Market Research Report
U.S. Medical Device Outsourcing Market Size, Share & Trends Analysis Report By Service (Product Upgrade Services, Product Design & Development Services, Quality Assurance, Contract Manufacturing), And Segment Forecasts, 2022 - 2030
|U.S. Medical Device Outsourcing Market Size, Share & Trends Analysis Report By Service (Product Upgrade Services, Product Design & Development Services, Quality Assurance, Contract Manufacturing), And Segment Forecasts, 2022 - 2030|
Published: February 28, 2022
Grand View Research, Inc.
Content info: 79 Pages
Delivery time: 2-10 business days
The U.S. medical device outsourcing market size is expected to reach USD 59.0 billion by 2030, registering a CAGR of 11.2% over the forecast period, according to a new report by Grand View Research, Inc. The COVID-19 pandemic has significantly impacted the market. During the crisis, medical devices and supplies played an important role in assisting COVID-19 patients and medical professionals. The diagnostic tests and kits were manufactured and played an important role in fighting the coronavirus. But the manufacturing was disrupted as few supplies were imported from other countries. This dependency hampered the timely availability of raw materials/consumables required for the manufacturing of medical devices.
The government authorities have escalated funds for the research & development of essential devices, thus driving the market. Major companies have solely relied on contract manufacturers to ramp up the production of COVID-19-related medical components, such as test kits, ventilators, and respirators. The major reasons for outsourcing amid the COVID-19 crisis include a streamlined supply chain and cost efficiencies. The market has started to recover as the manufacturing of medical devices used for other diseases has commenced. Furthermore, the barriers are reduced leading to smooth import of supplies. The growing complexity in product engineering and an increasing number of small-sized manufacturers are also anticipated to contribute to the market growth.
The medical device industry has always been highly competitive and categories, such as coronary stents, orthopedic devices, and wound care, are moving towards maturity. As high-impact scientific innovation in the above categories is difficult to achieve and is a time-consuming process, smaller companies are gaining market share by offering low prices and introducing innovative business models. Due to the convergence of mounting challenges and changing market dynamics, many medical device manufacturers have opted for outsourcing business models to reduce cost, manage business risks, and improve service delivery. This factor is also expected to propel market growth over the forecast period.