The North American continuous glucose monitoring (CGM) market (hereafter, referred to as the market studied) is expected to record a CAGR of 18% during the forecast period, and it registered a revenue of USD 2.1 billion in 2019. The countries in the North American region show a high prevalence of diabetes. According to WHO, in 2015, approximately 1.6 million deaths were attributed directly to diabetes on a global scale. In 2012, 2.2 million deaths in North America were caused due to high blood glucose levels in the patients. According to the ADA (American Diabetes Association), the total assessed cost for diagnosed diabetes in 2017 was USD 327 billion, which is inclusive of USD 237 billion in direct medical costs and USD 90 billion in augmented productivity. The advent of CGM has revolutionized the process of testing for blood sugar, as CGM-based devices measure blood sugar every few minutes via a tiny sensor inserted under the skin of the patient and wirelessly transmit the results to a pump, smartphone, or any other device.
Key Market Trends
Continuous Glucose Monitoring Devices are Slowly Gaining Market Share
CGMs are used to provide a further descriptive representation of blood glucose patterns and tendencies than what can be achieved by conventional routine checking of glucose levels at set intervals. The current CGM devices can either retrospectively display the trends in the levels of blood glucose by downloading the data or give a real-time picture of glucose levels through receiver displays. Most of the real-time CGMs can offer an alert to patients, parents, or caregivers during actual or pending glycemic visits, to facilitate timely management of blood glucose. This factor, along with the fact that CGM devices are becoming cheaper with the advent of new technologies, like cell phone integration, may help the CGM market witness steady growth during the forecast period.
The United States May Maintain Dominance in the Market
The United States accounted for about 96% of the market share in 2019, and it is expected to register a CAGR of over 18% between 2020 and 2025. Due to the adaptability of new technology and the high prevalence of diabetes population, the United States dominates the market, among other countries. It is imperative that the CGM devices be used alongside insulin pumps. As the trends show a higher number of diabetic patients using insulin pumps for diabetes management, it can be predicted that the number of units of CGM devices sold will also follow. For the cost categories analyzed, care for people with diagnosed diabetes adds up to USD 1 in every USD 4 spent for healthcare in the United States, and more than 50% of that expenditure is directly accountable to diabetes. Type-1 patients require continuous monitoring for keeping a close watch on their glucose levels. Type-1 diabetes population in the United States is anticipated to cross 1.29 million by 2025. which is likely to generate demand in the coming years.
The market comprises very few players that occupy a major share. A significant share of the market is held by CGM manufacturers that are concurrent with strategy-based M&A operations, and they are always entering new markets to generate new revenue streams and boost the existing ones. The measures taken by the market players may ensure a competitive market place, forcing the companies to experiment with more new technologies to achieve uniqueness in their products. For instance, in March 2019, Dexcom announced that the company received approval for its G6 continuous glucose monitor (CGM) from Health Canada. By September 2019, Dexcom G6 CGM was launched in Canada. The system allows 10 days of wireless glucose monitoring without fingersticks. Earlier, in July 2018, Abbott’s new FreeStyle Libre Flash Glucose Monitoring System was approved by the US FDA. It was the first continuous blood sugar monitor for people with diabetes that does not require backup finger prick tests.
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