Nov. 28, 2018
Top Six Things To Know About The U.S. Fertility Clinics Industry
By: John LaRosa, President, Marketdata LLC
The fertility clinics industry in the United States is booming, thanks to growing demand from American couples that have delayed childbearing, more widespread acceptance of fertility treatment and usage by gay couples, improved success rates, a strong economy, and significant demand from medical tourists coming from Europe and China. The industry is fragmented, largely untapped, and is ripe for consolidation.
The number of Assisted Reproductive Technology (ART) cycles performed by U.S. fertility clinics has been growing strongly since 2014 – estimated to total a record 333,600 IVF procedures this year, and demand is growing from the ranks of 7+ million infertile American women.
However, the high price of IVF cycles ($12,400 each cycle, sometimes requiring multiple cycles), plus fertility drugs, exams and diagnostic tests, deters many. The total price tag can top $50,000 or more. And, fertility clinics tend to be located in large metro areas, so accessibility is an issue for rural patients. Only 15 states mandate insurance coverage, so most pay out-of-pocket.
Key Facts About The Fertility Clinics Industry:
- Marketdata estimates that the U.S. infertility services market will reach $5.87 billion this year, up 21% from 2016. Marketdata forecasts 7.0% average annual growth in revenues through 2023, to $7.93 billion.
- The market is comprised of about 500 fertility clinics, 100+ sperm donor banks, the egg donors market, fertility drugs, and 1,700 reproductive endocrinologists – all competing for the business. ART / IVF procedures performed by fertility clinics are worth $4.1 billion of the total.
- This market is largely untapped, as 75% of potential clients are not using infertility services. Only 15% of U.S. women have used fertility drugs, only 5.5% have tried artificial insemination, and only 1% have used IVF.
- The global market for fertility drugs is worth $976 million. The U.S. market is worth $600-700 million, and is a mature market segment growing 6% annually. As IVF procedures’ success rates improve, less of these medications are needed.
- Only one “chain” of fertility clinics, IntegraMed, exists, as most programs are small regional operations or are part of a hospital or University. Most are privately owned. IntegraMed operates some of the industry’s top fertility clinics—capturing 7.6% of market revenues.
- The egg donor/frozen eggs market is growing strongly, estimated to be worth $182 million this year, propped up by high demand from non-U.S. patients in Europe and the Middle East.
To learn more about this industry, check out Marketdata’s new report: “U.S. Fertility Clinics & Infertility Services: An Industry Analysis”, November 2018, 132 pp. – See Services/Studies page of Marketdata website, Report FS2. Also: A $99 Overview (20 pp.) also available – Summary of key findings of larger report. Report OV30. Or, call to order: 813-971-8080.