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The market for continuous glucose monitoring systems, where companies such as Abbott Laboratories (ABT) and DexCom (NASDAQ:DXCM) dominate, is expected to reach $31.7B by 2031, Allied Market Research said in a recent industry report.
Rising diabetes prevalence, technological advancements, and the advantages of CGM devices over the point of care (POC) glucometers are expected to support this trend which, according to the research firm, implies a compound annual growth rate of 17% from 2022 to 2031.
The attractiveness of the market has fueled competition. In February, shares of DexCom (DXCM) and Abbott (ABT) dipped after Bloomberg reported that Apple (AAPL) had accomplished significant breakthroughs in a secret project to launch a CGM system.
Continuous glucose monitoring allows people with diabetes to tightly control their blood glucose levels, reducing the risk of hyperglycemic as well as hypoglycemic states and associated clinical implications such as eye and nerve diseases.
Commonly used single-point finger stick devices, which require patients to prick one of their fingertips, is a painful and difficult method that causes inconvenience. In contrast, a CGM device can measure glucose levels through a tiny sensor placed under the skin, usually on the belly or arm.
Then, a transmitter sends these data to a mobile device or a monitor, which could be part of insulin pumps manufactured by companies such as Medtronic (MDT), Tandem Diabetes (TNDM), and Insulet (PODD).
In addition to Abbott (ABT) and DexCom (DXCM), Medtronic (MDT), Roche (OTCQX:RHHBY), and Senseonics (SENS) also operate in the CGM market.
According to the report, heavy utilization of CGMs in home healthcare and ICU settings, along with a rise in product awareness, are expected to create multiple tailwinds for key market players. However, strict regulatory measures and adverse effects of the system are anticipated to blunt the growth to a certain extent.
Demographically, the main factor behind the market growth is the adult population which in 20221 accounted for over 90% of global CGM revenue. This segment is projected to record the fastest CAGR of 17.1% over the forecast period due to a rise in diabetes prevalence and a general increase in the elderly population worldwide.
As for end users, the hospital and clinic segment could record the fastest CAGR of 17.4% from 2022 to 2031, while geographically, Asia-Pacific should record the highest CAGR of 17.9%.
A high prevalence of diabetes in India, rising healthcare awareness, and an increased focus on R&D work to develop cutting-edge CGM devices could be driving factors behind this growth.
However, driven by higher adoption of advanced CGMs, advancements in healthcare infrastructure, and other factors, North America generated nearly 50% of the total global CGM market revenue in 2021.
Seeking Alpha analyst Jonathan Wheeler argues that the basal insulin Type 2 patients, who are expected to receive Medicare coverage for their CGM devices from this year, “should be a rising tide to lift all boats for CGM providers in the space.”
Image and article originally from seekingalpha.com. Read the original article here.