Medical Device Contract Manufacturing Market

Medical Device Contract Manufacturing Market Outlook (2023 to 2033)

The global medical device contract manufacturing market is forecasted to expand at a stellar CAGR of 11% from 2023 to 2033. The market is valued at US$ 75 billion in 2023 and is thus expected to reach a valuation of US$ 214 billion by 2033-end.

Biological samples are tested using in-vitro diagnostic (IVD) medical devices to assess a person's overall health. The growing prevalence of cancer disorders is boosting the adoption of these devices, which adds to the demand for manufacturing services for the development of IVD medical devices.

Medical device contract manufacturing is a business model where a medical device manufacturer outsources some or all of the production of their entire medical device or a specific component of the device to another company with specialized knowledge, technical ability, and effective business operations. The services provided by medical device contract manufacturers include product development, manufacturing, installation, quality control, packaging, supply chain management, and regulatory advisory services.

The rise in the geriatric population, life expectancy, and disease prevalence are driving market growth. End users have been forced to redesign or update their manufacturing systems due to technological innovation. A rise in minimally invasive surgical procedures is fueling the demand for medical devices.

Global demand for medical device contract manufacturing is anticipated to be fueled by the increased prevalence of chronic diseases. Chronic diseases are conditions that need continuous medical care. Patients can better control their chronic diseases and keep track of their health problems with the use of modern medical equipment. Contract manufacturing for medical devices has become more popular as a result.

The market for medical device contract manufacturing is anticipated to expand quickly as a result of the growing healthcare sector and the rising use of technically advanced surgical procedures. Futuristic technologies, including robotics and 3D printing medical devices, have been the attention of several original equipment manufacturers (OEMs) and contract manufacturers.

The market is anticipated to grow rapidly throughout the forecast period thanks to significant investments from the biotechnology and pharmaceutical industries. For use in point-of-care settings, key players are creating portable, quick, and convenient devices.

The market is being driven by the deployment of technology in the healthcare sector. Healthcare is receiving significant investment from both small and large businesses, and governments are making it easier to comply with rules even in underdeveloped countries.

Market growth is anticipated to be aided by the availability of end-to-end service providers involved in offering value-added services for an integrated or risk-sharing business model. Producing biologics in multi-product facilities is both economically effective and secure because there is little to no risk of product carryover, which supports market expansion.

Report Attributes	Details
Medical Device Contract Manufacturing Market Size (2023)	US$ 75 Billion
Projected Market Value (2033)	US$ 214 Billion
Global Market Growth Rate (2023 to 2033)	11% CAGR
Market Share of In-vitro Diagnostic Medical Devices	50%
Key Companies Profiled	Viant Medical; Integer Holdings Corporation; Forefront Medical Technologies; Consort Medical PLC; Nipro Corporation; Flex Ltd.; Jabil Inc.; Synecco; Celestica Inc.; Nortech Systems, Inc.

Which are the Growth Determinants of the Market for Medical Device Contract Manufacturing?

“Increasing Need for Patient-centric Diagnostic Equipment and Rise in R&D Activities”

Significant technological advancements in surgical techniques have been aided by the healthcare industry. These new developments have encouraged key market players to support greater research and the creation of practical solutions. Market expansion is anticipated to be fueled by the rise in R&D activities.

The high popularity of minimally invasive surgical tools is recognized for lowering tissue trauma, minimizing blood loss and pain, and improving patient satisfaction. The increasing need for patient-centric diagnostic equipment across the world is driving market revenue.

Innovation in Class III medical devices is increasing due to the increased development and production of advanced products such as pacemakers and implanted medical devices. Considering the complexity of the assembly and testing processes, medical device manufacturers face difficulties producing Class III devices in high volumes.

Regulatory compliance for component traceability and verification, storage, and access must be met by both the devices and the processes. Automated production and manufacture are required due to the intricacy involved in generating a Class III device in these quantities. To achieve automation, high-quality manufacturing processes, and regulatory compliance, OEMs are using the expertise of electronic manufacturing services.

