Medical Device Outsourcing Market Overview:
Global Medical Device Outsourcing Market was valued at $44,326 million in 2016, and is estimated to reach $83,952 million by 2023, growing at a CAGR of 9.5% from 2017 to 2023. Outsourcing of medical devices gains wide acceptance among original equipment manufacturers these days. Increase in pressure on the manufacturers to reduce the overhead expenses and operational costs while maintaining quality of healthcare services drives 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.
Rise in Geriatric Population
There is an increase in the number of aging population worldwide. According to a 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 world 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.
Growth in Asia-Pacific Region
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 outsourcing market in Asia.
Benefits of Outsourcing
The market for 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.
Global Medical Device Outsourcing: Market Segmentation
The global medical device outsourcing market is segmented on the basis of product, regulation, application, service, and region. Based on product, the market is divided into electronics, finished goods, and raw materials. On the basis of device type, the market is classified into class I, II, and III devices. By application, it is categorized into orthopedics & spine, cardiovascular, radiology, general medical devices, and others. Based on services provided by the companies, it is segmented into prototype development, finished device manufacturing, assembly and packaging, and testing and regulatory support services. By geography, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key companies operating in the market include Celestica, Inc., Creganna, Flextronics International Ltd., Heraeus Holding, Integer Holdings Corporation, Nortech Systems, Inc., Plexus Corp., Sanmina Corporation, Tecomet, Inc., and West Pharmaceutical Services, Inc.
South Africa: Medical Device Outsourcing Market, 2016-2023 ($Million)
- The study provides an in-depth analysis of the global medical device outsourcing market, with current trends and future estimations, to elucidate the imminent investment pockets.
- Quantitative analysis from 2016 to 2023 is expected to enable the stakeholders to capitalize on prevailing market opportunities.
- Comprehensive analysis of all geographical regions is provided to determine the prevailing opportunities.
- Extensive analysis is conducted by closely following key product positioning and monitoring the top contenders within the market framework.
Medical Device Outsourcing Market Key Segments:
- Finished goods
- Raw Materials
By Device Type
- Class I Devices
- Class II Devices
- Class III Devices
- Orthopedics and Spine
- General Medical Devices
- Prototype Development
- Finished Device Manufacturing
- Assembly & Packaging
- Testing & Regulatory Support Services
- North America
- Rest of Europe
- South Korea
- Rest of Asia-Pacific
- Saudi Arabia
- South Africa
- Rest of LAMEA