Dental Service Organization Market Size, Share & Trends Analysis Report By Service (Human Resources, Marketing, Medical Supplies Procurement), By End-use (Dental Surgeons, General Dentists, Endodontists) By Region, And Segment Forecasts, 2024 - 2030

Dental Service Organization Market Trends

The global dental service organization market size was estimated at USD 139.3 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 17.6% from 2024 to 2030. An increase in the prevalence of dental conditions, high expenditure on dental care, and improved efficiency in non-clinical business management by dental service organizations (DSOs) are some of the major factors driving the market growth. Majority of the dental practices are increasingly affiliating with DSOs as they offload administrative burdens, provide access to top-tier technology, allow the professional solely on patient care, and also achieve a better work-life balance.

Dental Service Organizations (DSO) are private equity-backed autonomous business support centers that offer administrative & compliance services to dental specialists. The non-clinical services offered by dental service organizations range from human resources, dental supply/device procurement branding, & maintenance to accounting services. The DSOs offer better buying power as they have the capability to negotiate with vendors and thus lower dentists' supply costs.

DSOs make a uniform and standardized approach across their dental practices to offer efficient dental services to patients every time they come into the clinic. The standardization also covers the ability of the practices to learn the best-practice methods as well as the uniform compliance with regulations.

Key dental device manufacturers such as Dentsply Sirona, and Institut Straumann which capture the major market share in the dental market have started new initiatives like collaborating with dental service organizations for the distribution of dental equipment.

 In September 2021, Straumann Group started a partnership with ADMI, Aspen Dental Management, Inc. Aspen Dental has around 1000 ADMI dental offices across 45 U.S states and this partnership will allow Straumann to supply dental abutments, implant solutions, and CAD/CAM devices to all of the ADMI practices in the U.S. 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

The outbreak 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 market growth.

Service Insights

The service segment is segmented into human resources, medical supplies procurement, marketing, accounting, and others. The other segment held the largest revenue share of 33.2% in 2023 owing to gaining awareness of these potential risks, dental professionals can develop plans, systems, and protocols to reduce the likelihood of their occurrence. The initial & crucial step in effective risk management for dental practices is acknowledging & understanding these risks.

The medical supplies procurement segment is expected to witness a CAGR of 18.0% during the forecast period. A vital element of bringing sustained development is the attaining of advanced and effective medical devices at a lower cost. The dental service organizations (DSOs) have agreements with dental device providers that permit a dental practice to get medical supplies & devices at a cost-efficient price. As the significance of the availability of quality medical supplies is vital to running a medical practice, the demand for the medical supplies procurement service is expected to rise during the forecast period.

End-use Insights

Based on end-use, the general dentist segment dominated the market with a revenue share of over 33.0% in 2023. The end-use segment is segmented into dental surgeons, general dentists, endodontists, and others. The general dentist held the major share in the DSO market due to the majority of general dental practitioners being allied with DSOs.

For instance, in the U.S. nearly 80% of the dental market is taken by general dentistry and nearly 10.4% of dentists are allied with DSOs as it grows the capability of dentists to emphasize patient care and less on administrative tasks. The other important point that plays a vital role in general dentists selecting a DSO is a better work-life balance, less financial risk, and access to advanced dental technology and tools that are normally provided by the DSO. Thus, the above advantages of DSO affiliation are expected to boost segment growth.

Regional Insights

North America dominated the market with a revenue share of more than 32.2% in 2023 and is estimated to retain the prominent market position throughout the forecast period. The U.S. presently has the major cluster of DSOs across the globe. This is because the country has good reimbursement policies, presence of key dental device providers, and a rising dental services market.As per Institut Straumann, the trend of independent practices in North America, China, and Europe has decreased over the years, there is a rise in demand for dental service organizations, and this is anticipated to boost the market growth in the region.

Asia Pacific is anticipated to grow at a significant CAGR of more than 18.3% over the forecast period. This growth can be fueled by the growing dental tourism, increase in the number of dental care centers, and surge in R&D activities in this field. The rise in the adoption of new technologies and the surge in public awareness about dental care are estimated to be the factors helping growth. Several factors like the surge in adoption of advanced dental technology, availability of highly skilled professionals, increase in healthcare expenditure, and low-cost dental treatments are expected to boost the DSO market.

Key Companies & Market Share Insights

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 entered into a multi-year development partnership with Pacific Dental Services (PDS), to use Assisted Intelligence (AI) technology 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

Dental Service Organization Market Report Scope

Global Dental Service Organization Market Report Segmentation

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

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

  • Human Resources

  • Marketing & Branding

  • Accounting

  • Medical Supplies Procurement

  • Others

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

  • Dental Surgeons

  • Endodontists

  • General Dentists

  • Others

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

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

    • Denmark

    • Sweden

    • Norway

  • Asia Pacific

    • Japan

    • China

    • India

    • Australia

    • South Korea

    • Thailand

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE

    • Kuwait