The companion animal diagnostics market is set to witness notable growth by 2027 on account of growing research efforts and technological advancements in the field of animal diagnostics. Additionally, the increasing trend of pet adoption worldwide is anticipated to further boost market expansion over the forecast timeline.

Pet adoption has been on a constant rise and has seen a sharp increment following the COVID-19 outbreak as pandemic-induced isolation encouraged people to look for a companion amongst animals. Animal diagnostics is a branch of science concerned with the identification of numerous animal diseases caused by external and internal sources, particularly microorganisms, such as bacteria, viruses, and fungus. Rising incidences of zoonotic diseases, increased owner awareness, and rising expenditure on animal care are some key factors contributing to the companion animal diagnostics market growth across key regions.

Notably, industry players are adopting various strategic initiatives to strengthen their market standing, which has been favorable for the global business landscape. For instance, in July 2021, Virbac Corporation, a US-based manufacturer of pet-care products, announced the acquisition of iVet LLC, a specialty pet food company, to support the expansion of its products, logistics, and e-commerce.

In another instance, in June 2021, IDEXX Laboratories, Inc., a key player in the veterinary diagnostics industry, acquired ezyVet, a cloud-based software solution. With this acquisition, IDEXX planned to enhance its cloud software capabilities, provide technological solutions to improve patient care, and effectively communicate with pet owners. Subsequently, implementation of lucrative expansion strategies by key industry players has played a vital role in fostering market growth.

For extensive analysis, the companion animal diagnostics market has been segmented based on technology, companion animal, and region. In terms of technology, the market has further been divided into immunodiagnostics, haematology, molecular diagnostics, clinical biochemistry, urinalysis, and others.

In 2020, the clinical biochemistry sub-segment held a valuation of more than USD 782 million and is anticipated to grow at a CAGR of over 8.1% through the assessment period. Rising prevalence of parasitic and infectious diseases in animals, coupled with the development of advanced products integrating clinical biochemistry, is slated to contribute to market expansion over the forecast timeline.

With respect to companion animal, the market has been bifurcated into dogs, cats, horses, and others. The cats sub-segment attained a significant market share with a valuation of over USD 943 million in 2020 and is estimated to expand at a robust pace over 2021-2027. Expanding cat population and increasing adoption of cats as companion animals are expected to support segmental growth in the coming years. In addition, mounting incidences of diseases affecting cats are likely to boost segmental demand through 2027.

From the regional perspective, the Middle East and Africa companion animal diagnostics market is expected to expand at a CAGR of around 8.7% over the forecast period driven by the surging prevalence of zoonotic diseases across the region.