Medical Device Manufacturing Outsourcing Market Report
RA00165
Medical Device Manufacturing Outsourcing Market, by Device Type (Cardiovascular, IVD (Consumable, Equipment), Diabetes Care, Dental, Drug Delivery, Orthopedic, Endoscopy Devices, Ophthalmic), Service (Quality Management Services, Final Goods Assembly Services, Device Development and Manufacturing Services), Class of Device (Class I, Class II Class III), Regional Analysis (North America, Europe, Asia Pacific, LAMEA): Global Opportunity Analysis and Industry Forecast, 2019–2026
Update Available On-Demand
Global Medical Device Manufacturing Outsourcing Market Insights 2026:
The global market for medical device manufacturing outsourcing forecast will be $104.3 million by 2026,increasing from $47.6 million in 2018 at a healthy CAGR of 10.3%.Asia-Pacific medical device manufacturing outsourcing market is expected to grow at a healthy CAGR of 9.5% by generating a revenue of $32.3 million, during the forecasted period. Implementation of effective government policies, technological advances and rising capital investment of healthcareareexpected to augment the growth of the Asia-Pacific market.
A Medical manufacturing outsourcing is a form of contract manufacturing in which a company produces medical products or a single part a whole product. Further, amedical contract manufacturer primarily designs, produces, and ships the medical devices and also offer services such as injection molding, ultrasonic cleaning, UV bonding, annealing, soldering, and many other manufacturing services.
Driving Factors: Increase in the prevalence of chronic diseases along with the significant expansion of the healthcare industry is anticipated to drive theglobalMedical device manufacturing outsourcing market
An extensiveincreasein the cases of chronic diseases such as diabetes, CVDs (Cardiovascular Diseases), cancer, and many others has augmented the global medical device manufacturing outsourcing market,during the forecast period. Also,a decrease in time needed to bring a product to market and cost-effective production are one of the key factors for the growth of medical device manufacturing outsourcing market. Moreover increase in the life expectancy, rising demand for technological adoption in the medical devices industry, and aging population are some of the factors anticipated to boosting the growth of medical device manufacturing outsourcing market. For instance, as per data published by World Population Prospects, 1 out of 6 people across the globe will be over age 65 (16%) by year 2050.
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Threat of information leakage anticipated to restrain the growth of global medical device manufacturing outsourcingindustry
The risk of a confidential information leak can be a restraint in the global medical device manufacturing outsourcing market growth.
The developments in the healthcare sectors of emerging nationssuch as India and China areanticipated to create immense opportunities in theglobal market
Improvisation in the quality of healthcare in developing nations is anticipated to create enormous opportunities for the medical device manufacturing outsourcing market. Effective solutions and strategies have been made and implemented to help close gaps in health care delivery. Emerging countries are expected to increase healthcare spending mainly because of patients of non-communicable diseases (NCDs) like cancer and diabetes are growing steadily in the market of developing countries. Also, rapidly increasing urbanization and increasing income of the people are fueling demand for healthcare services and treatments. In addition, to fulfill the surging demand for healthcare emerging markets governments of India and china are enacting policies like “National Health Protection Mission” and “Healthy China 2030 Plan”. These medical device manufacturing outsourcing market trends will support to blooming the market of medical device manufacturing outsourcing.
The IVD (in Vitro Diagnostic) devices segment has the highest market share in the global market, and it is anticipated to generate a revenue of $14.0 million, throughout the forecast period.This is mainly because of higher compatibility of IVD devices with point-of-care (PoC) environments. Moreover, extensive surge in the number of hospitals and medical institutions in developing as well as developed countries is also responsible for the rapid growth of this market. IVD provides significant advantages such as tailored therapies, personalized risk predictions, and identification of faulty genes. These factors and rapid technological advances are projected to foster the growth of the IVD market in the coming years.Moreover, shift from curative to preventive healthcare for diseases like diabetes, aging demographics, tremendous impact on cancer diagnosis and treatment, and the global demand for healthcare infrastructure are some of the driving elements for the growth of this market.
