Optometrists in the US Industry Market Research Report from IBISWorld Has Been Updated
Los Angeles, CA (PRWEB) October 04, 2013 -- The Optometrists industry has gradually improved its performance over the five years to 2013. The industry's relatively strong performance throughout the recession is mainly due to resilient demand from an aging population and an increase in eye diseases associated with diabetes and computer use. In the five years to 2013, revenue is expected to increase at an annualized rate of 0.9% to $13.6 billion. While low disposable income and high unemployment deterred some consumers from seeking eye care in the years following the financial crisis, industry operators maintained growth by reducing prices and catering to favorably shifting demographics. A recovering economy is expected to foster growth of 1.0% in 2013.
Optometrists will also face rising competition from eye-care centers in mass merchandisers such as Walmart and Target. “These companies will reduce the profitability of selling eyeglasses and contact lenses at industry establishments, forcing optometrists to focus more on providing a wider range of medical eye-care services,” according to IBISWorld Industry Analyst James Crompton.
In addition, President Obama's Patient Protection and Affordable Care Act (PPACA) is projected to expand the number of insured individuals, particularly in 2014, when state and federal health insurance exchanges are planned to open. However, the PPACA only includes vision coverage for children.
The Optometrists industry is highly fragmented, with no players accounting for a significant share of the industry. As such, this industry has a low concentration. This fragmented nature can be attributed to the fact that the industry is dominated by small players.
Optometric practice options beyond individual practices are numerous and include small and large independent group practices, group practices managed by a management service organization, independent practice associations, and physician hospital associations. The roots of group optometry began as a result of governmental legislation involving price advertising in the late 1970s and early 1980s. The results of enacting legislation fueled the emergence of corporate eye care. Further, many graduating optometrists, who are burdened with debt, are joining group practices. Despite this, industry concentration has been declining during the five years to 2013. This may be attributable to smaller group practices and the financial incentives to open solo practices in rural areas. “The encroachment of national retail chains, such as Lens Crafters, may also be adding to fragmentation within the Optometrists industry,” says Crompton. Many of the optometrists who are joining corporate practices are employed by these chains, which are classified in the Eye Glasses and Contact Lens Stores industry (IBISWorld report 44613).
For more information, visit IBISWorld’s Optometrists in the US industry report page.
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IBISWorld industry Report Key Topics
The Optometrists industry includes practitioners that have a Doctor of Optometry (OD) degree. ODs examine, diagnose, treat and manage diseases, injuries and disorders of the eye and associated structures. Operators may also prescribe and sell eyeglasses and contact lenses. These practitioners operate private or group practices in their own offices or in facilities like hospitals. The industry does not include ophthalmologists (i.e. medical doctors who are also trained to perform eye surgery).
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About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
Gavin Smith, IBISWorld, +1 (310) 866-5042, [email protected]
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