Strong Demand for $53 Billion U.S. Physical Therapy Clinics Industry

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.

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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.