There are numerous players operating in the global insulin pumps market. Many organizations, especially in the North American and Asian regions, have their own manufacturing units, while some organizations rely on outsourcing. As there are plenty of large and small market players available, it is very tricky to analyze their market shares in the global market.
The global market for insulin pumps is majorly dominated by players, such as Medtronic Inc., F. Hoffmann-La Roche AG, Insulet Corporation, and others. Medtronic Inc. takes about 56.6%, F. Hoffmann-La Roche AG holds 3.9 %, Insulet Corporation takes about 10.3% market shares in the global insulin pumps market. Medtronic Inc. is also one of the world’s largest brand and leader in diabetes care. This company has worldwide operations and a wide-ranging product portfolio. Insulet Corporation is one of the leading companies for insulin pumps in the North American region. Its product, the Omni pod is one of the most demanded products in developing countries such as the US. Roche has a vast product portfolio in diabetes care. The company also has a wide geographic presence as it operates in over 100 countries all across the world with a huge workforce of around 91,700+ employees. The company has a significant presence in North America, Europe, and the Middle East and Africa, with commercial, manufacturing, and research facilities in more than one dozen countries
Bargaining Power of Buyers
The bargaining power of buyers in the insulin pumps market is medium. The market has a reasonable number of buyers, which include physicians, independent and device stores, research laboratories and patients. The existence of buyers in the market is high due to an increasing aging population, the rise in the prevalence of diabetes and lifestyle associated diseases. In addition, buyers are price sensitive, which discreetly affects bargaining power in the market. The insulin pumps market is characterized by a moderate degree of brand identity. Thus, brand plays an important role in the market, as buyers are moderately inclined towards recognized insulin pump manufacturers. In addition, switching cost is moderate for buyers, as pumps are cost-effective and are easily available in the market.
Bargaining Power of Suppliers
Bargaining power of suppliers in insulin pumps market is low to medium. Numbers of suppliers in the market are moderate which leads to the average bargaining power of suppliers. Another factor affecting the bargaining power of suppliers is the reasonable supplier switching cost for buyers. In addition, the low availability of substitutes moderately increases the bargaining power of suppliers. On the other hand, low chances of forwarding integration decrease the bargaining power of suppliers in the global insulin pumps market.
The Threat of New Entrants
The threat of new entrants is medium for the insulin pumps market. Any insulin pump manufacturing company trying to enter the market is required to follow strict regulatory standards to enter the industry. Moderate level of capital requirement is also a major barrier of entry for new players. The insulin pumps market is also characterized by a moderate degree of brand loyalty globally.
Rivalry
The degree of competition in the global insulin pump market is medium to high. The moderate grade of product differentiation among existing players, as insulin pumps are moderately expensive compared to various devices. Thus, this would increase the intensity of rivalry in the market. In addition, brand loyalty moderately affects the market, as buyers are moderately inclined towards established device manufacturers in the global insulin pumps market.
Threat of Substitutes
The threat of substitutes in the global insulin pumps market is medium to high. Substitutes, such as traditional methods, Self-Monitoring of Blood Glucose (SMBG) pose a moderate threat to the insulin pumps market; primarily due to their low cost. Buyers’ propensity towards the substitute is moderate. Thus, the availability of insulin pumps in rural areas is low due to poor healthcare infrastructure and high cost. In addition, the moderate degree of switching cost further minimizes the threat of substitute in the global insulin pumps market.