“Rapid Adoption of Industry 4.0 Technologies for Advanced Medical Device Production”

Advanced automation is made possible by Industry 4.0 technologies such as cloud computing, machine-to-machine connectivity, and cyber-physical systems, which aid in overcoming these production issues. With the help of these technologies, it is now possible to create high-volume, legally-compliant manufacturing processes with effective inventory and production management.

Governments are pressuring manufacturers to integrate Industry 4.0 for the development of medical products. The market is anticipated to expand rapidly over the forecast period due to the growing adoption of Industry 4.0 technologies in the production of advanced and essential medical devices.

What is Hampering Medical Device Contract Manufacturing Market Expansion?

“Lack of Skilled Professionals and High Cost of Medical Devices”

The high cost of medical devices is restricting the growth of the medical device contract manufacturing industry. The lack of trained personnel is limiting market growth.

Which Region Should Market Participants Invest In?

“Strict Compliance with Governmental Regulations Driving Market Growth in North America”

North America accounts for 50% share of the global market. Strict compliance with governmental regulations, continuous advancements in medical device technologies, and an increased focus on patient safety has contributed to the leading share of North America.

The cost of internal production is rising, which motivates medical device businesses to use contract manufacturing as a cost-cutting solution, which is driving market growth. Multinational firms that manufacture medical devices are also exploring business prospects and expanding their operations in the region.

Country-wise Insights

How is the United States Market Faring?

“Increase in R&D Activities in Pharmaceutical Industry in the United States”

The United States is anticipated to be the most attractive market for medical device contract manufacturing due to its highly developed healthcare system, growing awareness of medical devices among healthcare providers, and increase in research and development activities in the pharmaceutical industry.

The market is also anticipated to be driven by the existence of major medical device companies and increasing demand for medical equipment used to identify and treat chronic illnesses.

Why is Japan a Major Market for Medical Device Contract Manufacturing?

“Favorable Government Initiatives to Provide Better Healthcare”

The market is witnessing significant growth in Japan, due to favorable government initiatives to provide better healthcare and the rising prevalence of diabetes, cardiovascular disorders, and obesity. Market growth is attributed to the high demand for diagnostic imaging, patient monitoring, and a rise in the local supply of in-vitro diagnostic devices.

Which European Country is Likely to Be a Prominent Market?

“Growing Use of Minimally Invasive Devices for Surgeries in Germany”

The surging prevalence of gastrointestinal diseases in Germany will increase the patient load, leading to a significant rise in the demand for medical devices in the healthcare infrastructure. Increasing access to healthcare services, rising investments in healthcare, high adoption of medical devices in hospitals, and growing use of minimally invasive devices for surgeries are driving market growth in Germany.

Category-wise Insights

Why are In-vitro Diagnostic Medical Devices Exhibiting High Demand?

“Increasing Use of Point-of-care Testing Driving Demand for In-vitro Diagnostic Medical Devices”

By device, the market is segmented into in-vitro diagnostic medical devices, diagnostic imaging & medical equipment, drug delivery devices, patient monitoring devices, minimally access surgical instruments, therapeutic patient assistive devices, and others. In-vitro diagnostic medical devices account for 50% share of the global market.

Medical facilities are using IVD devices more extensively since end users are adopting them more quickly. The demand for point-of-care devices and their capacity to track, identify, and prevent diseases are factors in the expansion of this market. The market for IVD devices will expand as a result of the rising need for customized, smart, and rapid diagnostic tools.

An increase in IVD tests conducted globally, the expanding supply of IVD kits and reagents, the rise in hospitals and clinical laboratories in developing countries, automation and rapid advances in instruments with high throughput functionalities, and developments in life sciences research are all factors driving demand for in-vitro diagnostic medical devices. The adoption of IVD devices is anticipated to be supported by the increasing use of point-of-care testing coupled with the deployment of fully automated instruments and automation in laboratories.

