The global medical device outsourcing market was valued at $59,723.42 million in 2020, and is projected to reach $137,948.92 million by 2030, registering a CAGR of 8.9% from 2021 to 2030.
A medical device manufacturing outsourcing is a type of contract manufacturing, in which a company signs a contract with a third party to perform business functions such as prototyping, product design, supply chain management, and manufacturing of a medical equipment or a part a complete product. Contract manufacturing helps medial companies to upkeep with the pace of technological developments in medical devices and deliver novel and desirable products with greater efficiency, speed, and cost-effectiveness.
The medical device outsourcing market is witnessing tremendous growth owing to increase in demand for medical devices combined with rise in price competition, which is expected to drive the market during the forecast period. In addition, growing difficulties in product engineering along with the rise in number of new entrants are anticipated to shape the future of the market. The increase in prevalence of chronic disorders boosts the demand for medical devices. This, in turn, is working in favor of the market. However, the leakage of confidential data, and changes in the international standard organization (ISO): 13485, strict regulatory framework, disruption in the supply chain management due to a pandemic is poised to impede the market growth to certain extent.
The medical device outsourcing market in this report is studied on the basis of product, by device type, by application, services, and region. On the basis of product, the market is divided by finished goods, electronics, and raw materials. On the basis of the device type, the market is classified into class I devices, class II devices, and class III devices. On the basis of application, orthopedics and spine, cardiovascular, radiology, general medical devices, and others. On the basis of services, the market is segregated into prototype development, finished device manufacturing, assembly & packaging, and testing & regulatory support services. On the basis of region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The major factors that drive the market are rise in incidence of chronic infections, acceptance to use non-invasive device, rise in healthcare expenditure, rise in the geriatric population, and rise in the use of interventional medical devices (IMDs). Moreover, growing elderly population and rise of chronic diseases are anticipated to create lucrative opportunities for the growth of the medical device outsourcing market.
However, lack of skilled labor remains a major challenge. Moreover, threat of loss of confidential information and lack of reimbursement policies pose hurdles in the medical devices outsourcing market.
Region wise, this market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. North America accounted for the largest market share in the medical device outsourcing market in 2020, and is expected to retain its dominance throughout the forecast period. This is primarily attributed to the highly developed healthcare sector, increase in awareness among healthcare professionals about medical devices, and the continuous evolution of technology. However, Asia-Pacific is expected to witness considerable market growth during the forecast period, due to low cost of products and labor for manufacturing.
The major players operating in the global medical device outsourcing market are Cardinal health, Inc. Onex Corporation, TE Connectivity Ltd., Flex Ltd., Heraeus Holding GmBH, Integer Holdings Corporation, Nortech Systems Incorporated, Plexus Corp., Sanmina Corporation, and West Pharmaceutical Services, Inc. These players adopted product launch, collaboration, and merger & acquisition as their key developmental strategies.
A medical device manufacturing outsourcing is a type of contract manufacturing, in which a company signs a contract with a third party to perform business functions such as prototyping, product design, supply chain management, and manufacturing of a medical equipment or a part a complete product. Contract manufacturing helps medial companies to upkeep with the pace of technological developments in medical devices and deliver novel and desirable products with greater efficiency, speed, and cost-effectiveness.
The medical device outsourcing market is witnessing tremendous growth owing to increase in demand for medical devices combined with rise in price competition, which is expected to drive the market during the forecast period. In addition, growing difficulties in product engineering along with the rise in number of new entrants are anticipated to shape the future of the market. The increase in prevalence of chronic disorders boosts the demand for medical devices. This, in turn, is working in favor of the market. However, the leakage of confidential data, and changes in the international standard organization (ISO): 13485, strict regulatory framework, disruption in the supply chain management due to a pandemic is poised to impede the market growth to certain extent.
