Technological advances in recent years and aging baby boomers bode well for the industry.
New York, NY (PRWEB) February 28, 2014
During the past five years, the Dental Laboratories industry benefited from growth in the number of individuals with private health insurance, which boosted industry revenue. However, as disposable income declined in 2009, many consumers curbed their out-of-pocket healthcare costs by cutting elective procedures, such as tooth implants and cosmetic procedures. Furthermore, as the unemployment rate skyrocketed in the same year, many individuals lost their employer-mandated health insurance, which lowered demand for dental services. Nevertheless, as the number of people with private health insurance slightly increased at an annualized rate of 1.3% during the five years to 2014, demand for industry services propelled forward. Additionally, rapid technological changes, such as new filling, bonding and implant compounds, such as all-ceramic restorative systems; cutting edge computer-aided design and computer-aided manufacturing (CAD and CAM systems); and computer imaging, stimulated demand for industry services.
For example, 3-D printing has allowed operators to customize ceramic crowns according to a patient's tooth shade. According to IBISWorld Industry Analyst Sarah Turk, “The industry was therefore able to attract customers with standardized products and supply chain efficiency, from the dental office to the dental laboratory.” As raw material prices exhibited volatility, such as the price of nonferrous metals, industry operators increasingly invested in affordable, yet biocompatible, esthetic restorative solutions. As industry products that are strong, durable and esthetically pleasing proliferate the market, more individuals will purchase dental products. During the five years to 2014, industry revenue is anticipated to grow at an annualized rate of 0.4% to $4.7 billion, including revenue growth of 3.4% in 2014. As healthcare reform leads to an increase in the number of insured individuals, out-of-pocket costs will decrease and industry revenue will increase. Profit is also expected to rise as the proliferation of technology allows operators to lower manufacturing costs.
During the five years to 2019, industry revenue is forecast to grow. The burgeoning elderly population will bolster industry revenue as this demographic typically requires dentures. As a form of preventive health, many healthcare providers will stress the importance of dental services, benefiting the industry.
The Dental Laboratories industry is highly fragmented and has a low level of concentration. No company generates more than 5.0% of industry revenue, and the largest industry firm, National Dentex Corporation, accounts for about 3.6% of revenue. “In 2014, the largest four players generate less than 10.0% of industry revenue,” says Turk. Over the five years to 2014, concentration has been stable; the number of industry firms has remained relatively flat, increasing at an estimated average annual rate of 0.2% to 6,850. Further, many industry players belong to regional and national dental laboratory associations, such as the National Association of Dental Laboratories, which prevents one operator from strengthening their market share.
For more information, visit IBISWorld’s Dental Laboratories in the US industry report page.
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IBISWorld industry Report Key Topics
The Dental Laboratories industry comprises establishments that manufacture dentures, crowns, bridges and orthodontic products customized for individual application as prescribed by licensed dentists.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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