The development and manufacturing services has the highest market share and it is estimated to generate revenue of $35.6 at a healthy CAGR of 9.7%, during the forecast period. Consistent improvisation in manufacturing new devices is one of the key factors for the rise in the development and manufacturing services. In addition, growth in the medical devices industry and high capital investments for in-house manufacturing of medical devices is also projected to fuel the growth of development and manufacturing services segment.
Medical device manufacturing outsourcing market share for Asia Pacific is projected to grow at a health rate of 9.5% by registering a revenue of $32.3 million by 2026. The Asian countries such as China, India, and South Korea provide a huge cost advantage, tremendous market opportunity for pharmaceutical manufacturers, and footprint growth potential, which are propelling factors for the growth of medical device manufacturing outsourcing market. Moreover ,improvisations in the technical knowledge, lower labor costs and the presence of a large pool of patients of chronic diseases is also projected to dive the growth of Asian market.Moreover Korean based market players such as Nissha Co., Ltd. are focusing mainly on customer-oriented service and flexibility.These afore mentioned key factors are projected to drive the growth of the medical device manufacturing outsourcing market.
North America Medical Device Manufacturing Outsourcing Market 2026:
North America region will have significant growth and it is projected to generate revenue of $31.2 million, during the forecast period
The medical device manufacturing outsourcing market size in the North America region has registered a revenue of $13.8 million in 2018 and it is projected to surpass $31.2 million by 2026. Enormously rising demand for efficient and advanced medical devices particularly in countries such as Canada and the US is one of the major factors for the boost of medical device manufacturing outsourcing market in the North America region. Moreover, extensively increasing medical requirement,spurring healthcare expenditure, and consistentlyrising number of surgery cases are some of the driving elements for the growth of North American medical device manufacturing outsourcing market. As per study conducted by the American Medical Association, the U.S. has spent around $3.5 trillion on healthcare in the year 2017.
Competitive Scenario in the Global Medical Device Manufacturing Outsourcing Market:
Some of the significant medical device manufacturing outsourcing market players include Tecomet, Inc., Creganna, FLEX LTD., Mitutoyo Corporation, Nortech Systems, Inc.,Integer Holdings Corporation, DAIICHI JITSUGYO CO., LTD., Hamilton Company., Cirtec, and Kinetics Climax Inc.Medical device manufacturing outsourcing market players are emphasizing on Merger & acquisition and advanced product developments.These are the frequent strategies followed by the established organizations
Porter’s Five Forces Analysis for Medical device manufacturing outsourcing market:
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Bargaining Power of Suppliers: Leading suppliers in the healthcare market use negotiating power to gain high prices. Moreover, the switching barrier from one supplier to the other supplier is predicted to be high.
The bargaining power of suppliers is HIGH. -
Bargaining Power of Buyer: healthcare institutions and Hospitals buy medical devices in larger quantities and impose pressure on pharmaceutical organizations to keep prices in check.
The bargaining power of the buyer is MEDIUM. -
Threat of New Entrants: Government regulatory policies coupled with higher cost associated with R&D offer low threat of entry from new competitors.
The threat of new entrants is LOW. -
Threat of Substitutes: The threat of the alternative product is high if it offers a better value proposition that is considerably different from the present service of the industry.
The threat of substitutes is LOW. -
Competitive Rivalry in the Market: Medical device manufacturing outsourcing market has a high number of large, small, and medium companies. Market players are mainly following technological advancements, alternative business strategies such as strategic partnerships; this is also a key factor for high competitive rivalry in the global medical device manufacturing outsourcing market.
The competitive rivalry in the industry is HIGH.
| Aspect | Particulars |
| Historical Market Estimations | 2018-2019 |
| Base Year for Market Estimation | 2018 |
| Forecast timeline for Market Projection | 2019-2026 |
| Geographical Scope | North America, Europe, Asia-Pacific, LAMEA |
| Segmentation by Device Type |
|
| Segmentation by Service |
|
| Segmentation by Class of Device |
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| Key Countries Covered | U.S., Canada, Mexico, Germany, France, UK, Italy, Spain, Russia, Rest of Europe, China, Japan, India, Australia, South Korea, Rest of Asia-Pacific, Brazil, Saudi Arabia, United Arab Emirates, Rest of LAMEA |
| Key Companies Profiled |
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Q1. What is the size of the medical device manufacturing outsourcing Market?
A. The global Medical device manufacturing outsourcingmarketsize was over $47.6 million in 2018 and is projected to reach $104.3 million by 2026.
Q2. Which are the major companies in the Medical device manufacturing outsourcing Market?
A. G Hamilton Company.,Cirtec, andKinetics Climax Inc.are some of the key players in the global Medical device manufacturing outsourcing Market.
Q3. Which region possesses greater investment opportunities in the coming future?
A. The North-America region possesses great investment opportunities for the investors to witness the most promising growth in the future.
Q4. What is the growth rate of the the North Americamarket?
A. The North-America marketof medical device manufacturing outsourcing Marketis anticipated to grow at 10.8% CAGR during the forecast period.
Q5. What are the strategies opted by the leading players in this market?
A. Technological advancements, product development, along with joint ventures are the key strategies opted by the operating companies in this market.
Q6. Which companies are investing more on R&D practices?
A. Creganna, FLEX LTD., and Mitutoyo Corporationcompanies are investing more on R&D activities for developing new products and technologies.
1.Research Methodology
1.1.Desk Research
1.2.Real time insights and validation
1.3.Forecast model
1.4.Assumptions and forecast parameters
1.4.1.Assumptions
1.4.2.Forecast parameters
1.5.Data sources
1.5.1.Primary
1.5.2.Secondary
2.Executive Summary
2.1.360° summary
2.2.Device Type trends
2.3.Services trends
2.4.Class of Device trends
3.Market overview
3.1.Market segmentation & definitions
3.2.Key takeaways
3.2.1.Top investment pockets
3.2.2.Top winning strategies
3.3.Porter’s five forces analysis
3.3.1.Bargaining power of consumers
3.3.2.Bargaining power of suppliers
3.3.3.Threat of new entrants
3.3.4.Threat of substitutes
3.3.5.Competitive rivalry in the market
3.4.Market dynamics
3.4.1.Drivers
3.4.2.Restraints
3.4.3.Opportunities
3.5.Technology landscape
3.6.Regulatory landscape
3.7.Patent landscape
3.8.Market value chain analysis
3.9.Strategic overview
4.Medical Device Manufacturing Outsourcing Market, by Device Type
4.1.Cardiovascular
4.1.1.Market size and forecast, by region, 2018-2026
4.1.2.Comparative market share analysis, 2018 & 2026
4.2.Dental
4.2.1.Market size and forecast, by region, 2018-2026
4.2.2.Comparative market share analysis, 2018 & 2026
4.3.Diabetes Care
4.3.1.Market size and forecast, by region, 2018-2026
4.3.2.Comparative market share analysis, 2018 & 2026
4.4.Drug Delivery
4.4.1.Market size and forecast, by region, 2018-2026
4.4.2.Comparative market share analysis, 2018 & 2026
4.5.Endoscopy Devices
4.5.1.Market size and forecast, by region, 2018-2026
4.5.2.Comparative market share analysis, 2018 & 2026
4.6.Orthopedic
4.6.1.Market size and forecast, by region, 2018-2026
4.6.2.Comparative market share analysis, 2018 & 2026
4.7.Ophthalmic
4.7.1.Market size and forecast, by region, 2018-2026
4.7.2.Comparative market share analysis, 2018 & 2026
4.8.IVD
4.8.1.Market size and forecast, by region, 2018-2026
4.8.2.Comparative market share analysis, 2018 & 2026
4.8.2.1.Equipment
4.8.3.Market size and forecast, by region, 2018-2026
4.8.4.Comparative market share analysis, 2018 & 2026
4.8.4.1.Consumable
4.8.5.Market size and forecast, by region, 2018-2026
4.8.6.Comparative market share analysis, 2018 & 2026
5.Medical Device Manufacturing Outsourcing Market, by Services
5.1.Quality Management Services
5.1.1.Market size and forecast, by region, 2018-2026
5.1.2.Comparative market share analysis, 2018 & 2026
5.2.Final Goods Assembly Services
5.2.1.Market size and forecast, by region, 2018-2026
5.2.2.Comparative market share analysis, 2018 & 2026
5.3.Device Development and Manufacturing Services
5.3.1.Market size and forecast, by region, 2018-2026
5.3.2.Comparative market share analysis, 2018 & 2026
6.Medical Device Manufacturing Outsourcing Market, by Class Of Device
6.1.Class I
6.1.1.Market size and forecast, by region, 2018-2026
6.1.2.Comparative market share analysis, 2018 & 2026
6.2.Class II
6.2.1.Market size and forecast, by region, 2018-2026
6.2.2.Comparative market share analysis, 2018 & 2026
6.3.Class III
6.3.1.Market size and forecast, by region, 2018-2026
6.3.2.Comparative market share analysis, 2018 & 2026
7.Medical Device Manufacturing Outsourcing Market, by region
7.1.North America
7.1.1.Market size and forecast, by device type, 2018-2026
7.1.2.Market size and forecast, by services, 2018-2026
7.1.3.Market size and forecast, by class of device, 2018-2026
7.1.4.Market size and forecast, by country, 2018-2026
7.1.5.Comparative market share analysis, 2018 & 2026
7.1.6.U.S.