The medical device outsourcing market in this report is studied on the basis of product, by device type, by application, services, and region. On the basis of product, the market is divided by finished goods, electronics, and raw materials. On the basis of the device type, the market is classified into class I devices, class II devices, and class III devices. On the basis of application, orthopedics and spine, cardiovascular, radiology, general medical devices, and others. On the basis of services, the market is segregated into prototype development, finished device manufacturing, assembly & packaging, and testing & regulatory support services. On the basis of region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The major factors that drive the market are rise in incidence of chronic infections, acceptance to use non-invasive device, rise in healthcare expenditure, rise in the geriatric population, and rise in the use of interventional medical devices (IMDs). Moreover, growing elderly population and rise of chronic diseases are anticipated to create lucrative opportunities for the growth of the medical device outsourcing market.
However, lack of skilled labor remains a major challenge. Moreover, threat of loss of confidential information and lack of reimbursement policies pose hurdles in the medical devices outsourcing market.
Region wise, this market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. North America accounted for the largest market share in the medical device outsourcing market in 2020, and is expected to retain its dominance throughout the forecast period. This is primarily attributed to the highly developed healthcare sector, increase in awareness among healthcare professionals about medical devices, and the continuous evolution of technology. However, Asia-Pacific is expected to witness considerable market growth during the forecast period, due to low cost of products and labor for manufacturing.
The major players operating in the global medical device outsourcing market are Cardinal health, Inc. Onex Corporation, TE Connectivity Ltd., Flex Ltd., Heraeus Holding GmBH, Integer Holdings Corporation, Nortech Systems Incorporated, Plexus Corp., Sanmina Corporation, and West Pharmaceutical Services, Inc. These players adopted product launch, collaboration, and merger & acquisition as their key developmental strategies.
KEY BENEFITS FOR STAKEHOLDERS
- The report provides in-depth analysis of the global medical device outsourcing market size along with the current trends and future estimations to elucidate the imminent investment pockets
- It offers market analysis from 2021 to 2030, which is expected to enable the stakeholders to capitalize on the prevailing opportunities in the market
- A comprehensive analysis on region assists to understand the regional market and facilitate the strategic business planning and determine prevailing opportunities
- The profiles and growth strategies of the key players are thoroughly analyzed to understand the competitive outlook of the global medical device outsourcing market growth
KEY MARKET SEGMENTS
By Product
- Finished Goods
- Electronics
- Raw Materials
By Device Type
- Class I Devices
- Class II Devices
- Class III Devices
By Application
- Orthopedics and Spine
- Cardiovascular
- Radiology
- General Medical Devices
- Others
By Services
- Prototype Development
- Finished Device Manufacturing
- Assembly & Packaging
- Testing & Regulatory Support Services
By Region
- North America
- US
- Canada
- Mexico
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- Japan
- China
- Australia
- India
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Brazil
- Saudi Arabia
- South Africa
- Rest of LAMEA
List of key players profiled in the report:
- Cardinal Health, Inc
- Onex Corporation
- TE Connectivity Ltd
- Flex Ltd
- Heraeus Holding GmBH
- Integer Holdings Corporation
- Nortech Systems Incorporated
- Plexus Corp
- Sanmina Corporation
- West Pharmaceutical Services, Inc
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Table of Contents
Chapter 1: Introduction
Chapter 2: Executive Summary
Chapter 3: Market Landscape
Chapter 4: Medical Device Outsourcing Market, by Product
Chapter 5: Medical Device Outsourcing Market, by Device Type
Chapter 6: Medical Device Outsourcing Market, by Application
Chapter 7: Medical Device Outsourcing Market, by Services
Chapter 8: Medical Device Outsourcing Market, by Region
Chapter 9: Company Profiles
List of Tables
List of Figures
Executive Summary
According to a new report titled, “Medical Device Outsourcing Market by Product, Device Type, Application, and Services: Global Opportunity Analysis and Industry Forecast, 2021–2030,” the global medical outsourcing market size was valued at $59,723.42 million in 2020, and is projected to reach $137,948.92 million by 2030, registering a CAGR of 8.9% from 2021 to 2030.Medical device outsourcing is an approach where a third party assumes responsibility of managing device development and manufacturing operations either in part or in entirety. Medical device outsourcing continues to grow in significance led by the increasing need for medical device companies to recalibrate their strategies to reduce cost, accelerate time-to-market and focus on their core competencies. Medical device outsourcing involves a third-party operating a part or entire client’s technology assets. Outsourcing typically involves an agreement between the client company and the supplier or the external outsourcing service provider. As per agreement terms, the supplier takes over the manufacturing means in the form of assets, workforce, and additional resources of the client company.
