Global Veterinary Pharmacovigilance Market to Surge to USD 2545.79 Million by 2032 Amid Rising Regulatory Compliance and AI Integration

Veterinary Pharmacovigilance Market Overview

The global veterinary pharmacovigilance market was valued at USD 913.94 million in 2024 and is anticipated to grow to USD 2,545.79 million by 2032, registering a CAGR of 13.68% during 2025-2032. The growth trajectory is fueled by heightened complexities in animal healthcare products, stringent regulations, and intensified monitoring of adverse events in both companion and livestock animals. Notably, over 60% of the global veterinary pharmacovigilance market originates from the companion animal segment, reflecting the growing number of pets and increased expenditure on animal healthcare. In the United States, regulatory mandates from the FDA-CVM, coupled with rising adverse drug reactions (ADRs), have compelled veterinary pharmaceutical companies to invest significantly in pharmacovigilance solutions, underscoring the market’s upward momentum.

The adoption of cloud-based platforms integrated with AI-driven signal detection is transforming veterinary pharmacovigilance, reducing manual intervention in reporting processes by up to 40%. Additionally, veterinary R&D investment surpassed USD 1.2 billion in 2023, with substantial allocations toward post-market safety surveillance, further supporting market expansion. Regulatory harmonization initiatives by the VICH and EMA are enabling consistent enforcement of pharmacovigilance standards across regions, presenting new opportunities for market growth, particularly in developing economies where awareness and reporting of adverse drug events are emerging priorities.

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Market Dynamics: Drivers of Growth

Rising regulatory enforcement and increasing drug complexity are pivotal drivers of the veterinary pharmacovigilance market. The growing incidence of adverse drug reactions in animals has created an urgent need for reliable safety monitoring solutions. Regulatory authorities, including the EMA and FDA-CVM, mandate strict pharmacovigilance adherence for veterinary medicines, compelling companies to implement comprehensive post-market surveillance. Simultaneously, the veterinary drug innovation pipeline—encompassing monoclonal antibodies, gene therapies, and immunomodulators—necessitates robust safety monitoring frameworks. Between 2020 and 2023, 67.2% of newly approved veterinary drugs had novel mechanisms of action, highlighting the critical importance of enhanced pharmacovigilance solutions.

Public awareness, litigation risks, and increased investment in digital monitoring tools are further amplifying demand. In 2023, the global animal health industry allocated over USD 750 million toward safety compliance and digital surveillance technologies. These factors collectively underscore the growing reliance on integrated platforms, contract pharmacovigilance services, and AI-driven analytics as essential components of the veterinary pharmacovigilance market landscape.

Market Restraints: Operational and Awareness Challenges

Despite robust growth, the veterinary pharmacovigilance market faces significant challenges. Fragmented workflows, inconsistent international regulations, and low reporting awareness among veterinarians and livestock owners impede optimal market expansion. In low-to-middle-income regions, only 15–20% of actual adverse events are reported due to limited digital infrastructure and insufficient training. The implementation of pharmacovigilance systems remains technically challenging and costly, particularly for smaller veterinary pharmaceutical companies relying on manual methods.

Additionally, inconsistencies in global reporting standards, a shortage of trained veterinary pharmacovigilance professionals, and slow adoption of cloud-based solutions constrain market scalability. These operational and structural limitations pose barriers to the widespread adoption of veterinary pharmacovigilance services in both developing and mature markets.

Segmentation Analysis

The veterinary pharmacovigilance market is characterized by multiple layers of segmentation, each revealing unique growth trends. By type, contract outsourcing dominated in 2024, accounting for over 61% of the market, as companies increasingly rely on specialized pharmacovigilance vendors to maintain compliance and reduce costs. In-house pharmacovigilance systems, however, are witnessing rapid growth as major veterinary pharmaceutical firms seek to enhance internal safety monitoring and secure sensitive data for regulatory reporting.

By solution, services accounted for 68% of the market in 2024, driven by the need for case processing, signal detection, and professional safety monitoring, particularly among mid-sized organizations. Software solutions, especially AI-enabled and cloud-based platforms, represent the fastest-growing segment due to their ability to automate workflows and streamline real-time adverse event reporting.

