[150+ Pages Research Report] According to the recent analysis research report; the global Medical Device Outsourced Manufacturing Market in 2020 was approximately USD 30.4 Billion. The market is expected to grow at a CAGR of 14.7% and is anticipated to reach around USD 60.2 Billion by 2027. Top market players 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.
Overview of Medical Device Outsourced Manufacturing Market Study
Medical Device Outsourced Manufacturing market study conducted by Nova One Advisor is intended at helping stakeholders get a comprehensive overview of potential challenges and undiscovered opportunities. The report offers exclusive insights to help companies and their customers to make informed decision to sustain growth through the assessment period.
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Growth Factors:
The Asia Pacific medical device outsourced manufacturing market is mainly driven by the overall growth of the medical devices market, mainly due to the rising disease prevalence, life expectancy, and geriatric population. Technological advancements have prompted end users to overhaul or update their manufacturing systems. As this is a costly process, they look to outsource contract manufacturing.
However, medical device outsourced manufacturing market growth is impeded by the growing consolidation in the medical devices market. To develop their own manufacturing capabilities and save costs, Larger players are focusing on acquiring smaller players and CMOs themselves. This may affect the overall medical device outsourced manufacturing market growth to a certain extent.
medical device outsourced manufacturing market Dynamics
DRIVER: Impact of Industry 4.0 on the medical devices industry
Innovation in Class III medical devices is on the rise, consequent to the growing development and production of complex products such as pacemakers and implantable medical devices. Medical device companies face challenges in manufacturing Class III devices in high volumes, given the complexity of the assembly and test processes. Furthermore, both the devices and processes must meet regulatory compliance for component traceability and verification, storage, and access. With the level of complexity involved in producing a Class III device in these volumes, automated production and manufacturing are a necessity. As a result, OEMs are leveraging the expertise of electronic manufacturing services, seeking automation, high-quality manufacturing systems, and regulatory compliance.
Industry 4.0 technologies—including cloud computing, machine-to-machine communication, and cyber-physical systems—enable advanced automation that helps overcome these production challenges. The increased connectivity and data-gathering capabilities of these technologies make it possible to build high-volume, regulation-compliant manufacturing processes with efficient inventory and production management.
Governments in several APAC countries are encouraging players to integrate 4.0 in their manufacturing processes to further boost the development of technologically advanced medical devices. For instance, Thailand’s 4.0 growth model created an innovative center to increase the development and manufacturing of medtech devices. The Intellectual Property Innovation-driven Entrepreneurship Center (IP-IDE) maintains its own data pool and patent information, which is further shared with small & medium-sized enterprises (SMEs) to develop newer technologies. With the IP-IDE center, the Thai government aims to encourage Thai medical device companies to innovate and expand across domestic as well as foreign markets.
With the increasing adoption of Industry 4.0 technologies in manufacturing critical and sophisticated medical devices and enhancing the technology pool that it brings to the table, the medical device outsourced manufacturing market is expected to grow significantly during the forecast period.
RESTRAINT: Consolidation in the medical devices market
Big medical device manufacturers are currently actively investing in acquiring small and medium-sized specialized companies to enhance their internal capabilities. This may limit outsourcing to CMOs, given that acquirers will have the capabilities to carry out manufacturing in-house. One example of this is Linden’s acquisition of AvalignTechnologies Medical in December 2018, which provided Linden with expanded opportunities for future growth and greatly added to its capabilities.
Other medical device companies are also acquiring CMOs to reduce their expenses for contract manufacturing. This is leading to a shift in medical device manufacturing. In 2017, Nordson (US) acquired Vention Medical’s (US) advanced technology business segment. This segment has expertise in designing, developing, and manufacturing minimally invasive interventional delivery devices, catheters, and advanced components. This development will shift a minute share of medical device manufacturing from CMOs to OEMs.
Opportunity: Growing healthcare expenditure in the APAC region
Emerging economies such as China and India offer significant growth opportunities for players in the medical device outsourced manufacturing market. Their huge patient base, growing healthcare awareness, and improvements in healthcare infrastructure have enabled a favorable environment for the overall growth of the healthcare market. These countries also have comparatively lenient regulations compared to their developed counterparts.
