The companion animal diagnostic market is forecast to grow from $3.56 billion in 2026 to $5.40 billion by 2031, according to a new market analysis profiled by Yahoo Finance. That represents roughly $1.84 billion in added value over five years and positions diagnostics as one of the fastest-expanding segments in animal health spending.

The report names IDEXX Laboratories and Zoetis among the leading companies competing in the space, an expected pairing given both firms' established positions in veterinary testing. For practices, the projection signals continued investment by major manufacturers in point-of-care analyzers, reference-lab services and rapid assay platforms aimed at dogs and cats.

What is driving the growth from $3.56B to $5.40B?

The forecast period, 2026 through 2031, spans the years in which analysts expect companion animal diagnostics to expand at a sustained pace. The projected increase works out to approximately 52% cumulative growth across the five-year window.

Market analyses of this type typically track spending across in-clinic instruments, consumables and outsourced laboratory work. The headline figures — $3.56 billion in 2026 rising to $5.40 billion by 2031 — frame a sector in which diagnostic revenue is growing faster than many other categories of veterinary care.

Who are the profiled players?

The analysis profiles:

• IDEXX Laboratories — the dominant name in companion animal diagnostics, with a portfolio spanning in-clinic analyzers and reference laboratory networks
• Zoetis — the animal health major whose diagnostics portfolio competes directly in the same veterinary channels

The inclusion of these two companies reflects the concentration of the market among large, vertically integrated manufacturers that supply both instruments and the consumables that generate recurring revenue.

What does this mean for veterinary practices?

For companion-animal clinics, a market of this size and growth rate generally translates to competitive pressure among manufacturers — more platform options, faster turnaround claims and bundled instrument-plus-consumable pricing models.

Practices weighing diagnostic purchases in the coming years will likely face an expanding menu of point-of-care options as manufacturers chase a share of the additional $1.84 billion in annual spending the forecast anticipates by 2031.

The forecast does not break out food-animal diagnostics, so the figures apply specifically to the companion animal segment — dogs and cats — rather than livestock testing markets.

What comes next?

If the $5.40 billion projection holds, the five years from 2026 will mark a period of intensified competition between IDEXX, Zoetis and other entrants for clinic diagnostic workflows, with practices positioned to benefit from that rivalry in equipment pricing and test menu breadth.