Poor eating habits among Americans have also contributed to the rising number of diabetics and a higher demand for glucose monitoring equipment
Los Angeles, California (PRWEB) November 21, 2011
The outlook for the Glucose Meter Manufacturing industry is mostly bright, with revenue projected to increase at an average annual rate of 5.2% to $4.4 billion in the five years to 2016, according to a new report from IBISWorld, the nation’s largest publisher of industry research. Driven by rebounding economic conditions and higher insurance coverage, the industry will likely continue expanding in the coming years. To this end, revenue is projected to increase 5.8% to $3.6 billion from 2011 to 2012. Still, the industry's outlook is not completely rosy, since new federal regulations involving excise tax and market approval processes will likely constrain profitability. In addition, the maturing industry will increasingly require innovation to sustain its growth over the next five years. For this reason, industry research firm IBISWorld has added a report on the Glucose Meter Manufacturing industry to its growing Life Sciences and Medical Devices report collections.
The Glucose Meter industry has displayed healthy growth in the five years to 2011. The industry experienced a decline in sales during 2009 because diabetics tested their blood sugar levels less frequently under poor spending conditions. Nevertheless, an overall increase in the number of diabetics in the United States and rising awareness for diabetes has largely supported demand. To this end, revenue is estimated to increase at an average annual rate of 4.0% during the five years to 2011, with a 5.0% rise from 2010 to 2011 to reach $3.4 billion.
According to IBISWorld analyst, Janet Shim, the aging population in the United States has largely fueled the growth for Glucose Meters. Since the onset of diabetes is often correlated with age, the manufacturing industry has benefitted from a higher number of Americans over the age of 65. In fact, this age group represents the highest incidence of diabetes, with 26.9% of individuals in this group having diabetes in 2010, according to data from the Centers for Disease Control and Prevention. “Poor eating habits among Americans have also contributed to the rising number of diabetics and a higher demand for glucose monitoring equipment,” says Shim. Drastic increases in daily and fat consumption, compounded by a lack of physical activity, has led to more than a million new cases of diabetes diagnosed each year.
Despite strong demand supported by a rising number of diabetics, the industry is slowly maturing. Currently, there are more than 70 glucose monitors available in the market produced by major companies like Abbott Laboratories, Bayer AG, J&J and Roche. These glucose monitors essentially provide the same function of monitoring a patient's blood sugar levels. With slowing innovation and a lack of revolutionary products introduced, glucose meters have becoming increasingly commoditized. As a result, competition has increased, causing smaller companies to merge with others to pool their resources or exit the industry completely.
In the five years to 2016, the Glucose Meter industry will likely face risks associated with increased regulation. Because of greater taxes and changes in the 510(k) market approval reform, manufacturers may experience lower margins. Nonetheless, the outlook will remain positive, with revenue forecast to rise to $4.4 billion by 2016. Higher levels of insurance coverage and new product innovations will likely spur further industry growth.
For more information, download the full report from IBISWorld on the Glucose Meter Manufacturing industry
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