Dental Practice Management Software Market (By Delivery Mode: Web-based, On-premise, Cloud-based; By Application: Dental Charting, Patient Communication, Scheduling, Insurance Management, Billing, Payment Processing, Others; By End User: Dental Clinics, Hospitals, Others) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2022 – 2030
The global dental practice management software market size was estimated at US$ 1.37 billion in 2021 and is expected to surpass around US$ 4.67 billion by 2030, growing at a CAGR of 14.6% during the forecast period 2022 to 2030.
Factors that are accountable for the market growth include the rising geriatric population, increasing focus on and awareness about oral health in the Europe & United States, and rapid technological advancements. The Health Information Technology for Economic and Clinical Health (HITEC) Act encourages and accelerates the use of health information technology in the United States. The Adoption of healthcare IT solutions, especially by specialty clinics, such as oral practices, is anticipated to grow insurance coverage. These factors are expected to boost the demand for oral services, thereby driving the need for DPM software.
An increase in life expectancy has led to a rise in the geriatric population, which is likely to continue in the future. According to a report by the United Nations, in 2017, the global geriatric population was nearly 962 million and is projected to be 2.1 billion by 2050. According to the report by World Population Prospects 2019, by 2050, 16% of the world’s population would be over 65 years of age. This has resulted in a higher per capita demand for oral care services, creating a significant need for DPM solutions. According to the American Dental Association (ADA), older people enter the second round of cavity-prone years mainly due to dry mouth, which can be an adverse effect of drugs for asthma, high BP & cholesterol, pain, anxiety, Parkinson’s, and Alzheimer’s disease.
Since a major portion of the geriatric population uses these medicines, they are more prone to oral health problems. This is expected to drive the demand for DPM software. The number of independent practitioners has increased significantly in the U.S., Australia, and India owing to the supportive government policies and increasing awareness about oral health. Patients visiting independent practitioners often pay out of pocket, as they are more affordable than large establishments, because a large number of patients seeking oral care are either uninsured or their insurance plans do not cover oral medical care.
Report Scope of the Dental Practice Management Software Market
Market Size by 2030
USD 4.67 Billion
Growth Rate from 2022 to 2030
CAGR of 14.6%
Fastest Growing Region
2022 to 2030
Delivery Mode, End User, Appplication, Geography
Carestream Dental LLC, Allscripts Healthcare Solutions, Datacon Dental Systems, Curve Dental Inc., Dovetail Dental Software, DentiMax LLC, Epic Systems Corporation, Quality Systems Inc., Henry Schein, Patterson Companies Inc.
According to the ADA, there has been growth in dental clinics with more than 20 employees while the number of clinics with less than 5 employees has declined over the years in the U.S. Key players are focusing on expanding their presence in emerging regions, such as Asia Pacific and Latin America, due to the rising oral care expenditure, and an increasing number of supportive government policies. Companies are investing and expanding in key emerging markets, such as Singapore, Australia, Japan, Brazil, China, and India. For instance, in January 2017, Henry Schein completed the acquisition of Dental Cremer S.A. With this acquisition, the company expanded its geographic presence and expanded its product portfolio.
Based on deployment mode, the market is segmented into on-premise, web-based, and cloud-based. The web-based segment dominated the market with a share of 55.3% in 2021. This can be attributed to its low cost, increased security, quick updates, and unrestricted storage space. The growing adoption of DPM software in oral practices for billing, reporting, patient charting, scheduling, and treatment planning is expected to boost the segment's growth. On the other hand, the cloud-based segment is projected to register the maximum CAGR from 2022 to 2030. New software launches, mergers, and collaborations among key players aimed at providing cloud-based solutions to their consumers are projected to drive this segment growth.
For instance, in June 2021, Planet DDS announced the launch of internal & external referral management tools with Denticon software allowing dentists to track & manage referrals with external providers or within a group. On-premise software is installed on-site, on a user’s own workstation or server. Generally, this involves high upfront investment costs. However, the total cost of ownership is low, as there is little to no annual or monthly subscription fee involved. On-premises software solutions offer more customization and control over data. Hence, clinics with more specific needs are opting for DPM solutions. However, the introduction of the advanced web- and cloud-based solutions is expected to adversely impact this segment.
In terms of application, the market is segmented into patient communication, invoice/billing, payment processing, insurance management, and others. The patient communication segment accounted for the maximum market share of 34.9% in 2021. Increasing acceptance due to enhanced features, such as text messaging for reminders, family reminders, and patient satisfaction surveys, is expected to drive the segment growth. The majority of DPM software, such as DentSoft, creates profiles for customers based on their basic demographic information, registration numbers, national identification numbers, contact information, and medical conditions, among other things.
