Medical device manufacturing outsourcing: Key market research findings
- Entry of new companies drives the market growth
- The class II medical devices segment is the dominant shareholder
- Key vendors—Creganna Medical, Flex, Greatbatch, Nortech Systems, and Tecomet
Technavio’s market research analysts predict the global medical device manufacturing outsourcing market to grow at a CAGR of more than 11% between 2016 and 2020. The entry of new medical device companies in the market is one of the primary drivers for growth in this market. The new entrants seek to outsource manufacturers to produce high-quality medical devices in a short span of time and at a low cost, thereby driving the demand for medical device outsourcing. The Americas accounted for almost 47% of the market space in 2015 and will continue to dominate the global medical device manufacturing outsourcing market during the forecast period. The growing demand for self-care equipment such as powered wheelchairs and infusion pumps is likely to fuel growth in the market in this region during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the medical device manufacturing outsourcing segments by regulatory classification.
“The advancement in technology is an ongoing trend in the global medical device manufacturing outsourcing market. Original equipment manufacturers (OEMs) are striving to meet the demands of customers in a better way through the adoption of new innovative technologies such as 3D printing technology and athermal lasers. Besides, the trend of miniaturization of devices and components is also expected to continue during the forecast period,” says Barath Palada, Lead Analyst, Healthcare & Lifesciences, Technavio Research.
During 2015, the class II segment occupied around 48% of the market share to dominate the global medical device manufacturing outsourcing market. About 43% of medical devices are considered as Class II medical devices, including powered wheelchairs and certain pregnancy test kits. Class II devices are outsourced for their design, manufacture, clinical and advisory services, sales and marketing, and after-sales services. The increasing number of surgical procedures and increased complexity of device designing are some of the factors that will boost growth in class II medical device manufacturing outsourcing market by 2020.
The key vendors in the global medical device manufacturing outsourcing market include Creganna Medical, Flex, Greatbatch, Nortech Systems, and Tecomet. Though a few major players dominate the market, it presents immense growth opportunities for vendors. The market is expected to grow significantly in the emerging countries and companies are continuously focusing on product innovation and acquisitions to gain a better share of the market.
A more detailed analysis is available in the Technavio report, Global Medical Device Manufacturing Outsourcing Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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