Veterinary Hospital Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Veterinary Hospital Market is projected to expand from USD 86.98 Billion in 2025 to USD 124.65 Billion by 2031, achieving a CAGR of 6.18%. These facilities provide specialized preventive, diagnostic, and surgical care for both livestock and companion animals. The market's growth is primarily fuelled by a rising prioritization of animal welfare and increasing pet ownership rates, which drive the need for comprehensive medical solutions. Highlighting this financial commitment, the American Pet Products Association reported that spending on veterinary care and product sales in the United States hit $39.8 billion in 2024.

However, rising clinical service costs pose a major obstacle to market growth by creating financial hurdles for price-sensitive clients. High operational costs often lead to higher service fees, which negatively impacts how often care is sought. For instance, the American Veterinary Medical Association noted that patient visits to veterinary practices dropped by 2.3% in 2024 compared to the prior year, demonstrating how economic pressures and pricing issues can limit the utilization of veterinary services.

Market Drivers

The expansion of pet health insurance coverage serves as a critical driver by lowering financial barriers to advanced clinical care. Insurance allows pet owners to approve expensive treatments and diagnostics that might otherwise be rejected due to cost, thus boosting the average transaction value for hospitals. This financial safety net is increasingly vital given rising fees; the American Animal Hospital Association noted that U.S. veterinary service prices rose by 7.6% in 2024. Underscoring this trend, the North American Pet Health Insurance Association's 'State of the Industry Report 2025' (April 2025) indicated that the number of insured pets in North America reached 7.03 million by the end of 2024, securing a steady revenue stream for practices.

Furthermore, the surge in companion animal ownership and pet humanization drives market momentum by enlarging the global patient base and increasing care demands. Owners increasingly regard pets as family members, requiring comprehensive medical solutions ranging from wellness exams to geriatric care rather than just sporadic treatment. The demographic scale is substantial; according to the European Pet Food Industry Federation's 'Facts & Figures' report from September 2025, the European cat population is approximately 108 million, representing a massive potential patient pool. This trend ensures hospitals remain indispensable as owners seek high-quality healthcare to prolong their companions' lives, fueling consistent demand for specialized services.

Market Challenges

The rising cost of clinical services serves as a major impediment to the growth of the Global Veterinary Hospital Market. As veterinary facilities encounter increasing operational expenses - such as higher wages for specialized staff, costly pharmaceuticals, and expensive medical equipment - these financial pressures are often passed on to pet owners via elevated service fees. This inflationary pricing creates a substantial hurdle for budget-conscious clients, frequently causing them to postpone essential preventive care or forego diagnostic procedures. Such financial reluctance decreases the frequency of patient visits and reduces the overall use of medical capacity, thereby slowing revenue growth for hospitals.

This economic friction also hampers the ability of veterinary practices to grow their customer base. When professional care becomes too expensive, the recruitment of new pet owners into the formal veterinary healthcare system slows down. According to the Veterinary Hospital Managers Association, new client acquisition rates across surveyed practices fell by 8.6% in 2024 compared to the previous year. This decline in new patient intake demonstrates how pricing pressures not only limit current service volumes but also actively constrain the market’s potential for organic expansion and long-term development.

Market Trends

The integration of Artificial Intelligence in clinical diagnostics is transforming veterinary medicine by improving diagnostic accuracy and streamlining practice workflows. Advanced algorithms are increasingly used to interpret radiographic images, analyze cytology samples, and automate administrative duties such as medical record transcription, thereby lessening the cognitive burden on practitioners. This technological evolution enables veterinarians to provide faster, more accurate diagnoses while alleviating staff burnout. Illustrating this rapid adoption, a February 2024 survey by Digitail and the American Animal Hospital Association titled 'AI in Veterinary Medicine: The Next Paradigm Shift' found that 39.2% of veterinary professionals are utilizing AI tools or software to assist with clinical and operational tasks.

Additionally, the expansion of veterinary telehealth and virtual care platforms is reshaping service delivery by providing remote triage and consultation options that extend beyond physical clinics. These platforms help address the industry's shortage of professionals by facilitating asynchronous communication and remote patient monitoring, improving access to care for geographically isolated or mobility-challenged clients. The scale of this adoption is highlighted by the Veterinary Virtual Care Association's '2024 Veterinary Virtual Care Industry Report' from February 2024, which analyzed over 506,000 virtual care interactions globally, underscoring the substantial volume of cases now managed through digital channels to connect pet owners with veterinary providers.

Key Players Profiled in the Veterinary Hospital Market

• CVS Group PLC
• Greencross Group
• National Veterinary Associates, Inc. (NVA)
• Pets at Home Group PLC
• Mars Incorporated
• Animal Hospital, Inc.
• All Pets Veterinary Hospital LLC
• Innovative Petcare Holdings LLC
• Blaine Central Veterinary Clinic
• Belltowne Veterinary Center

Report Scope

In this report, the Global Veterinary Hospital Market has been segmented into the following categories:

Veterinary Hospital Market, by Animal Type:

• Companion Animals
• Farm Animals

Veterinary Hospital Market, by Type:

• Surgery
• Medicine
• Consultation

Veterinary Hospital Market, by Sector:

• Public
• Private

Veterinary Hospital Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Veterinary Hospital Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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