Medical Device Manufacturing Outsourcing Market Size to grow by USD 50.44 billion between 2024-2028
According to a research report “ Medical Device Manufacturing Outsourcing Market” by Product (EMS, Raw materials, Finished goods) Medical Device Regulatory Classification (Class II, Class III, Class I) Geography (North America, Asia, Europe, Rest of World (ROW))- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 50.44 billion, at a CAGR of 10.87% during the forecast period. In response to global healthcare budget cuts and the necessity for cost-effective, high-quality healthcare services, medical device Original Equipment Manufacturers (OEMs) are increasingly turning to outsourcing for manufacturing solutions. Outsourcing enables OEMs to reduce operational and production costs, particularly in areas requiring high engineering capabilities and increased labor expenses. Medical device manufacturing, with its complex engineering demands, presents significant cost savings opportunities. For instance, outsourcing can result in a reduction of up to 15% in total production costs, making it an attractive proposition for OEMs seeking to maintain profitability and meet growing demand for medical devices from end-users.
Browse market data tables, figures, and in-depth TOC on “Medical Device Manufacturing Outsourcing Market” by Product (EMS, Raw materials, Finished goods) Medical Device Regulatory Classification (Class II, Class III, Class I) Geography (North America, Asia, Europe, Rest of World (ROW)) Global Forecast to 2028. Download Free Sample
By Product, the EMS segment is projected to dominate the market size in 2024
Class II medical devices, characterized by their intricate design and minimal operator risk, adhere to stringent regulations. These regulations include general policies, special labeling, mandatory performance standards, and post-market surveillance. Devices falling under this category include X-ray machines, infusion pumps, surgical needles, electrocardiographs, air purifiers, acupuncture needles, and powered wheelchairs. Class II medical devices are further segmented into Class IIa (low-to-medium-risk) and Class IIb (medium-to-high-risk) categories. The increasing trend among Original Equipment Manufacturers (OEMs) to outsource the manufacturing of their Class II medical device products to specialized companies is a significant market growth driver. This outsourcing approach enables OEMs to focus on their core competencies while ensuring the production of high-quality, compliant devices.
By Medical Device Regulatory Classification, Class II segment is expected to hold the largest market size for the year 2024
The Electronics Manufacturing Services (EMS) market in the medical device sector encompasses the production of advanced patient monitoring systems, diagnostic imaging equipment, in-vitro diagnostics, and pacemakers. Key players in this domain include Jabil Inc., Celestica Inc., Sanmina Corp., and Flex Ltd. The global EMS market is poised for significant expansion due to escalating healthcare expenditures, burgeoning demand from emerging economies such as India, China, and Brazil, and the rapid evolution of medical device technologies. Vendors are expanding their manufacturing footprint and tailoring offerings to Original Equipment Manufacturers (OEMs) to cater to increasing demand, while simultaneously mitigating labor and infrastructure costs.
North America is forecasted to hold the largest market size by region in 2024
The Medical Device Manufacturing Outsourcing Market represents a significant business trend, with an increasing number of medical device companies opting for external manufacturing solutions to reduce costs, improve efficiency, and focus on core competencies. Outsourcing enables access to specialized expertise, advanced technologies, and economies of scale, ultimately enhancing product quality and competitiveness in the global marketplace.
The Medical Device Manufacturing Outsourcing Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:
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Research Analysis Overview
The Medical Device Manufacturing Outsourcing Market is witnessing significant growth due to the increasing prevalence of cardiovascular diseases and age-related conditions. Outsourcing device production allows companies to focus on research and development, while procurement of raw materials such as polymers, sensors, electronic components, and packaging is handled by contract manufacturing services. Patient epidemiology plays a crucial role in the production of diagnostic and therapeutic devices for conditions like IVD, Ophthalmic, Diagnostic Imaging, Orthopedic, and Wound care. The market includes various services such as product maintenance, upgrade, and implementation, as well as regulatory affairs and quality assurance. Scientific innovation continues to drive the market, with new technologies in areas like coronary stents, oncology, and sensors leading to increased demand for outsourcing. The use of advanced materials and components, such as polymers and electronic components, is essential in the production of medical devices. The market caters to various sectors, including Cardiovascular, Oncology, and Orthopedic devices. Contract manufacturing services provide a cost-effective solution for companies looking to bring their products to market quickly and efficiently, while ensuring regulatory compliance and maintaining high-quality standards.
Market Research Overview
The Medical Device Manufacturing Outsourcing Market is a significant sector in the healthcare industry, driven by the increasing demand for medical devices and the need for cost savings, productivity gains, and access to state-of-the-art equipment and modern technology. The contract manufacturing segment of this market plays a crucial role in producing high-quality medical devices, from cardiac disorders and neurological disorders devices to orthopaedic issues and cardiovascular diseases. Outsourcing non-core services, such as testing, procurement, and logistics, enables medical device companies to focus on their core competencies, such as scientific innovation and regulatory affairs. Intellectual property protection, data confidentiality, security, and privacy are essential considerations for medical device manufacturers when outsourcing. Medical device technology encompasses various sectors, including polymers, sensors, electronic components, packaging, assembly, and electronics. Finished goods include surgical devices, cosmetic surgeries, and diagnostic imaging equipment. Contract manufacturing services offer product maintenance, upgrade, and implementation services, ensuring product quality and adherence to medical device regulations. Key medical device categories include cardiovascular devices, diabetes care, endoscopy, dental, drug delivery, general and plastic surgery, ophthalmic, IVD, orthopedic, and oncology devices. The market's growth is fueled by advancements in medical technology, patient epidemiology, and regulatory requirements. By outsourcing manufacturing and non-core services, medical device companies can reduce time-to-market and improve productivity while maintaining the highest standards of product quality.
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