Understanding the Veterinary Practice Management Software Market
The veterinary practice management software (PIMS) market is dominated by two players: IDEXX and Covetrus, which together hold roughly 79% market share. IDEXX owns both Cornerstone (a legacy on-premise system) and ezyVet (a cloud-native platform acquired in 2021), while Covetrus markets Pulse (formerly eVetPractice) and the legacy Avimark system. Beyond these incumbents, a growing wave of cloud-native challengers—Shepherd, Digitail, Provet Cloud, Hippo Manager, and others—are competing on AI features, user experience, and pricing flexibility.
Market Size and Growth
The global veterinary practice management software market was valued at approximately $425 million in 2024 and is projected to reach $899 million by 2035, growing at a 7.8% CAGR. Growth is driven by rising pet ownership, increasing demand for telehealth and AI-assisted documentation, and the accelerating shift from on-premise server-based systems to cloud platforms.
Cloud vs. On-Premise: The Migration
The industry is in the middle of a generational technology transition. Legacy server-based systems like Cornerstone and Avimark still run in thousands of clinics, but virtually every new entrant is cloud-only. Key advantages driving adoption include:
- Remote access
- Staff can check schedules, records, and lab results from any device
- Automatic updates
- No IT staff needed for patches and version upgrades
- Multi-location management
- Centralized dashboards for corporate groups and multi-site practices
- Lower upfront cost
- Subscription pricing replaces large capital expenditures on server hardware
AI Features Reshaping the Category
AI-powered SOAP note generation has become a key differentiator. Covetrus claims its AI tools save an average of six hours per week per veterinarian. Shepherd, Digitail, and others offer similar AI-assisted clinical documentation, reducing the administrative burden that contributes to veterinary burnout.
What to Evaluate When Comparing Vendors
| Criterion | Why It Matters |
|---|---|
| Lab integration depth | Direct IDEXX, Antech, or Heska analyzer connectivity eliminates manual entry |
| Pharmacy and inventory | Automated reorder points and controlled substance logging reduce waste and compliance risk |
| Client communication | Built-in reminders, two-way texting, and a client-facing app improve retention |
| Reporting and analytics | Revenue-per-DVM, average transaction value, and no-show rates inform business decisions |
| Migration support | Data conversion from legacy PIMS can take weeks—vendor support quality varies widely |