Global Medical Device Outsourcing Market Research Report: By Product (Finished goods, Electronics, Raw Materials), By Device Type (Class I Devices, Class II Devices, Class III Devices), By Application (Orthopedics and Spine, Cardiovascular, Radiology, General Medical Devices, Others), By Services (Prototype Development, Finished Device Manufacturing, Assembly & Packaging, Testing & Regulatory Support Services), and Region (North America, Europe, Asia-Pacific, and Rest of the World) Global Industry Analysis, Size, Share, Growth, Trends, Regional Analysis, Competitor Analysis and Forecast 2023-2031.
The global medical device outsourcing market was valued at USD 116.21 billion in 2023 and is estimated to reach approximately USD 260.51 billion by 2031, at a CAGR of 12.24% from 2024 to 2032.
Medical device outsourcing is the practice of engaging external organizations or service providers to execute various tasks or services associated with medical device development, manufacturing, regulatory compliance, testing, and other areas of production. This outsourcing model allows medical device companies to leverage the expertise and capabilities of specialized third-party organizations, often referred to as contract service providers or contract manufacturing organizations.
MEDICAL DEVICE OUTSOURCING MARKET: REPORT SCOPE & SEGMENTATION
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Report Attribute |
Details |
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Estimated Market Value (2023) |
USD 116.21 Billion |
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Projected Market Value (2032) |
USD 260.51 Billion |
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Base Year |
2023 |
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Forecast Years |
2024 - 2032 |
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Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment- By Product, By Device Type, By Application, By Services& Region |
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Segments Covered |
By Product, By Device Type, By Application, By Services& Region |
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Forecast Units |
Value (USD Billion or Million), and Volume (Units) |
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Quantitative Units |
Revenue in USD million/billion and CAGR from 2023 to 2031 |
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Regions Covered |
North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and the Rest of World |
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Countries Covered |
U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others |
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Report Coverage |
Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis, and COVID-19 impact analysis. |
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Delivery Format |
Delivered as an attached PDF and Excel through email, according to the purchase option. |
Global Medical Device Outsourcing Market Drivers:
The rising prevalence of chronic diseases such as cancer drives market expansion. The sedimentary lifestyle of the population contributes to the high occurrence of chronic illnesses. The majority of the problems stem from inactivity and smoking. Each year, 41 million individuals die from noncommunicable diseases. Cardiovascular problems are the most frequent chronic ailments, killing 17.9 persons each year. The most prevalent types of cancer in men include oral cavity, lip, stomach, lung, esophagus, and colorectal. Females, on the other hand, can get lung, oral cavity, breast, lip, cervix, and gastric cancer. Moreover, the increasing need for innovative therapeutics, combined with technical improvements in medical instruments to address unmet needs in the healthcare industry. Furthermore, the growing requirement to expand product portfolios through innovations and ongoing research and development (R&D) investments.
Opportunities:
The increased use of Interventional Medical Devices (IMDs) is an opportunity for market expansion. Additionally, growing healthcare costs and technology improvements. The expanding internationalization of both major and small medical instrument manufacturers, as well as the increasing complexity of medical devices, are expected. Furthermore, the increasing incidence of many CAD risk factors, such as smoking, poor diets, and unhealthy lifestyles, is likely to drive global market expansion throughout the forecast period.
Restraints:
The increased availability of service alternatives, as well as compliance difficulties with outsourcing, are limiting industry expansion. Furthermore, regulatory and legal compliance and shortage of skilled labor, are expected to hamper market expansion. The increased costs for new product development and patient care offerings are also impeding industry expansion.
Segment Overview
Based on product, the global medical device outsourcing market is classified into finished goods, electronics, and raw materials. The finished goods segment dominated the market in 2023 and is expected to dominating during the medical device outsourcing market in forecast period, due to increase in disease prevalence, life expectancy, and the geriatric population.
Based on device type, the global medical device outsourcing market is divided into class I devices, class II devices, class III devices. The class II devices segment dominated the global medical device outsourcing market in 2023. This is attributed to increasing demand of class II devices for surgical instruments and test kits. In addition, class II devices such as catheters, syringes, surgical gloves, blood pressure cuffs, pregnancy test kits, contact lenses, and blood transfusion kits. These devices pose a higher danger than Class I devices because they must be in constant touch with patients.
Based on application, the global medical device outsourcing market is fragmented into orthopedics and spine, cardiovascular, radiology, general medical devices, others. The cardiovascular segment dominated the medical device outsourcing market with the largest revenue share in 2023. This due to increasing demand of medical device outsourcing for cardiovascular. According to WHO, 17.9 billion people died due to cardiovascular disease in 2019, representing 32% of all global deaths. Angina pectoris, myocardial infarction, hypertension, rheumatic heart disease, atrial fibrillation, and congenital heart disease are all common disorders. The rising global prevalence of CVDs drives up demand for cardiovascular devices.
Based on services, the global medical device outsourcing market is segmented into prototype development, finished device manufacturing, assembly & packaging, testing & regulatory support services. The finished device manufacturing segment dominated the medical device outsourcing market in 2023, owing to unprecedented demand for technical support pertaining to raw material and finished product testing. Moreover, medical device makers are outsourcing quality management services to medical device consulting firms in order to assure compliance and deliver high-quality components alongside safe and effective finished medical products.
