Outpatient physical therapy is in demand, as the U.S. population ages. A stable reimbursement environment, private equity investment, and the popularity of PT as an alternative to opioids for pain management all contribute to a positive outlook through 2030.
This is a fragmented but growing $53 billion industry of small physical therapy clinics and a few large chains.
Here are some things to know about this healthcare sector:
- Market Size: Marketdata estimates that the U.S. physical and occupational therapy industry was worth $53 billion in 2024, up 6.4 % from 2023 and up 64% from 2020. The market is forecast to grow at a 6.4 % average annual pace, to $70 billion by 2030.
- PT Clinic Metrics: There are 50,883 U.S. clinics providing physical therapy, occupational therapy, speech therapy and audiology. Average annual receipts per clinic are $871,000, with a net profit margin of 14-20%. Payroll accounts for 49 cents of each sales dollar.
- Therapists: The industry employs 464,000 workers and the average physical therapist earns $99,700/year. Two-thirds of physical therapists are female.
- PT Shortage: The high demand and low unemployment rates for physical therapists are due in large part to the number of therapists retiring (in 2019, approximately 49% of physical therapists were between ages 50-64, compared to 32% in 2010). The shortage for PTs is projected to be on average 16,000 each year until 2030.
- Market Share: This industry has been consolidating for years, yet private practice remains very fragmented. The 50 largest companies—two public operators and private equity-backed operations—captured just 29 percent of the industry’s market share. The potential for “roll-ups” is high.
- Large Chains: Six large chain competitors—Select Medical, ATI Physical Therapy, U.S. Physical Therapy, PT Solutions and Athletico—had combined revenues of $4.07 billion in 2024, and they operated 4,949 clinics (9.7% of the industry total). The leaders have been active in acquisitions.
Where to Learn More
For more in-depth information, be sure to read the 99-page report U.S. Physical Therapy Clinics: An Industry Analysis by Marketdata. This new study analyzes industry characteristics, revenue growth, customer and therapist demographics, key industry trends, operating ratios, industry regulations, market share, and top competitors.
About the Author: John LaRosa is the President of Marketdata LLC and is the author of 100+ industry and market studies. His research appears in top media outlets including ABC, CNN, Fox, Forbes, USA Today, The Wall Street Journal, The New York Times, and a variety of trade journals.
