Pet insurance market to reach $38.3b by 2033

Key drivers include increasing interest and rapid expansion of vet services.

The global pet insurance market, valued at $10.1b in 2023, is projected to reach $38.3b by 2033, with a compound annual growth rate of 14.5% from 2024 to 2033, according to Allied Market Research.

Key drivers for this growth include increasing interest in pet insurance policies, a rising demand for financial security amidst uncertainties, and the rapid expansion of veterinary services. 

However, challenges such as limited awareness of pet insurance and high premium costs continue to hinder market growth. Conversely, the report said technological advancements and government initiatives related to pet insurance policies are expected to create significant opportunities for industry expansion.

The report highlights emerging technologies such as the Internet of Things and wearables in health insurance as influencing factors in the pet insurance space. Artificial intelligence and machine learning algorithms are predicted to play a crucial role in shaping future policy offerings, including pet insurance, the report said.

Demand for health monitoring devices and all-in-one applications for pets reflects their growing importance in pet owners' lives. 

To support this shift, Allied Market Research emphasised the need for swift and flexible technical infrastructures capable of integrating new data sources from IoT devices without causing disruptions to backend systems or relying on manual processes.