In addition, the increasing healthcare expenditure in these countries and rising healthcare costs have increased the adoption of medical devices. This is also a major factor driving the preference for home healthcare. With such visible growth prospects, many global medical device outsourced manufacturers are investing in these emerging markets. The low cost of manufacturing in these countries also provides an added advantage for players; this has attracted a number of companies to establish manufacturing facilities in these regions.
Challenge: Balancing technological capabilities against costs
Constant innovation in the medical device industry is crucial to compete in an increasingly complex market. For CMOs offering services to companies, innovation in the industry requires that CMOs also update and improve their capabilities. As a result, CMOs have become more flexible, active, and focused on meeting customer needs. Some of the major capabilities adopted by CMOs in the last few years include process automation, lab automation, robotics, and automated manufacturing. These capabilities help CMOs speed up manufacturing, lower the margin of errors, and attract more customers.
These improvements in CMO capabilities can also be expected to attract clients from both the key/established player base as well as emerging companies looking for real-time and low-cost services. Some of the key players providing automation services in the medical device outsourced manufacturing market are Sanmina Corporation (US), Celestica Inc. (US), Plexus Corp. (US), Flex Ltd. (Singapore), and Benchmark Electronics (US).
However, all of this comes at a significant cost. CMOs face significant challenges in matching today’s technology desires while balancing strong cost pressures. Every feature and benefit needs to be balanced against the cost to result in a successful value-based solution. A key area of change is addressing the current fast-paced data-driven environment while ensuring sufficient technological prowess and improvement. For example, miniaturization is a critical trend in the medical devices industry and a prominent area of innovation. To capitalize on this trend—and retain an edge in an increasingly competitive market—contract manufacturers are compelled to make huge investments in favor of updating or developing the required technological expertise.
The IVD devices segment accounted for the largest share of Asia Pacific medical device outsourced manufacturing market in 2020
Based on device type, the Asia Pacific medical device outsourced manufacturing market is broadly segmented into IVD devices, diagnostic imaging devices, cardiovascular devices, drug delivery devices, orthopedic devices, respiratory care devices, ophthalmology devices, surgical devices, diabetes care devices, dental devices, endoscopy devices, gynecology/urology devices, personal care devices, neurology devices, and other devices. In 2020, the IVD devices segment accounted for the largest share of the Asia Pacific medical device outsourced manufacturing market. The large share of this segment can be attributed to the increasing volume of IVD tests performed globally, increasing availability of IVD kits and reagents in the market, a growing number of hospitals and clinical laboratories in developing countries, automation and technological advancements in instruments with high-throughput capabilities, high demand for IVD tests in the COVID-19 pandemic, and advances in life science research.
Class II medical devices segment accounted for the largest share of APAC medical device outsourced manufacturing market in 2020.
Based on the class of device, the medical device outsourced manufacturing market is segmented into Class I, Class II, and Class III medical devices. In 2020, the Class II medical devices segment accounted for the largest share of the Asia Pacific medical device outsourced manufacturing market. The large share of this segment can be attributed to the large number of medical devices outsourced that fall under this device class and the utilization of a higher volume of these devices by end users and caregivers in the healthcare industry.
In 2020, device development and manufacturing services segment accounted for the largest share of the Asia Pacific medical device outsourced manufacturing market
Based on service, the Asia Pacific medical device outsourced manufacturing market is segmented into device development and manufacturing services, quality management services, packaging and assembly services and other services. In 2020, the device development and manufacturing services segment dominated this market. The increasing adoption of contract manufacturing services in the medical device industry, growth in the medical devices market (especially in the single-use disposable medical devices market), and improving device development and manufacturing capabilities are the major factors responsible for the large share of this segment
In 2020, production segment accounted for the largest share of Asia Pacific medical device outsourced manufacturing market
Based on process, the Asia Pacific medical device outsourced manufacturing market is broadly segmented into production, prototyping, pilot production, design for manufacturing, process evaluation, validation, project management, packaging, and assembly. In 2020, the production segment accounted for the largest share of the medical device outsourced manufacturing market. The large share of this segment can be attributed to the growing number of medical device companies outsourcing their production tasks to minimize manufacturing costs.
