Los Angeles, CA (PRWEB) September 11, 2013
Perceived as a luxury service for elite athletes in the past, sports medicine has gained wide public acceptance and has become more accessible to most Americans in recent years. Sports medicine is a special branch of medicine that focuses on the diagnosis, treatment and prevention of injuries and illnesses resulting from sports, exercise or recreational activities. “Although the Sports Medicine Practitioners industry has been relatively resilient, even expanding during the recession, it was not completely shielded from the recession's effect on consumers,” says IBISWorld industry analyst Anna Son. “The recession resulted in widespread unemployment, which led to falling disposable income and, consequently, a drop in health insurance coverage.” Nevertheless, increased participation in sporting activities has underpinned demand for industry services, as the risk of injuries increases with greater participation in sports. During the five years to 2013, IBISWorld estimates that industry revenue will increase at an average annual rate of 2.8% to total $20.9 billion, including a 3.9% rise during 2013.
Over the past five years, sports medicine practitioners have implemented a number of profit-boosting techniques. “In order to combat mounting wage costs, industry operators have used more assistants and aides, whose wages make up a significantly smaller fraction of sports medicine practitioners' wages,” says Son. “Additionally, many practitioners have been combining services with other physicians to reduce the costs of delivering services and ease the effects of escalating competition.” As a result of these cost-saving measures, operating profit is expected to increase from about 8.8% of revenue in 2008 to an estimated 10.4% in 2013.
The Sports Medicine Practitioners industry is highly fragmented. Sports medicine services are not highly differentiable, nor can they be mass produced or distributed; this, in turn, creates minimal benefits to growing in size. Relatively low barriers to entry also encourage new competitors to join the industry, which places downward pressure on pricing and prevents any one company from dominating the market.
During the next five years, increased promotion and government support for sports participation, as well as healthcare reform provisions and technological advancements, will drive industry growth. Rising concerns over high obesity rates will bolster participation in sporting activities that will subsequently increase demand for sports medicine services. The introduction of new minimally invasive techniques, which enable services to be performed quickly and treatment to be delivered more effectively and accurately, will further underpin demand for sports medicine services. For more information, visit IBISWorld’s Sports Medicine Practitioners in the US industry report page.
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IBISWorld industry Report Key Topics
Establishments in this industry provide health and special services that apply medical and scientific knowledge to prevent, recognize, manage and rehabilitate injuries related to sport, exercise or recreational activity.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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.