Medical Device Contract Manufacturing Market - Snapshot

The medical device manufacturing industry is rapidly growing across the globe and along with that contract manufacturing services form a large part of the industry. Over the last many decades, contract manufacturing sector along with the medical device manufacturing industry have faced the challenges of meeting spiraling demand and has reshaped medical technology. Even now, when COVID-19 is ravaging the world, there is a shortage medical kits for testing the presence of virus in an individual. Global pandemics, such as COVID-19 along the usual increasing demand for medical devices is likely to bolster the growth of the global medical device contract manufacturing market in the near future.

With the rising demand for medical devices, it is expected that the need for people and companies manufacturing medical devices will also rise. As such, it is expected that contract manufacturing will play a significant in the years to come.

Technological Advancements and Multiple Benefits of the Product to Spur Growth

Contract manufacturing refers to a type of outsourcing business in which a firm makes either a single part of a larger product or whole products. This concept also holds true in the industry of medical device. Original equipment manufacturers of medical devices are enterprises that usually focus on a specific field of expertise, such as research and development or assembly or molding. In the system of medical device contract manufacturing, the manufacturing firm produces either the parts of a medical device or the entire medical device. Another firm later sells the parts that are manufactured by these outsourced processes.

Medical device contract manufacturers offer the manufacturing of

  • raw materials
  • electronics
  • finished goods

The global medical device contract manufacturing market is predicted to be driven by a rise in the adoption of technologically advanced processes in the medical device industry. This has led to the production of electronically integrated gadgets. Furthermore, expanding pool of geriatric population who are more vulnerable to illnesses are further likely to bolster the growth of the global medical device contract manufacturing market.

Medical Device Contract Manufacturing Market - Snapshot

Over the past few years, the pharmaceutical and medical device industry has seen a significant reduction in new product development and approvals due to the global financial crisis. To remedy this situation, the use of business process outsourcing services has proven to be an effective way of minimizing operational, management, and infrastructure costs. The global medical device contract manufacturing market was valued at US$ 47.5 Bn in 2017. It is anticipated to expand at a CAGR of 10.9% from 2018 to 2026. The in-vitro diagnostic medical devices segment dominates the global market. Rise in the prevalence of chronic diseases, technological advancements, increase in patient awareness and health care expenditure, and rise in the need for the diagnosis of complex diseases are major factors driving the market. The highly fragmented nature of the medical device contract manufacturing market has prompted market players to shift their focus toward relatively niche segments such as minimally access surgical instruments.

medical device contract manufacturing market

The global medical device contract manufacturing market has been segmented based on device type, type of manufacturing, service, application, and region. In terms of device type, the global market has been classified into in-vitro diagnostic medical devices, diagnostic imaging & medical equipment, drug delivery devices, patient monitoring devices, minimally access surgical instruments, therapeutic patient assistive devices, and others. Higher demand for home monitoring devices, surgical & non-surgical instruments, implants, and diagnosis & treatment devices is expected to drive the medical devices market, which, in turn, is likely to propel the medical device contract manufacturing market. Based on type of manufacturing, the global medical device contract manufacturing market has been categorized into raw materials, electronics, and finished goods. The electronic type of manufacturing is gaining popularity, and the electronics segment is projected to expand at a significantly higher CAGR during the forecast period. In term of service, the global medical device contract manufacturing market has been split into prototype development, finished device manufacturing, assembly & packaging, testing & regulatory support services, molding & casting, and others. The prototype development segment is likely to hold a major share of the global market as successful prototyping identifies and helps correct problems long before they can negatively impact and irreparably harm the finished project. Based on application, the global medical device contract manufacturing market has been divided into cardiovascular, orthopedic, neurovascular, pulmonary, oncology, laparoscopy, urology & gynecology, radiology, and others. Expansion of the orthopedic segment can be attributed to the growing geriatric population affected with arthritis.

In terms of region, North America dominated the global medical device contract manufacturing market in 2017, owing to a highly developed health care sector, increase in awareness among health care providers about medical devices, and continuous evolution of advanced medical device products. North America is also an attractive region of the market, in terms of revenue. Rise in the number of government initiatives and laws and increase in population drive the medical device contract manufacturing market in the region. Technological advancements and increase in manufacturing sites are expected to propel the medical device contract manufacturing market in Asia Pacific, Latin America, and Middle East & Africa during the forecast period. 

