Strategic Alliances between Local and Global Companies to Remain Crucial for Global Medical Devices Outsourcing Market, says TMR
The global medical devices outsourcing market is highly fragmented due to the presence of a large number of local and international players, finds a new report by Transparency Market Research. The top four companies that predominantly outsource product manufacturing and services to small and specialized service providers held only 28% of the market in 2011. These are Johnson and Johnson, GE Healthcare, Medtronic, and Baxter International.
The global medical devices outsourcing market is expected to be worth US$40.8 bn by 2018, says TMR. On the basis of application, class II devices account for the largest market share due to moderate risks and minimal regulatory requirements. “Business alliances and partnerships are key strategies adopted by top companies for business growth,” says a TMR analyst.
Increased focused on research and development is one of the key growth models that companies receiving outsourced services in the global medical devices outsourcing market are employing for business growth. For instance, the research and development of Creganna-Tactx is focused on developing products with newer component and to develop technologies for minimally and less invasive medical delivery systems.
Need to Reduce Production Cost for Competitive Reasons Fuels Market Growth
A TMR analyst points out, “The ever-increasing demand for quality healthcare is one of the key factors driving the growth of the global medical devices outsourcing market.” At present, the increasing prevalence of chronic diseases is leading to a rising demand for early disease detection for improved disease management. The quality of healthcare delivered depends on the quality of diagnostic devices. This is forcing device manufacturers to outsource product development to specialized third-party product manufacturers to stay ahead in the competitive healthcare industry.
Product outsourcing helps reduce production cost by 10-15% thus allowing companies to survive competition, which is another major factor driving the global medical devices outsourcing market. Today, almost all medical devices are integrated with IT solutions for operational purposes. For example, software for patient monitoring devices that was initially developed in-house is now outsourced to domain experts such as HCL, Persistent Systems, Wipro, and Amdocs.
Outsourcing of product manufacture and services help maximize revenue by means of reducing time-to-market, which is another key factor driving the growth of the global medical devices outsourcing market. This is because a significant amount of time is spent receiving approvals from statutory bodies in the manufacture of medical devices. This time can be reduced by leveraging outsourcing service providers such as Oracle, SAP, Infosys, and Patni that offer process control services for acquiring approvals from statutory bodies. Moreover, the expertise of these providers in developing the relevant application software reduces overall time of production.
Demand for Quality Certifications of Leading Companies Presents Opportunities for Local Service Providers in Asia
“Increasing shift towards quality certifications among Asian service providers and medical device manufacturers is opening growth opportunities for top companies in the global medical devices outsourcing market,” says a TMR analyst. The growing demand for medical devices in the Asian region is attracting top-notch players such as Johnson &Johnson and Boston Scientific to this region. To leverage this, an increasing number of local device manufacturers and service providers are streamlining their processes as per the ISO and requirements of other standardization organizations to attract global players.
The information presented in this review is based on a Transparency Market Research report, titled “Medical Devices Outsourcing Market - Global Industry Size, Market Share, Trends, Analysis, And Forecast 2012 - 2018.”
The global medical devices outsourcing market is segmented as follows:
Medical Devices Outsourcing Market, by Application
- Class I Medical Devices
- Class II Medical Devices
- Class III Medical Devices
Medical Devices Outsourcing Market, by Services
- Regulatory Consulting Services
- Product Design and Development Services
- Product Testing Services
- Product Implementation Services
- Product Upgrade Services
- Product Maintenance Services
Medical Devices Outsourcing Market, By Geography
- North America
- Asia Pacific
- Rest of the World
Transparency Market Research (TMR) is a market intelligence company, providing global business information reports and services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants, use proprietary data sources and various tools and techniques to gather, and analyze information. Our business offerings represent the latest and the most reliable information indispensable for businesses to sustain a competitive edge.
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