Which Application Holds a Dominant Market Share?

“Medical Device Contract Manufacturing for Orthopedic Treatment Gaining Traction Due to Increasing Geriatric Population with Arthritis Conditions”

Based on application, the market is divided into cardiovascular, orthopedic, neurovascular, pulmonary, oncology, laparoscopy, urology & gynecology, radiology, and others. Medical device contract manufacturing for orthopedic treatment continues to influence the growth strategies of market players and accounts for substantial revenue. The increasing geriatric population with conditions such as arthritis and the rising need for custom devices are anticipated to spur the entry of new players specifically focused on orthopedic devices.

Growing application in the manufacturing of cardiovascular devices is likely to result in increased market share. Strong focus on the manufacturing of cardiovascular devices is attributed to increasing fatalities arising out of cardiac problems and the consequent rise in demand for guidewires, stents, catheters, and implantable devices.

Trends

• Technology has astonishingly touched all industries including healthcare. 3D printing is valued at USD 12.6 Billion in 2020; this projects high demand in the forecast period as well. The market is anticipated to gain growth of 17% in 2020- 2023.
• The companies like General Electrics have acquired most 3D printing patents and stood among the top companies in the USA region. 3D printing is being used in a wide range of medical applications and continued to expand at a rapid pace where the medical devices market is likely to gain traction growth.
• As per the research by Mckinsey, while reimagining Medtech post-pandemic companies should consider and pay attention to stress testing of models and strengthen crisis resilience mechanisms referring to long terms paths for recovery.
• The pandemic of Covid-19 has put the market for medical devices at the central stage as there is anticipation for the demand for diagnostic test kits, personal protective equipment, ventilators, and other critical medical supplies.

Competitive Landscape

Health practitioners are increasingly adopting advanced surgical options such as minimally invasive procedures with the rapid expansion of the healthcare industry. This has prompted original equipment manufacturers (OEMs) to take strategic steps to exploit the scenario and develop advanced devices.

Leading companies are focusing on expanding their production services to meet the increasing demand for medicines and medical devices. With modern production facilities and cost-effective models, contract manufacturers are enhancing their product standards and industrial proficiencies to reduce the environmental impact.

Key market players are increasingly targeting developing economies to increase their market penetration. Developing economies present significant growth opportunities in the wake of a rapidly increasing population.

According to pricing trends, OEMs can lower manufacturing costs due to the accessibility of low-cost raw materials and labor. They are also focusing on developing technologically-enhanced products following safety regulations.

For instance :

• Jabil, Inc. entered into a strategic collaboration with Johnson & Johnson Medical Devices Companies. This collaboration is anticipated to expand Jabil’s medical devices manufacturing portfolio and offer diversification capabilities.
• Integer Holdings concentrate on product launches. The company provides medical and non-medical solutions to prospective clients. In the medical domain, its product portfolio comprises advanced surgical, orthopedics & portable medical devices, cardio & vascular solutions, and cardiac products.

Key Segments of Medical Device Contract Manufacturing Industry Research

• By Device :

  • In-vitro Diagnostic Medical Devices
  • Diagnostic Imaging & Medical Equipment
  • Drug Delivery Devices
  • Patient Monitoring Devices
  • Minimally Access Surgical Instruments
  • Therapeutic Patient Assistive Devices
  • Others

• By Type of Manufacturing :

  • Raw Materials
  • Electronics
  • Finished Goods

• By Service :

  • Prototype Development
  • Finished Device Manufacturing
  • Assembly & Packaging
  • Testing & Regulatory Support Services
  • Molding & Casting
  • Others

• By Application :

  • Cardiovascular
  • Orthopedic
  • Neurovascular
  • Pulmonary
  • Oncology
  • Laparoscopy
  • Urology & Gynecology
  • Radiology
  • Others

• By Region :

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa