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The Medical Alert Industry Is Booming; Here Is What Investors Need to Know

The medical alert system market is vibrant and growing, and it’s ripe for investment. Although most of these companies are not public, they offer compelling opportunities to invest in the...

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This story originally appeared on ValueWalk

The medical alert system market is vibrant and growing, and it's ripe for investment. Although most of these companies are not public, they offer compelling opportunities to invest in the private markets. Here are some of the best makers of medical alert devices that would make excellent investments.

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Why It Makes Sense To Invest In Makers Of Medical Alert Devices

Many investors look for industries with massive growth when trying to decide where to invest, and the medical alert systems market certainly fits the bill. Market Research Future said earlier this year that the medical alert devices market will be worth $17.29 billion by 2027. The firm pegs the industry's compound annual growth rate at 6.46% for the period between 2017 and 2027.

The firm reports that innovations in medical alert devices have led to diverse business opportunities. The Internet of Things and artificial intelligence are presenting opportunities for growth at a time when the overall environment is excellent for the market.

For example, the aging Baby Boomer generation presents opportunities for growth in the medical alert devices market. As this generation ages, it will drive a 75% increase in the number of Americans ages 65 and up. The Population Reference Bureau estimates that there are over 75 million Baby Boomers in the U.S. right now. Additionally, the U.S. Census Bureau said that all Baby Boomers will be at least 65 in the year 2030, presenting even more opportunities for growth in the medical alert devices market.

Additionally, COVID-19 is still having an impact on the market and affecting the need for medical alert devices. Many patients who live alone are finding that they need to be able to contact emergency services easily and quickly in the event of complications, either while they have COVID or in the wake of the virus. COVID-19 has been shown to cause last-lasting effects, so many seniors who did not previously feel the need for a medical alert system are finding that they need one.

Where To Start

It seems like all the pieces for the medical alert devices market are coming together, creating excellent opportunities for investment, but how do you know which companies to invest in? The most successful players in the industry are continually investing in research and development so that they can lead the way in their market. All this R&D presents opportunities for investors to get a piece of the medical alert system pie.

Health.com's list of the best medical alert systems to invest in is a great place to start with determining the best makers of medical alert devices to invest in. These companies are leaders in the industry, and they offer some of the best systems on the market, thereby presenting opportunities for wise investors who want to dive in.

The Best Names To Invest In

Medical Guardian is the first name on Health.com's list, and for good reason. The company offers multiple device options and a massive 1,300-foot range on its alert buttons. Its pendants are waterproof so patients can wear them in the shower, and it offers both in-home and on-the-go monitoring. Medical Guardian has over 160,000 active subscribers in the U.S., making it one of the leading PERS providers in the country. The company has grown quickly since it was founded in 2005. It was named to Inc. Magazine's Fastest-Growing Private Companies list for the last eight years.

Other investors have already seen the advantages offered by Medical Guardian, as it received a growth investment from Water Street Healthcare Partners earlier this year. Water Street focuses on the healthcare industry and has committed a significant amount of capital for Medical Guardian to pursue acquisitions and organic initiatives to further its expansion and grow its leadership position.

Bay Alarm Medical is another company in the medical alert devices market that might make a good investment for those looking to invest in the private markets. The company has been innovating with new devices and systems to provide features that its competitors don't offer.

Investors who have a particular interest in on-the-go systems might be interested in the many innovations Bay Alarm Medical has made in this area. The SOS Smartwatch, On the Go Help Button and Splitsecond In-Car Alert prove this company's track record in the area of innovation. Bay Alarm Medical hasn't received any publicized or high-profile investments recently, so the company undoubtedly has a bright future ahead with any investments it does receive.

Wrapping Up

The medical alert system market is ripe for investment, although investors may have a difficult time finding information on which companies to invest in. The easiest way to invest is to look for a private-equity fund that focuses on the healthcare sector and then find out whether it invests in the medical alert system market.

Investors will find plenty to like when it comes to opportunities in the sector. It's just a matter of finding the best companies to invest in.