Optometrists in the US Industry Market Research Report Now Available from IBISWorld
Optometrists in the US Industry Market Research Report Now Available from IBISWorld
Los Angeles, CA (PRWEB) February 09, 2012
Growth in the Optometrists industry persisted through the economic recession, mainly due to resilient demand from the aging population and eye diseases associated with diabetes and computer use. During the five years to 2012, revenue is expected to increase at an annualized rate of 2.9% to $ 14.0 billion. “While low disposable income and high unemployment deterred some consumers from seeking eye care,” says IBISWorld industry analyst Sophia Snyder, “operators maintained growth by reducing prices and catering to favorably shifting demographics.” The slowly recovering economy is expected to foster stronger growth of 3.8% in 2012. However, revenue growth has not been paired with profit growth. Optometrists cut costs during the past five years, but payers did the same. Managed care vision plans and government payers (i.e. Medicare and Medicaid) kept reimbursement levels for industry services flat or only moderately increased them. Operating profit margins are expected to suffer slightly during the five years to 2012.
Profit is forecast to remain at about the same level through 2017. Insurance coverage and disposable income will improve, but mounting competition will suppress profit expansion. The proliferation of optometrist schools will cause the number of industry operators to continue rising, increasing a forecast 1.7% to 37,488 during the five years to 2017. According to Snyder, “Optometrists will also face rising competition from large chain retailers, such as Walmart. These behemoth companies will reduce the profitability of selling eyeglasses and contact lenses at industry establishments.” Optometrists are forecast to focus more on providing the full scope of medical eye care as a result. The Optometrists industry is highly fragmented and dominated by small companies, with no players accounting for a significant share of the industry; even the four largest players generate only a small portion of total industry revenue.
Concurrently, President Obama’s Patient Protection and Affordable Care Act is projected to cause the number of insured individuals to increase, particularly in 2014, when the health insurance exchange is planned to open. Vision care is expected to increase due to the Harkin Amendment, which prohibits its discrimination in health insurance plans. Rising insurance coverage and the aging population are forecast to be the main drivers behind industry performance during the five years to 2017.
For more information, visit IBISWorld’s Optometrists report in the US industry page.
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IBISWorld industry Report Key Topics
This industry includes practitioners that have a Doctor of Optometry (OD) degree. ODs examine, diagnose, treat and manage diseases, injuries and disorders of the eye and associated structures. Operators may also prescribe and sell eyeglasses and contact lenses. These practitioners operate private or group practices in their own offices or in facilities like hospitals. The industry does not include ophthalmologists (i.e. medical doctors who are also trained to perform eye surgery).
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
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