The Global Market for Medical Device Outsourcing is Projected to Reach US$101.7 Billion by 2024
The Promising Advantages of Reduced
Costs & Faster Time-to-Market Drive the Popularity of Medical Device
Outsourcing Among OEMs, According to New Report by Global Industry Analysts,
Inc.
GIA
launches comprehensive analysis of industry segments, trends, growth drivers,
market share, size and demand forecasts on the global Medical Device
Outsourcing market. The global market for Medical
Device Outsourcing is projected to reach US$101.7 billion by 2024, driven by the growing
pressure on medical device OEMs to reduce production costs and reduce time-to-market
of new products.
Medical
device outsourcing, an approach where a third party assumes responsibility of
managing device development and manufacturing operations either in part or in
entirety, continues to grow in significance led by the increasing need for
medical device companies to recalibrate their strategies to reduce costs,
accelerate time-to-market and focus on their core competencies. As companies
modernize business practices in order to remain competitive and retain critical
survival capabilities such as agility and flexibility in a rapidly changing
marketplace, contract manufacturing market participants are positioned
favorably to tap the emerging opportunities. Several advantages are stacked in
favor of medical device outsourcing including dedicated product design teams,
manufacturing cost reductions, minimizing number of process steps involved,
cost-effective customized products, and improved time-to-market, among others.
With
healthcare budgets on a decline, medical device companies have come under
intense pressure to reduce production expenditure and slash operational costs.
As manufacturing of medical devices entails high engineering and labor costs,
outsourcing strategy will help OEMs to cut down on product development costs
and reduce the need for companies to hire required employees. Growth in the
global medical device outsourcing market is being fostered by the escalating
demand for a wide range of medical devices and supplies, particularly to meet
the growing medical needs of the world’s expanding geriatric population. Rising
incidence of diseases specifically such as diabetes, cardiovascular disease, cancer and joint diseases
are driving demand for a variety of medical devices, thus stimulating growth in
the medical device outsourcing market. With medical device OEMs facing
difficulties in keeping up with the rising demand for medical devices, players
are opting to subcontract various operations such as manufacturing, assembling
and packaging among others.
Rising
acceptance of outsourcing among OEMs of ophthalmic, cardiovascular, oncology,
neurology and dental devices, and also among providers
of medical device design engineering, testing & simulation tools will
foster growth in the medical device outsourcing market. The market is also being
impacted by the intensifying competition among OEMs, which is compelling them
to develop and manufacture products at a significantly lower cost. The demand
for outsourcing is also gaining ground due to the increasing complexities in
product engineering and the growing need to comply with stringent quality
requirement of various regulatory bodies. Long-term growth will be fueled by
the constantly declining time duration for commercialization of products, as
companies look to gain an edge over rivals.
As
stated by the new market research report on Medical Device Outsourcing, the United States
represents the largest market worldwide. Rising demand for high-end, complex
and reliable medical devices is fueling market growth in the country coupled
with increasing healthcare spending levels, growing medical needs of the aging
population and continuous increase in surgery volumes. Asia-Pacific is forecast
to register the fastest CAGR of 14.6% over the analysis period. Growth in the
region is primarily attributed to the growing prominence of Asian economies as
lucrative destinations for outsourced activity. The presence of manufacturing
facilities for high-end, reliable and complex medical devices positions
Asia-Pacific as a promising destination for outsourced medical devices
operations.
Major
players in the market include Benchmark Electronics Inc., Cadence Inc.,
Creganna Medical, Celestica Inc., CoorsTek Medical LLC, Flextronics
International, ICON plc, Integer Holdings Corporation, Laserage Technology
Corporation, MedPlast Inc., Minnetronix Inc., Nortech Systems Inc.,
Phillips-Medisize Corporation, Plexus Corporation, Providien LLC, Sparton
Corporation, Tecomet Inc., Thermo Fisher Scientific Inc., West Pharmaceutical
Services Inc., and WuXi AppTec Co. Ltd., among others.
The
research report titled “Medical Device Outsourcing:
A Global Strategic Business Report” announced by Global Industry Analysts Inc.,
provides a comprehensive review
of market trends, issues, drivers, mergers, acquisitions and other strategic
industry activities of global companies. The report provides market estimates
and projections for all major geographic markets such as the US, Canada, Japan,
Europe (France, Germany, Italy, UK, Spain and Rest of Europe), Asia-Pacific and
Rest of World. The report analyzes the medical device outsourcing market by
Device Type (Class I, Class II and Class III) and by Department (Department,
Radiology, Orthopedic, Neurology, Cardiology and Others).
For enquiries e-mail us at rsd@strategyr.com or info411@strategyr.com
Global Industry
Analysts, Inc. 6150 Hellyer Ave., San Jose CA 95138, USA, All Rights Reserved.
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