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COVID-19 Impact on Medical Device Outsourced Manufacturing Sales
Businesses today are operating in a dynamic environment. Earlier focus primarily concentrated on keeping pace with changing consumer preferences. COVID-19 outbreak was unprecedented and exposed vulnerabilities of various industries. Pandemic-induces obstacles also were registered in the Medical Device Outsourced Manufacturing market.
Sales plummeted as COVID-19 gradually tightened its noose worldwide. Supply-chain disruptions caused massive losses, while demand took nose-dive as consumers remained indoors with affected countries implementing either partial or complete lockdown.
Gradual recovery however is on the cards with the roll out of vaccinations. Nonetheless, consecutive waves of the virus compelled businesses to stay prepared for the worst. As government and healthcare organizations successfully implement steps to contain the spread of COVID-19, industries have begun operations, albeit at a slow and more cautious pace.
Against this backdrop, Nova one advisor’s study predicts gradual recovery for the Medical Device Outsourced Manufacturing market 2021 onwards. This trend will however continue through the course of the report’s assessment period
Key Players:
This report provides detailed company profiles of the key market players. This research report also highlights the competitive landscape of the Medical Device Outsourced Manufacturing market and ranks noticeable companies as per their occurrence in diverse regions across globe and crucial developments initiated by them in the market space. This research study also tracks and evaluates competitive developments, such as collaborations, partnerships, and agreements, mergers and acquisitions; novel product introductions and developments, promotion strategies and Research and Development (R&D) activities in the marketplace. The competitive profiling of these players includes business and financial overview, gross margin, production, sales, and recent developments which can aid in assessing competition in the market.
Some of the prominent players in the Medical Device Outsourced Manufacturing market include:
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.
Unravelling the Critical Segments
This research report offers market revenue, sales volume, production assessment and prognoses by classifying it on the basis of various aspects including product type, application/end-user, and region. Further, this research study investigates market size, production, consumption and its development trends at global, regional, and country level for period 2017 to 2027 and covers subsequent region in its scope:
By Device Type
- IVD Devices
- IVD Consumables
- IVD Equipment
- Diagnostic Imaging Devices
- Cardiovascular Devices
- Drug Delivery Devices
- Infusion Sets and Administration Sets
- Syringes
- Inhalers
- Autoinjectors & Pen Injectors
- Orthopedic Devices
- Ophthalmology Devices
- Diabetes Care Devices
- Dental Devices
- Endoscopy Devices
- Respiratory Care Devices
- Surgical Devices
- Gynaecology/Urology Devices
- Personal Care
- Neurology Devices
- Other Devices
By Services Type
- Device Development and Manufacturing Services
- Device Engineering Services
- Process Development Services
- Device Manufacturing Services
- LSR Molding
- Thermoplastic Injection Molding
- Extrusion Tubes
- CNC Machining and Laser Cutting & 3D printing
- Cleaning and Finishing
- Electronic Manufacturing Services
- Others
- Quality Management Services
- Packaging Validation Services
- Inspection and Testing Services
- Sterilization Services
- Packaging & Assembly By Type
- Primary & Secondary Packing
- Labelling
- Others
- Other Services
By Class of Device
- Class II Medical Devices
- Class I Medical Devices
- Class III Medical Devices
By Process Evaluation
- Process Evaluation
- Design for Manufacturing
- Prototyping
- Validation
- Project Management
- Pilot Production
- Production
- Assembly
- Packaging
Browse Complete Table of Content@ https://www.novaoneadvisor.com/toc/medical-device-outsourced-manufacturing-market
Why Buy this Report?
The purpose of Nova one advisor’s Medical Device Outsourced Manufacturing market study is to provide stakeholders with a detailed picture of potential barriers and untapped opportunities. The report contains exclusive information to assist businesses in making informed decisions about how to maintain growth throughout the assessment period.
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