Dental Service Organization Market Size, Share & Trends Analysis Report By Services (Human Resources, Marketing, Accounting), By End-use (Dental Surgeons, General Dentists), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global dental service organization market size was valued at USD 141.26 billion in 2022 and is expected to attain a compound annual growth rate (CAGR) of 15.8% from 2023 to 2030. An increase in the prevalence of dental conditions, high expenditure on dental care, and improved efficiency in non-clinical business management by the DSOs are some of the major factors driving the market growth. Majority of the dental practice are increasingly affiliating with DSOs as it Offloads administrative burdens, provides access to top-tier technology, allows the professional to solely on patient care and also achieve a better work-life balance

The dental service organization market witnessed a minor setback due to COVID-19 in the second and third quarters of 2020 particularly due to supply chain bottlenecks and the closure of dental clinics. However, after the second quarter of 2020, dental procedures started to resume leading to a full market recovery by 2021.

Dental Service Organizations (DSO) are Private Equity (PE) backed independent business support centers that provide administrative and compliance services to dental practitioners. The non-clinical services offered by a DSO range from human resources, branding, dental supply/device procurement & maintenance to accounting services. The DSOs provide greater buying power as they have the ability to negotiate with vendors and thus lower dentists' supply costs. 

DSOs create a standardized and uniform approach across their dental practices to provide efficient dental services to patients every time they come into the clinic. This standardization also includes uniform compliance with regulations, as well as the ability for the practices to learn the best practice methods.

Key dental device manufacturers like Institut Straumann and Dentsply Sirona which capture major market share in the dental market have undertaken new initiatives like collaborating with Dental Service Organizations for the distribution of dental equipment. In September 2021, Straumann Group announced a strategic partnership with Aspen Dental Management, Inc., (ADMI). Aspen Dental has around 1000 ADMI dental offices across 45 U.S states and this partnership will allow Straumann to supply dental implant solutions, abutments, and CAD/CAM systems to all of the ADMI practices in the country. This will assist the company to increase its product penetration within the dental market and also increase its revenue as the company’s access to 1000 dental practices is possible under one DSO roof.

This trend of dental manufacturers collaborating and partnering with DSOs has been quite prominent recently as it helps implement innovative diagnostic software, new dental products, and equipment on a broader level with the help of a DSO, saving the company a lot of time and cost which would have been high if they approached independent practices

As per the American Dental Association, around 16% of young dentists from ages 21 to 34 are affiliating themselves with DSOs, enabling them to focus on the patient wholly while delivering dental care. The percentage of dental school seniors who plan to join DSO-supported practices has also increased from 12% in 2015 to 30% in 2020. The benefits provided by the DSOs is expected to lead to more affiliations and are thus expected to increase the market growth.

The onset of COVID-19 impacted the overall dental and oral hygiene market. Regular dental visits, appointments, and consultations ceased in many countries and key manufacturers reported supply chain and operational constraints in 2020. However, the market resumed by the end of 2020 and the revenue started to recover in 2021. According to the American Dental Association, 39% of practices in the U.S are fully operational with the volume of patients they had pre-pandemic. This indicates that the dental market is recovering from the losses caused by the pandemic. Moreover, the DSO market witnessed many acquisitions and partnership initiatives post-pandemic and witnessed private equity flooding the marketplace and this is expected to boost the market growth.

By Service Insights

The medical procurement service segment held the largest revenue in 2022 and is expected to witness high growth of 16.2% during the forecast period. The service type segment is segmented into Human Resources, Marketing, Accounting, Medical Supplies procurement, and Others. An essential element of delivering sustained improvement is the procurement of advanced and effective medical devices at a lower cost. DSOs have partnership agreements with dental device manufacturers that allows a dental practice to procure medical supplies and devices at a cost-efficient price.

As per Richmond Dental, DSOs can assist with cost controls in practice operations, maximizing employee productivity (such as the targeted number of patients treated on a daily basis), or creating economies of scale for instrument and supply purchases. DSOs take a comprehensive approach to creating economies of scale and purchasing power with elite suppliers that enables dentists to get their hands on advanced technologies and quality supplies for their services. As the importance of the availability of quality medical supplies is essential to run a medical practice, the demand for the medical supplies procurement service is expected to rise during the forecast period.

End-Use Insights

The General Dentist end-use segment led the global dental service organization market in 2022 with a revenue share of over 33%. The end-user segment is differentiated into dental surgeons, endodontists, general dentists, and others. The general dentist segment held the largest market share owing to the fact that the majority of general dental practitioners are affiliated with DSOs.

For Instance, in the U.S 80% of the dental market is captured by general dentistry and around 10.4% of dentists are affiliated with a DSO as it expands the ability of dentists to focus on patient care and less on administrative tasks. The other major factor that plays an important role in general dentists choosing a DSO is a less financial risk, better work-life balance, and access to cutting-edge dental technology and tools that are usually provided by the DSO. All these advantages of affiliation with the DSO is expected to boost segment growth.

Regional Insights

North America emerged as the largest regional market in 2022 with a revenue share of more than 40% and is estimated to retain the leading position throughout the forecast period. The U.S currently has the largest cluster of DSOs in the world. This is because of the fact that the country has the presence of major dental device manufacturers, good reimbursement policies, and a growing dental services market.As per Institut Straumann, the trend of independent practices in North America, Europe, and China has declined over the years and the demand for DSOs is on the rise and this is expected to boost the market growth in the region.

Asia Pacific is anticipated to be the fastest-growing regional market with a CAGR of more than 17.2% over the forecast period. This growth can be credited to the rising number of dental care centers, growing dental tourism, and increasing R&D activities in this field. The growing adoption of new technologies and increasing awareness about dental care among people are expected to be the factors aiding growth. Factors like the availability of highly skilled professionals, adoption of advanced technology, rise in healthcare expenditure, and low-cost treatments are expected to drive the regional Dental Service Organization market

Key Companies & Market Share Insights

Many major industry players are undertaking various strategies to strengthen their market presence. New service launches, mergers, acquisitions, partnerships, and geographical expansions are some of the key strategies adopted by market players. In January 2022, Envista Holdings, the parent company of Nobel Biocare, entered into a multi-year development partnership with Pacific Dental Services (PDS), a prominent DSO in the U.S to utilize Assisted Intelligence (AI) in clinical image analysis. Envista’s DTX Studio Clinic software platform will be installed in PDS clinic facilities that will assist dental practitioners to diagnose, plan, and treat various dental treatments. Some of the key players in the global dental service organization market include:

• Pacific Dental

• Heartland Dental

• Aspen Dental

• Dental Care Alliance

• 42North Dental

• Colosseum Dental Group

• GSD Dental Clinics

• Dentelia

• MB2 DENTAL

 Dental Service Organisation Market Report Scope

Global Dental Services Organization Market Segmentation

This report forecasts revenue growth and provides an analysis of the latest trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the dental service organization market based on service, end-use, and region:

• Service Outlook (Revenue, USD Million, 2018 - 2030)

  • Human Resources

  • Marketing and Branding

  • Accounting

  • Medical Supplies procurement

  • Others

• End Use Outlook (Revenue, USD Million, 2018 - 2030)

  • Dental surgeons

  • Endodontists

  • General dentists

  • Others

• Region Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • Japan

    • China

    • India

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa

    • South Africa

    • Saudi Arabia