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NEW YORK, Aug. 18, 2022 /PRNewswire/ — The “Medical Device Manufacturing Outsourcing Market by Product, Medical Device Regulatory Classification, and Geography – Forecast and Analysis 2021-2025” report by Technavio expects the market size to grow by USD 27.12 billion between 2020 and 2025. The market witnessed a YOY growth of 5.73% in 2021 and the growth momentum is expected to accelerate at a CAGR of 7.81% during the forecast period. The report identifies North America as the major market for medical device manufacturing outsourcing services. The region will occupy 34% of the global market share. The report provides a comprehensive analysis of recent developments, new product launches, major revenue-generating segments, and market behavior across geographies. Download Sample PDF Report Here
One of the primary growth drivers for this market is the growing focus of OEMs on reducing medical device manufacturing costs. Manufacturing medical devices require high engineering capabilities and high labor costs. Thus, in order to reduce operational and production costs, manufacturers of medical devices have started outsourcing their manufacturing operations. This trend is gaining significant popularity among OEMs as outsourcing helps them achieve sustainability and reduce product development costs by 10%-30%. All these factors are expected to drive the growth of the global medical device manufacturing outsourcing market during the forecast period.
“The growing complexities in product design and development and expansion of medical device manufacturing plants by OEMs in emerging countries will further accelerate the growth of the market. However, the presence of stringent regulatory environment in most countries will challenge the growth of market players,” says a senior analyst at Technavio.
- By product, the market is analyzed across segments such as EMS, raw materials, and finished goods.
- The EMS segment will have the largest share of the market.
- Factors such as an increase in healthcare expenditure, high growth potential arising from emerging economies such as India, Chinaand Braziland rapid advances in medical device technologies are driving the growth of the segment.
- The market growth in the EMS segment will be significant during the forecast period.
- By medical devices regulatory classification, the market is analyzed across segments such as class II, class III, and class I.
- The class II medical devices segment generated the maximum revenue in the market in 2021.
- The segment is driven by the growing preference among OEMs to approach outsourcing companies for manufacturing their class II medical device products.
- The growing number of surgical procedures and increasing complexity of device designing are also driving the growth of the segment.
- 38% of the growth will originate from the APAC region.
- Factors such as increasing R&D investments, M&A activities, increasing collaboration between vendors, and growing technological advances are driving the growth of the regional market.
- Also, the increasing manufacturing of class II medical devices is contributing to the growth of the medical device manufacturing outsourcing market in North America.
- The US is the key market for medical device manufacturing outsourcing market in North America.
- Countries such as China, Germany, Japanand India will also emerge as major markets for medical device manufacturing outsourcing during the forecast period.
- The medical device manufacturing outsourcing market size is expected to accelerate at a CAGR of 7.81% during the forecast period.
- The medical device manufacturing outsourcing market is segmented by product (EMS, raw materials, and finished goods), medical device regulatory classification (class II, class III, and class I), and geography (North America, Asia, Europeand ROW).
- The market is fragmented due to the presence of many established vendors holding significant market share.
- The research report identifies Cadence Inc., Celestica Inc., Eurofins Scientific SE, Flex Ltd., Integer Holdings Corp., Jabil Inc., Nortech Systems Inc., Sanmina …
Full story available on Benzinga.com
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