Glucose monitoring app recall risks Tandem’s position in insulin pump market: GlobalData

The recall of the t:connect app that allows users to view blood sugar data may unintentionally diminish Tandem’s position in the insulin pump market, which was worth $6.58 billion in 2023 and is projected to reach $14.06 billion in 2033 with a compound annual growth rate (CAGR) of 7.89 per cent, according to GlobalData.

The unintended side effect of the app is the rapid depletion of Tandem’s t:slim X2 insulin pump battery. This may be caused by the app retrieving more data than intended, causing excessive Bluetooth communication and therefore depleting the battery. As a result, a loss of power in the insulin pump could occur causing underdelivered insulin and hyperglycemia. While the company has issued a software fix, it is still receiving reports of battery issues. Since the update, there have been a total of 107 malfunctions and two hospitalisations.

Although Tandem has a significant market share in the insulin pump market with 9.2 per cent, it is overshadowed by major players that dominate the space. Medtronic, Insulet, and Roche have market shares of 41.4 per cent, 16.2 per cent, and 14.7 per cent, respectively.

Aidan Robertson, Medical Analyst at GlobalData, states, “The recall poses a significant risk to Tandem’s reputation in the insulin pump market, as many of these devices prevent life and death scenarios for patients. The longer this issue persists, the greater the potential damage to their market share and how much trust consumers will put in the device in future.”

The demand for insulin pumps has grown immensely in recent years, driven by the increasing prevalence of diabetes worldwide as well as the rising awareness of consumers regarding advanced technologies in this field.

“The market is expected to grow even faster due to the increasing incidence rate and reimbursement policies being implemented in developed countries. The only barriers to this growth would be the high cost of the devices and the lack of accessibility of healthcare, specifically in developing countries, making the use of insulin pumps more restrained,” adds Robertson.

Robertson concludes, “As the insulin pump market continues to grow at a rapid rate, while its competitors can expect similar growth, Tandem’s market share could take a significant hit in response to this ongoing incident, and patients may look elsewhere for more reliable devices.”