offer advantages such as low upfront, maintenance, and operational costs; data centralization capabilities; greater level of interoperability; storage flexibility; and automatic software upgradation. Though only a limited number of players are currently offering web-based/cloud-based veterinary software, several existing players as well as new entrants are focusing on this market segment to leverage the potential growth opportunities. The limited number of companies in this market segment is offering players the opportunity to strengthen their market positions by effectively catering to the demand for web-based/cloud-based veterinary software and services.

Challenge: Meeting region-wise requirements for software functions

In 2017, the US dominated the global veterinary software market with a share of 60.6%. Major players cater primarily to the US market and offer veterinary practice management software for all types of hospitals and clinics in the country. However, these software do not provide support for emerging countries such as India and China as their functions and reporting are designed as per the US government�s taxes and laws. Since data, reporting, and function requirements differ from country to country, market players have to modify their standard software with respect to the specific requirements in other countries. This is a major challenge faced by veterinary software vendors focusing on offering products and services across the globe.

Scope of the Report

Report Metric Details Market size available for years 2015�2022 Base year considered 2016 Forecast period 2017�2022 Forecast units Million (USD) Segments covered By Product, Delivery Model, Practice Type, Type, End User, and Region Geographies covered North America, Europe, APAC, and RoW Companies covered Henry Schein, Inc. (US), IDEXX Laboratories, Inc. (US), Patterson Companies, Inc. (US), Vetter Software, Inc. (US), Animal Intelligence Software, Inc. (US), Timeless Veterinary Systems, Inc. (Canada), Britton's Wise Computer, Inc. (US), ezyVet Limited (New Zealand), FirmCloud Corporation (US), OR Technology (Oehm Und Rehbein GmbH) (Germany), VIA Information Systems (US), Hippo Manager Software, Inc. (US), Finnish Net Solutions (Finland), Carestream Health (Canada), and ClienTrax (US).

The research report categorizes the veterinary software market to forecast the revenues and analyze the trends in each of the following sub-segments:

Veterinary Software Market, By Product

Veterinary Practice Management Software

Veterinary Imaging Software

Other Software

Veterinary Software Market, By Delivery Model

On-Premise Model

Web-Based/Cloud-Based Model

Veterinary Software Market, By Practice Type

Exclusive Small Animal Practices

Mixed Animal Practices

Predominantly Small Animal Practices

Predominantly Large Animal Practices

Exclusive Large Animal Practices

Exclusive Equine Practices

Exclusive Bovine Practices

Veterinary Software Market, by Region

North America US Canada

Europe Germany UK Rest of Europe (RoE)

Asia Pacific China Japan Rest of Asia Pacific (RoAPAC)

Rest of the World

Key Market Players

The veterinary software market in 2016 was dominated by top 3 players, namely, Henry Schein, IDEXX Laboratories, and Patterson Companies.

Henry Schein led the global veterinary practice management software market in 2016 with a market share of 36.5%. The leading position of the company can be attributed to its exhaustive product portfolio and strong geographic presence. Additionally, Henry Schein is a well-established company and one of the leading brand names in the animal health market. The company has an established customer base of over 1 million spread across 33 countries, which gives it a competitive edge in the market. The company focuses on inorganic growth strategies to enhance its market position, such as acquisitions that allow it to access the capabilities of complementary businesses and expand geographically. Some examples of the company�s acquisitions are eVetPractice (2017), RxWorks (2016), and Vetstreet (2016).

Recent Developments

In 2017, Vetter Software partnered with Vetstoria to integrate Vetter�s practice management solution with Vetstoria�s online appointment booking solution

In 2017, Vetter Software partnered with Pawprint, (the mobile pet health app) to integrate Vetter�s practice management solution with Pawprint�s client engagement tools

In 2017, Finnish Net Solutions signed an agreement with Tolnagro Ltd to distribute the Provet Cloud veterinary practice management system in Hungary.

In 2016, Patterson Companies signed partnership agreement with Vetter Software to develop eShelf, a cloud-based software that provides veterinarians with a way to manage inventory in their clinics. The software allows veterinarians to set alerts for product reorders and place orders with Patterson directly from their Vetter Software accounts

In 2016, Patterson Companies signed partnership agreement with VetSuccess as per which VetSuccess will join Patterson�s Signature Solutions Solutions suite of products and services providing Patterson�s customers access to customized VetSuccess reports

Critical questions the report answers:

Where will all these developments take the industry in the long term?

What are the upcoming trends in the veterinary software market?

Which segment provides the most opportunity for growth?

Who are the leading players operating in this market?

What are the opportunities for new market entrants?

To speak to our analyst for a discussion on the above findings, click Speak to Analyst