Triggered by the increase in number of diseases worldwide, the global medical device manufacturing outsourcing market is expected to witness a rise in CAGR by more than 11 percent in the period from 2016 to 2020, reports Technavio, a global technology research and advisory company. According to the research analysts, this growth is a result of the reduction in healthcare budget and lack of labor because of which OEMs (original equipment manufacturers) are increasingly outsourcing the manufacturing of medical devices to reduce their manufacturing expenses and at the same time make optimal use of their limited resources.
Technavio’s ‘Global Medical Device Manufacturing Outsourcing Market 2016-2020’ report is a detailed analysis of the market regarding new trends and revenue earning patterns accompanied with future predictions. For an in-depth analysis, the market has been segmented by:
- Electronic manufacturing
- Raw materials
- Finished goods
- Ortho and spine
- Medical imaging
- General medical devices
- And others
- Creganna Medical
- Nortech Systems
Key Findings of the Report
With companies becoming more profit oriented and competitive, the medical device manufacturing outsourcing market is expected to grow to $88.2 billion by 2025.
It is anticipated that the product design and development services are going to be in high demand by medical device manufacturers for the forecast period as it will help them in shortening the time to market, achieving a faster return on investment and overall growth of the segment.
The industry is going to witness a significant fall in duration for product commercialization by companies.
There will be a sharp decline in public spending in major EU regions and the U.S. to create more difficulties for medical devices manufacturers.
By 2025, the contract manufacturing segment is expected to grow and contribute more than 19.0 percent of revenue share and the Class II medical devices are going to hold a larger market share.
On the other hand, the top performing sections of the therapeutic segment will be IVD, cardiology and drug delivery.
Region wise, Asia-Pacific is going to be the highest revenue contributor during the forecast period.
Also, one of the major trends observed to be at the forefront of the global medical device manufacturing outsourcing market is the increase in mergers and acquisitions. With a view to globalize their existence, focus on product innovation get hold of a bigger market share and enjoy the cost advantage, many vendors are on a spree to rapidly expand. Hence, by contracting with a third party for performing business functions like product design, manufacturing, supply chain management, and prototyping, medical manufacturers will be able to concentrate more on enhancing their core competencies like technical and clinical innovations which in the long run will contribute to the future developments of the industry.