7.1.6.1.Market size and forecast, by device type, 2018-2026
7.1.6.2.Market size and forecast, by services, 2018-2026
7.1.6.3.Market size and forecast, by class of device, 2018-2026
7.1.6.4.Comparative market share analysis, 2018 & 2026
7.1.7.Canada
7.1.7.1.Market size and forecast, by device type, 2018-2026
7.1.7.2.Market size and forecast, by services, 2018-2026
7.1.7.3.Market size and forecast, by class of device, 2018-2026
7.1.7.4.Comparative market share analysis, 2018 & 2026
7.1.8.Mexico
7.1.8.1.Market size and forecast, by device type, 2018-2026
7.1.8.2.Market size and forecast, by services, 2018-2026
7.1.8.3.Market size and forecast, by class of device, 2018-2026
7.1.8.4.Comparative market share analysis, 2018 & 2026
7.2.Europe
7.2.1.Market size and forecast, by device type, 2018-2026
7.2.2.Market size and forecast, by services, 2018-2026
7.2.3.Market size and forecast, by class of device, 2018-2026
7.2.4.Market size and forecast, by country, 2018-2026
7.2.5.Comparative market share analysis, 2018 & 2026
7.2.6.Germany
7.2.6.1.Market size and forecast, by device type, 2018-2026
7.2.6.2.Market size and forecast, by services, 2018-2026
7.2.6.3.Market size and forecast, by class of device, 2018-2026
7.2.6.4.Comparative market share analysis, 2018 & 2026
7.2.7.UK
7.2.7.1.Market size and forecast, by device type, 2018-2026
7.2.7.2.Market size and forecast, by services, 2018-2026
7.2.7.3.Market size and forecast, by class of device, 2018-2026
7.2.7.4.Comparative market share analysis, 2018 & 2026
7.2.8.France
7.2.8.1.Market size and forecast, by device type, 2018-2026
7.2.8.2.Market size and forecast, by services, 2018-2026
7.2.8.3.Market size and forecast, by class of device, 2018-2026
7.2.8.4.Comparative market share analysis, 2018 & 2026
7.2.9.Spain
7.2.9.1.Market size and forecast, by device type, 2018-2026
7.2.9.2.Market size and forecast, by services, 2018-2026
7.2.9.3.Market size and forecast, by class of device, 2018-2026
7.2.9.4.Comparative market share analysis, 2018 & 2026
7.2.10.Italy
7.2.10.1.Market size and forecast, by device type, 2018-2026
7.2.10.2.Market size and forecast, by services, 2018-2026
7.2.10.3.Market size and forecast, by class of device, 2018-2026
7.2.10.4.Comparative market share analysis, 2018 & 2026
7.2.11.Rest of Europe
7.2.11.1.Market size and forecast, by device type, 2018-2026
7.2.11.2.Market size and forecast, by device type, 2018-2026
7.2.11.3.Market size and forecast, by services, 2018-2026
7.2.11.4.Comparative market share analysis, 2018 & 2026
7.3.Asia Pacific
7.3.1.Market size and forecast, by device type, 2018-2026
7.3.2.Market size and forecast, by services, 2018-2026
7.3.3.Market size and forecast, by class of device, 2018-2026
7.3.4.Market size and forecast, by country, 2018-2026
7.3.5.Comparative market share analysis, 2018 & 2026
7.3.6.China
7.3.6.1.Market size and forecast, by device type, 2018-2026
7.3.6.2.Market size and forecast, by services, 2018-2026
