Press release
Animal Health Market to Surge with AI Innovation: Revenue Expected to Reach US$ 119.34 Billion by 2032
AI integration will remain a transformative force among emerging technologies used in animal health. The AI in animal health market size is expected to be worth around USD 7,477.9 million by 2033, from USD 1,197.7 million in 2023, at a CAGR of 20.1%.
Rising pet ownership, livestock farming expansion, and groundbreaking AI-powered veterinary solutions are driving unprecedented growth in the animal health sector. The market's expansion accelerated from previous growth patterns, with innovative digital health technologies revolutionizing veterinary care delivery.
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The veterinary industry is experiencing a digital transformation as AI technologies revolutionize diagnostic capabilities, treatment protocols, and preventive care strategies. In January 2025, Absci and Invetech announced a partnership to utilize Absci's generative AI drug creation platform known as "Half-Life Extension (HLE)" for developing veterinary medicines.
AI technologies, such as machine learning, computer vision, natural language processing, and predictive analytics, are pivotal in transforming animal health management. These advanced systems enhance disease detection and diagnosis by analyzing medical images and biological data.
Improved performance, miniaturization, increased processing power, and cost reductions make these solutions more efficient and accessible to veterinary professionals and animal owners. Zoetis, for example, launched the latest version of its flagship product, Vetscan Imagyst.
The market growth is projected to increase from USD 44.4 billion in 2025 to USD 65.2 billion by 2035, at a CAGR of 3.9%. Technological advancements include adoption of telemedicine and AI in veterinary practices enhances care quality.
"The convergence of artificial intelligence with traditional veterinary medicine is creating unprecedented opportunities for early disease detection, personalized treatment plans, and precision livestock farming," says the industry analyst.
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Key Takeaways
North America leads the market, while Asia-Pacific shows strong emerging growth potential.
The companion animal health market size was evaluated at USD 9.03 billion in 2024 and is predicted to hit around USD 18.75 billion by 2034, growing at a CAGR of 7.58%.
The artificial intelligence (AI) in animal health market size is projected to hit around USD 8.23 billion by 2034 from USD 1.41 billion in 2024 at a CAGR of 19.3%.
The veterinary reference laboratories segment contributed the highest market share of 81% in 2024.
AI-powered diagnostic tools and wearable biosensors are becoming standard practice in modern veterinary care.
Key Drivers
Growth is driven by AI diagnostic tools, wearable biosensors, and enhanced food security, with significant potential in diagnostics, monitoring.
Innovations like AI-powered wearables and precision livestock farming technologies enhance disease detection and productivity.
Rising demand for companion animal care and livestock health management solutions.
Increasing adoption of telemedicine and remote monitoring technologies in veterinary practices.
Key Restraints
High initial investment costs for AI implementation in veterinary practices.
Regulatory challenges and approval processes for AI-driven veterinary solutions.
Data privacy and security concerns in digital health platforms.
AI Innovation Spotlight
AI enables early detection of illnesses and personalized treatment plans. Innovations like AI-powered diagnostic tests and digital imaging platforms are driving advancements, ensuring accurate and efficient diagnostic and treatment solutions.
Key market opportunities in AI for animal health include precision livestock farming, advanced veterinary care, and personalized preventative care.
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Competitive Landscape
Leading companies in the animal health market are investing heavily in AI-powered solutions and strategic partnerships to expand their technological capabilities. Key developments include:
Zoetis continues to advance its Vetscan Imagyst AI diagnostic platform
Absci and Invetech partnership for AI-driven veterinary drug development
Increasing venture capital investment in veterinary technology startups
Major pharmaceutical companies acquiring AI-focused animal health companies
Some of the leading companies operating in the animal health market include:
Merck & Co. Inc. (US)
Boehringer Ingelheim International GmbH (Germany)
Chanelle Pharma (Ireland)
Ceva (France)
Nutreco N.V. (Netherlands)
Vetoquinol SA (France)
Virbac Group (France)
Zoetis Inc. (US)
Heska Corporation (US)
Elanco (US)
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