The Medical Device Contract Manufacturing Market is Estimated To Witness High Growth owing to Increasing Global Demand for Medical Devices

Market Overview:

Medical devices are instruments, apparatus, appliances, materials or other articles intended to be used for human beings for the purpose of diagnosis, prevention, monitoring, treatment or alleviation of disease. Medical device contract manufacturing services involve manufacturing, packaging and assembling of medical devices by OEMs on behalf of original equipment manufacturers. Outsourcing manufacturing services help OEMs reduce costs and focus on core business competencies such as R&D and sales & marketing.

Market key trends:

The global medical device contract manufacturing market is expected to witness significant growth owing to increasing global demand for medical devices. With growing prevalence of lifestyle diseases such as diabetes, cardiovascular diseases and obesity, use of medical devices for treatment and diagnosis has increased substantially. According to the International Diabetes Federation, around 537 million adults were living with diabetes in 2021 and the number is expected to rise to 643 million by 2030 and 783 million by 2045.Growing geriatric population globally is also boosting the demand for various medical devices such as mobility aids and orthopedic implants. Moreover, increasing healthcare expenditure in emerging countries is providing tremendous opportunities for growth of medical device contract manufacturing market during the forecast period.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is moderate as the medical device manufacturing industry requires huge investment and expertise. Bargaining power of buyers: The bargaining power of buyers is high as there are many established players providing similar services and devices at competitive prices. Bargaining power of suppliers: Supplier power is moderate as they depend on a limited number of raw material suppliers and component makers for specialized parts. Threat of new substitutes: Threat from substitutes is low as the medical devices have significant brand value and patient preference. Competitive rivalry: Intense competition exists among existing players.

SWOT Analysis

Strength: Presence of stringent regulatory framework and quality standards ensures production of safe and effective devices. Weakness: High set-up and operational costs make entry difficult for small players. Opportunity: Growing geriatric population and rising incidence of chronic diseases is driving demand. Threats: Customers continuously expect innovation, personalized solutions and timely delivery which is challenging.

Key Takeaways

The global Medical Device Contract Manufacturing Market Share is expected to witness high growth, exhibiting CAGR of 10.% over the forecast period, due to increasing prevalence of chronic diseases and demand for medical interventions. Regionally, North America dominated the market in 2023 with a share of over 35%, due to presence of major players and stringent regulatory framework. Asia Pacific is expected to grow at the fastest CAGR of around 12% during the forecast period, driven by low-cost manufacturing and growing medical tourism in countries like China, India and South Korea.

Key players operating in the Medical Device Contract Manufacturing Market are Flex, TE Connectivity, Sanmina, Jabil, Celestica, Plexus, and Tecomet, among others. Major players are enhancing their capabilities by adopting technologies like 3D printing and advanced robotics to offer innovative, customized and high-quality solutions on time. They are also focusing on mergers and acquisitions to strengthen their share.

Note:

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it