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The global prevalence of diabetes is predicted to skyrocket, with over 1 billion people potentially affected by 2050. This looming health crisis underscores the urgency to enhance diabetes management tools, including wearable monitors. In recent years, wearable devices have revolutionized the way people with diabetes monitor their blood sugar levels, and as more insurers expand coverage for these devices, a surge in sales is anticipated. The battleground for this growing market centers around the competition between Chicago-based Abbott Laboratories and San Diego-based Dexcom, two leading players in the field of continuous glucose monitors (CGMs).
Medicare's decision to broaden coverage of CGMs for individuals with Type 2 diabetes marked a significant milestone is the most substantial expansion of access to CGMs in the industry's history. This expansion has sparked a race for dominance in the global diabetes technology market, with both Abbott and Dexcom aiming to capture the attention of millions of potential customers.
The appeal of continuous glucose monitoring (CGMs) extends beyond their technological novelty; they hold the potential to revolutionize diabetes management. By providing uninterrupted monitoring, CGMs have the power to substantially enhance the quality of life for individuals grappling with diabetes. In the United States alone, approximately 1.4 million individuals contend with Type 1 diabetes, and an equivalent number manage intensive insulin regimens. Moreover, a significant portion of the diabetes community relies on basal insulin for management. The collective impact of CGMs on diabetes care is so profound that experts regard them as game-changers, prompting transformative policy shifts that widen access to this revolutionary technology.
These shifts resonate with the broader market trends. The global diabetes devices and therapeutics market, particularly the segment focused on continuous blood glucose monitoring devices, is projected to experience a robust Compound Annual Growth Rate (CAGR) of 14.2% during the years 2023 to 2027. This growth trajectory is set to propel the market size from US$6 billion in 2023 to an impressive US$10 billion by 2027. The growth trajectory aligns with the sector's past performance, as it achieved a CAGR of 13.6% over the preceding five years, culminating in a market size of US$5 billion in 2022. This growth underscores the increasing recognition of the significance of CGMs in diabetes management, reflecting both the rising demand and the tangible impact of these devices on patients' lives.
The adoption of CGMs and the market's evolution not only align with industry trends but also echo the sentiments of healthcare professionals and patients alike. As the adoption of CGMs accelerates, driven by their transformative capabilities and broader insurance coverage, the landscape of diabetes management is undergoing a notable transformation. This journey is not merely one of innovation; it is a paradigm shift in how diabetes care is approached and delivered, reflecting a commitment to enhancing the lives of millions affected by this chronic condition.
The expanded coverage for Type 2 diabetes is anticipated to contribute to this ambitious goal. On the other hand, Dexcom is leveraging direct-to-consumer marketing approaches, with tactics like Super Bowl ads aiming to reach a broader audience, especially primary care physicians who can recommend CGMs. Despite their differences, both Abbott and Dexcom are poised to reap the benefits of the rising demand for CGMs. The increasing prevalence of diabetes, combined with the evolving landscape of insurance coverage, suggests a promising future for these wearable devices. BioIntel360 suggests that as the battle for market share intensifies, the medical device industry's renewed focus on direct consumer engagement marks a notable shift in strategy, making it increasingly likely that both companies will emerge as winners in this rapidly growing sector.
