An Veterinary Reference Laboratory Market Forecasts to 2030 – Global Analysis By Service Type (Clinical Chemistry, Immunodiagnostics, Molecular Diagnostics, Hematology, Urinalysis and Other Service Types)

Veterinary Reference Laboratory Market Forecasts to 2030 – Global Analysis By Service Type (Clinical Chemistry, Immunodiagnostics, Molecular Diagnostics, Hematology, Urinalysis and Other Service Types), Animal Type (Companion Animals, Livestock Animals and Other Animal Types), Application, End User and by Geography

According to Stratistics MRC, the Global Veterinary Reference Laboratory Market is accounted for $4.56 billion in 2023 and is expected to reach $9.65 billion by 2030 growing at a CAGR of 11.3% during the forecast period. A Veterinary Reference Laboratory (VRL) is a specialized facility with cutting-edge equipment and highly qualified veterinary professionals working there to diagnose and track the health of animals. These labs are vital resources for veterinarians and other animal health professionals because they offer prompt and accurate diagnostic services, blood chemistry analysis, microbiology, pathology, and genetic testing are just a few of the many tests that VRLs provide to help with the diagnosis and treatment of various animal diseases. They are vital resources that protect the health of animals, aid in research, and guarantee the welfare of domestic and wild animals.

According to the British Veterinary Association (BVA), Veterinary professionals are committed to promoting the health and welfare of animals, advancing veterinary science, and upholding high standards of professional conduct.

Market Dynamics:

Driver:

Increasing awareness of animal health

A growing number of stakeholders, including veterinary associations, animal welfare organizations, and governmental bodies, are working together to raise awareness about animal health. The purpose of these programs is to raise awareness among pet owners and livestock producers of the value of regular veterinary checkups and preventive healthcare measures. Additionally, the need for strong diagnostic services has been further highlighted by high-profile disease outbreaks in recent years, including avian influenza and bovine spongiform encephalopathy (BSE), which have highlighted the risks associated with compromised animal health and food safety.

Restraint:

High expense of cutting-edge diagnostic technologies

Veterinary Reference Laboratories faces a substantial financial hurdle in implementing new diagnostic technologies. The upfront costs associated with purchasing cutting-edge machinery, like automated analyzers and next-generation sequencing platforms, can be high. The operational costs are also increased by continuing expenditures for equipment upgrades, calibration, and maintenance. Furthermore, the financial burden is further increased by the need to hire and retain qualified staff that is adept at using and interpreting the data from these advanced technologies.

Opportunity:

Growing requirement for diagnostic specialty services

Veterinary Reference Laboratories has the opportunity to broaden the scope of their services due to the growing complexity of veterinary care and the rise in the incidence of infectious and chronic diseases in animals. Specialized diagnostic tests, like molecular diagnostics, serology, and advanced imaging, are in greater demand as a means of enabling early disease detection, individualized treatment planning, and therapeutic efficacy monitoring. Moreover, labs can take advantage of this trend and set themselves apart in the market by investing in state-of-the-art technologies and building competence in specialized fields like genetic testing, infectious diseases, and oncology.

Threat:

Pressure from in-house testing for competition

To increase turnaround times and client satisfaction, veterinary clinics and hospitals are investing more and more in internal diagnostic testing equipment. As a result of this trend, veterinary reference laboratories are at risk because fewer diagnostic tests are being contracted out to outside laboratories. Veterinary clinics may find that in-house testing is more practical and economical, especially when it comes to fast diagnostic assays and routine screenings. However, to lessen the impact of competition from in-house testing, Veterinary Reference Laboratories must set themselves apart from the competition by providing specialized tests, knowledge of intricate cases, and exceptional customer service.

Covid-19 Impact:

The Veterinary Reference Laboratory market has been impacted by the COVID-19 pandemic. In the following phases of the pandemic, there has been a gradual recovery with changing trends, whereas the initial phase of the pandemic caused disruptions in laboratory operations, challenges in the supply chain, and decreased demand for non-essential veterinary services due to lockdown measures and economic uncertainties. The pandemic has increased demand for diagnostic testing services by highlighting the value of veterinary diagnostics in zoonotic disease surveillance, animal health monitoring, and ensuring food safety. Additionally, the demand for preventive healthcare procedures like wellness exams, vaccinations, and diagnostic screenings has increased due to the rise in pet ownership and the increased awareness of animal health and well-being during the pandemic.

