Asia Pacific Product Design and Development Services Market Forecast to 2028 - COVID-19 Impact and Regional Analysis - by Services, Application, and End User

The product design and development services market in Asia Pacific is expected to grow from US$ 3,946.34 million in 2022 to US$ 7,407.91 million by 2028. It is estimated to grow at a CAGR of 11.1% from 2022 to 2028.

For example, GE Healthcare featured a new image-guided X-ray system that possesses functionality like a robot. New products and services assemble personal and big data, including genomics, preference, lifestyle information, and social determinant factors, that can create ground-breaking solutions. One such example of the solution is Livongo. Livongo is a chronic disease management platform that can be referred to as an`applied health signals`company using the Aggregate, Interpret (AI)+ Apply, and Iterate (AI) formula with functionality such as Aggregate, Interpret, Apply, and Iterate. Also, the platform delivers actionable, personalized, and timely recommendations that assist the user in managing chronic disease. Therefore, the growing health concerns among the population propel the demand for quality products in healthcare, which positively influences the growth of the product design and development services market.

Market Overview

APAC is the fastest-growing regional market for Product Design and Development Services; and China, India, Japan, South Korea, Australia, and the Rest of APAC are the major contributors to the market in this region. APAC is likely to account for over 41.37% market share of the global Product Design and Development Services market in 2021 owing to the rising geriatric population, increasing applications of diagnostic equipment, therapeutic equipment, and clinical laboratory equipment along with rising end-users such as pharmaceutical, medical device manufacturers, and research organizations. Therefore, the region holds huge potential for the Product Design and Development Services market players to grow during the forecast period.
The Rest of APAC product design and development services market is segmented into Indonesia, Singapore, Malaysia, Taiwan, Thailand, and New Zealand. The market is witnessing significant growth in these countries due to the increasing demand for various medical products and the aging population. As per the UN 2017 World Population Ageing report, Singapore’s population accounted for 5.71 million, consisting of 855,000 people under the age of 15 and 886,000 people aged 65 and above. According to Statistics New Zealand, 2019, people aged 65 and older currently constitute 15% of New Zealand's population, with over half (~53.4%) of the population being women. Moreover, Thailand currently has the third most rapidly aging population globally. Thailand has ~13 million people aged 60 and over, accounting for 20% of the total population. Furthermore, by 2050, Thailand’s aging population is expected to increase to 20 million, accounting for 35.8% of the population. This indicates that one will be a senior citizen out of every three Thais.

The rapidly evolving medical device industry in rest of APAC region is likely to favor growth for product design and development services market. For instance, Singapore's healthcare industry has enormously evolved due to the highly skilled healthcare workforce, advanced healthcare infrastructure, and favorable government policy initiatives. Therefore, it is expected that these factors are likely to influence various medical devices and pharmaceutical product design and development. Moreover, countries such as Singapore and Thailand are developing their healthcare systems and are emerging as excellent destinations for medical tourism. Hence, the demand for product design and development services in these countries has increased. Thus, the product design and development services market is expected to offer vital growth opportunities during the forecast period.

Asia Pacific Product Design and Development Services Market Segmentation

Asia Pacific product design and development services market is segmented into services, application, end user, and country.

• Based on services, the product design and development services market is segmented into research, strategy, and concept generation; concept and requirements developments; detailed design and process development; design verification; process validation, manufacturing transfer, and design validation; and other services. Research, strategy, and concept generation segment accounted for the largest market share.
• Based on application, the product design and development market is segmented into diagnostic equipment, therapeutic equipment, surgical instruments, clinical laboratory equipment, biological storage, consumables, and others. The surgical instruments segment is likely to dominate the market in 2022.
• Based on the end user, the product design and development services market has been categorized into medical companies, pharmaceutical companies, biotechnology companies, and contract research organizations (CROs). The medical companies held the largest market share in 2022.
• Based on country, the market is segmented into Australia, China, India, Japan, South Korea, and the Rest of Asia Pacific. China dominated the market in 2022.

Celestica Inc.; DeviceLab Inc.; FLEX LTD.; Jabil, Inc.; NORDSON CORPORATION; Planet Innovation; Plexus Corp.; Starfish Product Engineering Inc.; Sterling Medical Devices; and Ximedica are the leading companies operating in the product design and development services market in the region.