Product-wise, anti-parasitics led the market with a 34% share in 2024, reflecting widespread use in both livestock and companion animals. Biologics, including vaccines and monoclonal antibodies, are the fastest-growing product segment, driven by the increasing complexity of post-market safety monitoring requirements.

By delivery mode, on-premise solutions retained a 58% share due to strict regulatory and data security preferences. Meanwhile, cloud-based platforms are experiencing rapid adoption owing to their cost-effectiveness, flexibility, and remote accessibility.

Among animal types, dogs accounted for 36% of the market share in 2024, reflecting high pet ownership and veterinary care trends. Livestock is the fastest-growing animal segment due to government mandates for pharmacovigilance and mandatory reporting in food-producing animals.

Veterinary pharmaceutical companies represent the largest end-user category, holding a 41% market share, owing to their direct accountability for safety reporting. Regulatory authorities, however, are the fastest-growing end-user segment due to new electronic reporting criteria and centralized safety databases, such as the EMA’s Union Pharmacovigilance Database.

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Regional Insights

North America emerged as the largest veterinary pharmacovigilance market in 2024, with stringent regulatory requirements, high consumption of veterinary medicines, and a mature digital infrastructure driving market dominance. The U.S. alone accounted for USD 290.62 million in 2024 and is projected to reach USD 785.66 million by 2032 at a CAGR of 13.21%. Regulatory mandates, combined with a robust presence of leading veterinary pharmaceutical companies, ensure sustained growth in the region.

Europe is the second fastest-growing market, driven by the EU Veterinary Medicinal Products Regulation (EU 2019/6) and the Union Pharmacovigilance Database. Germany, the U.K., and France are witnessing rapid digitization of pharmacovigilance reporting and increasing partnerships with service providers.

The Asia Pacific is the fastest-growing regional market, propelled by expanding livestock populations, increasing veterinary drug approvals, and improved post-market surveillance. India and China are investing in regulatory infrastructure and partnerships with global pharmacovigilance providers, while Japan introduces electronic reporting systems for companion animal medicines.

Key Market Players

Leading participants shaping the veterinary pharmacovigilance market include ArisGlobal, Accenture, Ennov, Sarjen Systems Pvt. Ltd., Pharsafer Associates Limited, Knoell, Biologit, Indivirtus, Azierta Contract Science Support Consulting, Oy Medfiles Ltd., EXTEDO GmbH, MakroCare, Navitas Life Sciences, Oracle Health Sciences, IQVIA (Animal Health Division), Techsol Corporation, Wingspan Technology (part of IQVIA), Tata Consultancy Services (TCS Life Sciences), PRA Health Sciences (acquired by ICON plc), AB Cube, Sentrx Animal Health, and Syneos Health.

Recent Developments

In March 2025, ArisGlobal launched LifeSphere Unify, NavaX Insights, and Advanced Compliance Docs, AI-powered pharmacovigilance solutions designed to streamline veterinary safety workflows, automate compliance documentation, and enhance real-time signal detection through cloud-native integration. In December 2024, a top veterinary pharmaceutical firm adopted an end-to-end AI-powered cloud platform to automate literature surveillance, case processing, and safety reporting, significantly improving speed, accuracy, and regulatory compliance globally.

Future Outlook

The veterinary pharmacovigilance market is poised for robust expansion over the next decade, driven by regulatory harmonization, technological adoption, and increasing awareness around adverse drug events. Cloud-based and AI-integrated solutions are expected to dominate future growth, while contract outsourcing will continue to provide cost-efficient, scalable options for veterinary pharmaceutical firms. Expanding pet ownership and the rise of livestock pharmacovigilance frameworks in developing countries will provide additional tailwinds for the market.

Conclusion

As global veterinary pharmacovigilance evolves, integrating AI and cloud-based monitoring, regulatory enforcement, and rising veterinary healthcare demands will fuel long-term market growth. Pharmaceutical companies and regulatory authorities alike are expected to invest significantly in advanced safety solutions, ensuring faster, more accurate adverse drug reporting and compliance. The market presents immense opportunities for software providers, contract service vendors, and technology innovators to shape the future of veterinary pharmacovigilance globally.

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