Market for diabetes smart health devices and apps will grow from 1.2 million to 310 million users in 2018

GERMANY: The addressable market for mobile diabetes solutions - including sensors like Google diabetes contact lenses and diabetes apps - will rise to 310 million users (diabetics with smartphones).

With 1.2 million users in 2013 this is a yearly growth rate of 71 percent (CAGR) for the next five years. Mobile apps supporting diabetes patients are currently only used by 1.2 percent of the target group (2013). Although the market penetration will grow to 7.8 percent by 2018, the full market potential is not yet exhausted. The next five years will bring the diabetes app market to a new level. Chances for a major market breakthrough have improved.

By the end of 2013, only 1.2 percent of the diabetics with a capable device use a diabetes app (1.6 million users). Over the course of the next five years the market environment for diabetes apps will improve. The usage of diabetes apps within the addressable market will reach 7.8 percent in 2018. Now, 24 million people will actively use a diabetes app to manage their health condition.

These are findings from research2guidance's latest "Diabetes App Market Report 2014".

The main factors that will drive the penetration rate for diabetes apps within the target group are:

1. The ongoing growth of people with diabetics that are addressable with an app.

2. The changing of the role of mobile apps. From a stand-alone product to a bundle product, that leverages the app as a tool to sell devices (e.g. plug-in glucometers and wearable sensors) and services (e.g. remote monitoring and consultation).

3. An ongoing increase of the total supply of apps and of apps that adopt best practice elements for diabetes apps.

4. The beginning of the reimbursement of diabetes apps costs by traditional payers in countries with high yearly treatment costs for a diabetic patient.