The global market for Medical Device Outsourcing is projected to reach US$162.4 billion by the year 2027 trailing a CAGR of 8.4% over the analysis period 2020 through 2027.The pandemic has shaken the outsourcing Industry creating fissures that could mark the beginning of a Techtronic shift in outsourcing approaches. Near shoring which began growing in popularity even in the pre-pandemic period will now witness greater momentum. The growing backlash against globalization & the need to rethink supply chains and decouple from China will heighten the focus on near shoring. Near shoring will help side step the risk of heavy dependence on countries located far away from the manufacturer's country. Medical device manufacturers in the U.S in the coming years will cast a closer focus on Mexico, Costa Rica & other Latin American countries as against China.
Medical device outsourcing is an approach where a third party assumes responsibility of managing device development and manufacturing operations either in part or in entirety. Medical device outsourcing continues to grow in significance led by the increasing need for medical device companies to recalibrate their strategies to reduce costs, accelerate time-to-market and focus on their core competencies. Medical Device Outsourcing involves a third-party operating a part or entire client's technology assets. Outsourcing typically involves an agreement between the client company and the supplier or the external outsourcing service provider. As per the agreement terms, the supplier takes over the manufacturing means in the form of assets, workforce, and additional resources of the client company. Furthermore, the client company gets hold of the services provided by the supplier as per the contract terms. Medical device manufacturers (original equipment manufacturers or OEMs) sometimes hire a contract manufacturer to perform contract manufacturing services such as product prototype, production, injection molding, silicone compression molding, welding, assembly and packaging in a controlled environment, clean room and other auxiliary services such as metal machining. Medical device outsourcing can lower operational costs, increase business efficiency and boost productivity thus providing tangible, bottom line benefits to organizations.
Quality control is one of the most critical issues in the survival of medical device industry. Stipulated FDA regulations and a high competition in the market ensure that medical device companies confirm to the pre-determined quality standards. Fear of losing market share to the competitors keeps medical device companies on their toes in maintaining quality benchmarks. Outsourcing the manufacturing process will limit the challenges as well as potential liabilities concerns. Quality remains an important issue in considering whether to outsource medical device manufacturing processes. Outsourcing decision primarily depends on customer preference as well as the kind of medical device manufacturing undertaken.
The global analysis and forecast periods covered within the report are 2020-2027 (Current & Future Analysis) and 2012-2019 (Historic Review). Research estimates are provided for 2020, while research projections cover the period 2021-2027.
I. INTRODUCTION, METHODOLOGY & REPORT SCOPE
II. EXECUTIVE SUMMARY
1. MARKET OVERVIEW
Medical Device Outsourcing: OEMs Benefit from Low Cost, Faster Time-to-Market and Focus on Core Competencies
Recent Market Activity
Outsourcing: A Promising Strategy Chosen by Medical Device OEMs
While US Leads, Asia-Pacific Emerges as a Preferred Outsourcing Destination
Class II Devices: Important Device Category
Cardiology - The Leading Therapeutic Segment
Improving Healthcare Expenditure to Bode Well for Market Growth
Strong Gains to Continue in the Years Ahead
Global Competitor Market Shares
Medical Device Outsourcing Competitor Market Share Scenario Worldwide (in %): 2018 & 2029
Impact of Covid-19 and a Looming Global Recession
2. FOCUS ON SELECT PLAYERS
Benchmark Electronics, Inc. (USA)
Cadence, Inc. (USA)
Celestica, Inc. (Canada)
CoorsTek Medical LLC (USA)
Creganna Medical (Ireland)
Flex Ltd. (Singapore)
HCL Technologies Limited (India)
ICON plc (Ireland)
Integer Holdings Corporation (USA)
Intertech Engineering Associates, Inc. (USA)
Laserage Technology Corporation (USA)
Venta Medical, Inc. (USA)
Memry Corporation (USA)
Millstone Medical Outsourcing, LLC (USA)
Minnetronix, Inc. (USA)
Nortech Systems, Inc. (USA)
Phillips-Medisize Corporation (USA)
Plexus Corporation (USA)
Providien, LLC (USA)
Sparton Corporation (USA)
Tecomet, Inc. (USA)
Thermo Fisher Scientific, Inc. (USA)
Viant (USA)
West Pharmaceutical Services, Inc. (USA)
WuXi AppTec Co., Ltd. (China)
3. MARKET TRENDS & DRIVERS
Rising Demand for Medical Devices: Cornerstone for Present and Future Growth of Outsourcing Market
Growing Healthcare Needs of Ballooning Global Population Fuel Demand for Medical Devices
Aging Population’s Impact on Medical Devices: Favorable Prospects for Outsourcing
Adoption of Stringent Regulations Instigates Robust Momentum
Medical Device Contract Manufacturing: A Review
Rapid Growth of Medical Device Market in Emerging Nations
Onshoring Trend Gains Ground
Rise in Disease Incidences & Access to Modern Therapeutics Foster Growth
Expanding Role of Outsourcing Partners & Rising Demand for Full-Service Providers
Device Manufacturing Dominates, Design Engineering to Make Gains
Product Design and Development Services: High in Demand
Myriad Benefits Offered Drive Demand for Product Design and Development Services
R&D and Post Market Engineering Support Services for Medical Devices on the Rise
CRO Outsourcing Picking Up Momentum
Product Testing and Certification Services Gain Traction
OEMs Queue Up for Product Implementation and Supply Chain Services
Outsourced Regulatory Consulting Services Emerge as New Driving Force
Outsourcing of IVD Device Manufacturing Gains Momentum
Orthopedic Contract Manufacturing Market: Favorable Growth Potential
Medical Electronic Manufacturing Services Providers See Increased Opportunities
Medical Device Miniaturization Drives Demand for Outsourcing Services
Shortening Product Lifecycles, Speed to Market Will Drive Outsourcing Trend
IP Considerations Vital in Medical Device Outsourcing
A Brief Overview of Major Challenges
Legal & Regulatory Issues
Intellectual Property and Business Risks Deter OEMs to Seek Alliances
Delays in Contractual Obligations
4. GLOBAL MARKET PERSPECTIVE
III. MARKET ANALYSIS
GEOGRAPHIC MARKET ANALYSIS
UNITED STATES
Market Facts & Figures
US Medical Device Outsourcing Market Share (in %) by Company: 2018 & 2025
Market Analytics
CANADA
JAPAN
CHINA
EUROPE
Market Facts & Figures
European Medical Device Outsourcing Market: Competitor Market Share Scenario (in %)for 2018 & 2025
Market Analytics
FRANCE
GERMANY
ITALY
UNITED KINGDOM
SPAIN
RUSSIA
REST OF EUROPE
ASIA-PACIFIC
AUSTRALIA
INDIA
SOUTH KOREA
REST OF ASIA-PACIFIC
LATIN AMERICA
ARGENTINA
BRAZIL
MEXICO
REST OF LATIN AMERICA
MIDDLE EAST
IRAN
ISRAEL
SAUDI ARABIA
UNITED ARAB EMIRATES
REST OF MIDDLE EAST
AFRICA
IV. COMPETITION
Total Companies Profiled: 59
