The Global Medical Device Contract Manufacturing Market report includes a global opportunity analysis and industry forecasts for the period 2023-2032. The global market was estimated at USD 71.24 Billion in 2022, registering a CAGR of 10.73% from 2023 to 2032. The base year considered for the study is 2021, and the forecast has been provided for the period 2023 to 2032.
Medical device contract manufacturing market is expected to grow at a rapid pace due to growing healthcare industry and increasing adoption of technological advanced surgical procedures. A number of original equipment manufacturers (OEMs) and contract manufacturers have been focusing on futuristic technologies such as robotics, 3D-printing, and also minimally invasive surgeries. Mergers and acquisition activities among leading players have greatly accelerated the medical device contract manufacturing market growth.
Medical Device Contract Manufacturing Market
COVID-19 Impact
The market is anticipated to experience a significant market freefall amidst the coronavirus pandemic. This is because of the halting of production due to strict lockdowns to contain the spread of the virus. Fortunately, researchers and analysts are filled with optimism regarding the medical devices which will prove constructive in diagnosing COVID-19 infections with greater accuracy as compared to existing testing mechanisms. For instance, demand for medical devices such as ventilators and respirators have increased, thereby influencing growth prospects for medical device manufacturers. This is anticipated to keep market intact during the pandemic.
Latest Trends
Medical device original equipment manufacturers (OEMs) have always relied on third-party vendors to pursue cost-competitive sourcing and operational agility. Also, the volume of outsourcing has significantly increased recently as OEMs strike out with greater portions of the product value chain, including value-add activities originally maintained in-house. This is where medical device contract manufacturers step in and in the process taking to vertical integration to keep up with market demand.
Driving Factors
Increasing R&D Activities and Demand for Diagnostic Devices
An emulating healthcare industry has assisted considerable technological advancements in surgical procedures. These advancements have motivated key players to fund more research and development of effective solutions. The increase in R&D activities is expected to drive the medical device contract manufacturing market growth.
Minimally access surgical instruments are anticipated to observe a powerful growth in demand and increase at a CAGR of 10.6% during the forecast period. High popularity of minimally access surgical instruments are recognized for reducing tissue trauma, low levels of blood loss and pain, greater affordability, and enhanced patient satisfaction. This reveals that contract manufacturing of surgical electronic devices account for nearly half of the total market turnover.
Increasing demand for patient-centric diagnostic devices across the globe is a major factor driving its growth. Finished device manufacturing remains highly accepted service, construing more than a quarter of the medical device contract manufacturing market value. A large number of market players offering finished products are anticipated to be drivers to market growth.
Segmentation Analysis
The medical device contract manufacturing market is segmented based on device type, class of device, service, and region.
By Device Type
Based on device type, the medical device contract manufacturing market is split into IVD, cardiovascular, diabetes care, drug delivery, dental, orthopedic, ophthalmic and endoscopy devices.
The cardiovascular devices and endoscopy devices segments are expected to register the highest CAGRs during the forecast period. The cardiovascular devices segment growth can be attributed to the rising adoption of cardiovascular devices such as pacemakers, catheters, and stents due to the increasing incidence of cardiovascular diseases across the globe. The endoscopy devices segment is mainly driven by the increasing adoption of endoscopy devices in hospitals and diagnostic wellness clinics.
By Class of Device
Based on the class of device, the medical device contract manufacturing market is segmented into Class I, Class II, and Class III medical devices. Class III medical devices are set to register the highest CAGR during the forecast period. The growth can be due to a large number of medical devices that fall under this device class and the utilization of a higher volume of these devices by end-users and health caregivers in the medical industry.
By Service
Based on service type, the market is segmented into device development and manufacturing services, quality management services, and final goods assembly services. Amongst these, the final goods assembly services segment is expected to grow at the highest CAGR during the forecast period. These services are mostly required by OEMs, medical device companies, and pharmaceutical companies that take part in the manufacturing and sales of fully integrated single-use medical devices, such as pen needles, inhalers, auto-injectors, and pre-filled syringes.
The growing incidence of focused therapies, rising incidence of anaphylaxis, increasing number of regulatory approvals for single-use medical devices, and the availability of the generic versions of auto-injectors are factors contributing to the growth of these devices. This in turn is projected to increase the utilization of final goods assembly services.
Medical Device Contract Manufacturing Market
By Region
Based on region, the medical device contract manufacturing market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and South America.
