Medical Device Contract Manufacturing Market: Prototype Development Service Segment Accounted for Dominant Share of Global Market
The medical device manufacturing industry is rapidly growing across the globe and along with that contract manufacturing services form a large part of the industry. Over the last many decades, contract manufacturing sector along with the medical device manufacturing industry have faced the challenges of meeting spiraling demand and has reshaped medical technology.
Even now, when COVID-19 is ravaging the world, there is a shortage medical kits for testing the presence of virus in an individual. Global pandemics, such as COVID-19 along the usual increasing demand for medical devices is likely to bolster the growth of the global medical device contract manufacturing market in the near future.
With the rising demand for medical devices, it is expected that the need for people and companies manufacturing medical devices will also rise. As such, it is expected that contract manufacturing will play a significant in the years to come.
Technological Advancements and Multiple Benefits of the Product to Spur Growth
Contract manufacturing refers to a type of outsourcing business in which a firm makes either a single part of a larger product or whole products. This concept also holds true in the industry of medical device. Original equipment manufacturers of medical devices are enterprises that usually focus on a specific field of expertise, such as research and development or assembly or molding.
In the system of medical device contract manufacturing, the manufacturing firm produces either the parts of a medical device or the entire medical device. Another firm later sells the parts that are manufactured by these outsourced processes.
Medical device contract manufacturers offer the manufacturing of
The global medical device contract manufacturing market is predicted to be driven by a rise in the adoption of technologically advanced processes in the medical device industry. This has led to the production of electronically integrated gadgets. Furthermore, expanding pool of geriatric population who are more vulnerable to illnesses are further likely to bolster the growth of the global medical device contract manufacturing market.
Medical Device Contract Manufacturing Market - Snapshot
Over the past few years, the pharmaceutical and medical device industry has seen a significant reduction in new product development and approvals due to the global financial crisis. To remedy this situation, the use of business process outsourcing services has proven to be an effective way of minimizing operational, management, and infrastructure costs. The global medical device contract manufacturing market was valued at US$ 47.5 Bn in 2017. It is anticipated to expand at a CAGR of 10.9% from 2018 to 2026. The in-vitro diagnostic medical devices segment dominates the global market. Rise in the prevalence of chronic diseases, technological advancements, increase in patient awareness and health care expenditure, and rise in the need for the diagnosis of complex diseases are major factors driving the market. The highly fragmented nature of the medical device contract manufacturing market has prompted market players to shift their focus toward relatively niche segments such as minimally access surgical instruments.
The global medical device contract manufacturing market has been segmented based on device type, type of manufacturing, service, application, and region. In terms of device type, the global market has been classified into in-vitro diagnostic medical devices, diagnostic imaging & medical equipment, drug delivery devices, patient monitoring devices, minimally access surgical instruments, therapeutic patient assistive devices, and others. Higher demand for home monitoring devices, surgical & non-surgical instruments, implants, and diagnosis & treatment devices is expected to drive the medical devices market, which, in turn, is likely to propel the medical device contract manufacturing market.
Based on type of manufacturing, the global medical device contract manufacturing market has been categorized into raw materials, electronics, and finished goods. The electronic type of manufacturing is gaining popularity, and the electronics segment is projected to expand at a significantly higher CAGR during the forecast period. In term of service, the global medical device contract manufacturing market has been split into prototype development, finished device manufacturing, assembly & packaging, testing & regulatory support services, molding & casting, and others.
The prototype development segment is likely to hold a major share of the global market as successful prototyping identifies and helps correct problems long before they can negatively impact and irreparably harm the finished project. Based on application, the global medical device contract manufacturing market has been divided into cardiovascular, orthopedic, neurovascular, pulmonary, oncology, laparoscopy, urology & gynecology, radiology, and others. Expansion of the orthopedic segment can be attributed to the growing geriatric population affected with arthritis.
In terms of region, North America dominated the global medical device contract manufacturing market in 2017, owing to a highly developed health care sector, increase in awareness among health care providers about medical devices, and continuous evolution of advanced medical device products. North America is also an attractive region of the market, in terms of revenue.
Rise in the number of government initiatives and laws and increase in population drive the medical device contract manufacturing market in the region. Technological advancements and increase in manufacturing sites are expected to propel the medical device contract manufacturing market in Asia Pacific, Latin America, and Middle East & Africa during the forecast period.
Key players operating in the global medical device contract manufacturing market include Flextronics International, LTD., Jabil Inc., Benchmark Electronics, Inc., Integer Holdings Corporation (Greatbatch), West Pharmaceutical Services, Inc., Tecomet, Inc., Nortech Systems, TE Connectivity (Creganna Medical), Forefront Medical Technologies, and Nordson Corporation.
Transparency Market Research is a next-generation market intelligence provider, offering fact-based solutions to business leaders, consultants, and strategy professionals.
Our reports are single-point solutions for businesses to grow, evolve, and mature. Our real-time data collection methods along with ability to track more than one million high growth niche products are aligned with your aims. The detailed and proprietary statistical models used by our analysts offer insights for making right decision in the shortest span of time. For organizations that require specific but comprehensive information we offer customized solutions through ad hoc reports. These requests are delivered with the perfect combination of right sense of fact-oriented problem solving methodologies and leveraging existing data repositories.