Key players operating in the global medical device contract manufacturing market include Flextronics International, LTD., Jabil Inc., Benchmark Electronics, Inc., Integer Holdings Corporation (Greatbatch), West Pharmaceutical Services, Inc., Tecomet, Inc., Nortech Systems, TE Connectivity (Creganna Medical), Forefront Medical Technologies, and Nordson Corporation.

Medical Device Contract Manufacturing Market - Overview

The medical device contract manufacturing market is expanding significantly, as several life science companies are increasing their outsourcing activities as a strategy to reduce capital expenditure and labor costs. The in-vitro diagnostic medical devices segment is anticipated to expand during the forecast period, as the devices offer a promising solution for the rapid diagnosis of diseases. These products offer superior solutions compared to other diagnosis products, by offering desired outcomes and effectiveness in diagnosing. An increase in the incidence of chronic diseases has fueled demand for products that offer rapid and efficient healing. Thus, a majority of hospitals have shifted their preferences toward advanced products. These products help decrease the average length of stay in hospitals through early recovery from disease. This, in turn, helps reduce surgical costs. Therefore,  a rise in demand for advanced products that increase therapeutic outcomes drives the medical device contract manufacturing market.

The global medical device contract manufacturing market has been extensively analyzed based on device type, type of manufacturing, service, application, and region. In terms of device type, the global market has been classified into in-vitro diagnostic medical devices, diagnostic imaging & medical equipment, drug delivery devices, patient monitoring devices, minimally access surgical instruments, therapeutic patient assistive devices, and others. Based on type of manufacturing, the global medical device contract manufacturing market has been classified into raw materials, electronics, and finished goods. In terms of service, the global medical device contract manufacturing market has been split into prototype development, finished device manufacturing, assembly & packaging, testing & regulatory support services, molding & casting, and others. Based on application, the global medical device contract manufacturing market has been divided into cardiovascular, orthopedic, neurovascular, pulmonary, oncology, laparoscopy, urology & gynecology, radiology, and others. Each of the segments has been analyzed in detail for market trends, recent developments, outlook, and opportunities. The report provides current and future market size for each segment and sub-segment for the period from 2018 to 2026, in terms of revenue in US$ Mn, considering 2017 as the base year The compound annual growth rate (%CAGR) for each market segment has been provided for the forecast period from 2018 to 2026, along with the estimations of market size.

In terms of region, the global medical device contract manufacturing market has been segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The regions have been further sub-segmented into major countries and sub-regions. The current and future market sizes in terms of revenue (US$ Mn) of these regional markets and their major countries have been provided in the report for the period from 2016 to 2026, with their growth rate (%) for the period from 2018 to 2026. The study also offers a list of recommendations and highlights of the market for new companies willing to enter the market and for existing companies to increase market shares, which is likely to help in the decision-making process.

The market overview section of the report demonstrates market dynamics and market trends such as drivers, restraints, opportunities, and key trends that influence the current and future status of the medical device contract manufacturing industry. The report also covers market attractiveness analysis and key market share analysis in the market overview section in order to provide a thorough analysis of the overall competitive scenario in the global medical device contract manufacturing market.

The report concludes with the company profiles section that includes key information about the major players in the market. Key players profiled in this report include Flextronics International, LTD., Jabil Inc., Benchmark Electronics, Inc., Integer Holdings Corporation (Greatbatch), West Pharmaceutical Services, Inc., Tecomet, Inc., Nortech Systems, TE Connectivity (Creganna Medical), Forefront Medical Technologies, and Nordson Corporation. Each of these players has been profiled in the report considering parameters such as company overview, financial overview, business strategies, product portfolio, and recent developments.

The global medical device contract manufacturing market has been segmented as follows:

Device Type

  • In-vitro Diagnostic Medical Devices
  • Diagnostic Imaging & Medical Equipment
  • Drug Delivery Devices
  • Patient Monitoring Devices
  • Minimally Access Surgical Instruments
  • Therapeutic Patient Assistive Devices
  • Others

Type of Manufacturing

  • Raw Materials
  • Electronics
  • Finished Goods

Service

  • Prototype Development
  • Finished Device Manufacturing
  • Assembly & Packaging
  • Testing & Regulatory Support Services
  • Molding & Casting
  • Others

Application

  • Cardiovascular
  • Orthopedic
  • Neurovascular
  • Pulmonary
  • Oncology
  • Laparoscopy
  • Urology & Gynecology
  • Radiology
  • Others

Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • U.K.
    • France
    • Italy
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia & New Zealand
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC Countries
    • South Africa
    • Rest of Middle East & Africa

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