Over the last few years, the orthopedic industry has seen a significant reduction in new product development and approvals due to the global financial crisis. To remedy this, the use of business process outsourcing services has proven to be an effective way of minimizing operational, management, and infrastructure costs. Medical devices companies are increasing their outsourcing activities as a strategy to reduce capital expenditure and labor costs. Additionally, intense competition in the health care industry is compelling these companies to recalibrate their marketing strategies and explore new opportunities in product design, development, and manufacturing. Consequently, most orthopedic devices manufacturer giants have adopted the strategy of outsourcing to specialist service providers such as contract manufacturing organizations (CMOs). Contract manufacturing may involve the manufacturing of either a whole product or a single component of a larger device. Companies adhere to their expertise, which includes assembly, CNC machining services, computer integrated products, consulting, converting, die-cutting, forming and finishing services, joining and sealing services, lyophilization services, machining services, medical device prototyping, molding and casting services, packaging services, R&D design, and stamping. With such varied services, the contract manufacturing industry is able to serve a range of businesses\customers.
Based on service, the global orthopedic contract manufacturing market can be segmented into forging, casting, hip machining & finishing, knee machining & finishing, spine & truma, instrument machining & finishing, cases & trays, coating, ceramics, and others.
The most effective way to lead in the highly competitive orthopedic devices market is to reduce the time to market. Reduced time to directly influences orthopedic contract manufacturing market revenues and offers significant advantages in the orthopedic devices industry, where new products are launched in two to five years. Medical devices have advanced significantly. Their complexity has made them more diverse and accurate. However, mass production of these devices has become challenging. This is the primary factor attributed to the outsourcing of the production of these devices to other manufacturers. As the demand for medical devices and their raw materials is estimated to be more or less constant in the long run, companies find it mutually profitable to bind themselves in contracts. This is boosting demand for orthopedic contract manufacturing services.
In terms of region, the global orthopedic contract manufacturing market can be segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America dominates the global orthopedic contract manufacturing market. The region is projected to account for a significant share of the global orthopedic contract manufacturing market during the forecast period due to the increased requirement of advanced orthopedic devices and increase in health care expenditure. Rise in medical requirements of an aging population and increase in the number of surgeries are some factors that boost the growth of the orthopedic contract manufacturing market in Europe. region. The Asian countries such as China are lucrative countries for orthopedic contract manufacturing activity due to many advantages such as low labor cost, low overhead cost, etc.. Moreover, the number of orthopedic disorders is increasing in Asia Pacific, which make the region more attractive to players. The demand for orthopedic devices in countries such as Brazil and South Africa is increasing because of the presence of large patients pools. Moreover, favorable government support and an improving economy are helping many companies outsource their orthopedic devices to the Middle East & Africa. This factor drives the orthopedic contract manufacturing market in Middle East & Africa.
Key players in the global orthopedic contract manufacturing market are Orchid, Paragon Medical, Tecomet, Inc., Viant, Lonza Group, American Casting Company, Aristotech Industries GmbH, and Autocam Medical among others.
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
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Below is a snapshot of these quadrants.
1. Customer Experience Map
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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?
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