Medical Devices Outsourcing Market Growth & Forecast

Market Insights

The medical devices outsourcing market is estimated to grow from USD 108.9 billion in 2021 to USD 242 billion by 2028 at an impressive CAGR of 11.93% during the forecast period.

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What is medical device outsourcing?

Medical device outsourcing is regarded as a phenomenon that emphasizes contracting with a third party for product design, prototyping, verification, production, packaging, and validation of medical devices in a controlled and sterile environment for the supply chain management. It mainly involves contracting with third-party organizations that excel in conceptualization, medical device prototyping, and related aspects.

COVID-19 Impact

The ongoing COVID-19 pandemic has positively impacted the medical devices outsourcing industry. Government bodies across the globe are focusing to curb COVID-19 with important measures, such as nationwide lockdowns, social distancing, and quarantine to prevent the spread of the coronavirus. With Covid-19 infections rising across the globe, the apprehension regarding a shortage of essential life-saving devices and related essential medical supplies to curb the spread of this pandemic and offer proper care to the infected also widens thus stresses the need for outsourcing medical devices.

Key Players

Some of the key players operating in the market are-

• SGS SA (Switzerland),
• Toxikon, Inc. (The U.S),
• Eurofins Scientific (Luxembourg),
• Pace Analytical Services, Inc. (The U.S),
• Intertek Group Plc (UK),
• WuXi AppTec, Inc. (China),
• North American Science Associates, Inc. (The U.S),
• TUV SUD AG (Germany),
• American Preclinical Services (The U.S), and
• Sterigenics International Llc (Italy).

Market Dynamics

The rise in the pressure on product manufacturers to reduce the overhead expenses and operational expenses while maintaining the quality of healthcare services spurs the industry growth. Also, the costs such as reduction of production time, which ensures early entry of product into the market coupled with the need to comply with the regulatory norms, further augment the market expansion. However, it poses a challenge to the security of the confidential information of the company, thus hampers the market growth.

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Segment Analysis

Service Trends

The market is segmented as quality assurance, regulatory affairs services, product design and development services, product upgrade services, product maintenance services, contract manufacturing and Others. The contract manufacturing segment seems to dominate the market during the assessment period.

The growth of this segment is being bolstered by a growing emphasis on reducing production costs and the escalating intricacy of manufacturing processes. Medical device manufacturers are deeply invested in ensuring the production of high-quality and safe devices for patient care.

However, this pursuit has led to the establishment of numerous layers of standards and regulations that demand high levels of inspection for developing medical devices. As a result, demand for manufacturing services is on the rise.

Application Trends

The market has been categorized into cardiology, neurology, radiology, anesthesia, orthopedic, ophthalmic, dental, and others. Among these, the cardiology segment held the highest market share of more than 20% in 2021 and is estimated to register a healthy CAGR during the review period.

The surging demand for cardiovascular devices, due to a high prevalence of related medical conditions, is further ascribed to the increased outsourcing of these devices, thereby augmenting the segment progress.

Regional Trends

The Asia Pacific market held the largest market share of more than 40% in 2021 and is estimated to register a healthy CAGR during the forecast timeline due to the easy availability of skilled manpower.

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Also, it can be attributed to the rising incidence of chronic diseases, the presence of key players, and competitive pricing, which further proliferates regional market progress.

Segmentation

The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The medical devices outsourcing market is segmented into the following categories:

By device class type:

• Class I
• Class II
• Class III

By service type:

• Quality Assurance
• Regulatory Affairs Services
• Product Design and Development Services
• Product Upgrade Services
• Product Maintenance Services
• Contract Manufacturing
• Others

By application type:

• Cardiology
• Neurology
• Radiology
• Anesthesia
• Orthopedic
• Ophthalmic
• Dental
• Others

By region:

• North America (Country Analysis: the USA, Canada, and Mexico) 
• Europe (Country Analysis: Germany, France, the UK, Russia, and Rest of Europe)
• Asia-Pacific (Country Analysis: China, Japan, India, and Rest of Asia-Pacific)
• Rest of the World (Sub-Region Analysis: Latin America, the Middle East, and Others)

Target Audience

Here is the list of the group of customers that the medical devices outsourcing market hopes to have the greatest opportunity to convert-

• Companies,
• Hospitals,
• Cardiology centers,
• Ambulatory surgical centers,
• Research centers & organizations,

Critical Questions Answered in the Report

• What are the key trends in the market?
• How the market (and its various sub-segments) has grown in the last five years and what would be the growth rate in the next five years?
• What is the impact of COVID-19 on the market?
• What are the key strategies adopted by the major vendors to lead in the market?
• What is the market share of the top vendors?

Research Methodology

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders and validation and triangulation with Stratview Research’s internal database and statistical tools.

More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles have been leveraged to gather the data.

We conducted more than 10 detailed primary interviews with the market players across the value chain in all four regions and with industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the dynamics and will enable strategic decision-making for the existing players as well as those willing to enter the market.

What Deliverables Will You Get in this Report

Customization Options

Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to 3 players).
• SWOT analysis of key players (up to 3 players).

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry at sales@stratviewresearch.com.