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Dentists in the US Industry Market Research Report from IBISWorld Has Been Updated
  • USA - English


News provided by

IBISWorld

Sep 14, 2013, 04:00 ET

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Wider insurance coverage and an improving economy will benefit the industry

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Los Angeles, CA (PRWEB) September 14, 2013 -- The Dentists industry held steadfast during the recession, benefiting from favorable demographic trends, technological advances and mounting awareness of the importance of oral hygiene. Furthermore, private dental clinics were one of the nation's most profitable industries during the economic downturn. This profitability is partially attributed to industry operators being less dependent on reimbursement from healthcare insurers, as many patients pay for dental treatment out-of-pocket. However, better preventive care at home has somewhat suppressed revenue growth. Improved toothbrushes and formulas for toothpastes that keep teeth healthy have somewhat mitigated demand for traditional dental services. During the five years to 2013, IBISWorld expects revenue to grow an average 1.5% per year, reaching $118.8 billion. This growth includes a 3.1% increase in 2013.

Meanwhile, the cost of dental education has soared over the past five years. Weighed down with debt, dental graduates have been hindered from starting practices, which require significant capital investments. Rapid advancements in technology have also made it expensive to outfit a dental office. “These factors have led to the growth of dental practice management companies (DPMCs), large companies that provide services for multiple dental offices,” says IBISWorld Industry Analyst Sophia Snyder. Because DPMCs also buy independent practices, their growing dominance has led to industry consolidation. In the five years to 2013, the number of industry operators is estimated to increase a marginal 0.4% per year on average to 164,966. Continuous consolidation will be one of several factors that are anticipated to lift industry profit margins.

The five-year outlook for dentists is promising, with favorable demographic trends, an improving economic environment and growing access to dental insurance boosting revenue over the period. According to Snyder, “Revenue is projected to jump, as healthcare reform legislation increases the number of insured Americans.” In addition, as the job market improves, increased dental coverage from employers and rising disposable income will result in more patient visits. DMPCs will continue to penetrate the industry and grow in size as more dentists recognize the benefits of spreading costs across practices.

For more information, visit IBISWorld’s Dentists in the US industry report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld.

Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189.

This industry includes firms of health practitioners with Doctor of Dental Medicine (DDM), Doctor of Dental Surgery (DDS) or Doctor of Dental Science (DDSc) degrees. Industry firms are primarily engaged in the independent practice of general or specialized dentistry or dental surgery. These practitioners operate private or group practices in their own offices (e.g. centers or clinics).

IBISWorld industry Report Key Topics

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

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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