The product design and development services market is expected to register a CAGR of 10.9% during the forecast period of the study (2022-2027).
The emergence of COVID-19 pandemic led to a significant impact on the healthcare market as due to the restrictions imposed to curb the spread of the infection, activities such as research and development, product design, logistics were impacted which had its impact on the product design and development market initially. However, the COVID-19 pandemic led to the huge demand of the medical supplies such as masks, medical equipment such as ventilators, oxygen concentrators, etc. all over the world which may have positive impact on the growth of the studied market. Further, with the emergence of the telemedicine and necessity for remote monitoring during the pandemic can have a significant impact on the growth of the market as the demand for remote diagnostics and monitoring devices is increasing all over the world.
The designing and development of the medical devices/instrument are very complex procedures as the design and development of these products must adhere with the laid stringent regulatory policies by the regulatory authorities and involves nexus of technologies for development which make the process very complex and costly. Also, the design and development process require specific set of skills and skilled professionals. These factors lay extra burden on the core medical device/instrument manufacturing companies, and thus, the medical companies are outsourcing the product design and development activity to the companies whose primary business is product design and development to accelerate the design and development procedures and also, decrease the overall cost of development which is expected to be significant driver for the growth of the product design and development market.
For instance, according to the research study published by Petra Maresova et. al., in July 2020, the medical device development process involves one to seven stages. There are five phases of the comprehensive medical device development (MDD) life cycle which includes opportunity and risk analysis, concept and feasibility, verification and validation, product launch preparation, and product launch and post-launch assessment and these individual MDD phases are linear and separated by gates that are characterized by certain set criteria that must be met before MDD can proceed further, making MDD very long and complex procedure. Therefore, the demand for medical product design and development service providers is expected to increase over the forecast period of the study and studied market will grow.
The other factors that are expected to augment the growth of the studied market are growing demand for small and portable medical devices such as monitoring devices, diagnostics devices, etc., especially for home care coupled with the growing integration between the medical technologies with advancement in the digitalization and growing burden of chronic diseases and geriatric population, globally. For instance, according to the World Population Aging Highlight 2020 report published by the United Nations, the global geriatric (population of age 65 years and more) population is expected to increase from 727 million in 2020 to 1.5 billion by 2050, which is expected to increase the demand for various kinds of medical devices such as therapeutics, diagnostics, surgical, etc., and fuel growth in the studied market. However, due to lack of adequate funding for design and development and information security concerns of original equipment manufacturers (OEMs) are expected to restrain the growth of the product design and development market over the forecast period of the study.
The increasing prevalence and burden of the chronic diseases around the world are driving the demand for effective and advanced treatment services that involve surgical procedures and due to which the number of surgical procedures performed around the world is increasing and further expected to increase in near future and hence, surgical instrument segment is expected to hold a significant share in the studied market as rising in number and demand of surgical procedures will directly increase the demand of the surgical instruments around the world.
For instance, as per the research study published in September 2020, titled “Estimation of the National Surgical Needs in India by Enumerating the Surgical Procedures in an Urban Community Under Universal Health Coverage”, about 11% of the global burden of disease requires surgical or anesthesia care or both, and an estimated 3,646 surgeries would be required annually to meet the surgical needs of the Indian population as compared to the global estimate which is 5,000 surgeries per 100,000 people. Thus, with the rising demand for surgical procedures around the world, the demand for the design and development of advanced surgical instruments is expected to increase which will drive growth in the studied segment.
Further, the number of surgeries is increasing globally due to advancement in the various medical devices like implants which are better than the previous ones and offers better chance of treatment and living normal life to the patients, which is further expected to drive growth in the surgical instrument segment over the forecast period. For instance, according to the June 2021 report of the Canadian Institute of Health Information, 63,496 hip replacements and 75,073 knee replacements were performed in the period of 2019-2020 in Canada, and there was an average increase of about 5% in recent years in the knee and hip replacement procedures in the country. Hence, owing to the rising number of surgeries and technological innovations, the surgical instrument segment is expected to occupy a significant share in the studied market.
