Dental Service Organization Market Share, Size, Trends, Industry Analysis Report, By Service (Human Resources, Marketing, Medical Supplies Procurement), By End-use (Dental Surgeons, General Dentists, Endodontists) By Region, And Segment Forecasts, 2024 - 2032
- Published Date:Dec-2023
- Pages: 116
- Format: PDF
- Report ID: PM4141
- Base Year: 2023
- Historical Data: 2019-2022
The global dental service organization market was valued at USD 137.77 billion in 2023 and is expected to grow at a CAGR of 17.4% during the forecast period.
Key factors contributing to the market growth include rising prevalence of dental conditions, leading to an increased demand for dental services. Additionally, individuals are investing more in dental care, leading to higher expenditure on oral health treatments and procedures. In recent years, dental service organizations (DSOs) have emerged as crucial players in the dental care landscape.
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Dental practices are increasingly affiliating with DSOs for several reasons. DSOs help dental practitioners offload administrative burdens associated with running a practice. By outsourcing tasks such as billing, appointment scheduling, and insurance processing to DSOs, dentists can focus more on patient care and devote their time and expertise to treating patients.
DSOs provide access to cutting-edge technology and advanced dental equipment. Staying up-to-date with the latest advancements in dental technology is crucial for providing high-quality patient care. DSOs invest in state-of-the-art dental equipment, allowing affiliated dental practices to offer advanced treatments and procedures to their patients. Furthermore, partnering with DSOs enables dental professionals to achieve a better work-life balance. By handling the business aspects of the practice, dentists can reduce their workload and stress, allowing them to maintain a healthier balance between their professional and personal lives.
Working with DSOs streamlines the process, saving the manufacturers considerable time and costs. Instead of dealing with individual practices independently, they can leverage the DSO's network to introduce their products and technologies efficiently. This approach not only enhances the manufacturers' market reach but also optimizes their resources by consolidating efforts and resources, ultimately leading to more effective and cost-efficient distribution of their innovations in the dental industry.
As per the American Dental Association, 39% of dental practices in the U.S. have fully resumed their operations with pre-pandemic patient volumes. This signifies a recovery in the dental market from the setbacks caused by the pandemic. Additionally, the DSO market experienced numerous acquisitions and partnership initiatives after the pandemic, with private equity firms heavily investing in the industry. This influx of private equity investments is anticipated to drive dental service organization market growth significantly.
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- Improved efficiency in non-clinical business management by dental service organizations (DSOs)
DSOs are business support centers in the dental industry, often backed by private equity, that provide a wide range of administrative and compliance services to dental professionals. These services encompass non-clinical tasks such as human resources management, procurement of dental supplies and devices, branding, maintenance, and accounting services. One of the advantages of DSOs is their ability to negotiate with vendors, leading to reduced supply costs for dentists.
The recent trend of dental manufacturers collaborating and partnering with DSOs has gained prominence due to the significant advantages it offers. By partnering with DSOs, dental manufacturers can implement innovative diagnostic software, introduce new dental products, and distribute cutting-edge equipment on a broader scale. This collaboration allows manufacturers to reach a larger market and serve multiple dental practices affiliated with the DSO, rather than approaching independent practices one by one.
The market is primarily segmented based on service, end use, and region.
By End Use
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By Service Analysis
- Medical supplies segment garnered the largest share
Medical supplies segment dominated the market. A key factor for ensuring consistent growth is acquiring advanced and efficient medical devices at a reduced cost. DSOs have partnerships with dental device suppliers, enabling dental practices to obtain medical supplies and devices at a cost-effective rate. Since access to high-quality medical supplies is crucial for the smooth operation of medical practices, the demand for medical supplies procurement services is anticipated to increase in the coming years.
Others segment will grow at rapid pace. This can be attributed to dental professionals becoming more aware of potential risks, allowing them to create plans, systems, and protocols to minimize the chances of these risks occurring. Acknowledging and comprehending these risks is the essential and initial step in successful risk management for dental practices.
