According to Precedence Research, the global medical device contract manufacturing market size was valued at USD 65.81 billion in 2021 and is expected to reach USD 167.34 billion by 2030, with a noteworthy CAGR of 10.9% from 2021 to 2030.
Growth Factors
Activity in the global medical device contract manufacturing market is driven by growing pressure on OEMs for medical devices to reduce manufacturing costs. In addition, macroeconomic factors such as an increasingly aging population across the globe paired with an increasing prevalence of non-invasive surgical procedures are driving demand for medical devices and the global medical device contract manufacturing market as well. In order to remain competitive in extremely specialized and increasingly segmented markets, OEMs need to rely on CMOs for everything from added manufacturing capabilities to product design and technical expertise. There is a growing demand for companies that offer medical device assembly in order to keep up with the demand.
Device Type Insights
IVD devices, drug delivery devices, diagnostic imaging devices, patient monitoring devices, therapeutic patient assistive devices, minimally accessed surgical instruments, and others are the product types covered in the global medical device contract manufacturing market.
IVD devices accounted for the considerable revenue share in the product type segment of the global medical device contract manufacturing market in 2019 owing to growing adoption of point-of-care testing coupled with adoption of fully automated instruments and automation in laboratories is expected to support the growth of IVD devices in years to come. In addition, changing lifestyle and rising chronic diseases is expected to fuel the growth of patient monitoring devices segment in near future and the segment will grow at a CAGR of 13.1%
Service Insights
The service segment of the global medical device contract manufacturing market categorized device development and manufacturing services, quality management services and final goods assembly services. Amongst them, device development and manufacturing services held the largest share and accounted for over 53% of revenue share in 2019.The growth of this segment is mainly driven by increasing demand for device engineering paired with device manufacturing services.
Application Insights
Growing demand for different orthopedic implants and devices especially in the older population is predicted to propel the orthopedic application segment massively in near future. The orthopedic application segment is estimated to grow at a CAGR of 12.9% in the analysis period.
Regional Insights
Currently North America leads the global medical device contract manufacturing market closely followed by the Asia Pacific region. The growth of the North America region is mainly driven by increasing in-house manufacturing costs that encourages medical device companies to adopt contract manufacturing as cost-cutting measures. Further, presence of leading medical device players is expected to drive the U.S.medical device contract manufacturing market.
Low labor cost. Increasing aging population in Japan, growing access to healthcare facilities in India is estimated to be a major driving factor in the Asia Pacific region. The Asia Pacific region is predicted to overtake the North America region by late 2020.
Growing investments in health care especially in Africa and improvement of health care infrastructure across MEA is expected to open up massive opportunities for market players in coming years.
Key Companies & Market Share Insights
The global medical device contract manufacturing market is highly competitive and some major players hold a considerable share. The market players operating in the global medical device contract manufacturing market are working on to retain the quality of these products and acquiring new clients across different industries. Recent ongoing product research and development by manufacturers due to COVID-19 pandemic is expected to open numerous opportunities in the global medical device contract manufacturing market.
Some of the recent activities by market players are:-
- July, 2020:- Channel Medsystems has announced that it has obtained FDA clearance for its next generation Cerenecryotherapy product to treat menstrual bleeding. Companies also state, with the COVID-19 pandemic, convenient and secure in-office treatment are more vital to patients and gynecologists than ever before.
- January, 2019:- Venclose Inc. and Viant have announced collaboration for the development of Venclose’s next-generation Venclose Radiofrequency (RF) ablation catheter.
Some of the noteworthy players in the global medical device contract manufacturing market include:
- Flex, Ltd.
- Nortech Systems, Inc.
- Sanmina Corporation
- Nipro Corporation
- Jabil Inc.
- Nemera Development S.A.
- TE Connectivity Ltd.
- Kimball Electronics, Inc.
- Viant Medical
- Celestica International Lp.
- Plexus Corp.
- SMC Ltd.
- Phillips-Medisize Corporation
- Benchmark Electronics Inc.
- Integer Holdings Corporation
- Gerresheimer AG
- Consort Medical PLC
- Tessy Plastics Corp
- Tecomet, Inc.
Segments Covered in the Report
This research report includes complete assessment of the market with the help of extensive qualitative and quantitative insights, and projections regarding the market. This report offers breakdown of market into prospective and niche sectors. Further, this research study calculates market revenue and its growth trend at global, regional, and country from 2016 to 2027. This report includes market segmentation and its revenue estimation by classifying it depending on device, service, application and region as follows:
By Device Type
- IVD Devices
- Drug Delivery Devices
- Diagnostic Imaging Devices
- Patient Monitoring Devices
- Therapeutic Patient Assistive Devices
- Minimally Access Surgical Instruments
- Others
By Service
- Device Development and Manufacturing Services
- Quality Management Services
- Final Goods Assembly Services
By Application
- Laparoscopy
- Pulmonary
- Urology & Gynecology
- Cardiovascular
- Orthopedic
- Oncology
- Neurovascular
- Radiology