The Asia-Pacific region is expected to hold a significant share in the studied market over the forecast period of the study owing to the high growth opportunities offered by the region in terms of design, development, and manufacturing. The Asia-Pacific region is home to some of the fastest-growing economies such as India and China which offers raw materials as well as skilled labor at very low cost as compared to the developed nations and due to this reason, the medical device companies and original equipment manufacturers (OEMs) are outsourcing their design, development and manufacturing services in these regions which are expected to boost growth in the Asia-Pacific region during the forecast period of the study.
Also, the governments of respective countries in the Asia-Pacific region offer various incentives and relaxations in taxation norms to the medical device manufacturers which further encourages companies to invest in these regions and thus, augment the growth of the studied market in the region. For example, In September 2021, the Government of India launched two new initiatives to boost medical device manufacturing in the country - the Production Linked Incentive Scheme (PLI) and the Promotion of Medical Devices Parks Scheme, and under the Production Lined Incentives scheme provides financial incentives to stimulate domestic production and attract big investments in industries including cancer care devices, radiography and imaging equipment, anesthetics devices, and surgical implants, among others.
Further, the new investment in the area by the companies is further expected to augment the growth of the studied market in the region. For instance, in February 2022, Warburg Pincus announced investment of USD 210 million in Indian medical device manufacturing company Micro Life Sciences Private Limited, parent organization of Meril group of companies which is engaged in the design, development, and manufacturing of medical devices. Therefore, due to the above-mentioned factors, the Asia-Pacific region is expected to hold a significant share in the studied market during the forecast period of the study.
The product design and development market is moderately competitive with many players in the market providing their services. Also, the new business expansion initiative such as mergers and acquisitions, expansion, collaboration, etc., are expected to increase the market competitiveness over the years. Some of the key players in the studied market are Jabil Inc., Sterling Medical Devices, Flex Ltd., DeviceLab Inc., Ximedica, and others.
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The emergence of COVID-19 pandemic led to a significant impact on the healthcare market as due to the restrictions imposed to curb the spread of the infection, activities such as research and development, product design, logistics were impacted which had its impact on the product design and development market initially. However, the COVID-19 pandemic led to the huge demand of the medical supplies such as masks, medical equipment such as ventilators, oxygen concentrators, etc. all over the world which may have positive impact on the growth of the studied market. Further, with the emergence of the telemedicine and necessity for remote monitoring during the pandemic can have a significant impact on the growth of the market as the demand for remote diagnostics and monitoring devices is increasing all over the world.
The designing and development of the medical devices/instrument are very complex procedures as the design and development of these products must adhere with the laid stringent regulatory policies by the regulatory authorities and involves nexus of technologies for development which make the process very complex and costly. Also, the design and development process require specific set of skills and skilled professionals. These factors lay extra burden on the core medical device/instrument manufacturing companies, and thus, the medical companies are outsourcing the product design and development activity to the companies whose primary business is product design and development to accelerate the design and development procedures and also, decrease the overall cost of development which is expected to be significant driver for the growth of the product design and development market.
For instance, according to the research study published by Petra Maresova et. al., in July 2020, the medical device development process involves one to seven stages. There are five phases of the comprehensive medical device development (MDD) life cycle which includes opportunity and risk analysis, concept and feasibility, verification and validation, product launch preparation, and product launch and post-launch assessment and these individual MDD phases are linear and separated by gates that are characterized by certain set criteria that must be met before MDD can proceed further, making MDD very long and complex procedure. Therefore, the demand for medical product design and development service providers is expected to increase over the forecast period of the study and studied market will grow.
The other factors that are expected to augment the growth of the studied market are growing demand for small and portable medical devices such as monitoring devices, diagnostics devices, etc., especially for home care coupled with the growing integration between the medical technologies with advancement in the digitalization and growing burden of chronic diseases and geriatric population, globally. For instance, according to the World Population Aging Highlight 2020 report published by the United Nations, the global geriatric (population of age 65 years and more) population is expected to increase from 727 million in 2020 to 1.5 billion by 2050, which is expected to increase the demand for various kinds of medical devices such as therapeutics, diagnostics, surgical, etc., and fuel growth in the studied market. However, due to lack of adequate funding for design and development and information security concerns of original equipment manufacturers (OEMs) are expected to restrain the growth of the product design and development market over the forecast period of the study.