Asia Pacific is projected to witness the highest growth during the forecast period. High demand for diagnostic imaging, patient monitoring, and in vitro diagnostic IVD devices are expected to drive the medical device market in the Asia Pacific. A low cost of labor in Asia Pacific countries is another factor driving the medical device contract manufacturing services market. Labor costs in China are markedly lower than the US. This is a prominent factor drawing medical device companies from across the globe to expand their contract manufacturing facilities in China.
Key Industry Players
A large number of medical device contract manufacturers dominate the market. These players are capitalizing on the growth potentials offered by emerging markets such as India, China and Brazil to consolidate their market presence.
List of Key Players profiled:
- West Pharmaceutical
- Flex Ltd.
- Danaher Corporation
- AMETEK
- Carpenter Technology
- Integer Holdings
- Elos Medtech
- Consort Medical
- Teleflex Incorporated
- LISI S.A.
- Gerresheimer
- Benchmark Electronics
- Celestica International
- Nordson Corporation
Key Developments
- In January 2019, Viant Medical (US) and Venclose, Inc. (US) inked a deal to manufacture Venclose's next-generation VENCLOSE RF Ablation Catheter for the cure of venous reflux disease.
- In April 2019, West Pharmaceutical Services, Inc. (US) company bolstered its presence in the Asia Pacific region with a new sales office in Korea—West Pharmaceutical Services Korea Ltd. This new office is the result of West's purchase of the distribution business of GIS Korea Ltd., a privately-owned medical device and healthcare products distributor serving the Korean market.
Market Segmentation
By Device Type:
- IVD
- Equipment
- Consumable
- Cardiovascular
- Diabetes Care
- Drug Delivery
- Dental
- Orthopedic
- Ophthalmic
- Endoscopy Devices
By Class of Device:
- Class I
- Class II
- Class III
By Service:
- Device Development and Manufacturing Services
- Quality Management Services
- Final Goods Assembly Services
By Region:
North America
- North America, by Country
- S.
- Canada
- Mexico
- North America, by Device Type
- North America, by Class of Device
- North America, by Service
Europe
- Europe, by Country
- Germany
- K.
- France
- Italy
- Spain
- Russia
- Rest of Europe
- Europe, by Device Type
- Europe, by Class of Device
- Europe, by Service
Asia Pacific
- Asia Pacific, by Country
- China
- India
- Japan
- South Korea
- Australia
- Rest of Asia Pacific
- Asia Pacific, by Device Type
- Asia Pacific, by Class of Device
- Asia Pacific, by Service
Middle East and Africa
- Middle East and Africa, by Country
- UAE
- Saudi Arabia
- Qatar
- South Africa
- Rest of Middle East and Africa
- Middle East and Africa, by Device Type
- Middle East and Africa, by Class of Device
- Middle East and Africa, by Service
South America
- South America, by Country
- Brazil
- Argentina
- South America, by Device Type
- South America, by Class of Device
- South America, by Service
FAQ’s Answered in the Report
- In the global medical device contract manufacturing industry, what are the most important regional markets?
- What is the market segmentation based on type?
- What is the market segmentation dependent on end-user?
- What are the different phases of the global industry's value chain?
- What are the major drivers and threats in the global medical device contract manufacturing market?
- Who are the main players in the global industry and what is their structure?
- What level of rivalry does the global industry have?
- What are the profit margins in the medical device contract manufacturing industry?
Objectives of this report:
- To estimate the market size for medical device contract manufacturing market on a regional and global basis.
- To identify major segments in the medical device contract manufacturing market and evaluate their market shares and demand.
- To provide a competitive scenario for the medical device contract manufacturing market with major developments observed by key companies in the historic years.
- To evaluate key factors governing the dynamics of medical device contract manufacturing market with their potential gravity during the forecast period.
Reasons to Buy This Report:
- Provides niche insights for a decision about every possible segment helping in the strategic decision-making process.
- Market size estimation of the medical device contract manufacturing market on a regional and global basis.
- A unique research design for market size estimation and forecast.
- Identification of major companies operating in the market with related developments
- Exhaustive scope to cover all the possible segments helping every stakeholder in the medical device contract manufacturing market.
Customization:
This study is customized to meet your specific requirements:
- By Segment
- By Sub-segment
- By Region/Country
- Product Specific Competitive Analysis
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