Medical device contract manufacturing plays an important role in providing products to the medical device industry in an effective manner. It helps in reducing the costs associated with production, testing, product maintenance and provides access to technologies, precision engineering capabilities and skilled workforce which are otherwise difficult to develop and maintain in-house. Some key advantages of outsourcing medical device manufacturing include access to specialized equipment, increased production capacity, risk mitigation, reduced costs and focus on core competencies.
Market Overview:
Medical device contract manufacturing involves manufacturing medical equipment, devices, components or finished devices for original equipment manufacturers (OEMs) in the medical industry. It provides services ranging from product design and development to regulatory approval, production, packaging, and delivery.
Market key trends:
One of the key trends in the Medical Device Contract Manufacturing Market Share is the growing demand for outsourcing manufacturing services. This is mainly due to the benefits of reducing costs, access to advanced manufacturing infrastructure and focus on core competencies. Many medical device OEMs are outsourcing manufacturing activities to contract manufacturers to benefit from their expertise, scalable infrastructure and capabilities in high-volume production. This helps OEMs to launch new products quickly in the market and deliver products at competitive prices.
Segment Analysis
Content: The medical device contract manufacturing market is segmented into class I, class II, and class III medical devices. Class III medical devices dominated the market in 2022 and is expected to continue its dominance over the forecast period. Class III medical devices require extensive validation and are associated with higher risks. Owing to stringent regulations for class III devices, most device manufacturers outsource their manufacturing to minimize compliance risks and costs associated with class III devices.
Key Takeaways
The global medical device contract manufacturing market is expected to witness high growth, exhibiting a CAGR of 10% over the forecast period of 2023 to 2030, due to increasing demand for medical devices across the globe.
Market size: The global medical device contract manufacturing market size was valued at US$ 97.5 Bn in 2023.
Regional analysis: North America dominated the medical device contract manufacturing market in 2023. However, Asia Pacific is expected to grow at the highest CAGR during the forecast period owing to the presence of low-cost manufacturing hubs in countries such as China, India, Singapore, Malaysia, and South Korea.
Key players: Key players operating in the medical device contract manufacturing market are Flex, TE Connectivity, Sanmina, Jabil, Celestica, Plexus, and Tecomet, among others. Flex leads with maximum market share owing to its global scale and diverse set of manufacturing capabilities across various device classes.
Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
