Research2Guidance: The digital diabetes care to reach $1.5B in 2024

This year, it is expected to exceed $742M, growing at an average CAGR of 50% annually.

The digital diabetes care market forecast

The global digital diabetes care market will exceed $742M in 2020, growing at 50% on average annually (CAGR) – according to Research2Guidance’s latest report “The Global Digital Diabetes Care Market 2020: Going Beyond Diabetes Management.”

For digital diabetes care providers, the main revenue sources will be bundles, standalone digital coaching services, and technology licensing.

The expansion of digital solutions for diabetes care already resulted in impressive revenue growth: in 2019, the digital diabetes market revenue reached US$ 320 million. In the next five years, this growth will continue, with global revenues expected to exceed $1.5 billion in 2024, growing at 37% on average annually (CAGR). The revenue structure will change, as new revenue sources, such as telehealth consultations and digital prescription services, emerge along with more traditional ones, such as digital coaching, device and service bundles, and technology licensing.

Key trends

Research2Guidance has identified the following four key trends that will drive the digital diabetes market to the multibillion future:

  • Diabetes providers expand to other chronic conditions and create chronic care platforms. Vertical (across various chronic conditions) and horizontal (along various types of services) expansion can help them create new revenue opportunities, improve payer acceptance, and grow user bases beyond the diagnosed diabetes audience.
  • New reimbursement opportunities open telehealth and remote monitoring markets for digital diabetes providers.
  • Medical device manufacturers get leading positions in the digital diabetes market, showing more interest in developing digital solutions. They have the potential to control the digital diabetes market by focusing efforts on developing the digital component of their ecosystems.
  • Continuous glucose monitoring systems (CGMs) become common and connected. These systems are no longer overly expensive niche products for exceptionally difficult cases, and in the next few years – the market will see their further “consumerization” due to price decline.

The confident growth of digital diabetes care will be also driven by the growth of the global addressable market for digital diabetes services. Between 2019 and 2024, the number of diagnosed diabetics with access to smart devices is set to increase from 109 million to 180 million. This will drive further growth for digital solutions in the upcoming years.

On the record

“Establishing themselves in diabetes management with strong and relevant offerings, the leading market players are looking to expand into new chronic conditions and add new types of services, thus creating integrated digital multi-conditional chronic care platforms,” said Ralf Jahns, Managing Partner at Research2Guidance. “On the other hand, new opportunities have emerged in the reimbursement market, opening telehealth and remote monitoring for digital diabetes providers.”

The context

Diabetes affects 463M patients and costs $760B annually (IDF). Digital diabetes solutions have disrupted the diabetes care market and are changing overall chronic care, targeting not only diabetes but also its various comorbidities — such as obesity, hypertension, and depression.