Speech Therapy Market Is Estimated To Witness High Growth Owing To Rising Geriatric Population
The U.S. Speech Therapy Market is estimated to be valued at US$ 4.35 Bn in 2021 and is expected to exhibit a CAGR of 5.4% over the forecast period 2021-2028, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Speech therapy aims to treat speech, language, social interaction, and swallowing problems through various techniques and exercises. It involves diagnosing and treating issues related to verbal and nonverbal communication as well as swallowing difficulties. Speech therapy is often required for conditions such as delayed speech development, accents, lisps, involuntary vocalizations, impaired articulation, fluency issues, and others. It plays a vital role in improving patients' ability to communicate effectively.
Market key trends:
The U.S. speech therapy market is witnessing high growth owing to the rising geriatric population suffering from speech and communication disorders such as Parkinson's disease, stroke, and Alzheimer's. As per the Centers for Disease Control and Prevention (CDC), over 16 million adults aged 65 and older have difficulty communicating, swallowing, or controlling their voice. Moreover, children are also increasingly suffering from disorders like childhood apraxia of speech and autism spectrum disorder. The therapeutic procedures of speech therapy aid in improving their ability to understand and articulate speech. Advanced technological innovations focused on developing communication aids are further supporting the market growth.
Porter's Analysis
Threat of new entrants: Low barriers of entry for new companies with trained speech-language pathologists. However, major players have established brand names and infrastructure.
Bargaining power of buyers: Individual consumers have moderate bargaining power as they can compare prices and services of various providers. Healthcare facilities have higher bargaining power as they contract major providers for better rates.
Bargaining power of suppliers: Specialized speech therapy equipment and software suppliers enjoy strong bargaining power due to their differentiated products and technologies.
Threat of new substitutes: No major substitutes exist currently for speech therapy services. Digital therapy applications offer some competition but cannot fully replace clinical expertise.
Competitive rivalry: Intense competition exists among established players to acquire more healthcare facilities contracts and retain experienced therapists. Market consolidation is also witnessed through mergers and acquisitions.
SWOT Analysis
Strengths: Growing geriatric population needing post-stroke rehabilitation and rising incidence of communication disorders boost demand. Therapists offer personalized, evidence-based treatments.
Weaknesses: Shortage of qualified staff increases workload and reduces efficiencies. High customer acquisition and retention costs.
Opportunities: Untapped rural areas present expansion opportunities. Digital health solutions can extend reach to remote areas.
Threats: Economic slowdowns may dampen spending on elective therapies. Reimbursement uncertainties and regulatory changes pose challenges.
Key Takeaways
The U.S. Speech Therapy Market is expected to witness high growth at a CAGR of 5.4% over the forecast period, due to the increasing geriatric population, rising prevalence of neurological disorders, and growing awareness.
The South region is expected to witness the fastest growth in the country during the forecast period. This can be attributed to increased healthcare spending and presence of major players in states like Texas and Florida. The West region currently dominates the market owing to concentration of skilled speech therapists and favorable reimbursement policies in states like California.
Key players operating in the U.S. speech therapy market are Genesis Rehab Services, Speech Therapy Solutions, Inc., Reliant Rehabilitation, Kindred Healthcare, LLC, Smart Speech Therapy LLC, BenchMark Physical Therapy Institute, Rehabilitation Associates, Inc., Easy Speech Therapy Center, LA Speech Therapy Solutions, LLC, Teamwork Therapies, and The Hello Foundation. Major players are focusing on expansion strategies through service portfolio diversification, mergers, and acquisitions to strengthen their market presence.