By Application Analysis
- General dentists segment accounted for the largest market share in 2022
General dentists segment accounted for the largest market share. The dominance is attributed to the widespread affiliation of general dental practitioners with DSOs. Many general dentists choose to align themselves with DSOs for various reasons. By partnering with a DSO, general dentists can benefit from the administrative support and business expertise provided by these organizations. DSOs handle non-clinical aspects such as human resources, marketing, accounting, and procurement, allowing dentists to focus primarily on patient care.
Additionally, DSOs often offer access to advanced technologies and equipment, which might be financially challenging for individual dental practices to acquire. This partnership model enables dentists to provide better services to their patients, ensuring the utilization of cutting-edge tools and techniques. Moreover, DSOs can negotiate better deals with suppliers, leading to cost savings on dental supplies and equipment. These advantages make DSOs an attractive option for general dentists, leading to their significant presence in the DSO market.
In the U.S., approximately 80% of the dental market is comprised of general dentistry, and a significant 10.4% of dentists have chosen to partner with the DSOs. This trend is driven by the DSOs' ability to allow dentists to focus more on patient care and less on administrative responsibilities. General dentists often opt for DSO affiliations to achieve a better work-life balance, minimize financial risks, and gain access to advanced dental technologies and tools, which are typically provided by these organizations.
- North America accounted for the largest share of global market in 2022
North America garnered the largest share. This dominance is expected to persist throughout the forecast period. The United States boasts the largest concentration of DSOs globally. This prevalence can be attributed to favorable reimbursement policies, the presence of major dental device providers, and a growing dental services market. Notably, according to Institut Straumann, there has been a decline in the trend of independent dental practices in developed regions. In contrast, there is a noticeable increase in the demand for dental service organizations, indicating a positive trajectory for market growth in the region.
APAC will grow at the substantial pace. Region’s growth is primarily due to the rise in dental tourism, the proliferation of dental care centers, and increased research and development activities in the dental field. Furthermore, the region is witnessing a surge in the adoption of new technologies and heightened public awareness regarding dental care, contributing significantly to this growth.
Key Market Players & Competitive Insights
Prominent industry players are employing diverse strategies to enhance their market presence. This includes introducing new services, engaging in mergers, acquisitions, partnerships, and expanding their geographical reach, among other key approaches.
Some of the major players operating in the global market include:
- 42North Dental
- Aspen Dental
- Colosseum Dental Group
- DentalCare Alliance
- GSD Dental Clinics
- Heartland Dental
- MB2 DENTAL
- Pacific Dental
- In January 2022, Envista Holdings has established a long-term partnership with Pacific Dental Services (PDS) to integrate Assisted Intelligence (AI) technology into clinical image analysis. PDS clinic facilities will incorporate Envista's DTX Studio Clinic software platform, enabling dental practitioners to diagnose, plan, and execute a wide range of dental treatments with assistance.
- In September 2021, Straumann Group has formed a strategic alliance with Aspen Dental Management (ADMI), a network comprising approximately 1000 dental offices across 45 states in the U.S. Through this partnership, Straumann will provide dental abutments, implant solutions, and CAD/CAM devices to all ADMI practices in the United States.
Dental Service Organization Market Report Scope
Market size value in 2024
USD 161.58 billion
Revenue forecast in 2032
USD 583.68 billion
17.4% from 2024 – 2032
2019 – 2022
2024 – 2032
Revenue in USD billion and CAGR from 2024 to 2032
By Service, By End Use, By Region
North America, Europe, Asia Pacific, Latin America, Middle East & Africa
Report customization as per your requirements with respect to countries, region and segmentation.
The dental service organization market report covering key segments are service, end use, and region.
Dental Service Organization Market Size Worth $583.68 Billion By 2032
The global dental service organization market is expected to grow at a CAGR of 17.4% during the forecast period.
North America is leading the global market
key driving factors in dental service organization market are An increase in the prevalence of dental conditions