Dental Software Market

Market Overview

The global dental software market size was valued at USD 2,632.2 million in 2022. It is expected to reach USD 6,518.04 million by 2031, growing at a CAGR of 10.60% during the forecast period (2023–2031).

Dental laboratories, dental professionals, academic and research institutions, and forensic laboratories use dental software as computer technology to prevent, diagnose, treat, study and investigate oral health issues. Medical professionals can organize their daily operations with the help of dental practice management software. The management software provides several services, including appointment scheduling, gathering, storing, exchanging, and retrieving clinical patient data, contact databases, patient profiles, background records, reporting, and charting the dental history, patient notes, and treatment plans. Communications for administrative and dental staff members to help file and monitor insurance claims may also be included in digitally recorded records and data.

Market Dynamics

Market Drivers

Rising Innovations in Dentistry Technology

In the past ten years, the dental industry has introduced several ground-breaking and innovative technologies expected to benefit industry professionals and patients in the coming years. Dental healthcare facilities worldwide are improving thanks to improvements in technologies and techniques like 3-D printing, tooth remineralization, artificial intelligence, and augmented reality. To fabricate dental restorations that are dimensionally more accurate and have fewer structural flaws, 3-D printing technology uses techniques like computer-aided design (CAD) and computer-aided manufacturing (CAM).

A paradigm shift in the dental industry is also anticipated, moving away from the surgical-restorative approach to treating dental caries and toward a minimally invasive approach based on remineralizing agents for tooth remineralization. In addition, the dental industry is expected to change as artificial intelligence and augmented reality are introduced. These technologies are anticipated to assist professionals in improving their capabilities and making more effective and accurate decisions related to clinical practices over the upcoming years, from patient record management and diagnostic imaging to early detection of malignant lesions and caries diagnosis. As a result, the development of dental technology is likely to increase the dependence of the dental industry on digital systems, software, and tools, which will propel the growth of the global dental software market.

Growing Geriatric Population

Age-related potential impairments of physical, sensory, and cognitive abilities present significant difficulties for at-home oral healthcare. Age-related dental conditions include root and coronal caries, periodontitis, dry mouth (xerostomia), and other conditions. Additionally, older patients may be more sensitive to analgesics and local anesthetics used in dentistry. According to a 2017 United Nations report on the world's aging population, there were approximately 962 million people who were 60 or older in 2017. This figure is anticipated to more than double by 2050, reaching around 2.1 billion people.

Furthermore, by 2050, the world's population will be more people aged 60 or older than those aged 10 to 24. (2.1 billion versus 2.0 billion). Therefore, it is anticipated that a significant portion of dental practice will be made up of older adults (defined as those who are 60 years or older) over the forecast period. As a result, the aging population is one of the key factors propelling the growth of the dental software market.

Market Restraints

Dentistry Software Reticence

Dentists worldwide have hesitated to adopt innovative software and solutions for structural and financial reasons. Dental care is highly fragmented, unlike most of the healthcare system's sectors, which have consolidated in recent decades. Private dental chains make up 15% of dental facilities in the UK, 8% in the Netherlands, 8–10% in Spain and the Nordic countries, but less than 1% in France and Germany. Setting up a dental healthcare facility requires significant upfront investments of EUR 400-900 thousand in basic equipment, consumables, facilities, and mid-level employee hiring budgets, limiting individual clinics' investment capabilities in advanced solutions and equipment.

In addition, utilization rates of cutting-edge and innovative solutions and equipment are lower for individual dental healthcare practice owners, making it impossible to achieve a satisfactory return on investment or, in some cases, even to break even on solutions and equipment. There are minimal incentives for independent practice owners to invest in such technologies. Dental software adoption is constrained by a lack of professionalism in administration and documentation. These concerns and obstacles should be removed in the coming years, paving the way for dental software adoption. Consumers' reluctance to adopt dental software may limit the market's growth.

Market Opportunities

Growing Consolidation of Private Players

The industry has seen an increase in chains over the past ten years, which has led to global consolidation, particularly in the European and Asia-Pacific markets. The recent low-cost offerings of Chinese digital solutions have made it possible for these recently established chains to remain competitive in the market, thereby influencing the operational economics of dental laboratories. The small dental healthcare facility chains in Europe are growing and spreading throughout the European Union (EU) due to the increasing opportunities for consolidation among dental healthcare facilities.

Private equity investments and a long-term commercial and strategic approach to dental healthcare in the area are driving this expansion. Due to these chains' high investment capacity, dental software adoption is promoted through financing, acquiring cutting-edge and innovative equipment and software, operational specialization, and employee training. The ongoing consolidation among private players presents lucrative opportunities for businesses operating in the international dental software market.

Regional Analysis

By region, the global dental software market is segmented into North America, Europe, Asia-Pacific, and the Rest of the World.

North America Dominates the Global Market

North America is the most significant shareholder in the global dental software market and is expected to grow at a CAGR of 9.08% during the forecast period. In recent years, North America has dominated the global dental software market, which is anticipated to continue during the forecast period. Compared to other regions, North America adopted dental software earlier and more quickly. Dental software has completely changed how dental care is provided in North America. It now includes all aspects of the dental workflow, such as imaging solutions, laser tools, management and administrative software, and analysis and diagnostic issues.

