Melbourne, Australia (PRWEB) May 12, 2014
Great progress has been made over the past few decades in understanding common oral diseases, such as tooth decay and gum diseases, which has helped pave the way for the expansion of the Dental Services industry. The ageing and growth of the Australian population, and people increasingly retaining their natural teeth, are key factors promoting the ongoing demand for dental services. The bulk of industry revenue is derived from the provision of general dental services, including restorative, preventative and diagnostic services. The Dental Services industry is forecast to generate revenue of $8.5 billion in 2013-14, representing growth of 3.1% from the previous year as the industry recovers from earlier shocks.
Over the five years through 2013-14, industry revenue is expected to grow at an annualised 2.7%. IBISWorld industry analyst Arna Richardson states, “The industry has been positively affected by an increase in the volume of services rendered, 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 has promoted industry growth. According to Richardson, “Dental practices have been able to take advantage of less-qualified staff and the increased availability of new technologies that have allowed practices to conduct their services on a day-to-day basis at a cheaper rate.” Growing demand for health insurance is also raising demand for the industry's services, which would be significantly more expensive without this aid. A new Medicare funded scheme, the Child Dental Benefits Schedule commenced in January 2014. This replaced the former Chronic Disease Dental Scheme and the Medicare Teen Dental Plan, which ended in December 2012 and December 2013, respectively. These changes have had significant implications for some industry participants. Over the next five years, industry activity will be driven by a growing and ageing population, increases in household income and a lift in government subsidies paid for dental services provided to children. The National Partnership Agreement for adult public dental services will help support the provision of additional oral health services. The industry is currently involved in establishing a new national oral health plan to cover the period between 2014 and 2023. This follows the ending of Australia's first 10-year national oral health plan, Healthy Mouths, Healthy Lives.
The Dental Services industry has a low level of market share concentration. Most dental practitioners are employed, or self-employed, in a privately owned practice. Some specialist dentists may have surgeries in two or more locations and may hold hospital appointments. The largest players include private consolidators and public dental services, although many public services outsource part of their work to the private sector (and public dental hospitals are not included in the industry). For more information, visit IBISWorld’s Dental Services report in Australia industry page.
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IBISWorld industry Report Key Topics
This industry includes registered general or specialist dental practitioners, or dental clinics in which a group of dentists is associated for purposes of providing dental services. Dental hospitals providing outpatient services only are also included in the industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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