United States Orthopedic Contract Manufacturing Market by Region, Competition, Forecast & Opportunities, 2020-2030F

The United States Orthopedic Contract Manufacturing Market was valued at USD 2.75 Billion in 2024, and is projected to reach USD 3.74 Billion by 2030, rising at a CAGR of 5.48%. As the population ages and the prevalence of musculoskeletal conditions continues to rise, the need for joint replacements, spinal implants, and trauma-related orthopedic products is expanding. This has created a strong demand for contract manufacturers that can provide high-quality, compliant, and cost-effective production solutions.

Orthopedic OEMs are increasingly focusing on core competencies such as product design, innovation, and commercialization, while outsourcing complex manufacturing processes to specialized contract manufacturers. These partners offer a range of services including precision machining, forging, casting, surface treatment, assembly, and packaging of implants and surgical instruments. Despite these challenges, the market outlook remains positive. Strategic partnerships, mergers, and acquisitions are common as manufacturers seek to expand capabilities, increase capacity, and better serve OEMs across the full product development cycle.

Key Market Drivers

Growth in Healthcare Industry

The growth of the healthcare industry in the United States is playing a central role in driving the expansion of the orthopaedic contract manufacturing market. In 2023, U.S. health care spending rose by 7.5%, reaching a total of USD 4.9 trillion, or approximately USD 14,570 per person. This level of expenditure accounted for 17.6% of the nation's Gross Domestic Product (GDP). As the population ages and the incidence of musculoskeletal conditions rises, the demand for orthopedic procedures such as joint replacements, spinal surgeries, and trauma-related interventions has increased significantly. This growing need for orthopedic care is directly translating into higher demand for medical devices, implants, and surgical instruments, which in turn fuels the need for reliable, high-quality manufacturing support.

Healthcare providers and medical device companies are under increasing pressure to deliver innovative solutions quickly and cost-effectively. For instance, ARCH Medical Solutions partners with medical OEMs to provide precision machining, contract manufacturing, and supply chain integration for orthopedic, spinal, dental, and robotic-assisted surgical devices and implants. Operating in FDA-registered facilities with advanced CNC technologies, they ensure high-quality standards throughout the manufacturing process. As a result, many orthopedic original equipment manufacturers (OEMs) are turning to contract manufacturing organizations (CMOs) to streamline production, access specialized expertise, and meet regulatory requirements.

Key Market Challenges

Vulnerability in Supply Chain

Vulnerability in the supply chain is a significant challenge facing the United States orthopedic contract manufacturing market. The production of orthopedic devices relies heavily on a steady and timely supply of high-quality raw materials, specialized components, and advanced technologies. Disruptions at any point in this complex supply chain can lead to delays, increased costs, and compromised production schedules, ultimately affecting the ability of contract manufacturers to meet client demands.

Several factors contribute to this vulnerability. First, the dependence on a limited number of suppliers for critical materials such as titanium alloys, cobalt-chromium, and other specialty metals creates risk exposure. Any shortage or delay in sourcing these materials can cascade through the manufacturing process, causing bottlenecks. Second, global geopolitical tensions, trade restrictions, and transportation challenges have introduced uncertainty and increased lead times, making supply chains less predictable.

Key Market Trends

Growth in Instrument Outsourcing

The growth in instrument outsourcing has become a prominent trend within the United States orthopedic contract manufacturing market. As orthopedic device companies strive to optimize their operations, reduce costs, and accelerate time-to-market, outsourcing the production of surgical instruments has gained significant traction. This strategic shift allows original equipment manufacturers (OEMs) to leverage the specialized expertise, advanced technologies, and manufacturing efficiencies offered by contract manufacturers.

Outsourcing instruments enables orthopedic companies to focus their internal resources on product innovation, design, and regulatory compliance, while contract manufacturers handle the complexities of precision machining, assembly, and quality assurance. 3D printed models offer detailed, tangible insights into the anatomical and pathological conditions of various structures. They enhance surgical planning through patient-specific models, improve diagnostic accuracy, and reduce both procedure duration and the need for general anesthesia. Given the increasing complexity and customization demands of orthopedic instruments, manufacturers with dedicated capabilities in instrument production provide significant value by ensuring high standards of accuracy, consistency, and reliability.

Key Market Players

Tecomet, Inc
Orchid Orthopedic Solutions
Cretex companies
ARCH Medical Solutions Corp.
Avalign Technologies
LISI Medical
Paragon Medical
Norman Noble, Inc.
Autocam Medical

Report Scope

In this report, the United States Orthopedic Contract Manufacturing Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

United States Orthopedic Contract Manufacturing Market, By Type:

Implants
Instruments
Cases
Trays
Others

United States Orthopedic Contract Manufacturing Market, By Service:

Forging/Casting
Hip Machining & Finishing
Knee Machining & Finishing
Spine & Trauma
Instrument Machining & Finishing
Others