According to Precedence Research, the global medical device contract manufacturing market size was valued at USD 53.71 billion in 2019 and is expected to reach USD 97.52 billion by 2027, poised to grow at a noteworthy CAGR of 11.4% from 2020 to 2027.
Activity in the global medical device contract manufacturing market is driven by growing pressure on OEMs for medical devices to reduce manufacturing costs. In addition, macro-economic factors such as an increasing aging population across the globe paired with increasing prevalence of non-invasive surgical procedures are driving demand for medical devices and global medical device contract manufacturing market as well. In order to remain competitive in extremely specialized and increasingly segmented markets, OEMs need to rely on CMOs for everything from added manufacturing capabilities to product design and technical expertise.
Growing demand for R&D and post-market product support services for medical devices is expected to help the medical device contract manufacturing Industry to grow further. In the last few years, there has been a move towards outsourcing essential processes such as design, development, evaluation, feasibility testing, regulatory enforcement and post-market manufacturing activities such as product maintenance and upgrades.
Device Type Insights
IVD devices, drug delivery devices, diagnostic imaging devices, patient monitoring devices, therapeutic patient assistive devices, minimally access surgical instruments, and others are the product type covered in the global medical device contract manufacturing market.
IVD devices accounted the considerable revenue share in in product type segment of the global medical device contract manufacturing market in 2019 owing to growing adoption of point-of-care testing coupled with adoption of fully automated instruments and automation in laboratories is expected to support the growth of IVD devices in years tocome. In addition, changing lifestyle and rising chronic diseases is expected to fuel the growth of patient monitoring devices segment in near future and the segment will grow at a CAGR of 13.1%
The service segment of global medical device contract manufacturing market categorized device development and manufacturing services, quality management services and final goods assembly services. Amongst them, device development and manufacturing services held the largest share and accounted over 53% of revenue share in 2019.The growth of this segment is mainly driven by increasing demand for device engineering paired with device manufacturing services.
Growing demand for different orthopedic implants and device especially in elder population is predicted to propel orthopedic application segment massively in near future. The orthopedic application segment is estimated to grow at a CAGR of 12.9% in the analysis period.
Currently North America leads the global medical device contract manufacturing market closely followed by Asia Pacific region. The growth of North America region is mainly driven by increasing in-house manufacturing costs that encourages medical device companies to adopt contract manufacturing as cost-cutting measures. Further, presence of leading medical device players is expected to drive the U.S.medical device contract manufacturing market.
Low labor cost. Increasing aging population in Japan, growing access to healthcare facilities in India is estimated to be major driving factor in Asia Pacific region. The Asia Pacific region is predicted to overtake the North America region by late of 2020.
Growing investments in health care especially in Africa and improvement of health care infrastructure across MEA is expected to open up massive opportunities for market players in coming years.
Key Companies & Market Share Insights
The global medical device contract manufacturing market is highly competitive and some major players hold the considerable share. The market players operating in global medical device contract manufacturing market are working on to retain the quality of these products and acquiring the new client across different industries. Recent ongoing product research and development by manufacturers due to COVID-19 pandemic is expected to open numerous opportunities in global medical device contract manufacturing market.
Some of the recent activities by market players are:-
Some of the noteworthy players in the global medical device contract manufacturing market include:
Segments Covered in the Report
This research report includes complete assessment of the market with the help of extensive qualitative and quantitative insights, and projections regarding the market. This report offers breakdown of market into prospective and niche sectors. Further, this research study calculates market revenue and its growth trend at global, regional, and country from 2016 to 2027. This report includes market segmentation and its revenue estimation by classifying it depending on device, service, application and region as follows:
By Device Type
By Regional Outlook
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