Medical Device Contract Manufacturing Global Market Report 2024

Medical device contract manufacturing involves a process in which a Medtech company, which owns the intellectual property, outsources the manufacturing of medical devices to another specialized manufacturing firm. This outsourcing arrangement is often chosen for benefits such as cost optimization, device upgrades, regulatory guidance, or expansion purposes.

The main types of medical devices in contract manufacturing include in vitro diagnostic (IVD) devices, diagnostic imaging devices, cardiovascular devices, drug delivery devices, endoscopy devices, ophthalmology devices, orthopedic devices, dental devices, and other devices. In vitro diagnostic (IVD) devices are medical devices used alone or in combination with other diagnostic products for in vitro use, including apparatus, equipment, or systems. The services provided by medical device contract manufacturing include device development and manufacturing services, quality management services, and assembly services. The applications of contract manufacturing services span various medical fields, including laparoscopy, pulmonary, urology, gynecology, and other applications.

The medical device contract manufacturing market research report is one of a series of new reports that provides medical device contract manufacturing market statistics, including medical device contract manufacturing industry global market size, regional shares, competitors with a medical device contract manufacturing market share, detailed medical device contract manufacturing market segments, market trends and opportunities, and any further data you may need to thrive in the medical device contract manufacturing industry. This medical device contract manufacturing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.

The medical device contract manufacturing market size has grown rapidly in recent years. It will grow from $88.36 billion in 2023 to $101.04 billion in 2024 at a compound annual growth rate (CAGR) of 14.3%. The growth observed in the historic period in the field of medical device contract manufacturing can be attributed to several factors. Key drivers include the pursuit of cost efficiency, leveraging specialized manufacturing capabilities, enhancing supply chain resilience, prioritizing quality and certification standards, and accessing regulatory expertise.

The medical device contract manufacturing market size is expected to see rapid growth in the next few years. It will grow to $174.69 billion in 2028 at a compound annual growth rate (CAGR) of 14.7%. Anticipated growth in the forecast period for medical device contract manufacturing can be linked to factors such as reshoring and nearshoring strategies, the integration of additive manufacturing, economic and geopolitical considerations, collaborative efforts in research and development (R&D), and the adoption of sustainable practices. Notable trends expected in this period encompass the implementation of digital manufacturing technologies, the incorporation of wearable devices, heightened attention to data security and privacy, advancements in materials, and the utilization of remote auditing and inspections.

The anticipated increase in chronic disorders is poised to drive the expansion of the medical device contract manufacturing market. Chronic diseases, characterized by conditions requiring continuous medical attention or activity limitations, have led to a growing demand for smart medical devices that aid patients in monitoring and managing their health conditions. This heightened demand is a key factor contributing to the growth of the medical device contract manufacturing market. As of January 2023, the National Center for Biotechnology Information (NCBI) projects a global rise in the number of individuals with chronic diseases, reaching 142.66 million by 2050 compared to 71.522 million in 2020. Therefore, the upward trend in chronic disorders is a significant driver behind the expansion of the medical device contract manufacturing market.

The growth of the medical device contract manufacturing market is further propelled by an increase in healthcare expenditure and government initiatives. The pressure on healthcare expenditure and budget limitations has fostered a demand for cost-effective solutions, making contract manufacturing an appealing option. Governments are actively supporting local manufacturing, emphasizing regulatory compliance, and providing incentives for research and development, all of which benefit contract manufacturing companies. Initiatives by governments promote public-private partnerships, global market expansion, and readiness for health crises, contributing to the overall growth of the industry. In September 2021, the Centers for Medicare & Medicaid Services reported a 7.8% increase in prescription drug expenditure in 2021, reaching a total of $378.0 billion. Additionally, spending on Medicare and Medicaid experienced significant growth, underscoring the role of government initiatives in driving the medical device contract manufacturing market.

Major players in the medical device contract manufacturing market are strategically partnering with other firms to augment their product development initiatives. An example is the collaboration between Amnovis, a Belgium-based additive manufacturing company, and BAAT Medical, a Netherlands-based orthopedic medical devices company, announced in June 2022. This collaboration covered the entire process, from design to legal manufacturing, accelerating the time to market for 3D printed medical devices and focusing on material research, post-processing methods, process automation, and validation. The partnership aimed to set new standards for specific medical device types while streamlining the development and validation processes for medical device OEMs.

To gain a competitive edge in the market, major companies operating in the medical device contract manufacturing sector are expanding their services. In September 2022, Eakin Surgical Ltd., a UK-based medical equipment manufacturing company, announced its foray into contract manufacturing services. This expansion included services such as plastics injection molding, assembly, packaging in an ISO Class 8 cleanroom, ethylene oxide (EtO) sterilization, and sourcing hard-to-find parts for complex medical devices. This strategic move aimed to support the recovery of elective care and assist businesses in delivering high-quality, cost-effective, and reliable solutions.

In August 2021, The Tecan Group, a Europe-based provider of laboratory instruments and solutions in biopharmaceuticals, forensics, and clinical diagnostics, acquired Paramit Corporation and its affiliates for $1.0 billion. This acquisition bolstered Tecan's engineering and cost-competitive manufacturing capabilities, both in North America and the APAC region. Paramit Corporation is a US-based medical device contract manufacturing firm.

Major companies operating in the medical device contract manufacturing market include Benchmark Electronics Inc., Celestica International LP, Consort Medical PLC, Flex Ltd., Gerresheimer AG, Integer Holdings Corporation, Kimball Electronics Inc., Nemera Development S.A., Nipro Corporation, Nortech Systems Inc., Phillips-Medisize Corporation, Plexus Corporation, Sanmina Corporation, Biofortuna Limited, Catalent Inc., Forefront Medical Technologies Pte Ltd., Invetech, SteriPack Group Ltd., Abbott Laboratories, Becton Dickinson and Company, Cardinal Health Inc., Danaher Corporation, GE HealthCare Technologies Inc., Hologic Inc., Intuitive Surgical Inc., Johnson & Johnson, Medtronic PLC, Siemens Healthineers AG, Stryker Corporation, 3M Company, Boston Scientific Corporation, Edwards Lifesciences Corporation, Fresenius Medical Care AG & Co. KGaA, Hill-Rom Holdings Inc., Masimo Corporation, ResMed Inc., Smith & Nephew PLC, Teleflex Incorporated, Terumo Corporation, Zimmer Biomet Holdings Inc., Alcon Inc., Baxter International Inc., The Cooper Companies Inc., Dentsply Sirona Inc., Getinge AB, Olympus Corporation, Varian Medical Systems Inc.

North America will be the largest region in the medical device contract manufacturing market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in this medical device contract manufacturing report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.

The countries covered in the medical device contract manufacturing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

The medical device contract manufacturing market includes revenues earned by entities by quality management system, ISO certified clean rooms, sterilization validation and recurring services, package design and testing. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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