The global smart insulin pens market is characterized by the presence of many global, regional, and local vendors catering to the demand created by a large patient pool suffering from underlying conditions such as diabetes and contagious diseases. The market is highly competitive, with players competing and collaborating to gain a substantial market share in the global smart insulin pens market. Expansion into newer untapped markets, novel product launches, rising collaborative agreements, and decisions undertaken to achieve operational efficiency are key factors that aid market growth. Our analysis revealed that market players have adopted different strategies and innovative research & development techniques to expand their business and secure their position in the global smart insulin pens market. In recent years, strategic collaborations by major players for product development and regional expansion into untapped markets have been used as a strategy to obtain operational efficiency.
Companion Medical (US) is a leading provider of easy-to-use, affordable diabetes technology focused on advanced insulin delivery and real-time actionable insights. The company received US Food and Drug Administration (FDA) approval for InPen, a smart insulin pen used to improve diabetes care. In April 2020, Companion Medical launched a new version of the InPen app for people with Type 1 or Type 2 insulin-dependent diabetes by providing a fixed dose and meal estimation dose calculator. Its innovative product line would help the company to gain maximum share in the market.
Novo Nordisk (Denmark) is a leading global healthcare company. The company has a strong clinical pipeline of drugs for diabetes and other serious chronic diseases. In September 2019, Novo Nordisk A/S and Medtronic plc announced a collaboration that will develop solutions to integrate insulin dosing data from future Novo Nordisk smart insulin pens into Continuous Glucose Monitoring (CGM) devices from Medtronic, such as the Guardian Connect system. The company’s strong R&D pipeline and inorganic growth efforts would help it garner a larger share in the market.
The global pharmaceutical company, Eli Lily and Company, made an early investment in the market with the launch of HumaPen. In December 2017, it started feasibility studies to create a connected ecosystem of diabetes management using its automated insulin delivery (AID) system. With this system, the company is aiming to bring a hybrid closed-loop platform to the market that can help patients dose their insulin based on real-time continuous glucose monitoring (CGM).
Michael Porter’s five forces model gives a framework that models the global smart insulin pens market, which is influenced by five forces. The strategic business managers trying to create an edge over competing firms in the smart insulin pens market and can utilize this model to comprehend better the industry connection in which the firm operates. The components of each of the forces and the degree or impact of each component in the context of the global smart insulin pens industry have been broken down and analyzed.
BARGAINING POWER OF SUPPLIERS
The suppliers in the global smart insulin pens industry are the developers and manufacturers of smart insulin pens. There are a low number of suppliers in the global smart insulin pens market, leading to an averagely low amount of bargaining power in the market. The switching cost of these suppliers is less as suppliers tend to enter into long term associations with the smart insulin pens manufacturers. Due to the low bargaining power of suppliers, the profit potential of the global smart insulin pens industry is increasing.
BARGAINING POWER OF BUYERS
The bargaining power of smart insulin pens buyers is moderate in the global smart insulin pens market; this is because of a large number of economical insulin pens providers in the industry. There are a limited number of manufacturers or suppliers of smart insulin pens present in the industry, which makes it a medium competitive market. Hence, the availability of a low number of manufacturers expands the selection arena of the sellers for the buyers, which leads to a reduction in the bargaining power.
THREAT OF NEW ENTRANTS
The threat of new entrants is high in the global smart insulin pens market. The smart insulin pens market is also characterized by a reasonable degree of brand loyalty, where establishing a brand name is difficult for newcomers. The availability of standard insulin pens in the market would help manufacturers to adopt the technological change in the products and launch innovative products in the market. Furthermore, the cost involved in the manufacturing setup is medium, which discreetly comforts the new entrants to enter the market easily.
THREAT OF SUBSTITUTES
The threat of substitutes in the global smart insulin pens market is very moderate. The buyer’s propensity to substitute is less due to the brand loyalty of customers in this market. In addition, the availability of the standard insulin pens in the market can affect the purchasing decisions of the buyers.
INTENSITY OF RIVALRY
The degree of competition in the global smart insulin pens market is considered to be moderate. The reserved degree of product differentiation among existing players increases the intensity of rivalry in the market. Smart insulin pens manufacturing companies are trying to develop products with high quality and enhanced safety to increase the demand for these products in the developed countries and developing regions. To overcome the competition, players are engaged in developing a process to lower their manufacturing costs. Moreover, the players are also developing advanced products for differentiating their brand from their competitors.
