Medical Devices Contract Manufacturing Market: Overview
Innovations in medical, healthcare, and biomedical technologies and rapid expansion and development of competent and technologically superior healthcare infrastructure and medical facilities are two of the key motivators for the global medical devices contract manufacturing market. Some of the other market drivers include increasing global demand for efficient and technologically advanced medical devices and rising demand for sophisticated and convenient medical devices. Many of the players and original equipment manufacturers (OEMs) operating within the healthcare industry are increasingly partnering with contract manufacturing organizations (CMOs) to reduce their production costs. Players and manufacturers in medical devices contract manufacturing market can enhance the production and manufacturing processes of these medical devices as they have expertise in manufacturing and they can reduce the cost as well as the time required to finish a product i.e. a medical device.
Players in medical devices contract manufacturing market can provide specialized services pertaining to the specific needs of the medical devices designers and developers. They can invest in manufacturing equipment and latest manufacturing technologies to provide faster and cost efficient delivery of the medical devices. Growing geriatric population along with increased life expectancy globally is anticipated to thrust substantial growth in the global medical devices contract manufacturing market in coming years. On the other hand, complexity and issues faced in the supply chain, rising cost of noncompliance medical devices, and problems related to interoperability and standardization can hamper the growth of global medical devices contract manufacturing market in coming years.
Medical devices contract manufacturing involves taking the assistance of third-party companies to manufacture medical devices. Contract manufacturing of medical devices allows the companies to go for the production of devices based on latest technologies without deviating from their core activities. The medical device contract manufacturing allows the companies to focus on their core activities such as marketing of the product or device which in turn boosts the market growth. The market for medical device contract manufacturing is witnessing a huge increase owing to the benefits includes a reduction in overall cost and decrease in the time required for the product to enter the market. In addition, companies need not set up manufacturing units in different countries in order to expand their product line. Companies can fulfill the demands by getting their products manufactured through medical device contract manufacturers located in different regions. In this way, they can utilize their capital investment for their growth.
The global medical devices contract manufacturing market can be segmented on the basis of device type (Class I, II, and III devices), by product (raw materials, electronics, and finished goods), by application (orthopedic & spine, cardiovascular, radiology, and general medical devices), and service (prototype development, finished device manufacturing, assembly & packaging; and testing & regulatory support services) and by geography.
The medical device contract manufacturing market is being driven by the growing pressure on medical device original equipment manufacturers to reduce production costs and delay in the marketing of latest products. Also, rising preference for non-invasive surgical procedures propels the contract research manufacturing market of endoscopic systems and surgical instruments manufacturing. The absence of internal manufacturing potential drives the market among mid- to small-sized companies. Aging population provides the opportunities for contract manufacturing of many products like orthopedic implants and instruments. There is an increase in the number of aging population worldwide. As per the World Health Organization report, the geriatric population is expected to reach 1.5 billion by 2050; that can be around 16% of the total world population. Moreover, there is a positive association between elderly individuals and increase in the incidence of disorders such as cardiovascular, neurological, and orthopedics. Hence, increase in the geriatric population is expected to have a positive impact on the market. However, the threat of loss of confidential information can be the hindrance to the market growth.
On the basis of geography, the medical devices contract manufacturing market can be divided into five regions: North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America holds the largest market share across the globe for medical device contract manufacturing with the U.S. being the highest revenue generator country. Increased requirement for advanced and efficient medical devices is driving the growth of the market in the U.S along with growing healthcare expenditure, rising medical requirement of the aging population and continuous increase in the number of surgeries cases. Asia Pacific is expected to witness fastest growth over the analysis period. The Asian countries like China being the lucrative countries for contract manufacturing activity. This being the major factor why most of the medical device companies choose to manufacture their devices in Asia, which is primarily attributed to the low labor costs, improvement in technical knowledge, and low overhead costs. Also, the presence of a large pool of patients suffering from disorders, such as cardiac and neurological have increased the demand for medical devices contract manufacturing in Asia. The presence of manufacturing facilities for high-end, reliable and advanced medical devices make the Asia Pacific as promised destination for medical device contract manufacturing market.
The key companies operating in the global medical devices contract manufacturing market include Creganna, Celestica, Inc., Heraeus Holding, Flextronics International Ltd., Integer Holdings Corporation, Plexus Corp., Nortech Systems, Inc., Tecomet, Inc, Sanmina Corporation, and West Pharmaceutical Services, Inc.
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.
Below is a snapshot of these quadrants.
1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
2. Insights and Tools
The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.
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The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.
4. Strategic Frameworks
The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
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