Moreover, the client company gets hold of the services provided by the supplier as per the contract terms. Medical device manufacturers sometimes hire a contact manufacturer to perform contact manufacturing services such as product prototype, production, injection molding, silicone compression molding, wielding, assembly, and packaging in a controlled environment, cleanroom, and other auxiliary services such as metal machining. Medical device outsourcing can lower operational costs, increase business efficiency, and boost productivity, thus providing tangible, bottom line benefits to organizations.
The major factors that drive the growth of the medical device outsourcing market include increase in geriatric population and rise in number of patients suffering from chronic disorders, such as spine disorders, diabetes, and cardiovascular diseases. Moreover, outsourcing also allows companies to focus on core activities, which in turn boosts the market growth. However, threat of loss of confidential information is expected to impede the market growth.
The medical device outsourcing market is segmented on the basis of product, device type, application, services, and region. On the basis of product, the market is divided into finished goods, electronics, and raw materials. On the basis of product, the finished goods segment currently dominates the global medical device outsourcing market and is expected to continue during the forecast period owing to the rising disease prevalence, life expectancy, and the geriatric population.
On the basis of device type, the market is classified into class I devices, class II devices, and class III devices. The class II devices segment dominated the global medical device outsourcing market in 2020 and is anticipated to be dominant in the market owing to the rising demand for surgical instruments and test kits.
On the basis of application, the market is divided into orthopedics and spine, cardiovascular, radiology, general medical devices, and others. The general medical devices segment currently dominates the global medical device outsourcing market and is expected to continue during the forecast period owing to the growing prevalence of chronic devices, and the increasing emphasis of healthcare agencies towards early diagnosis and treatment.
On the basis of services, the market is classified into prototype development, finished device manufacturing, assembly & packaging, and testing & regulatory support services. The finished device manufacturing segment dominated the global medical device outsourcing market in 2020 and is anticipated to be dominant in the market owing to unprecedented demand for technical support pertaining to raw material and finished product testing.
North America accounted for a majority of the global medical device outsourcing market share in 2020 and is anticipated to highly develop health care sector, increase in awareness among healthcare professionals about medical devices, and the continuous evolution of technology. However, Asia-Pacific region is expected to witness considerable market growth during the forecast period, due to low cost of products and labor for manufacturing.
Key Findings Of Study
- By product, the finished goods segment currently dominates the global medical device outsourcing market and is expected to continue during the forecast period owing to rising disease prevalence, life expectancy, and the geriatric population
- By device type, the class II device segment dominated the global medical device outsourcing market in 2020 and is anticipated to be dominant in the market owing to the rising demand for surgical instruments and test kits
- By application, the general medical devices segment currently dominates the global medical device outsourcing market and is expected to continue during the forecast period owing to growing prevalence of chronic devices, and the increasing emphasis of healthcare agencies towards early diagnosis and treatment
- By services, the finished device manufacturing segment dominated the global medical device outsourcing market in 2020 and is anticipated to be dominant in the market owing to unprecedented demand for technical support pertaining to raw material and finished product testing
- On the basis of region, in 2020, America dominated the market in 2020, owing to highly developed health care sector, increase in awareness among healthcare professionals about medical devices, and the continuous evolution of technology However, Asia-Pacific region is expected to witness considerable medical device outsourcing market growth during the forecast period, due to low cost of products and labor for manufacturing
Table Information
Report Attribute | Details |
---|---|
No. of Pages | 178 |
Published | February 2022 |
Forecast Period | 2020 - 2030 |
Estimated Market Value ( USD | $ 59723.42 million |
Forecasted Market Value ( USD | $ 137948.92 million |
Compound Annual Growth Rate | 8.7% |
Regions Covered | Global |
No. of Companies Mentioned | 10 |