Much of the dental equipment market is already saturated, due to the equipment being mandatory for dental practices to have. For example, every practice will need things like patient chairs and autoclaves in order to serve their patients. Since this equipment is often made by high-quality manufacturers, it rarely falls apart, and so sales of new equipment are limited. The expansion of Dental Support Organizations (DSOs) and opening of new clinics will help sales totals increase in some market segments.
Although still premature, the increasing popularity of “corporate dentistry” is quickly shaping the landscape of the European market. Corporate dentistry refers to the concept of business people purchasing existing clinics and creating chains of dental clinics, while improving existing operations and reducing costs to improve profitability. As these clinics increase in number, so will the demand for equipment that offers the best value, since these clinics will need to provide a high standard of care at a reasonable cost. Owners of these clinics are also looking to capitalize on new trends, in order to differentiate themselves; thus, they will be more likely to purchase equipment featuring the latest technological advancements and innovations. This overall trend affects all seven market segments and is a key driver of the market throughout the forecast period.
While simultaneously being a principal driver, corporate dentistry is having an adverse effect on market value, as average selling prices continue to face downward pressure. The increasing popularity of bundling is causing ASPs to fall since the equipment is often thrown in at no cost, or heavily discounted when a large purchase is made.