Cloud-Based Dental Practice Management Software Market

Market Overview

The global cloud-based dental practice management software market size was valued at USD 571.68 billion in 2021 and is projected to reach USD 1473.09 billion by 2030, registering a CAGR of 11.09% from 2022 to 2030.

People who use cloud-based dental software are able to access their data from any location, which is beneficial for those who operate in more than one dental office or who simply want rapid access to their data from their residences. Additionally, this indicates that they do not need to create backups, purchase pricey servers, or become experts in the upkeep of their computer equipment.

The expansion of the market is being driven by several reasons, including ongoing technical advancements in the industry, positive measures taken by the government in the field of oral healthcare, and an increasing number of dental practices. In the United States, the use of health information technology has been encouraged and sped up thanks to the Health Information Technology for Economic and Clinical Health (HITEC) Act. The HITEC Act was passed into law with the intention of enhancing the delivery of healthcare and providing patients with services of a higher standard.

Market Dynamics

Market Drivers

Growth in the geriatric population and the development of several modules

Both the distribution of electronic health care records and the healthcare delivery system have been impacted as a result of the adoption of the HITECH legislation in the United States and other nations. Those practitioners in the medical field who denied making use of electronic health records were penalized. A further factor that is driving growth in the market for dental practice management software is the expanding elderly population in several different countries.

The overall expansion of the market is being helped along by the introduction of many modules in the cloud-based dental practice management software sector. As a result of a decrease in the number of people working in various healthcare facilities in recent years, medical professionals have been making greater use of software programs that specifically serve purposes such as practice management software, patient communication software solution, treatment planning software, patient education software, dental imaging software, and orthodontic modeling software.

Market Restraints

The reluctant attitude of medical professionals

It is well acknowledged that the resistance shown by medical professionals toward the implementation of cloud-based dental practice management software solutions is the primary factor holding back the expansion of the cloud-based dental practice management software market as a whole. The precarious financial situation of the medical experts is the primary factor contributing to their reluctance to cooperate. The ability of many private clinics in developing nations to make investments is substantially smaller than in developed countries.

It is widely acknowledged that the market for dental practice management software faces its greatest challenge from a shortage of personnel with expertise in information technology. It has been projected by several industry specialists that there will soon be a demand-supply imbalance in the field of information technology professionals. Even though the software solutions have offered a fundamental user interface, several medical experts remain skeptical regarding the concept.

Market Opportunity

Growing awareness & increase in patient visit

The rise in the number of patients going to dentists has made it more challenging for dentists to schedule appointments and keep track of patient information, which has led to the use of more sophisticated DPM software like Dentrix Ascend and Tab32, amongst others. Over the past few years, there has been a rise in awareness regarding the importance of oral health, which has resulted in an increase in the number of visits to the dentist that are made on a preventative basis every six months in the majority of countries. Rising levels of awareness and an expanding patient base are two of the most important variables that are expected to create the potential for market expansion over the next several years.

Segmental Analysis

In 2020, the patient communication software category is anticipated to hold a 33.4% market share, based on its application. The market for cloud-based DPM software is split into patient communication, billing and insurance, analytics, and treatment plans. They are utilized by the majority of hospitals and clinics for appointment scheduling, postponement/cancellation, and follow-ups. This is enhancing the segment's growth. The increasing popularity of DPM due to its enhanced features, such as text messaging for reminders, family reminders, and patient satisfaction surveys, is a factor in the segment's expansion.

During the projected period, the billing and insurance segment is expected to experience the highest compound annual growth rate (CAGR) of 11.65%. Improving reimbursement possibilities for oral services, particularly in the United States, is a key driver of segment expansion. According to the American Dental Association, 51.3% of American children ages 2 to 18 have private dental insurance, while 38.5% have Medicaid Children's Health Insurance Program coverage (CHIP). Additionally, 7.4% of persons aged 19-64 in the United States get dental coverage through Medicaid, while 59% have private coverage.

During the projection period, the analytics market sector is projected to grow at a compound yearly growth rate of 11.4%, resulting in a substantial increase in revenue. Increasing usage of business intelligence tools, an increase in the number of tertiary oral hospitals, and a rise in the population's purchasing power are the primary reasons driving the expansion of this market segment. Numerous DPM software providers now offer business intelligence solutions. This is expected to aid dental office owners in comprehending patient volume and maximizing resources to generate more revenue.

In 2021, the dental clinic segment will account for around 45.3% of the market due to the increasing number of clinics and increasing usage of EHRs. Market segmentation includes dentistry clinics, hospitals, and others. Principal dental support firms, such as Heartland Dental, Aspen Dental, and Great Expressions Dental Centers, manage between 250 and 1,000 dental offices.

These firms are expanding through the acquisition of small group or solo practices. Even though this is shrinking the market as a whole, mergers, and acquisitions between small groups and giant conglomerates are increasing segment growth.

A huge number of patients are attracted by the hospitals' excellent infrastructure. To handle such a huge patient population and facility, hospitals must invest in innovative technology; thus, these hospitals are investing in cloud-based DPM software. The cloud-based software's increased server storage capacity enables the storing of vast quantities of patient data, making it appropriate for large hospitals with a huge patient population.

Cloud-based DPM software delivers monthly or annual company analysis and aids in the formulation of successful treatment strategies. This information can be used by solo dental clinics and offices to manage their resources and finances. This is fuelling the expansion of other market segments throughout the projection period.

Regional Analysis

The market is split by region into North America, Europe, Asia-Pacific, and LAMEA.

In 2021, North America dominated the market with a 47.6% share. The strategic presence of significant competitors such as Henry Schein One and Curve Dental, as well as the increased acceptance of oral care services by baby boomers, are among the primary reasons driving market expansion in the United States.

In addition, growing startup funding is likely to contribute to market expansion. For instance, in April 2021, Delta Dental of California, SteadView Capital, Accel Partners, F-Prime Capital, and Eight Roads provided CareStack with USD 22.5 million in funding. In 2019, the same investor contributed USD 28 million to the business. This level of investment in new firms is anticipated to stimulate the regional economy.

On the other hand, Asia-Pacific is anticipated to have rapid expansion during the projection period. Increasing investments by healthcare IT businesses in the region, as well as a strengthening economy and healthcare infrastructure, are driving the market's expansion. China is anticipated to have significant growth during the projection period. This is attributable to the growing elderly population, the rising cost of oral care, and the quick adoption of new technologies.

Europe's market is positioned for growth as a result of rapid technology improvements and rising consumer purchasing power. According to NHS Dental Statistics for England, between 1 July 2019 and 30 June 2020, a total of 21 million adults and 6,3 million children were seen by an NHS dentist. In addition, NHS funding for primary care dentistry is anticipated to create major growth prospects in the United Kingdom. In 2018-2019, the NHS allocated $2,359.6 million to primary dental care.

Recent Developments

In February 2022, Carestream Dental's Software-as-a-Service, Sensei Cloud, is introducing new capabilities that may enable dentists to expand their operations and provide better patient care. These new features may be linked into a virtual cloud environment and will enhance the existing software by adding the cloud-based dental imaging system Sensei Imaging to the product line.

Cloud-Based Dental Practice Management Software Market Segmentation

Application Outlook

• Patient Communication
• Billing & Insurance
• Analytics
• Treatment Plans
• Others

End-Use Outlook

• Dental Clinics
• Hospitals
• Others

Regional Outlook

North America

• The U.S.
• Canada

Europe

• The U.K.
• Germany
• France
• Italy
• Spain

The Asia Pacific

• Japan
• China
• India

Latin America

• Brazil
• Mexico

Middle East & Africa (MEA)

• South Africa