III. Industry Analysis
Over the five years to 2020, the Dentists industry has benefited from advances in dental technology and improved access to care for older adults and low-income individuals. For most of the period, rising disposable income and a low unemployment rate have also supported the ability of individuals to afford out-of-pocket payments for care, which constitute the second-largest source of industry revenue. All things considered; industry revenue is estimated to increase an annualized 1.4% during the five-year period.
Demand for industry services will particularly come from older adults, who tend to need more serious and more frequent dental care as they age. In addition, the continued expansion of dental care through Medicaid will enable low-income adults to access the care they need. The average industry profit margin is anticipated to remain high, and membership to dental service organizations (DSOs) will likely continue to climb, particularly among younger practitioners who are graduating with high amounts of debt and prefer the ability to focus on patient care instead of practice administration.