Overview

Building muscle: As the population ages, demand for physical therapy will strengthen

IBISWorld’s industry research report on Physical Therapists provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

REPORT SNAPSHOT

Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Revenue
$34bn
Annual Growth
12-17
2.8%
Annual Growth
17-22
Profit
Employment
468,502
Business
117,789

Industry Threats & Opportunities

  • An aging population and greater insurance coverage will boost demand for physical therapy
  • Physical therapists who predominantly serve the elderly have experienced the most growth
  • An aging population and higher prevalence of chronic diseases will increase industry demand
  • Industry Analysis & Industry Trends

    Over the five years to 2017, physical therapy's role in promoting health and wellness has increased, benefiting the industry. Moving forward, revenue for the Physical Therapists industry is expected to continue to grow as healthcare reform keeps demand for physical therapy high. Additionally, the industry will play a vital role in home health, as more of the senior population requires physical rehabilitation services to stay mobile and self-sufficient. However, Medicare reimbursement caps for physical therapy may constrain revenue growth in the future.

    Industry Report - Industry Locations Chapter

    The concentration of physical therapists in the United States largely follows the distribution of the population. The number of health professionals per capita tends to be relatively high in large metropolitan cities compared with other areas, particularly relative to rural areas. Unfortunately, in rural environments, people with disabilities have limited access to opportunities for physical activity, and often lack basic sidewalks and curbs that typically encourage daily physical activity. As a result, physical therapists are often in greater need on a per capita basis in these areas. However, the size of the market is not as appealing for a potential new clinic, so the number of operators remains low. Dat

    Additional Insights for the Physical Therapists Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Physical Therapists Industry are

  • Development of a symbiotic relationship with another industry
  • Having a good reputation
  • Ability to quickly adopt new technology
  • IBISWorld analysts also discuss how external factors such as Median age of population and Number of employees in the Physical Therapists industry impact industry performance..

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    Industry Products

    What is the Physical Therapists Industry?

    Operators in this industry include independent health practitioners primarily engaged in outpatient services. These services include administering medically prescribed rehabilitation for patients suffering from injuries or muscle, nerve, joint and bone disease; planning and administering educational, recreational and social activities designed to help patients or individuals with disabilities; and diagnosing and treating speech, language or hearing problems.

    Industry Products
    Mental disorders
    Diseases of the nervous system and sense organs
    Diseases of the musculoskeletal system and connective tissue
    Symptoms, signs and ill-defined conditions
    Injury and poisoning
    Industry Activities
    Examining history and physical well-being of patients
    Establishing a management plan
    Incorporating the results of laboratory and imaging studies
    Providing manual therapy, education and techniques

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Median age of population
  • Number of employees
  • Federal funding for Medicare and Medicaid
  • Number of people with private health insurance
  • Per capita disposable income
  • National unemployment rate

  • Current Performance
  • Government funding
  • Burgeoning elderly population
  • Wages and establishments
  • Chart: Revenue Growth

  • Industry Outlook
  • Aging population
  • Growing access to health insurance
  • Industry structure
  • Table: Physical Therapists Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Physical Therapists Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Life Insurance & Annuities
  • Health & Medical Insurance
  • Property, Casualty and Direct Insurance
  • Workers' Compensation & Other Insurance Funds
  • Primary Care Doctors
  • Specialist Doctors
  • Home Care Providers
  • Hospitals
  • Nursing Care Facilities
  • Consumers

  • Key Selling Industries
  • Brand Name Pharmaceutical Manufacturing
  • Diagnostic & Medical Laboratories
  • Generic Pharmaceutical Manufacturing
  • Glasses & Contact Lens Manufacturing
  • Medical Instrument & Supply Manufacturing
  • Primary Care Doctors
  • Specialist Doctors

  • Products & Services
  • Diseases of the musculoskeletal system and connective tissue
  • Other
  • Symptoms, signs and ill-defined conditions
  • Injury and poisoning
  • Diseases of the nervous system and sense organs
  • Mental disorders
  • Chart: Physical Therapists Industry Products and Services Segmentation

  • Demand Determinants
  • Employment and demographics

  • The level of employment in the United States affects the frequency of workplace injuries and the number of people with private insurance coverage. The aging US workforce has, and will continue to, increase the incidence of work-related injuries. Adults tend to be the major beneficiaries of most industry services. Particularly, those aged 55 years and older are more exposed to injury that requires rehabilitation services compared with other age demographics.

    The incidence of health-related disorders in the United States will also impact demand for industry services. According to the National Institute of Deafness and Other Communication Disorders, there are about 42.0 million Americans with speech, voice or language impairments, or hearing loss. Also, rising obesity rates tend to increase the rate of injuries in workplaces.

  • Government policies

  • Government and private sector initiatives have, in the past, reduced the incidence of injuries and illness in the workplace. For example, the incidence rate of workers' compensation claims has decreased over time as a result of occupational health and safety laws and regulations, government health and safety education programs and workers' compensation program rules and education programs. There have been improvements in workplace safety, early intervention initiatives, a change in the type and composition of jobs, efforts by payers to manage and control costs and improved risk management by employers.

    Generally, workers' compensation is a state-mandated, comprehensive insurance program for work-related injuries and illnesses. In the United States, each of the 50 states, the District of Columbia and, for federal employees, the federal government, maintains its own individual workers' compensation program. Each jurisdiction is responsible for implementing and regulating its own program. Consequently, workers' compensation benefits and arrangements vary considerably among jurisdictions.

    Workers' compensation legislation in the United States generally requires employers, either directly or indirectly through the use of insurance, to fund the total costs of an employee's medical treatment and lost wages, legal fees, and other costs associated with a work-related injury or illness. Employers are required to provide first-dollar coverage with no copayment or deductible due from the injured or ill employee and, in many states, there is no lifetime limit on expenses any one employee can incur. In exchange for providing this coverage to employees, employers are not liable for benefits in excess of those provided under the relevant state statutes. Employers provide extensive benefits coverage for medical costs and lost wages by purchasing commercial insurance from private insurance companies, by participating in state-run insurance funds or by self-insuring.

    The Centers for Medicare and Medicaid Services (CMS) is a US federal agency that determines the reimbursement rate that physical therapists receive for treating patients who are covered under Medicare or Medicaid. The CMS also sets limits to the amount of physical therapy a person can receive annually. If the CMS lowers the reimbursement rate or the spending cap, demand for industry services will be reduced.

  • Cost considerations

  • Major Markets
  • Private insurance providers
  • Government payers
  • Other
  • Out-of-pocket
  • Chart: Major Market Segmentation for the Physical Therapists Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Rent and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Physical Therapists

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Physical Therapists Industry

  • Industry Globalization
    Major Companies
    There are no major players in this industry
    Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Physical Therapists Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Physical Therapists Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Number of people with private insurance (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    Autonomous Practice
  • A physical therapy practice that is characterized by independent, self-determined professional judgment and action.
  • Incontinence
  • Involuntary urination or defecation.
  • Musculoskeletal
  • A term that refers to issues related to muscles and the skeleton.
  • Occupational Therapy
  • Therapy to help people participate in the things they want and need to do through the therapeutic use of everyday activities.
  • Orthopedic Therapy
  • Therapy to manage and treat disorders and injuries of the musculoskeletal system.
  • Stroke
  • A condition that occurs when the supply of blood to your brain is suddenly disrupted.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Physical Therapists:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Physical Therapists market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Physical Therapists, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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