Medical Device Outsourcing Market: Current Analysis and Forecast (2021-2027)
Emphasis on Product Type (Finished Goods, Electronics, Raw Materials); Device Type (Class 1 Devices, Class 2 Devices, Class 3 Devices); Application (Orthopedic and Spine, Cardiovascular, Radiology, General Medical Devices, Others); Services (Prototype Development, Finish Device, Manufacturing, Assembly and Packaging, Testing and Regulatory Support Services); and Region/Country
The medical device outsourcing market is expected to register a CAGR of around 10% over the period of 2021-2027. Medical device outsourcing is a type of contract manufacturing in which a company contracts with a third party to perform business functions such as prototyping, product design, and supply chain management. and manufacture of medical devices or parts of finished products. Contract manufacturing helps medical companies keep pace with technological developments in medical devices and deliver new and desired products with greater performance, speed, and cost-effectiveness. The growing adoption of medical device outsourcing can be attributed to the rising prevalence of various chronic diseases coupled with a rapidly growing geriatric population. According to the United Nations, the 60+ aged population was 962 million in 2017 which is more than twice that it was in 1980 at 382 million. The number of elderly is expected to double again by 2050 and reach nearly 2.1 billion worldwide. Owing to this demand for medical devices is rising which in turn boosts the medical device outsourcing market globally. Furthermore, the medical device outsourcing market is anticipated to grow on account of the rapid time-to-market (TTM), time-to-volume (TTV), and time-to-profit (TTP) are critical for manufacturer competitiveness and customer satisfaction in the medical device industry which ensures early entry of product into the market, increasing needs for quality healthcare services, increasing buyer awareness level, and various advantages associated with the medical device outsourcing such as reduction of production time, devices are under regulatory standards, etc. However, some of the restraints in the market including regulatory and legal compliance and lack of skilled labor are impeding the growth of this market all over the world.
Cardinal Health, Inc., TE Connectivity Ltd., Flex Ltd., Integer Holdings Corporation, Nortech Systems Incorporated, Plexus Corp., Sanmina Corporation, West Pharmaceutical Services Inc. are some of the key players in the market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.
Insights Presented in the Report
“Amongst Product, the finished goods category accounted for the majority share in the market in 2020”
Based on product, the medical device outsourcing market is segmented into finished goods, electronics, and raw materials. The finished goods segment accounted for a significant market share in 2020 and it is estimated that it will grow rapidly during the projected timeframe due to maintaining budgets without sacrificing quality, short deadlines, and safety turning. In addition, the life expectancy of finished goods also rises due to outsourcing the goods also boosting the segment as well as the market.
“Among Devices Type, the class 2 devices is expected to witness highest CAGR during the forecast period”
Based on device type, the medical device outsourcing market is segmented into class 1 devices, class 2 devices, and class 3 devices. The class 2 devices segment occupied the major share of the medical device outsourcing market in 2020 and it is expected to grow with a substantial CAGR in the upcoming years. Class II medical devices are those devices that have a moderate to high risk to the patient and/or user. Around 43% of medical devices fall under this category such as powdered wheelchairs. Thus, the high demand for class 2 devices contributes to the growth of this segment. Moreover, the rise in demand for surgical instruments and test kits that falls under this category is also driving the segment of the medical device outsourcing market.
“Amongst Services, the finish device manufacturing category accounted for the majority share in the market in 2020”
Based on services, the market is fragmented into prototype development, finish device manufacturing, assembly and packaging, and testing & regulatory support services. The finish devices manufacturing segment grabbed a considerable market share, and it is expected to grow at a significant CAGR during the forecast period due to the unprecedented demand for technical assistance in the testing of raw materials and finished products. Moreover, this is due to equipment manufacturers (OEMs) in the medical device industry seeking support for medical device testing and certification services to meet regulatory standards.
“North America to witness significant growth during the forecast period”
For a better understanding of the market dynamics of the medical device outsourcing market, a detailed analysis was conducted for different regions across the globe including North America (the U.S, Canada, and the Rest of North America), Europe (Germany, France, Spain, United Kingdom, Italy, and Rest of Europe), Asia-Pacific (China, India, Japan, and Rest of APAC), Rest of World has been conducted. North America constitutes a major market for the medical device outsourcing market industry in 2020 owing to strong healthcare infrastructure and growing adoption of medical device outsourcing in the region.
Reasons to buy this report:
- The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
- The report presents a quick review of overall industry performance at one glance.
- The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments.
- Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
- The study comprehensively covers the market across different segments.
- Deep dive regional level analysis of the industry.
Customization Options:
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Table of Contents
Research Methodology for the Global Medical Devices Outsourcing Market Analysis (2021-2027)
Analyzing the historical market, estimation of the current market, and forecasting the future market of the global medical device outsourcing market were the three major steps undertaken to create and analyze the adoption of medical device outsourcing in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the global medical device outsourcing market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments the industry pertains to. Detailed methodology is explained below:
Analysis of Historical Market Size
Step 1: In-Depth Study of Secondary Sources:
Detail secondary study was conducted to obtain the historical market size of the medical device outsourcing market through company internal sources such as annual report & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.
Step 2: Market Segmentation:
After obtaining the historical market size of the medical device outsourcing market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments included in the report as product, device type, application, and services. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.
Step 3: Factor Analysis:
After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the medical device outsourcing market. Further, we conducted factor analysis using dependent and independent variables such as various product, device type, application, and services of medical device outsourcing. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, merger and acquisition, business expansion, and product launches in the medical device outsourcing market sector across the globe.
Current Market Size Estimate & Forecast
Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global medical device outsourcing market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.
Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., top-down/bottom-up approach was applied to arrive at the market forecast about 2027 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:
- The industry’s market size, in terms of revenue (USD) and the adoption rate of the medical device outsourcing market across the major markets domestically
- All percentage shares, splits, and breakdowns of market segments and sub-segments
- Key players in the global medical device outsourcing market in terms of solutions offered. Also, the growth strategies adopted by these players to compete in the fast-growing market
Market Size and Share Validation
Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.
Split of Primary Participants in Different Regions
Market Engineering
Data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers of each segment and sub-segment of the global medical device outsourcing market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of product type, device type, application, and services in the global medical device outsourcing market.
The main objective of the Global Medical device outsourcing Market Study
The current & future market trends of global medical device outsourcing market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments from the qualitative and quantitative analysis performed in the study. Current and future market trends were determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit as a first-mover advantage. Other quantitative goals of the studies include:
- Analyze the current and forecast market size of the medical device outsourcing market in terms of Value (USD). Also, analyze the current and forecast market size of different segments and sub-segments
- Segments in the study include areas of product, device type, application, and services.
- Define and analysis of the regulatory framework for the medical device outsourcing market industry.
- Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
- Analyze the current and forecast market size of the medical device outsourcing market for the major region.
- Major countries of regions studied in the report include Asia Pacific, Europe, North America, and Rest of the world.
- Company profiles of the medical device outsourcing market and the growth strategies adopted by the market players to sustain in the fast-growing market
- Deep dive regional level analysis of the industry
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