More frequent check-ups and other preventative work boosts demand for the Dental Services industry
Melbourne, Australia (PRWEB) May 05, 2012
The Australian population is ageing and more Australians are retaining their natural teeth over their lifetime, factors that are promoting demand for dental services. According to IBISWorld industry analyst Nigel Fitzpatrick, ‘the Dental Services industry is expected to generate revenue of $5.51 billion in 2011-12, representing growth of 2.5% from the previous year’. Revenue of dental service businesses in private practice is forecast to grow at an annualised rate of 3.8% in the five years through 2011-12. Industry revenue will be positively affected over this period by an increase in the volume of services rendered (at about 3.0% annually), a shift to more expensive services, and a real increase in the average price per equivalent service. In addition, growth in Medicare funding of dental services will promote industry growth.
Most dental practitioners are employed, or self-employed, in a small privately owned practice. The average firm in this industry is small, with average revenue per firm estimated at just $800,000. Fitzpatrick adds, ‘some specialist dentists may have surgeries in two or more locations, and may also hold hospital appointments’. The Dental Services industry thus has a low level of market share concentration. Dental Corporation is the largest industry player.
In the next five years, growth in demand for dental services will be underpinned by an increase in the rate of retention of natural teeth, increased attention paid to the conservation of teeth, rising household incomes, population growth and ageing of the population. The type of services performed by dentists and dental specialists is expected to change, as the emphasis continues to shift from work on children to adults, from prosthodontic to restorative work, and from restorative to preventative. However, the rising cost of dental care will, if sustained, act to soften growth in demand. Rising costs may also cause governments to reassess how dental services are delivered.
For more information, visit IBISWorld’s Dental Services report in Australia industry page.
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IBISWorld industry Report Key Topics
This class consists of units of registered general or specialist dental practitioners, or dental clinics in which a group of dentists is associated for purposes of carrying on their profession. Dental hospitals providing outpatient services only are also included in this class.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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