Key Market Trends
Surgical Instrument Segment is Expected to Occupy a Significant Share in the Studied Market
The increasing prevalence and burden of the chronic diseases around the world are driving the demand for effective and advanced treatment services that involve surgical procedures and due to which the number of surgical procedures performed around the world is increasing and further expected to increase in near future and hence, surgical instrument segment is expected to hold a significant share in the studied market as rising in number and demand of surgical procedures will directly increase the demand of the surgical instruments around the world.
For instance, as per the research study published in September 2020, titled “Estimation of the National Surgical Needs in India by Enumerating the Surgical Procedures in an Urban Community Under Universal Health Coverage”, about 11% of the global burden of disease requires surgical or anesthesia care or both, and an estimated 3,646 surgeries would be required annually to meet the surgical needs of the Indian population as compared to the global estimate which is 5,000 surgeries per 100,000 people. Thus, with the rising demand for surgical procedures around the world, the demand for the design and development of advanced surgical instruments is expected to increase which will drive growth in the studied segment.
Further, the number of surgeries is increasing globally due to advancement in the various medical devices like implants which are better than the previous ones and offers better chance of treatment and living normal life to the patients, which is further expected to drive growth in the surgical instrument segment over the forecast period. For instance, according to the June 2021 report of the Canadian Institute of Health Information, 63,496 hip replacements and 75,073 knee replacements were performed in the period of 2019-2020 in Canada, and there was an average increase of about 5% in recent years in the knee and hip replacement procedures in the country. Hence, owing to the rising number of surgeries and technological innovations, the surgical instrument segment is expected to occupy a significant share in the studied market.
Asia-Pacific is Expected to Hold a Significant Share in the Product Design and Development Market Over the Forecast Period of the Study
The Asia-Pacific region is expected to hold a significant share in the studied market over the forecast period of the study owing to the high growth opportunities offered by the region in terms of design, development, and manufacturing. The Asia-Pacific region is home to some of the fastest-growing economies such as India and China which offers raw materials as well as skilled labor at very low cost as compared to the developed nations and due to this reason, the medical device companies and original equipment manufacturers (OEMs) are outsourcing their design, development and manufacturing services in these regions which are expected to boost growth in the Asia-Pacific region during the forecast period of the study.
Also, the governments of respective countries in the Asia-Pacific region offer various incentives and relaxations in taxation norms to the medical device manufacturers which further encourages companies to invest in these regions and thus, augment the growth of the studied market in the region. For example, In September 2021, the Government of India launched two new initiatives to boost medical device manufacturing in the country - the Production Linked Incentive Scheme (PLI) and the Promotion of Medical Devices Parks Scheme, and under the Production Lined Incentives scheme provides financial incentives to stimulate domestic production and attract big investments in industries including cancer care devices, radiography and imaging equipment, anesthetics devices, and surgical implants, among others.
Further, the new investment in the area by the companies is further expected to augment the growth of the studied market in the region. For instance, in February 2022, Warburg Pincus announced investment of USD 210 million in Indian medical device manufacturing company Micro Life Sciences Private Limited, parent organization of Meril group of companies which is engaged in the design, development, and manufacturing of medical devices. Therefore, due to the above-mentioned factors, the Asia-Pacific region is expected to hold a significant share in the studied market during the forecast period of the study.
Competitive Landscape
The product design and development market is moderately competitive with many players in the market providing their services. Also, the new business expansion initiative such as mergers and acquisitions, expansion, collaboration, etc., are expected to increase the market competitiveness over the years. Some of the key players in the studied market are Jabil Inc., Sterling Medical Devices, Flex Ltd., DeviceLab Inc., Ximedica, and others.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
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Table of Contents
1 INTRODUCTION
4 MARKET DYNAMICS
5 MARKET SEGMENTATION
6 COMPETITIVE LANDSCAPE
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Jabil Inc.
- Sterling Medical Devices
- Flex Ltd.
- Ximedica
- Gilero
- Devicelab, Inc.
- Starrfish Medical
- Celestica Inc.
- Plexus Corp
- Planet Innovation
- Aran Biomedica
- Viant
Methodology
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