According to Stratview Research, The medical devices outsourcing market is a rapidly growing industry, with a global market size of USD 108.9 billion in 2021. The market is expected to grow at a compound annual growth rate (CAGR) of 11.93% from 2022 to 2028, reaching USD 242 billion by 2028.
Medical devices outsourcing is the process of hiring a third-party company to perform certain tasks related to the development, manufacturing, or distribution of medical devices. This can include a wide range of activities, such as research and development, design, engineering, prototyping, testing, manufacturing, packaging, and logistics.
There are a number of key players in the medical devices outsourcing market. Some of the leading players include:
- Contract Development and Manufacturing Organizations (CDMOs): CDMOs are companies that provide a wide range of outsourcing services to medical device companies. Some of the leading CDMOs include:
- Contract Pharmacal Corporation (CPC)
- Lonza Group
- Catalent, Inc.
- Steris Corporation
- Parexel International Corporation
- Contract Manufacturing Organizations (CMOs): CMOs are companies that specialize in the manufacturing of medical devices. Some of the leading CMOs include:
- Flex Ltd.
- Jabil Inc.
- Sanmina Corporation
- Hon Hai Precision Industry Co., Ltd.
- Foxconn Technology Group
- Electronic Manufacturing Services (EMS) Providers: EMS providers are companies that specialize in the manufacturing of electronic components and devices. Some of the leading EMS providers that offer medical device outsourcing services include:
- Celestica Inc.
- Plexus Corporation
- Kimball International, Inc.
- Asteelflash
- Benchmark Electronics, Inc.
Key strategies of medical devices outsourcing companies
The key strategies of medical devices outsourcing companies include:
- Expanding their service offerings: Many medical devices outsourcing companies are expanding their service offerings to include a wider range of activities, such as research and development, design engineering, and regulatory compliance. This is to make it easier for medical device companies to outsource all of their needs to a single provider.
- Targeting emerging markets: Medical devices outsourcing companies are increasingly targeting emerging markets, such as China and India. This is due to the growing populations and the rising incomes in these countries, which is leading to an increased demand for medical devices.
- Investing in new technologies: Medical devices outsourcing companies are investing in new technologies, such as 3D printing and additive manufacturing, to improve their efficiency and productivity. This is to help them to meet the growing demand for medical devices and to reduce their costs.
Growth drivers of the medical devices outsourcing market
The key growth drivers of the medical devices outsourcing market include:
- The rising cost of medical device development and manufacturing: The cost of developing and manufacturing medical devices is rising rapidly. This is due to the increasing complexity of medical devices and the need to comply with strict regulatory standards. Medical devices outsourcing can help medical device companies to reduce their costs by leveraging the expertise and efficiency of third-party providers.
- The increasing demand for personalized medicine: Personalized medicine is a rapidly growing field, and it is creating a demand for increasingly sophisticated and customized medical devices. Outsourcing can help medical device companies to meet this demand by providing them with access to the expertise and resources they need to develop and manufacture personalized medical devices.
- The globalization of the medical device industry: The medical device industry is becoming increasingly globalized, and medical device companies are increasingly looking to outsource their manufacturing and other operations to low-cost countries. This trend is expected to continue in the coming years.
Conclusion
The medical devices outsourcing market is a rapidly growing industry with a number of growth drivers. Companies that are able to capitalize on these growth drivers are well-positioned to achieve significant growth in the coming years.
