Dental Practice Management Software Market: Growth, Size, Share, and Trends

Market Growth Outlook Summary

The global dental practice management software market, valued at US$1.4 billion in 2022, is forecasted to grow at a robust CAGR of 8.6%, reaching US$1.5 billion in 2023 and an impressive US$2.3 billion by 2028. Key market drivers include the rising demand for advanced cosmetic dental procedures, growing oral hygiene awareness, and increased dental tourism in developing countries. Data privacy and security issues remain a challenge, while the consolidation of dental practices through Dental Support Organizations (DSOs) presents significant growth opportunities. The market is segmented by type (e.g., pureplay PMS, dental PMS add-ons), deployment mode, application, end user (e.g., dental clinics, hospitals), and region (with North America leading in market share).

Dental Practice Management Software Market Trends

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Dental Practice Management Software Market Dynamics

Driver: Rising demand for advanced cosmetic dental procedures

Cosmetic dentistry is one of the fastest-growing segments in the dental industry. With increasing disposable incomes, the willingness to undergo expensive cosmetic procedures has increased, specifically among the aging population. While the demand for tooth whitening procedures has grown significantly, veneers, non-metallic inlays and onlays, dental crowns, and bonding agents are the most preferred cosmetic products.

Restraint: Data privacy and security issues

Electronic information exchange ensures quality care. However, it also raises the biggest challenge regarding the security of data. According to a survey from Software Advice, 90% of small-to-medium-sized dental practices utilize dental practice management software to manage patient data, billing, and insurance claims. Federal legislation such as the Health Insurance Portability and Accountability Act (HIPAA) and the Health Information Technology for Economic and Clinical Health (HITECH) Act are working to tackle the issue of data security. These security breaches and concerns over data privacy are expected to act as a restraint for the market.

Opportunity: Consolidation of dental practices

DSOs have shown rapid growth in recent years, especially in the US, the UK, Spain, and parts of Southeast Asia, including China. According to the American Dental Education Association Survey of the US Dental School Seniors, the percentage of young dentists willing to join DSOs has increased from 12% in 2015 to 37.7% in 2022. This number is expected to reach 61.5% by 2027.

In the UK, most of the largest DSOs (7 out of the top 10 DSOs) are backed by private-equity investors. Similarly, in the US, 27 out of the top 30 DSOs are backed by private equity. This helps DSOs achieve economies of scale through increased purchasing power and shared resources and invest in resources such as practice management software. Additionally, in the US, several states have passed legislation that allows non-dentists to own dental practices, which enabled DSOs to expand more rapidly.

The introduction of DSOs and their rising adoption by dentists worldwide are expected to offer significant growth opportunities for the market.

Challenge: Resistance to switch to dental PMS

The adoption of new technologies in dental practices, especially for practices operating in developing countries, is challenging. Dental professionals show resistance toward the implementation of newer dental technologies. This is in part due to the lack of funds and resources to adopt and manage new technologies, coupled with a lack of knowledge about the functioning of new technologies. The ability of many private clinics in developing countries to make investments is substantially lower than in developed countries.

Dental Practice Management Software Market Ecosystem

Prominent companies in this market include well-established brand names. These companies have comprehensive products, strong consumer service network, and state-of-the-art technologies.

Some key market players include Henry Schein Inc (US), Patterson Companies, Inc. (US), CareStack, Inc. (US), Open Dental Software, Inc. (US) and  Carestream Dental LLC (US). 

Among end users, other end users of the dental practice management software industry to show the highest CAGR from 2023 to 2028.

The dental clinics, occupy the largest share of the dental practice management software market. Other end users, which includes DSOs and academic and research institutes, is exected to grow at the highest CAGR during the forecast period. The increasing private-equity funding for DSOs, benefits of economies of scale offered by DSOs, the increasing number of industry-academic agreements and collaborations, rising funding for dental research projects, and growing demand for specialized dental courses are some of the key factors driving the growth of the other end users segment.

North America was the largest market in the world for dental practice management software industry in 2022

In 2022, the North America occupied the largest share globally, in the dental practice management software market. This can mainly be attributed to the rising geriatric population, increasing patient awareness about the advantages of various dental procedures over traditional treatments, increase in private equity funding for dental practices/DSOs, higher per capita income, and high quality of treatments. 

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The key players in the Dental practice management software market include Henry Schein Inc, (US), Patterson Companies, Inc (US), CareStack, Inc. (US), and Carestream Dental LLC (US).

These companies adopted strategies such as partnerships, acquisitions, collaborations and joint ventures to strengthen their presence in the market.

Scope of the Dental Practice Management Software Industry

The study categorizes the Dental Practice Management Software Market to forecast revenue and analyze trends in each of the following submarkets:

By Type

• Pureplay PMS
• Dental PMS Add-ons

By Deployment Mode

• Web Based
• Cloud Based
• On premise

By Application

• Patient communication software
• Invoice/Billing software
• Payment processing software
• Insurance management software
• Other applications

By End User

• Dental Clinics
• Hospitals
• Other End Users

By Region

• North America
  • US
  • Canada
• Europe
  • France
  • Germany
  • UK
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Rest of Asia Pacific
• Latin America
• Middle East and Africa

Recent Developments of Dental Practice Management Software Industry

• In January 2023 A Henry Schein, Inc. (US) subsidiary, eAssist Dental Solutions (US), acquired a majority interest in Unitas PPO Solutions (US) to improve fee analysis services offered by Henry Schein, and enhance the collection processes of the eAssist platform.
• In April 2023, Henry Schein, Inc. (US) acquired a majority ownership position in Biotech Dental SAS (France), aiming to create a digital workflow that provides a seamless journey for customers to increase case acceptance and improve clinical outcomes for practitioners.
• In November 2022, The Curve Dental LLC (US) and Pearl Inc. (US) organizations announced plans to integrate Pearl’s Second Opinion disease detection capabilities within Curve Dental’s all-in-one SuperHero practice management system.
• In February 2022, Straumann Group acquired a minority share (29.6%) in CareStack, which gradually increased to 36.3%. This enabled CareStack to expand its service offering and presence in the US.

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