Medical Device Outsourcing Global Market Report 2024

The medical device outsourcing market size has grown rapidly in recent years. It will grow from $131.07 billion in 2023 to $148.57 billion in 2024 at a compound annual growth rate (CAGR) of 13.4%. The growth during the historical period can be attributed to the increasing complexity of medical devices, the adoption of cost-effective manufacturing solutions, a concentration on core competencies, the globalization of markets, and the escalation in contract research and development (R&D) activities.

The medical device outsourcing market size is expected to see rapid growth in the next few years. It will grow to $252.96 billion in 2028 at a compound annual growth rate (CAGR) of 14.2%. The projected growth in the forecast period can be attributed to several factors: a concentrated focus on core competencies, the increasing pressure to shorten time-to-market demands, cost-efficiency in production processes, the rising need for scalability and flexibility, and the growing complexity of medical devices. Key trends expected during this period encompass a rise in customization and personalization of medical devices, an increased focus on risk mitigation and compliance measures, a growing demand for remote monitoring devices, heightened emphasis on data security, and ongoing innovation in wearable medical devices.

The increasing prevalence of chronic diseases is expected to drive the growth of the medical device outsourcing market. Chronic diseases are long-lasting conditions that require ongoing medical attention and can limit daily activities. The rising incidence of chronic diseases is leading to a higher demand for high-quality medical products that can be developed and launched more quickly, thus fueling the expansion of the medical device outsourcing market. For example, according to the UN Chronicle, a digital magazine of the United Nations, the global burden of chronic diseases is projected to reach approximately 56% by 2030. Therefore, the growing prevalence of chronic diseases is anticipated to be a significant driver of growth in the medical device outsourcing market.

The increasing demand for remote patient monitoring (RPM) devices is expected to drive the growth of the medical device outsourcing market in the coming years. Remote patient monitoring devices are technical instruments that collect and transmit health-related information from patients in their homes or other remote locations to healthcare practitioners. These devices rely on medical device outsourcing for the development and production of connected gadgets, sensors, and data analytics, enabling healthcare practitioners to remotely monitor patients' health conditions and enhance care delivery. For example, according to the American Medical Association in September 2022, the percentage of physicians using remote monitoring devices increased to 30% in 2022. Tele-visits were the most preferred digital health tools among physicians, with 57% expressing enthusiasm, followed closely by remote monitoring devices, which garnered approval from 53% of physicians. Therefore, the growing demand for remote patient monitoring devices is a key driver behind the growth of the medical device outsourcing market.

Strategic partnerships and collaborations are increasingly becoming a prominent trend in the medical device outsourcing market. Major companies in the industry are prioritizing partnerships and collaborations as a strategic approach to leading the market. For instance, in December 2021, Labcorp, a US-based laboratory testing company, acquired Toxikon Corporation, a US-based contract manufacturing company providing outsourcing services for medical devices. This acquisition is aimed at expanding Labcorp’s portfolio of full-service drug development and medical device solutions, covering the entire spectrum from discovery to market approval. Additionally, in July 2023, Medical Device, Inc., a US-based contract manufacturing company of medical devices, acquired NextPhase Medical Devices LLC, a Mexico-based manufacturing company of medical devices. This acquisition resulted in a doubling of NextPhase's size, positioning it as a top-tier global medical device contract manufacturer, with 70% of its revenue derived from the United States. The combined entity, known as the United Group, now operates seven well-capitalized end-to-end production sites across North America, Europe, and North Africa. It boasts a diverse range of manufacturing capabilities and has substantial exposure to international markets.

Major companies in the medical device outsourcing market are focusing on innovative products, such as platforms for creating new medical devices, to better serve their existing consumers. These platforms aim to streamline the process from design to device, enabling businesses to iterate in weeks rather than months and with minimal upfront costs. For example, in March 2023, Science Corporation, a US-based biotechnology company, introduced Science Foundry. Science Foundry is a platform that grants firms access to over 80 of Science's internal products and services, including thin-film electrode technology. This platform is designed to support startups working on ambitious concepts and is expected to attract interest from neurotechnology businesses, as well as other medical technology companies and even quantum computing startups, offering growth opportunities.

In December 2021, Integer Holdings, a US-based advanced medical device outsourcing company, acquired Oscor Inc. for $220 million. This acquisition is aimed at enhancing Integer's ability to serve its customers by broadening its product offerings in steerable sheaths and cardiac and neurostimulation leads. Additionally, the acquisition adds low-cost manufacturing capacity, which will support Integer's growth initiatives. Oscor Inc., based in the US, specializes in medical device outsourcing services.

Major companies operating in the medical device outsourcing market report are Cardinal Health Inc., Flex Ltd., TE Connectivity Ltd., Laboratory Corporation of America Holdings, IQVIA, Sanmina Corporation, ICON PLC, Celestica Inc., Eurofins Scientific SE, WuXi AppTec Inc., Phillips-Medisize LLC, Charles River Laboratories International Inc., Intertek Group PLC, Plexus Corp., Nipro Medical Corporation, Teleflex Incorporated, PAREXEL International Corporation, Integer Holdings Corporation, Mitutoyo Corporation, Cantel Medical Corp., Onex Corporation, Pace Analytical Services Inc., Sterigenics International LLC, Nortech Systems Incorporated, Toxikon Inc., Avail Medsystems Inc., North American Science Associates Inc., Active Implants, Omnica Corp., NAMSA, Tecomet Inc., Viant Medical.

North America was the largest region in the medical device outsourcing market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the medical device outsourcing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the medical device outsourcing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

In medical device outsourcing, the main types of products are finished goods, electronics, and raw materials. Finished goods are products that have completed the manufacturing process but have not yet been sold or distributed to consumers. The medical devices are categorized into class I, class II, and class III devices, each with different regulatory requirements and risk levels. Medical device outsourcing services include quality assurance, regulatory affairs services, product design and development, product testing and sterilization, product implementation, product upgrade, product maintenance, and contract manufacturing. These services cater to various applications in the medical industry, including drug delivery, dental care, diabetes management, cardiology, endoscopy, in vitro diagnostics (IVD), ophthalmic devices, diagnostic imaging, orthopedics, and general and plastic surgery.

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

The medical device outsourcing market includes revenues earned by entities by providing services such as design and development. Components and devices manufacturing, process validation and verification, Packaging, regulatory consultation, and full services. 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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