Physical Therapy Rehabilitation Centers in the US - Market Research Report (2013-2028)
New York, United States
Last Updated: December 2023
NAICS OD6047Revenue
$46.9bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
691k
Businesses
50,516
Wages
$XX.Xbn
Physical Therapy Rehabilitation Centers in the US industry analysis
For most of the past decade, physical therapy rehabilitation centers in the US have enjoyed revenue growth as a result of an aging population since seniors aged 65 years and older are more likely to require physical therapy services as they face a higher incidence of injuries, illnesses and chronic conditions. Consumers have increasingly accepted the benefits of physical therapy services, supporting demand for the industry. However, in 2020, revenue dropped as the COVID-19 pandemic kept patients in their homes and away from inpatient facilities. The release of pent-up demand has brought back revenue growth, but inflationary pressures have muted the industry's rebound as consumers delay minor treatments not covered by their insurance plans. Industry revenue has been growing at a CAGR of 0.8% to $46.9 billion up to the end of 2023 when revenue will climb by 3.5%.
Trends and Insights
- The aging population has supported revenue growth. A higher incidence of musculoskeletal ailments among older adults is boosting demand for ongoing physical therapy.
- Orthopedic care provides the greatest share of revenue. Patients with severe physical injuries will quite often need long-term orthopedic care, providing a stable source of revenue for physical therapists.
- Physical therapy practices favor metros. Densely populated metropolitan areas give physical therapy practices access to a more extensive patient base.
- Alternative medicine can challenge physical therapy. Alternative medicine is less costly than physical therapy in non-emergency situations, boosting competitive pressures.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 0.8 % over the past five years, to reach an estimated $46.9bn in 2023.
Trends and Insights
COVID-19 struggles finally fade away
- In the years leading up to the pandemic, the aging population, rising levels of healthcare expenditure, broader insurance coverage and broader healthcare trends all supported demand for physical therapy rehabilitation centers.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Healthcare trends call for a change in physical therapy services moving forward
- Physical therapy rehabilitation centers will continue to see an uptick in demand as the population ages. Adults 65 and older have the highest incidence of musculoskeletal conditions.
Biggest companies in the Physical Therapy Rehabilitation Centers in the US
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
Encompass Health Corporation | 3,946.6 | 1,071.3 | 27.1 | |
Select Medical Holdings Corp | 915.8 | 78.9 | 8.6 |
To view the market share and analysis for all 2 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including General physical therapy, Speech and audiology and Geriatrics. General physical therapy is the largest segment of the Physical Therapy Rehabilitation Centers in the US.
Trends and Insights
Physical injuries fuel the need for orthopedic rehabilitation
- Orthopedic physical therapists diagnose, manage and treat musculoskeletal disorders and injuries, including rehabilitation after orthopedic surgery. Orthopedic rehabilitation is the largest source of revenue for physical therapy rehabilitation centers.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Physical Therapists in the US
- Specialty Hospitals in the US
- Nursing Care Facilities in the US
Complementors
- Primary Care Doctors in the US
- Specialist Doctors in the US
International industries
- Physical Therapists in Canada
- Other Health Services in Australia
- Other Health Services in New Zealand
Table of Contents
About this industry
Industry definition
Physical therapy rehabilitation centers are facilities that provide therapy and training for rehabilitation. Industry establishments include freestanding rehabilitation hospitals, acute care hospitals with inpatient rehabilitation centers and outpatient rehabilitation centers that provide physical, occupational or speech therapy services. This report excludes drug, alcohol and other rehabilitation services.
What's included in this industry?
Providing inpatient and outpatient physical, occupational and speech therapies (excluding drug and alcohol therapy)Examining the history and well-being of patientsEstablishing a management planIncorporating the results of laboratory and imaging studiesProviding manual therapy, education and techniques, such as ultrasound and electrical stimulationCompanies
Encompass Health CorporationSelect Medical Holdings CorpPurchase this report to view all 2 major companies in this industry.
Related Terms
OCCUPATIONAL THERAPYINPATIENT REHABILITATION FACILITIESOUTPATIENT REHABILITATION FACILITIESPHYSICAL THERAPYSPEECH LANGUAGE PATHOLOGYIndustry Code
NAICS 62134 - Physical Therapy Rehabilitation Centers in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The aging population has supported revenue growth. A higher incidence of musculoskeletal ailments among older adults is boosting demand for ongoing physical therapy.
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Orthopedic care provides the greatest share of revenue. Patients with severe physical injuries will quite often need long-term orthopedic care, providing a stable source of r...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Physical therapy practices favor metros. Densely populated metropolitan areas give physical therapy practices access to a more extensive patient base.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each state in 2023
- Number and share of revenue each state accounts for in 2023
- Number and share of wages each state accounts for in 2023
- Number and share of employees in each state in 2023
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Alternative medicine can challenge physical therapy. Alternative medicine is less costly than physical therapy in non-emergency situations, boosting competitive pressures.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
No rehabilitation centers hold a substantial market share. Despite several companies having a national presence, the industry has a significant focus on local and regional ca...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Encompass Health Corporation's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Select Medical Holdings Corp's performance by revenue, market share and profit margin from 2017 through 2023
Detailed analysis
- Description and key data for Encompass Health Corporation, and factors influencing its performance in the industry
- Description and key data for Select Medical Holdings Corp, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Medicare funding determines the success of rehabilitation centers. Many patients rely on Medicare for long-term treatment, providing a steady revenue stream.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Cost pressures constrain profit growth. The recovering patient volumes post-COVID-19 hasn't been enough to offset the rising input costs and wage expenditures PT clinics are ...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Industry Multiples (2016-2021)
- Industry Tax Structure (2016-2021)
- Income Statement (2016-2021)
- Balance Sheet (2016-2021)
- Liquidity Ratios (2016-2021)
- Coverage Ratios (2016-2021)
- Leverage Ratios (2016-2021)
- Operating Ratios (2016-2021)
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
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Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Physical Therapy Rehabilitation Centers in the US industry in United States in 2024?
The market size of the Physical Therapy Rehabilitation Centers in the US industry in United States is $46.9bn in 2024.
How many businesses are there in the Physical Therapy Rehabilitation Centers in the US industry in 2023?
There are 50,516 businesses in the Physical Therapy Rehabilitation Centers in the US industry in United States, which has grown at a CAGR of 3.8 % between 2018 and 2023.
Has the Physical Therapy Rehabilitation Centers in the US industry in United States grown or declined over the past 5 years?
The market size of the Physical Therapy Rehabilitation Centers in the US industry in United States has been growing at a CAGR of 0.8 % between 2018 and 2023.
What is the forecast growth of the Physical Therapy Rehabilitation Centers in the US industry in United States over the next 5 years?
Over the next five years, the Physical Therapy Rehabilitation Centers in the US industry in United States is expected to grow.
What are the biggest companies in the Physical Therapy Rehabilitation Centers in the US market in United States?
The biggest companies operating in the Physical Therapy Rehabilitation Centers market in United States are Encompass Health Corporation and Select Medical Holdings Corp
What does the Physical Therapy Rehabilitation Centers in the US in United States include?
Providing inpatient and outpatient physical, occupational and speech therapies (excluding drug and alcohol therapy) and Examining the history and well-being of patients are part of the Physical Therapy Rehabilitation Centers in the US industry.
Which companies have the highest market share in the Physical Therapy Rehabilitation Centers in the US in United States?
The company holding the most market share in United States is Encompass Health Corporation.
How competitive is the Physical Therapy Rehabilitation Centers in the US industry in United States?
The level of competition is high and increasing in the Physical Therapy Rehabilitation Centers in the US industry in United States.
