Medical Device Contract Manufacturing Market - Trends Forecast Till 2028

Market Overview

Global Medical Device Contract Manufacturing market size is anticipated to reach USD 66.9 billion in 2021 growing at a CAGR of 11.6% during the forecasting period, 2021-2028.

Medical device contract manufacturing is essentially the outsourcing of device manufacturing to different companies on a contact basis. The companies design and manufacture the desired Products which are sold under the label of the other company. This method not just ensure a good quality but also tends to reduce the burden of the main company. The contractual companies are usually smaller and are thus unable to buy costly raw material and thus through the contract they get an access to the raw materials.

As per medical device contract manufacturing market analysis, The general expansion of the medical devices industry, mostly owing to increased illness incidence, life expectancy, and the elderly population, is one of the important drivers driving market growth. End users have been pushed by technological advances to rebuild or modernize their production processes. Because this is an expensive procedure, they turn to contract manufacturing. Furthermore, the COVID-19 epidemic has hastened the introduction of new diagnostics and patient care technologies for improved treatment management. With the recent technological advancements along with adoption of robotics and automation in the sector are some of the factors that have supported long-term expansion for Medical Device Contract Manufacturing industry.

Medical device contract manufacturing for orthopedic therapy continues to affect market companies' growth plans and accounts for more than one-fourth of total revenue. Increasing application in the production of cardiovascular devices is expected to result in increased market share. The increased deaths caused by heart disorders, as well as the resulting increase in demand for guidewires, stents, catheters, and implanted devices, has resulted in a strong focus on the production of cardiovascular devices.

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Class III medical device innovation is increasing as a result of the increased development and manufacture of sophisticated items such as pacemakers and implanted medical devices. Due to the intricacy of the assembly and testing procedures, medical device businesses confront obstacles when producing Class III devices in large quantities. Furthermore, for component traceability and verification, storage, and access, both the devices and procedures must fulfill regulatory compliance. Because of the intricacy needed in making a Class III item in such large quantities, automated production and manufacturing are required. As a result, OEMs are pursuing automation, high-quality production systems, and regulatory compliance by using the knowledge of electronic manufacturing services.

To improve their internal capabilities, large medical device makers are aggressively investing in the acquisition of small and medium-sized specialist enterprises. Because acquirers will be able to carry out manufacturing in-house, this may reduce outsourcing to CMOs. Linden's December 2018 acquisition of AvalignTechnologies Medical, for example, offered Linden with broader potential for future growth and significantly increased its capabilities.

The pandemic is projected to have an impact on the industry since demand for medical equipment for elective treatments has decreased. On the contrary, demand for medical devices such as ventilators and respirators has grown, enhancing the prospects for medical device contract makers. Since the outbreak of the pandemic, medical device contract manufacturing businesses have been closely watching the situation. Market participants have taken steps to guarantee that their clients' supply chains are not disrupted. Companies have also adopted more stringent cleaning and disinfection processes, enforced visitor supervision and screening, restricted business travel, and set up remote working arrangements and tight quarantine measures to assure safety.

Key Findings

Global Medical Device Contract Manufacturing market is segmented into Device Type, Class of Device and geography.

Device Type segment is segmented into IVD (Equipment, Consumable), Cardiovascular, Diabetes Care, Drug Delivery, Orthopedic, Ophthalmic, Endoscopy Devices

Class of Device segment is segmented into Class I, II, III

Geographically, global Medical Device Contract Manufacturing market is sub segmented into North America, Europe, Asia-Pacific, Middle East and Africa and South America and insights are provided for each region and major countries within the regions

Regional Analysis

Several APAC governments are pushing players to include 4.0 into their production processes in order to accelerate the development of technologically innovative medical equipment. Thailand's 4.0 growth model, for example, established an innovation center to improve the research and manufacture of medtech gadgets. The Intellectual Property Innovation-driven Entrepreneurship Center (IP-IDE) has its own data pool and patent information, which it shares with small and medium-sized firms (SMEs) to help them create innovative technologies. The Thai government hopes that the IP-IDE center would inspire Thai medical device businesses to develop and grow into domestic and international markets.

Competitive Landscape

Key players in global Medical Device Contract Manufacturing market are Flex, Ltd. (Singapore), Jabil, Inc. (US), TE Connectivity, Ltd. (Switzerland), Sanmina Corporation (US), Nipro Corporation (Japan), Celestica International (Canada), Plexus Corporation (US), Benchmark Electronics, Inc. (US), Integer Holdings Corporation (US), Gerresheimer Ag (Germany), West Pharmaceutical Services, Inc. (US), Nortech Systems, Inc. (US), Consort Medical PLC (UK), Kimball Electronics Inc. (US), and Teleflex Incorporated (US). Other players operating in the market include Nordson Corporation (US), Tecomet, Inc. (US), SMC Ltd. (US), Nemera (France), and Tessy Plastics Corporation (US) among others

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Report Scope