7.3.6.3.Market size and forecast, by class of device, 2018-2026
7.3.6.4.Comparative market share analysis, 2018 & 2026
7.3.7.India
7.3.7.1.Market size and forecast, by device type, 2018-2026
7.3.7.2.Market size and forecast, by services, 2018-2026
7.3.7.3.Market size and forecast, by class of device, 2018-2026
7.3.7.4.Comparative market share analysis, 2018 & 2026
7.3.8.Australia
7.3.8.1.Market size and forecast, by device type, 2018-2026
7.3.8.2.Market size and forecast, by services, 2018-2026
7.3.8.3.Market size and forecast, by class of device, 2018-2026
7.3.8.4.Comparative market share analysis, 2018 & 2026
7.3.9.Rest of Asia Pacific
7.3.9.1.Market size and forecast, by device type, 2018-2026
7.3.9.2.Market size and forecast, by services, 2018-2026
7.3.9.3.Market size and forecast, by class of device, 2018-2026
7.3.9.4.Comparative market share analysis, 2018 & 2026
7.4.LAMEA
7.4.1.Market size and forecast, by device type, 2018-2026
7.4.2.Market size and forecast, by services, 2018-2026
7.4.3.Market size and forecast, by class of device, 2018-2026
7.4.4.Market size and forecast, by country, 2018-2026
7.4.5.Comparative market share analysis, 2018 & 2026
7.4.6.Latin America
7.4.6.1.Market size and forecast, by device type, 2018-2026
7.4.6.2.Market size and forecast, by services, 2018-2026
7.4.6.3.Market size and forecast, by class of device, 2018-2026
7.4.6.4.Comparative market share analysis, 2018 & 2026
7.4.7.Middle East
7.4.7.1.Market size and forecast, by device type, 2018-2026
7.4.7.2.Market size and forecast, by services, 2018-2026
7.4.7.3.Market size and forecast, by class of device, 2018-2026
7.4.7.4.Comparative market share analysis, 2018 & 2026
7.4.8.Africa
7.4.8.1.Market size and forecast, by device type, 2018-2026
7.4.8.2.Market size and forecast, by services, 2018-2026
7.4.8.3.Market size and forecast, by class of device, 2018-2026
7.4.8.4.Comparative market share analysis, 2018 & 2026
8.Company profiles
8.1.Tecomet, Inc.
8.1.1.Business overview
8.1.2.Financial performance
8.1.3.Product portfolio
8.1.4.Recent strategic moves & developments
8.1.5.SWOT analysis
8.2.Creganna
8.2.1.Business overview
8.2.2.Financial performance
8.2.3.Product portfolio
8.2.4.Recent strategic moves & developments
8.2.5.SWOT analysis
8.3.FLEX LTD.
8.3.1.Business overview
8.3.2.Financial performance
8.3.3.Product portfolio
8.3.4.Recent strategic moves & developments
8.3.5.SWOT analysis
8.4.Mitutoyo Corporation
8.4.1.Business overview
8.4.2.Financial performance
8.4.3.Product portfolio
8.4.4.Recent strategic moves & developments
8.4.5.SWOT analysis
8.5.Nortech Systems, Inc.
8.5.1.Business overview
8.5.2.Financial performance
8.5.3.Product portfolio
8.5.4.Recent strategic moves & developments
8.5.5.SWOT analysis
8.6.Integer Holdings Corporation
8.6.1.Business overview
8.6.2.Financial performance
8.6.3.Product portfolio
8.6.4.Recent strategic moves & developments
8.6.5.SWOT analysis
8.7.DAIICHI JITSUGYO CO., LTD.
