Global Dental Insurance Market to Hit Sales Revenue of US$ 425.8 Billion by 2031: Astute Analytica
Global dental insurance market is projected to reach US$ 425.8 billion by 2031 at a CAGR of 8.0% during 2023-2031, driven by increasing demand for dental services and growing awareness of oral health. However, high costs of dental care remain a challenge, particularly for uninsured and underinsured individuals. The dental discount plan segment is expected to dominate the market, with North America being a mature market. The market is highly consolidated, with the top 10 players contributing over 44% of the revenue.
New Delhi, April 10, 2023 (GLOBE NEWSWIRE) -- Global dental insurance market generated a revenue of US$ 198.4 Billion in 2022 and is estimated to reach a valuation of US$ 425.8 billion by 2031 at a CAGR of 8.0% during the forecast period, 2023–2031.
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Astute Analytica’s outlook of the global dental insurance market is positive, with increasing awareness about dental health and the need for regular dental check-ups driving demand. According to the World Health Organization, dental problems affect around 3.5 billion people worldwide. However, the number of people insured for dental care varies significantly by country and region. However, the penetration is significantly lower in the developing countries than developing.
Looking to the future, technological advancements such as teledentistry and digital imaging are expected to play an increasing role in dental care, which could impact the market. Additionally, rising healthcare costs and changing consumer preferences may also impact the market in the coming years. However, overall, the outlook for the global market remains positive, driven by increasing demand for dental services and the importance of maintaining good oral health.
High Costing to Remain a Key Challenge in the Global Dental Insurance Market
One of the challenges facing the market is the cost of dental care, which can be prohibitively expensive for many people. As a result, many consumers may be hesitant to purchase dental insurance, particularly if it is not offered as part of a larger health insurance package. According to the US Centers for Disease Control and Prevention, approximately 36% of adults in the US have not visited a dentist in the past year. In the UK, only about 50% of adults are registered with a dentist, and those who are not registered may be forced to pay high out-of-pocket costs for dental care, which often goes beyond $250 per visit.
Global Snapshot of Dental Insurance Market
In Australia, the Commonwealth Government provides funding for dental services for certain groups, including children and low-income individuals. However, many Australians still face significant out-of-pocket costs for dental care.
In Canada, dental care is not covered by the publicly-funded healthcare system, and only about one-third of Canadians have private dental insurance. As a result, many Canadians may delay or forgo necessary dental care due to cost concerns.
According to a study by the Organization for Economic Co-operation and Development (OECD), dental care expenditures accounted for 5% of total healthcare expenditures in OECD countries in 2021. However, there was significant variation in dental care expenditures among countries, with the highest per capita expenditures in Switzerland and the lowest in Turkey.
In Japan, dental care is not covered by the national health insurance system, and only about 60% of the population in Japan dental insurance market. This has led to concerns about access to dental care for low-income individuals and elderly adults.
In Brazil, dental care is included in the country's public healthcare system, but there are significant disparities in access to care among different regions and socioeconomic groups. Private dental insurance is also available, but it is primarily used by higher-income individuals.
In South Africa, dental care is not covered by the national health insurance system, and only about 16% of the population has private dental insurance. This has led to concerns about access to dental care, particularly for individuals living in rural areas.
In some countries, such as Germany and France, dental care is partially covered by national health insurance systems, but patients may still face significant out-of-pocket costs for certain procedures or treatments.
Growing Dominance of Dental Discount Plans in the Global Dental Insurance Market
The global market is experiencing significant growth, and the dental discount plan organization (DDPO) segment is expected to play a pivotal role in this trend. With an expected revenue share of over 51% by 2031, the DDPO segment is set to dominate the market due to the increasing demand for dental care services, driven by a growing awareness of the importance of oral health.
In addition, the DDPO is one of the fastest-growing segments in the dental insurance market, and the growth is attributed to the increasing popularity of dental discount plans. These plans offer significant savings to individuals and families on dental procedures, making them a highly sought-after alternative to traditional insurance plans. Government organizations and insurance companies are also promoting oral health and offering incentives for individuals to seek preventative care, which further fuels the growth of the DDPO segment.
Growing popularity of telemedicine is expected to positively impact the DDPO in the dental insurance market. Telemedicine has revolutionized the way people access healthcare, and the dental industry is no exception. With the use of technology, patients can now receive dental consultations and services from the comfort of their homes, without having to incur the cost of travel or in-person visits. This has significantly reduced the cost of dental services, making them more accessible to a broader range of individuals, and thus increasing the demand for dental insurance products.
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North America is Mature Dental Insurance Market: To Contribute Over 34% Revenue Share
The North American dental insurance market is experiencing steady growth, driven by factors such as rising awareness of the importance of oral health and an aging population that requires more dental care. The market is expected to continue growing at a healthy CAGR in the coming years. The region has around 60% dental insurance penetration rate across the US and Canada, indicating a significant portion of the population has dental insurance coverage. However, there is still a considerable portion of the population that is uninsured or underinsured for dental care across the US and Canada, presenting an opportunity for further growth in the market.
The revenue generated by the North American dental insurance market was expected to reach approximately US$ 134.6 billion by 2031, driven by increasing demand for dental services and rising healthcare costs. The United States was the largest market for dental insurance in North America, accounting for the majority of the revenue. The key consumer group for dental insurance in North America was individuals and families seeking coverage for routine dental care, including check-ups, cleanings, and basic procedures. However, there is also a growing demand for specialized dental services, such as orthodontic treatments, which are often not covered by traditional dental insurance plans.
Per capita spending on dental insurance in North America varied depending on the level of coverage and the specific plan. However, on average, per capita spending on dental insurance in the United States was estimated to be around $350 per year in 2021.
Global Dental Insurance Market is Highly Consolidated: Top 10 Players Contributed Over 44% Revenue Share
The market is a vital segment of the healthcare industry, providing coverage for a range of dental procedures and treatments. The market is highly consolidated, with top 10 large players dominating the landscape with more than 44% market share. Wherein, Delta Dental is the largest contributor with more than 12% contribution the market revenue. Other major players in the market include MetLife, Aetna, Cigna, and UnitedHealth Group.
One of the key drivers of consolidation in the dental insurance market is the high cost of entry. The regulatory environment, complex actuarial calculations, and network contracting requirements make it difficult for new entrants to establish a foothold in the market. As a result, the market is dominated by established players with deep pockets and a wide range of resources.
Despite the challenges of consolidation, the market is highly competitive. Companies are continually looking for ways to differentiate themselves from their rivals and gain an edge in the marketplace. To do so, they are investing heavily in technology and digital capabilities to streamline operations and enhance the customer experience. Many are also expanding their networks of dentists and offering new and innovative products and services to meet the changing needs of consumers.
Another key trend in the dental insurance market is the rise of consumer-driven healthcare. Consumers are increasingly taking an active role in their healthcare decisions, and dental insurance companies are responding by offering more personalized and flexible coverage options. This includes the ability to choose from a range of plans, access to telemedicine and other digital health tools, and the ability to manage their accounts and claims online.
Some of the Top Market Players Are:
Aetna Inc.
Aetna Inc.
Allianz
Ameritas
AXA
Cigna
Delta Dental
HDFC ERGO Health Insurance Ltd. (Apollo Munich)
MetLife Services and Solutions, LLC
United HealthCare Services, Inc
OneExchange
Envivas
United Concordia
Other Prominent Players
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