Tomahawk, WI 03/06/2014 (Basicsmedia) – The market for continuous glucose monitoring markets is expected to expand by a CAGR of more than 13% through 2019 and Asia is expected to provide a fertile ground in the future. Companies like DexCom, Inc. (NASDAQ:DXCM) should focus on such growing markets to improve their revenues and profitability.

The growth factors:

However, the U.S. market now offers limited upside as continuous glucose monitoring machines have to be used along with conventional glucose meters. Conventional glucose meters suffer from a major disadvantage, they provide reading for a single point of time only. However, this issue can be resolved with the use of continuous glucose monitoring machines. These machines comprise of a sensor, transmitter and a receiver. As the glucose levels are monitored real time, doctors and physicians can make better judgments. These machines can be used for patients with both types of diabetes (type 1 and Type 2). With the incidence of diabetes rising rapidly, these machines will see a major growth in the coming times. DexCom, Inc. (NASDAQ:DXCM) is already poised for growth, the company saw a growth in EPS by 48% last year.

The market trend:

There are some limitations; high costs of the devices, reimbursement issues as well as low penetration need to be tackled. Though hospitals and doctors are encouraging patients to use these devices, the technology needs to be developed further before it can replace the conventional devices. A study has estimated that the market for these devices stood at $0.37 billion in 2012 and was expected to grow at a CAGR of about 14% from 2013 to 2019. The size would be almost $0.91 by 2019. Though DexCom, Inc. (NASDAQ:DXCM) lags behind the market leader, it is expected to witness the highest market growth of CAGR 22.6% during the period. Though North America currently accounts for a major percentage of sales, demand is expected to shift to the Asia Pacific region in the future as awareness of such products and a rise in disposable incomes drives the demand.

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