This enables quick and advanced searches. In addition, it enables patients to schedule appointments online, which is favoring the growth of the patient communication segment. The insurance management segment is expected to grow at the fastest CAGR during the forecast period. Improved reimbursement for oral services, particularly in the U.S., is a primary factor fueling the segment growth. According to the ADA, 51.3% of children aged 2-18 years in the United States have private dental coverage, while 38.5% have Medicaid Children’s Health Insurance Program coverage (CHIP). In addition, 7.4% of people aged 19-64 years in the United States get coverage through Medicaid, while 59.0% have private coverage for oral care.
On the basis of end use, the global market has been further segmented into dental clinics, hospitals, and others. The dental clinics segment dominated the market in 2021 and accounted for the maximum revenue share of more than 48.5%. The segment will remain dominant even during the forecast period. A rise in the number of oral care clinics adopting dental practice management software across the globe is driving the segment growth. The software manages clinic operations, such as accounting, billing & scheduling, and improves clinic efficiency. This, in turn, is expected to increase the demand for DPM solutions among clinics.
In addition, a number of local practices are acquiring or merging with larger clinic networks. This is further contributing to the growth of this segment. The hospitals segment, on the other hand, is expected to register the fastest CAGR over the forecast period. This growth is attributed to the high frequency of oral care visits and the adoption of DPM software solutions in hospitals. DPM software does monthly or annual company analysis and assists in developing efficient treatment strategies. Individual practices or offices can use this data to manage their resources and finances. This is propelling the growth of the others segment.
North America accounted for the largest revenue share of more than 40.5% in 2021. The strategic presence of major players, such as Henry Schein One & Curve Dental, and the rapid adoption of oral care services by baby boomers are among the key factors responsible for the market growth in the U.S. Furthermore, increasing funding for start-up businesses is likely to aid in market growth. For example, in April 2021, CareStack raised funding of USD 22.5 million from Delta Dental of California, SteadView Capital, Accel Partners, F-Prime Capital, and Eight Roads. In 2019, the company received USD 28 million in funding from the same investor.
Such large investment in start-up businesses is expected to drive the market in the region. On the other hand, Asia Pacific is projected to witness the fastest CAGR during the forecast period. Growing investments by healthcare IT companies in the region and improving economic conditions as well as healthcare structure are favoring the market growth. China is projected to witness substantial growth during the forecast period. This can be attributed to the rising geriatric population, increasing spending on oral care, and rapid adoption of the latest technologies.
The market in Europe is also expected to witness significant growth owing to the rapid technological advancements and increasing spending capacity of the people. According to NHS Dental Statistics for England, a total of 21 million adults and 6.3 million children were seen by an NHS dentist in the 24-months up to 30 June 2020. Furthermore, funding from NHS for primary care dentistry is expected to provide significant growth opportunities in the U.K. In 2018-2019, the NHS funded USD 2,359.6 million for primary care dentistry.
Some of the prominent players in the Dental Practice Management Software Market include:
- Carestream Dental LLC
- Allscripts Healthcare Solutions
- Datacon Dental Systems
- Curve Dental Inc.
- Dovetail Dental Software
- DentiMax LLC
- Epic Systems Corporation
- Quality Systems Inc.
- Henry Schein
- Patterson Companies Inc.
Segments Covered in the Report
This research report offers market revenue, sales volume, production assessment and prognoses by classifying it on the basis of various aspects. Further, this research study investigates market size, production, consumption and its development trends at global, regional, and country level for the period of 2017 to 2030 and covers subsequent region in its scope:
By Delivery Mode
- Dental Charting
- Patient Communication
- Insurance Management
- Payment Processing
By End User
- Dental Clinics
- United Kingdom
- Rest of Europe
- Southeast Asia
- Rest of Asia Pacific
- Rest of Latin America
Middle East & Africa (MEA)
- North Africa
- South Africa
- Rest of Middle East & Africa
Key Points Covered in Dental Practice Management Software Market Study:
- Growth of Dental Practice Management Software in 2022
- Market Estimates and Forecasts (2017-2030)
- Brand Share and Market Share Analysis
- Key Drivers and Restraints Shaping Market Growth
- Segment-wise, Country-wise, and Region-wise Analysis
- Competition Mapping and Benchmarking
- Recommendation on Key Winning Strategies
- COVID-19 Impact on Demand for Dental Practice Management Software and How to Navigate
- Key Product Innovations and Regulatory Climate
- Dental Practice Management Software Consumption Analysis
- Dental Practice Management Software Production Analysis
- Dental Practice Management Software and Management