Market Research Report
Global Medical Device Outsourcing Market, Size, Share, Opportunities and Forecast, 2020-2027
|Global Medical Device Outsourcing Market, Size, Share, Opportunities and Forecast, 2020-2027|
Published: April 3, 2021
Content info: 180 Pages
Delivery time: 2 business days
Global Medical Device Outsourcing Market is segmented by Product (Raw Materials, Electronics, and Finished Goods), by Device Type (Class I, II, and III Devices), by Application (Orthopedic & Spine, Cardiovascular, Radiology, and General Medical Devices), by Service (Prototype Development, Finished Device Manufacturing, Assembly & Packagingand, Testing & Regulatory Support Services), and by Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) - Share, Size, Outlook, and Opportunity Analysis, 2020-2027
The Global Medical Device Outsourcing Market is expected to grow at a CAGR of 10.50% during the forecasting period (2020-2027).
Outsourcing is a practice usually undertaken by companies as a cost-cutting measure by hiring a party outside a company to perform services and create goods. The medical device industry is outsourcing both the manufacturing of medical devices and associated services; outsourcing can help equipment manufacturers to accelerate their time to market for a new product and speed up return on investment. Rising demand for advanced products and the trend of offshoring is fueling the growth. This growth would be mainly led by the need to curb the rising cost of medical equipment and thereby the healthcare expense.
Increase in pressure on the manufacturers to reduce the overhead expenses and operational costs while maintaining the quality of healthcare services is propelling the medical device outsourcing market. Product outsourcing helps in reducing production cost by 10-15%. Additionally, the growing demand for quality healthcare is one of the key factors driving the growth of the global medical devices outsourcing market. The quality of healthcare delivered depends on the quality of diagnostic devices. This is forcing device manufacturers to outsource product development to stay ahead in the competitive healthcare industry.
Also, increase in the geriatric population worldwide. According to a WHO (World Health Organization), in 2010, around 524 million people were above 65 years, and by 2020, it is expected to reach 1.5 billion. Further, there is a positive correlation between elderly individuals and an increase in the incidence of chronic disorders such as cardiovascular, neurological, and orthopedics. Hence, the increase in the geriatric population is expected to have a positive impact on the market.
However, threat of loss of confidential information in the process of contracting with third party for manufacturing, product designing, prototyping, and others is hampering the global medical device outsourcing market.
Based on Services, the global medical device outsourcing market is broadly segmented as Orthopedics & Spine, Cardiovascular, Radiology, and General Medical Devices. Among all Cardiovascular application, the segment accounted for a major share in the market in 2018 and is projected to grow at a high pace during the forecast period (2019-2026). It is owing to the high prevalence of cardiovascular diseases worldwide. According to the WHO, approximately 17.7 million people died from cardiovascular disease in 2015, representing 31% of the global deaths.
Based on the service type, the global medical device outsourcing market is segmented into testing & certification, prototype development, Finished Device, Assembly & Packaging. Among all these testing and certification services accounted for major market share in 2018 in the global medical device outsourcing market and is expected to grow at a significant rate. It is owing to the equipment manufacturers (OEMs) in medical device industry who are seeking assistance for testing and certification services for their medical devices to meet regulatory standards such as U.S. Food and Drug Administration (FDA), and European Medicines Agency (EMA).
The global Medical Device Outsourcing market is segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. North America region accounted for major market share in 2018 in the global medical device outsourcing, owing to factors such as the presence of a large number of medical device manufacturers, and availability of advanced healthcare system and manufacturing hubs for high-end, consistent, and complex medical devices in this region. During the forecast period (2019-2026) the Asia-Pacific is expected to witness the fastest growth in demand for the medical device outsourcing market. It is due to the presence of a large pool of patients with chronic disorders, such as cardiac and neurological. Further, low labor costs and low overhead costs are driving the manufacturers to focus on this region. For instance, in March 2016, WuXi AppTec launched a life science innovation hub in South Korea. Thus, these factors are positively influencing the global medical device outsourcing market in Asia.
Significant players of the global medical device outsourcing market are Integer Holdings Corporation, Cirtec Medical., West Pharmaceutical Services, Inc., Nortech Systems, Inc., Celestica, Inc, Plexus Corp., Sanmina Corporation, Intertek Group, Wuxi Apptec; GE Healthcare, and others. Majority of these prominent players are adopting few organic and inorganic strategies such as product launches, collaboration, and product agreements, and other key developments to enhance their product portfolio in the global medical device outsourcing market. For instance
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