The global medical device outsourcing market is projected to reach the revenue of $84.9 billion by 2023, from $44.9 billion in 2016, progressing at a CAGR of 9.7% during the forecast period (2017–2023). The electronics product category is expected to contribute largest revenue, of $38.5 billion, in 2023, to the market. The leading position of the category can be attributed to the rise in the demand for affordable medical devices in the medical device industry and increasing cost pressures on the manufacturers.
Fast and Cost-Effective Manufacturing Is a Key Driver for Medical Device Outsourcing Market
From the time and cost perspectives, contract manufacturing has become a conventional method in the medical device outsourcing market. The primary factor driving the market is lesser time consumption by the contract manufacturing organization (CMO) to manufacture the product. Outsourcing different phases of production to different partners reduces the development time for new products. Moreover, the operations, quality, and expertise of machineries are better handled from outside in case of outsourcing since the time taken to hire experts and then train people on how to operate is saved at the end of manufacturers. In addition, engaging full-service contract manufacturers in the design and development phase of a product’s lifecycle also helps to shorten overall timeline. Hence, outsourcing production of medical devices to CMOs ensures fast manufacturing and cost-effectiveness, thereby, impacts the global market, positively.
Market for Medical Device Outsourcing Is Likely to Witness Significant Progress Due to Increasing Adherence to Quality Standards
The medical device outsourcing market has witnessed intense and stringent regulations for the commercialization of products, which further lead to the expansion of the medical device outsourcing industry. Regulatory compliance outsourcing is rapidly gaining popularity in the outsourcing market due to the fact that the regulatory compliance providers help medical device manufacturing companies to get quick and timely approval/launch of their products in the global market with several other advantages, such as reduced cost and more time for organization’s staff toward core activities.
Segmentation Analysis of Medical Device Outsourcing Market
Geographical Analysis of Medical Device Outsourcing Market
North America is expected to account for the largest share in the medical device outsourcing market by 2023, followed by Europe. Together, North America and Europe are expected to account for 67.5% market share in 2023. This can be mainly attributed to the presence of established players and rising geriatric population.
Other regions, which include APAC and LAMEA, also hold considerable shares in medical device outsourcing market on account of the rapid expansion due to globalization, which is, in turn, increasing the awareness among consumers about medical device outsourcing.
Competitive Landscape of Medical Device Outsourcing Market
The global medical device outsourcing market is fragmented in nature, mainly due to the presence of several small and big players. Some of the big players, which are extensively involved in medical device outsourcing, are Cardinal Health Inc., Onex Corporation, Heraeus Holding GmbH, TE Connectivity Ltd., and Flex Ltd.
The players in the medical device outsourcing market are engaged in product launches; and mergers & acquisitions as a key strategy to maintain their position among competitors. For example, In February 2018, Shanghai Pharmaceuticals Holding Co. Ltd., a pharmaceutical group, acquired the China business of Cardinal Health Inc. for $1.2 billion. The purpose of the acquisition is to strengthen its leadership in the distribution and retail pharmacy network, and facilitate growth of its pharmaceutical manufacturing business in the country.
Access Report Summary with Detailed TOC on "Medical Device Outsourcing Market by Product (Electronics, Raw Materials/ Components, Finished Goods), by Device Type (Class I, Class II, Class III), by Application (Orthopedics & Spine, Cardiovascular, Radiology, General Medical Devices), by Service (Prototype Development, Finished Device Manufacturing, Assembly & Packaging, Testing & Certification), by Geography (U.S., Canada, Mexico, Germany, France, U.K., Italy, Spain, Japan, China, India, Australia, South Korea, Brazil, Saudi Arabia, South Africa) – Global Market Size, Share, Development, Growth and Demand Forecast, 2016-2023" at: https://www.psmarketresearch.com/market-analysis/medical-device-outsourcing-market
Moreover, in December 2017, Centro de Construccion de Cardioestimuladores del Uruguay S.A. (CCC), a subsidiary of Integer Holdings Corporation, signed a ten-year supply agreement with Neuros Medical Inc. As per the agreement, CCC would be the sole supplier of Neuros’ Altius System product range. The product range includes the implantable generator and related external devices.
Other players operating in the medical device outsourcing market include Nortech Systems Incorporated, Plexus Corp., Sanmina Corporation, and West Pharmaceuticals Services Inc.