As the population ages and more people obtain healthcare, demand will expand.
New York, NY (PRWEB) July 30, 2014
The Hearing Aid Clinics industry is expected to grow substantially during the five years to 2014. Following a multiyear drop during the recession, the industry has rebounded thanks to beneficial demographic trends, the expansion of private healthcare coverage and, ultimately, the improving economy. As a result, IBISWorld estimates that Hearing Aid Clinics industry revenue will increase at an annualized rate of 3.4% to $2.7 billion during the five years to 2014.
According to IBISWorld Industry Analyst Dmitry Diment, “Economic recovery and the associated rise in disposable income have been key to the industry's growth over the past five years.” Hearing aids are relatively expensive, with a custom-fit pair ranging from $3,000 to $4,000, while some of the industry's top-end pairs cost more than $7,000. Because Medicare, the government-funded health insurance program that provides coverage for adults over the age of 65, does not cover hearing aids, out-of-pocket payments for industry products have remained important during the five years to 2014. Consequently, the expected 1.2% annualized rise in disposable income has benefited industry operators during this period.
“Moreover, the industry has begun to benefit from the expansion of federally funded healthcare. With the implementation of the Patient Protection and Affordable Care Act (PPACA), the number of people with private insurance coverage is expected to rise 4.5% in 2014 alone,” says Diment. While the PPACA does not mandate that insurance companies cover hearing aids, many plans do in fact provide coverage, benefiting the industry. As a result, demand for industry products is expected to boom in 2014, with revenue forecast to rise 5.6%.
The persistence of current trends is expected to further grow the industry over the five years to 2019. Perhaps most importantly, the US population is expected to age at an even faster rate than the previous five years. Because individuals aged 65 and older are the single-largest market for industry services, this demographic trend will continue to facilitate demand for industry products. Furthermore, the continued implementation of the PPACA is expected to expand healthcare coverage to 30 million uninsured Americans by 2019. With disposable income anticipated to continue growing and the number of individuals suffering from hearing deficiencies expected to remain high, IBISWorld forecasts that industry revenue will increase.
For more information, visit IBISWorld’s Hearing Aid Clinics industry in the US industry report page.
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IBISWorld industry Report Key Topics
The Hearing Aid Clinics industry retails hearing aids for consumers of all demographics and ages. Industry operators also frequently provide hearing tests and consultation services within the store.
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.
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