Global Market for Medical Device Outsourcing Services is Projected to Reach US$66 Billion by 2020
Time-to-Market and Cost Benefits to Drive the Global Medical
Device Outsourcing Market, According to New Report by Global Industry Analysts, Inc.
GIA launches
comprehensive analysis of industry segments, trends, growth drivers, market
share, market size and demand forecasts on the global Medical Device
Outsourcing market. Driven by the rising pressure to reduce manufacturing costs
and accelerate time-to-market, the global
market for Medical Device Outsourcing Services is projected to reach US$66 billion
by 2020.
Medical device
companies across the world are constantly looking to improve time-to-market,
time-to-volume (TTV), and time-to-profit (TTP), to enhance competitiveness in
the market. Shorter product lifecycles,
incrementally higher levels of technology sophistication, and the shrinking
window of opportunity, exert pressure on their ability to quickly bring
products to the market, and gain first mover advantages. Intensifying
competition in the industry is forcing companies
to recalibrate their strategies and explore new efficiencies in product design,
development, manufacturing and marketing. Focus on manufacturing agility and
flexibility to reduce costs and accelerate time to market is driving demand for
outsourcing services. Medical device outsourcing services help OEMs to shorten
development and production scale-up time, expand market share, and benefit from
premium pricing and cost advantages. The market, in general, closely follows
the growth patterns in the medical device industry, and is also dependent on
the extent to which device manufacturers choose to outsource their
manufacturing and assembly operations. The market is also significantly influenced
by rising incidence of diseases specifically cardiac and neurological
disorders, which are driving demand for a wide variety of medical devices.
Key factors driving demand for medical devices include aging population,
increased spending on healthcare, enhanced disease screening and detection
techniques, greater emphasis on cost-effective and minimally invasive
therapies, and technological advances in diagnostics and therapeutics. Rising
acceptance of outsourcing among OEMs of ophthalmic, cardiovascular, oncology,
neurology and dental devices will foster growth in the market. Rising demand
for R&D and post market engineering support services for medical devices is
also expected to benefit the market. OEMs are now focused on leveraging services
that can help reduce product recalls, shorten regulatory validation time and
increase time-to-market. This is expected to spur demand for a wide gamut of
services ranging from R&D to product manufacturing. Demand for testing services especially has
surged due to increasing use of electronics in medical devices. As several Class
II and III medical devices are embedded with microelectronic chips, meticulous
device testing has become vital to ensure user safety and product performance.
As stated by
the new market research report on Medical Device Outsourcing, the United States represents the largest market
worldwide. Asia-Pacific is forecast to record the fastest CAGR of 14.9% over
the analysis period. Cheaper production of devices coupled with adherence to
stringent international quality standards marks the emergence of Asia as the
most desirable production hub. Asian countries, specifically India and China,
are emerging as attractive low-cost destinations for leading medical devices
OEMs.
Key players covered
in the report include Aptiv Solutions,
Benchmark Electronics Inc., Cadence Inc., Celestica HealthTECH, CoorsTek
Medical LLC, CregannaTactx Medical, Flextronics International, Greatbatch Inc.,
HCL Technologies Limited, Lake Region Medical, Laserage Technology Corporation
Inc., Memry Corporation, Millstone Medical Outsourcing LLC, Minnetronix Inc.,
Nortech Systems Inc., Plexus Corporation, Providien LLC, RTEmd, Symmetry
Medical Inc, The Tech Group Inc., and Venta Medical Inc., among others.
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