Medical Device Outsourcing Market Expected to reach $137,948.92 Million by 2030

According to a new report published by Allied Market Research, titled, “Medical Device Outsourcing Market by Product, Device Type, Application, and Services: Global Opportunity Analysis and Industry Forecast, 2021–2030,” the global medical outsourcing market size was valued at $59,723.42 million in 2020, and is projected to reach $137,948.92 million by 2030, registering a CAGR of 8.9% from 2021 to 2030.

Medical device outsourcing is an approach where a third party assumes responsibility of managing device development and manufacturing operations either in part or in entirety. Medical device outsourcing continues to grow in significance led by the increasing need for medical device companies to recalibrate their strategies to reduce cost, accelerate time-to-market and focus on their core competencies. Medical device outsourcing involves a third-party operating a part or entire client’s technology assets. Outsourcing typically involves an agreement between the client company and the supplier or the external outsourcing service provider. As per agreement terms, the supplier takes over the manufacturing means in the form of assets, workforce, and additional resources of the client company.

Moreover, the client company gets hold of the services provided by the supplier as per the contract terms. Medical device manufacturers sometimes hire a contact manufacturer to perform contact manufacturing services such as product prototype, production, injection molding, silicone compression molding, wielding, assembly, and packaging in a controlled environment, cleanroom, and other auxiliary services such as metal machining. Medical device outsourcing can lower operational costs, increase business efficiency, and boost productivity, thus providing tangible, bottom line benefits to organizations.

The major factors that drive the growth of the medical device outsourcing market include increase in geriatric population and rise in number of patients suffering from chronic disorders, such as spine disorders, diabetes, and cardiovascular diseases. Moreover, outsourcing also allows companies to focus on core activities, which in turn boosts the market growth. However, threat of loss of confidential information is expected to impede the market growth.

The medical device outsourcing market is segmented on the basis of product, device type, application, services, and region. On the basis of product, the market is divided into finished goods, electronics, and raw materials. On the basis of product, the finished goods segment currently dominates the global medical device outsourcing market and is expected to continue during the forecast period owing to the rising disease prevalence, life expectancy, and the geriatric population.

On the basis of device type, the market is classified into class I devices, class II devices, and class III devices. The class II devices segment dominated the global medical device outsourcing market in 2020 and is anticipated to be dominant in the market owing to the rising demand for surgical instruments and test kits.

On the basis of application, the market is divided into orthopedics and spine, cardiovascular, radiology, general medical devices, and others. The general medical devices segment currently dominates the global medical device outsourcing market and is expected to continue during the forecast period owing to the growing prevalence of chronic devices, and the increasing emphasis of healthcare agencies towards early diagnosis and treatment.

On the basis of services, the market is classified into prototype development, finished device manufacturing, assembly & packaging, and testing & regulatory support services. The finished device manufacturing segment dominated the global medical device outsourcing market in 2020 and is anticipated to be dominant in the market owing to unprecedented demand for technical support pertaining to raw material and finished product testing.

North America accounted for a majority of the global medical device outsourcing market share in 2020 and is anticipated to highly develop health care sector, increase in awareness among healthcare professionals about medical devices, and the continuous evolution of technology. However, Asia-Pacific region is expected to witness considerable market growth during the forecast period, due to low cost of products and labor for manufacturing.

Key Findings Of Study

• By product, the finished goods segment currently dominates the global medical device outsourcing market and is expected to continue during the forecast period owing to rising disease prevalence, life expectancy, and the geriatric population.
• By device type, the class II device segment dominated the global medical device outsourcing market in 2020 and is anticipated to be dominant in the market owing to the rising demand for surgical instruments and test kits.
• By application, the general medical devices segment currently dominates the global medical device outsourcing market and is expected to continue during the forecast period owing to growing prevalence of chronic devices, and the increasing emphasis of healthcare agencies towards early diagnosis and treatment.
• By services, the finished device manufacturing segment dominated the global medical device outsourcing market in 2020 and is anticipated to be dominant in the market owing to unprecedented demand for technical support pertaining to raw material and finished product testing.
• On the basis of region, in 2020, America dominated the market in 2020, owing to highly developed health care sector, increase in awareness among healthcare professionals about medical devices, and the continuous evolution of technology. However, Asia-Pacific region is expected to witness considerable medical device outsourcing market growth during the forecast period, due to low cost of products and labor for manufacturing.