Europe is expected to grow at a CAGR of 10.13% during the forecast period. The market for dental software in Europe is anticipated to expand significantly due to factors like growing private player consolidation, rising quality and affordability of entry-level software solutions, technological advancements in the dental healthcare sector, and increasing acceptance and preference for advanced and innovative dental software-based services. Additionally, the inclusion of digital dental software-based solutions in dental school curricula and strict government guidelines recommending digital solutions to ensure better quality and more effective treatment is expected to fuel the growth in the regional market. Furthermore, due to the General Data Protection Regulation (GDPR), which requires stricter documentation of patient records, dental clinics, laboratories, and related professionals are being pushed to digitize every aspect of their information flow to comply with the regulations.

The Asia-Pacific dental software market is anticipated to grow favorably during the anticipated period. The growing use of digital dental radiography systems and the aging population are two factors that can be used to explain a large portion of this growth. Using digital dental radiography systems has improved the services and abilities of dental professionals. A crucial part of any digital imaging system is dental software. It is the focal point for managing image files and gives experts the tools to improve images for better treatment and diagnosis.

Additionally, the region's market is anticipated to grow due to the growing population of older adults 60 years or older. By 2050, one in every four people in the region will be older than 60, predicts the United Nations Population Fund, formerly known as the United Nations Fund for Population Activities (UNFPA). It is anticipated that improving social and economic conditions and rising living standards will lengthen the life expectancy of older people in the area. In addition, potential age-related impairments of physical, sensory, and cognitive abilities present significant difficulties for at-home oral healthcare. Age-related dental conditions include root and coronal caries, periodontitis, dry mouth (xerostomia), and other conditions. As a result, the market for dental software in Asia-Pacific is anticipated to grow significantly over the coming years.

The rest of the world's dental software market is expanding due to advances in dental technology, increased dental procedures, and growing consumer demand for higher-quality care. The market's top players have been putting effort into raising the caliber of entry-level software and solutions. As entry-level software and solutions offer required quality and higher dependency, hardware is gradually becoming more commoditized. The entire dental workflow can quickly and easily digitalized with low-cost software and solutions. There are many advantages to using dental software throughout the entire dental workflow, primarily in terms of quality, labor cost savings, and time savings. However, the utilization rates of cutting-edge and innovative solutions and equipment are significantly lower for most independent dental healthcare practice owners in the area. As a result, these business owners of individual medical practices have few incentives to invest in such solutions, which limits the expansion of the local market.

Segmental Analysis

The global dental software market is segmented by type, deployment, and end-user.

Based on the type, the global dental software market is bifurcated into practice management software, patient communication software, treatment planning software, patient education software, and dental imaging software.

The practice management software segment is the highest contributor to the market and is expected to grow at a CAGR of 9.90% during the forecast period. The type of software that deals with the daily operations of a dental practice are called practice management software. The user can get assistance with insurance, complete billing tasks, and generate reports with this software, which also helps dentists and clinic facilities schedule appointments and collect demographic data. It is the most widely used dental software in all dental healthcare facilities and clinics worldwide in developed markets.

In the early stages of dental problems, dental imaging software aids in monitoring, diagnosing the condition or ailment, and moving forward with the required treatment. The software provides a user interface with preloaded templates and slides, enabling the staff to create and modify treatment plans and procedures.

Based on the deployment, the global dental software market is bifurcated into on-premise, web-based, and cloud-based.

The web-based segment owns the highest market share and is expected to grow at a CAGR of 9.36% during the forecast period. Dental professionals can delegate patient intake, scheduling, reminders, and other tasks using web-based software. Regardless of the operating system installed on the devices, these platforms can be used on any computer or mobile device. They save time and money as a result of this. Additionally, they help dentists expand their businesses, increase patient retention, and streamline their processes.

In contrast to web-based dental software, cloud-based dental software uses multi-tenancy cloud hosting to distribute data or information across numerous connected servers. They provide the financial advantages of using cloud resources and related cloud services. They provide options for management, charting and imaging, administration, and even group dental practices.

Based on the end-user, the global dental software market is bifurcated into dental clinics and hospitals.

The dental clinic segment is the highest contributor to the market and is expected to grow at a CAGR of 11.06% during the forecast period. Dental clinics are healthcare facilities managed by a single or a group of dentists or medical professionals. They are much smaller than hospitals and typically only offer outpatient care. For brief stays, some dental clinics also provide an observation bed.

The term "hospitals" refers to medical facilities with organized medical and other professional staff. In addition to having inpatient facilities, they also provide dental, nursing, and other related services around the clock every day of the week. They also produce the data required for management, research, and education. In addition to offering dental services, they also offer auxiliary services like pharmacy and lab.

Recent Developments

• January 2023- Planet DDS, the leading provider of cloud-based dental software, announced itcompleted the acquisition of Cloud 9 Software from Accel-KKR, an investment firm focused on software and tech-enabled businesses.
• January 2023- Overjet, a leader in dental artificial intelligence solutions for providers and payers, announced a partnership with DECA Dental Group, one of the nation's premier dental support organizations.