Market Overview:
Medical device contract manufacturing includes manufacturing of medical equipment and devices for various therapeutic purposes. The medical devices manufactured offer effective treatment and diagnosis while ensuring safety, efficacy, and quality.
Market key trends:
One of the key trends in the medical device contract manufacturing market is increased outsourcing of device manufacturing. Several original equipment manufacturers (OEM) are outsourcing medical device manufacturing activities like component manufacturing, assembly, finished device manufacturing, and packaging to contract manufacturing organizations (CMOs). This is helping OEMs focus on their core competencies like research and development. The outsourcing is also allowing CMOs to benefit from economies of scale by taking up manufacturing of multiple medical devices.
The Medical Device Contract Manufacturing Market Share has been witnessing significant growth over the past few years. One of the major trends driving the market is the increasing preference of medical device OEMs to outsource non-core activities to focus on key competencies such as innovation and new product development. Contract manufacturing offers OEMs reduced manufacturing costs and improved efficiencies through economies of scale. It also provides access to advanced manufacturing technologies and regulatory expertise that many OEMs lack in-house.
SWOT Analysis
Strengths: Contract manufacturers have extensive experience in various medical device categories and therapeutic areas which helps OEMs reduce development time. Their manufacturing facilities meet stringent quality and regulatory standards.
Weaknesses: Over-reliance of OEMs on contract manufacturers can impact proprietary design control and intellectual property. Managing complex global supply chains is also a challenge.
Opportunities: Growing demand for minimally invasive medical devices especially in emerging markets provide opportunities for contract manufacturers. Adoption of Industry 4.0 technologies such as 3D printing, IoT and digitization in manufacturing presents new opportunities.
Threats: Intense competition among contract manufacturers puts pressure on pricing and costs. Strict regulatory framework for medical devices increases compliance requirements and costs.
Key Takeaways
The global medical device contract manufacturing market is expected to witness a CAGR of 10% over the forecast period, due to increasing need for cost containment and focus on core competencies among medical device OEMs.
Regional analysis: North America dominated the market in 2023, accounting for around 40% share. However, Asia Pacific is expected to witness highest growth during the forecast period supported by factors such as growing medical tourism, heavy investments by major players and favorable government policies in countries such as China, India and Japan.
Key players operating in the medical device contract manufacturing market are Flex, TE Connectivity, Sanmina, Jabil, Celestica, Plexus, and Tecomet, among others. Flex led the market and generated total revenues of over US$ 13 Bn in 2021 supported by its full service offerings across various device classes.
Read More:
Arabic
Français
Español
Português
Deutsch
Türkçe
Dutch
Italiano
Russian
Romaian