diabeticThe established US and European diabetes diagnostics space is experiencing a revival as high market concentration and sweeping regulatory changes force companies to build differentiated platforms and devices.

Superior tests developed through the discovery of new markers, such as microalbumin or glycated albumin, will displace glucose tests and widen market scope. New analysis from Frost & Sullivan, Analysis of the US and European Diabetes Diagnostics Market, finds the market earned revenues of $9.04 billion in 2014 and estimates this to reach $10.90 billion in 2020.

Evidence of rapid and accurate outcomes of point-of-care tests (POCTs) for diabetes diagnostics is spurring adoption in both the US and Europe. “In the next decade, non-invasive methods such as biosensor, near-infrared and disposable patches will essentially replace self-monitoring blood glucose tests,” said Frost & Sullivan Healthcare Industry Analyst, Aish Vivekanandan. “Pioneering non-invasive technologies like Google’s tear-analysing contact lenses and Miraculins’s non-invasive POCT will transform diabetes diagnostics.”

The self-monitoring blood glucose segment will be further stalled by strict reimbursement policies. The implementation of the Affordable Care Act in the US and shrinking budgets in Europe will lead to heavy reimbursement cuts and pricing pressures restraining uptake.

Mature companies like Roche and Bayer are reshuffling their diabetes divisions as well as scouting for acquisitions and partnerships to minimalize losses and boost profitability. These steps will also help suppliers to differentiate products and stand out from the competition.

“In addition to collaborative ventures, companies incorporating digital technology, such as apps and networks, to existing platforms will thrive in the concentrated US and European diabetes diagnostics space,” added Vivekanandan. “Moreover, the integration of diagnostics and treatment in an individual’s diabetes care will enable companies to provide personalized treatment.”