I guess some will go away, but I can only say that in the past year, two new labs have opened in the UK that I know of. I've used them both, and one (AG Photo Lab) has become my regular.
Companies which adapt to change can thrive, those who stick to the old ways will perish. In London, you see little record shops all over the place, but HMV and Virgin Megastore are gone (or almost gone).
Film is of course now a niche, but so are vinyl EPs and mechanical watches, but each survive as they have adapted to their new market, and not attempted to compete against commodity markets.