8.7.1.Business overview
8.7.2.Financial performance
8.7.3.Product portfolio
8.7.4.Recent strategic moves & developments
8.7.5.SWOT analysis
8.8.Hamilton Company.
8.8.1.Business overview
8.8.2.Financial performance
8.8.3.Product portfolio
8.8.4.Recent strategic moves & developments
8.8.5.SWOT analysis
8.9.Cirtec
8.9.1.Business overview
8.9.2.Financial performance
8.9.3.Product portfolio
8.9.4.Recent strategic moves & developments
8.9.5.SWOT analysis
8.10.Kinetics Climax Inc.
8.10.1.Business overview
8.10.2.Financial performance
8.10.3.Product portfolio
8.10.4.Recent strategic moves & developments
8.10.5.SWOT analysis
The medical device sector is one of the primesegments of the healthcare industry. This industry has been outsourcing medical device manufacturing services for nearly a decade now. Since then, outsourcing has been a helping hand for medical device companies to cut-down development costs by almost 10% to 30%. Hence, regardless of the risingoperationalcosts, themedical device industryhas witnessedsignificantdevelopment duringthe past decade.
Drivers of medical device manufacturing outsourcing industry
Several healthcare and medical device companies are currently putting efforts in maintaining companyand industry productivity byoffering an amazinglyhigh level of quality in product development. They are adopting a variety of creativecost-cutting techniques and one among them is the increasinglypopular strategy of outsourced manufacturing.
On the other hand, a significant rise in the cases of chronic diseases including diabetes, cancer, CVDs (Cardiovascular Diseases), and others has increased the demand for efficient medical devices. Furthermore, factors such as a decrease in time and cost required to introduce a new product into the marketis one of the key factors fueling the growth of medical device manufacturing outsourcing sector. Besides,surge in the life expectancy, and increasing demand for technical adoption in the medical devices industry are contributing to the development of the medical device manufacturing outsourcing industry.
Whereas, increased attention and demand from various healthcare companies is unveiling lucrative opportunities for the continued growth of the medical device manufacturing outsourcing industry.Additionally, another factor which is boosting the trend toward outsourcing manufacturing services is the need to cut down operational costs. The growing demand and huge profit margins of the medical device manufacturing industry have enticedseveral new market players, and has boosted the competition in the industry. The entry of new medical device manufacturers has also increased the demand for outsourcing services.
Recent trends in the industry
Looking at the increased demand for outsourcing services, it is clear that various outsourcing companies that are operational in the medical manufacturing industry are likely to get merged. A latest example of this is the acquisition of TNCOInc. (Whitman, MA) by Symmetry Medical, a company offering manufacturing solutions for complex, high-precision products and services for medical devices. Symmetry Medical is mainly involved in the production of surgicalimplants and instrumentsfor the orthopedic device segment. With this acquisition,TNCO, focusseson designing, developing,and manufacturing devices for laparoscopic, arthroscopic, nasal sinus surgeries, and other minimallyinvasivetreatments.With Symmetry's greater scaleand resources, the mergedcompany will be able to develop and expandon TNCO's intellectual competencesand expandrapidly and effectivelyin TNCO's arenas of specialty andincrease its market share.
There are various other companies currently dominating the global medical device manufacturing outsourcing industry by adopting various activities such as development of new techniques, merges & collaborations, acquisitions, and geographical expansions. Some of these companies are Creganna, Tecomet, Inc., FLEX LTD., Nortech Systems, Inc., Mitutoyo Corporation, Integer Holdings Corporation, DAIICHI JITSUGYO CO., LTD., Cirtec, Hamilton Company., and Kinetics Climax Inc.
Future scope of the industry
The industry for outsourced medical manufacturing is growing at an increased rate.
According to a report by Research Dive, the global medical device manufacturing outsourcing market is foreseen to grow at a CAGR of 10.3% from 2019 to 2026. Medical device firmsare expected to obtain a continuous flow of an extensive range ofoptions that offer outsourcing manufacturing services in order to reduce their costs, capital investments, and time to market. The rapid growth coupled with a high demandis expected tobring in several lucrative opportunities for the development of global industry.
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