The Clinical Pathology segment is expected to be the largest during the forecast period

It is projected that the clinical pathology segment will command the largest market share in the veterinary reference laboratory industry. Clinical pathology is a wide field of medicine that includes a variety of diagnostic procedures used to evaluate the health of animals by examining their tissues, cells, and bodily fluids. Hematology, biochemistry, urinalysis, cytology, and histopathology are a few of these tests. Furthermore, the diagnosis, surveillance, and treatment of a wide range of animal medical disorders, such as metabolic disorders, infectious diseases, immune-mediated disorders, and neoplastic diseases, depend heavily on clinical pathology.

The Pharmaceutical Companies segment is expected to have the highest CAGR during the forecast period

In the Veterinary Reference Laboratory market, the pharmaceutical company segment is projected to have the highest CAGR. Through the development and marketing of veterinary medications, vaccines, and biological products, pharmaceutical companies play a crucial role in veterinary medicine. For preclinical and clinical testing services to evaluate the safety, effectiveness, and caliber of their products, they depend on Veterinary Reference Laboratories. Moreover, reference laboratories and pharmaceutical companies work together on research and development projects that progress veterinary diagnostics and therapies.

Region with largest share:

North America usually holds the largest share, with strong regulatory frameworks and cutting-edge diagnostic technologies, the region has a well-established veterinary healthcare infrastructure that includes a high concentration of veterinary clinics, hospitals, and research institutions. The need for diagnostic testing services is driven in part by growing pet ownership, increased demand for companion animal healthcare services, and increased public awareness of zoonotic diseases in North America. Furthermore, deliberate efforts by governmental organizations, veterinary associations, and industry participants to advance preventive healthcare practices and improve animal welfare also contribute to the region's Veterinary Reference Laboratory market's steady expansion.

Region with highest CAGR:

The Veterinary Reference Laboratory market is expected to grow at the highest CAGR in the Asia-Pacific region. Particularly in emerging economies like China, India, and Southeast Asian nations, the region is seeing rapid urbanization, economic development, and a shift toward companion animal ownership. The demand in the area for veterinary services, including diagnostic testing, is being driven by rising disposable incomes, evolving lifestyles, and an increasing consciousness of pet health. The adoption of advanced diagnostic technologies in veterinary healthcare is being driven by the expansion of livestock production and growing concerns about food safety and disease outbreaks. Moreover, the Veterinary Reference Laboratory market in Asia Pacific is expanding as a result of government initiatives to improve animal welfare, bolster regulatory frameworks, and modernize the infrastructure for animal healthcare.

Key players in the market

Some of the key players in Veterinary Reference Laboratory market include ProtaTek International Inc, GreenCross Limited, VCA Inc, ANTECH Diagnostics, Neogen Corporation, Thermo Fisher Scientific, Inc., IDEXX Laboratories, Inc., GD Animal Health, Marshfield Labs, Zoetis Inc, SYNLAB International GmbH, Heska Corporation, Texas A&M Veterinary Medical Diagnostic Laboratory and LABOKLIN GmbH.

Key Developments:

In June 2023, Antech Diagnostics, Inc. made a proposal to acquire Heska Corporation from BlackRock, Inc., The Vanguard Group, Inc. and others for $1.4 billion on February 20, 2023. As part of consideration Antech Diagnostics will pay in all cash, at a price of $112.50 per share. On March 6, 2023, Mars submitted to Heska a revised written proposal to acquire Heska in an all-cash transaction at a price of $120 per share.

In April 2023, Neogen Chemicals Ltd., a manufacturer of Bromine-based and Lithium-based specialty chemicals, said it has signed an agreement with MU Ionic Solutions Corporation (MUIS), Japan, to acquire manufacturing technology licence for production of electrolytes in India. MUIS is a joint-venture between Mitsubishi Chemical Corporation (MCC) and UBE Corporation, a group company of The Mitsubishi Chemicals Group.

In February 2023, Thermo Fisher Scientific Inc. entered into a definitive agreement to acquire CorEvitas, a provider of regulatory-grade, real-world evidence for approved medical treatments and therapies, from Audax Private Equity, for $912.5 million in cash. CorEvitas will become part of Thermo Fisher's Laboratory Products and Biopharma Services segment. The transaction is expected to be completed by the end of 2023.

Service Types Covered:
• Clinical Chemistry
• Immunodiagnostics
• Molecular Diagnostics
• Hematology
• Urinalysis
• Other Service Types

Animal Types Covered:
• Companion Animals
• Livestock Animals
• Other Animal Types

Applications Covered:
• Clinical Pathology
• Bacteriology
• Parasitology
• Virology
• Productivity Testing
• Pregnancy Testing
• Toxicology Testing
• Other Applications

End Users Covered:
• Veterinary Clinics and Hospitals
• Research Institutions and Universities
• Pharmaceutical Companies
• Government Agencies and Regulatory Bodies
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances