Medical Device Outsourcing Market Statistics- 2030
The global medical device 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 contract manufacturing is the outsourced fabrication of a medical device for the medical marketplace. Medical device companies utilize contract manufacturing partners to perform recurring manufacturing and benefit from costing efficiencies, streamlined supply chain, logistical alignment, all of which allow them to deliver commercial products to market while ensuring that all industry requirement are met.
Outsourcing of medical devices gains wide acceptance among original equipment manufacturers these days. Increase in pressure on manufacturers to reduce the overhead expenses and operational costs while maintaining quality of healthcare services drive the market growth. In addition, benefits such as reduction of production time, which ensures early entry of product into the market coupled with the need to meet the regulatory standards, boost the market growth. However, this poses threat to the security of the confidential information of the company, which impedes the market growth.
There is an increase in the number of aging population globally. According to a World Health organization (WHO) report, around 524 million people were above 65 years in 2010, and the number is expected to reach 1.5 billion by 2050; which is estimated to constitute about 16% of the total global population. Moreover, there is a positive correlation between elderly individuals and increase in incidence of disorders such as cardiovascular, neurological, and orthopedics. Hence, increase in geriatric population is expected to have a positive impact on the market.
Asia-Pacific offers lucrative opportunities for the market growth, owing to presence of large pool of patients suffering from disorders, such as cardiac and neurological. In addition, most of the medical device companies opt to manufacture their devices in Asia, which is primarily attributed to the low labor costs, improvement in technical knowledge, and low overhead costs. Thus, all these factors cumulatively have increased the medical device outsourcing market in Asia-Pacific.
The market for medical device outsourcing witnesses a huge increase owing to the benefits, which include reduction in overall cost and decrease in the time required for the product to enter into the market. In addition, outsourcing also allows the companies to focus on their core activities such as marketing of the product or device.
Impact of Covid-19 on Upper Limb Prosthetics Market (Pre and Post Analysis)
The outbreak of COVID-19 has disrupted workflows in the healthcare sector globally. The disease has forced a number of industries to shut their doors temporarily, including several sub-domains of healthcare. The overall impact of the COVID-19 pandemic was negative for key players in the medical device outsourcing market. The COVID-19 pandemic has led to disruptions in supply chain and a slowdown in production in the context of the medical device outsourcing market.
By Product
Finished goods segment held a dominant position in 2020.
However, it has also boosted demand for product sterilization services. Countries had to shut down their manufacturing plants and establish quarantine zones to contain the spread due to a significant increase in number of COVID-19 cases globally, which negatively impacted the medical devices manufacturing companies. The COVID-19 pandemic is a disrupter unlike any the global supply chain has seen yet, and with disruption comes increased risk. Companies have streamlined and simplified operations more than ever before, which can impact quality assurance. This results in loss of sales in the medical device outsourcing market.
Medical Device Outsourcing Market Segmentation
The medical device outsourcing market in this report is studied on the basis of product, device type, application, services, and region. On the basis of product, the market is divided by finished goods, electronics, and raw materials. On the basis of 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.
By Device Type
Class II Devices segment held a dominant position in 2020.
Segment review
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 rise in disease prevalence, life expectancy, and the geriatric population.
On the basis of 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 rise in demand for surgical instruments and test kits.
By Application
General Medical Devices segment held a dominant position in 2020.
On the basis of application, the general medical devices segment dominated the global medical device outsourcing market in 2020 and is anticipated to be dominant in the market 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.
By Services
Finished Device Manufacturing segment held a dominant position in 2020.
Region Segment Review
Region wise, North America dominated the market in 2020, owing to the highly developed healthcare sector, increase in awareness among health care 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. Moreover, India and Japan are expected to grow at high CAGR in the Asia-Pacific medical device outsourcing market.
The major companies profiled in this report include 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.
By Region
Asia-Pacific region would exhibit the fastest CAGR of 9.82% during the forecast period.
Key Benefits For Stakeholders
- The study provides an in-depth analysis of the global medical device outsourcing market along with the current trends and future estimations to explain the imminent investment pockets.
- A comprehensive analysis of the factors that drive and restrict the medical device outsourcing market growth is provided in the report.
- Comprehensive quantitative analysis of the industry from 2020 to 2030 is provided to enable the stakeholders to capitalize on the prevailing medical device outsourcing market opportunities.
- Extensive analysis of the key segments of the industry helps to understand the application and products of medical device outsourcing used across the globe.
- Key market players and their strategies have been analyzed to understand the competitive outlook of the medical device outsourcing market.
Medical Device Outsourcing Market Report Highlights
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Analyst Review
According to the analyst’s perspective, globally, there is an increase in demand for affordable medical devices coupled with the growth in need for quality healthcare services. Therefore, to meet the demands, original equipment manufacturers (OEMs) rapidly adhere to outsourcing as an effective cost curbing tool. Outsourcing allows companies to focus on core activities such as marketing of the product or device.
Upsurge in the incidence of disorders, such as spine disorders, and increase in geriatric population have led to high demand for affordable medical devices. In addition, it supports the early entry of the product into the market. This factor fuels the market growth.
Asia-Pacific offers lucrative opportunities for the market growth due to low labor and overhead costs in the region, rapid increase in geriatric population, and rise in incidence of chronic diseases. Thus, emerging countries, such as Japan and India, possess high growth potential for this market.
Medical device outsourcing is the outsourced fabrication of a medical device for the medical marketplace.
The total market value of Global Medical device outsourcing Market is $59,723.42 million in 2020.
The forcast period for Global Medical device outsourcing Market is 2021 to 2030.
The market value of Global Medical device outsourcing Market in 2030 is $137,948.92 million.
Cardinal health, Inc. Onex Corporation, TE connectivity Ltd., Flex Ltd., Heraeus Holding GmBH held a high market postion owing to the strong geographical foothold in different regions.
Class II device segment dominates the global market, owing to rising demand for surgical instruments and test kits.
The major factor for the growth of Global Medical device outsourcing Market are increase in incidence of disorders, rise in the geriatric population, adherence to quality standards, reduction in cost to market, and rapid marketing of products.
Owing to rise in the geriatic population in the market. Furthermore, increasing number of cardiac diseases.
The base year is 2020 in Global Medical device outsourcing Market.
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
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