Global Medical Device Outsourcing Market Overview by Region
Asia Pacific dominated the medical device outsourcing market in 2023. This is attributed to the presence of industry players and competitive pricing are two more variables that are expected to boost this regional market. Additionally, rising demand for medical devices due to an expanding patient population suffering from chronic and infectious diseases is driving market expansion in this area. For instance, during the first wave of COVID-19, there was an increased demand in India for CT scanners to identify pneumonia. Furthermore, low cost of products and labor for manufacturing in the region. As a result, increasing demand of this medical device outsourcing market in this region.
Global Medical Device Outsourcing Competitive Landscape
In the global medical device outsourcing market, a few major players exert significant market dominance and have established a strong regional presence. These leading companies remain committed to continuous research and development endeavors and actively engage in strategic growth initiatives, including product development, launches, joint ventures, and partnerships. By pursuing these strategies, these companies aim to strengthen their market position, expand their customer base, and capture a substantial share of the market.
Some of the prominent players in the global medical device outsourcing market include SGS SA , TOXIKON, Pace Analytical, Intertek Group plc, WuXi AppTec, North American Science Associates, Inc., American Preclinical Services, LLC., Sterigenics U.S., LLC – A Sotera Health company, Charles River Laboratories, Celestica Inc., Creganna, FLEX LTD., Heraeus Holding, Integer Holdings Corporation, Nortech Systems, Inc., Plexus Corp., Sanmina Corporation, EUROFINS SCIENTIFIC, TE Connectivity, ICON plc, Parexel International Corporation, Labcorp Drug Development, Tecomet, Inc., IQVIA, Jabil Inc. Syneos Health, PROVIDIEN LLC., and others.
Global Medical Device Outsourcing Recent Developments
Scope of the Global Medical Device Outsourcing Market Report
Medical Device Outsourcing Market Report Segmentation
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ATTRIBUTE |
DETAILS |
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By Product |
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By Device Type |
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By Application |
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By Services |
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By Geography |
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Customization Scope |
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Pricing |
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Objectives of the Study
The objectives of the study are summarized in 5 stages. They are as mentioned below:
Research Methodology
Our research methodology has always been the key differentiating reason which sets us apart in comparison from the competing organizations in the industry. Our organization believes in consistency along with quality and establishing a new level with every new report we generate; our methods are acclaimed and the data/information inside the report is coveted. Our research methodology involves a combination of primary and secondary research methods. Data procurement is one of the most extensive stages in our research process. Our organization helps in assisting the clients to find the opportunities by examining the market across the globe coupled with providing economic statistics for each and every region. The reports generated and published are based on primary & secondary research. In secondary research, we gather data for global Market through white papers, case studies, blogs, reference customers, news, articles, press releases, white papers, and research studies. We also have our paid data applications which includes hoovers, Bloomberg business week, Avention, and others.
Data Collection
Data collection is the process of gathering, measuring, and analyzing accurate and relevant data from a variety of sources to analyze market and forecast trends. Raw market data is obtained on a broad front. Data is continuously extracted and filtered to ensure only validated and authenticated sources are considered. Data is mined from a varied host of sources including secondary and primary sources.
Primary Research
After the secondary research process, we initiate the primary research phase in which we interact with companies operating within the market space. We interact with related industries to understand the factors that can drive or hamper a market. Exhaustive primary interviews are conducted. Various sources from both the supply and demand sides are interviewed to obtain qualitative and quantitative information for a report which includes suppliers, product providers, domain experts, CEOs, vice presidents, marketing & sales directors, Type & innovation directors, and related key executives from various key companies to ensure a holistic and unbiased picture of the market.
Secondary Research
A secondary research process is conducted to identify and collect information useful for the extensive, technical, market-oriented, and comprehensive study of the market. Secondary sources include published market studies, competitive information, white papers, analyst reports, government agencies, industry and trade associations, media sources, chambers of commerce, newsletters, trade publications, magazines, Bloomberg BusinessWeek, Factiva, D&B, annual reports, company house documents, investor presentations, articles, journals, blogs, and SEC filings of companies, newspapers, and so on. We have assigned weights to these parameters and quantified their market impacts using the weighted average analysis to derive the expected market growth rate.
Top-Down Approach & Bottom-Up Approach
In the top – down approach, the Global Batteries for Solar Energy Storage Market was further divided into various segments on the basis of the percentage share of each segment. This approach helped in arriving at the market size of each segment globally. The segments market size was further broken down in the regional market size of each segment and sub-segments. The sub-segments were further broken down to country level market. The market size arrived using this approach was then crosschecked with the market size arrived by using bottom-up approach.
In the bottom-up approach, we arrived at the country market size by identifying the revenues and market shares of the key market players. The country market sizes then were added up to arrive at regional market size of the decorated apparel, which eventually added up to arrive at global market size.
This is one of the most reliable methods as the information is directly obtained from the key players in the market and is based on the primary interviews from the key opinion leaders associated with the firms considered in the research. Furthermore, the data obtained from the company sources and the primary respondents was validated through secondary sources including government publications and Bloomberg.
Market Analysis & size Estimation
Post the data mining stage, we gather our findings and analyze them, filtering out relevant insights. These are evaluated across research teams and industry experts. All this data is collected and evaluated by our analysts. The key players in the industry or markets are identified through extensive primary and secondary research. All percentage share splits, and breakdowns have been determined using secondary sources and verified through primary sources. The market size, in terms of value and volume, is determined through primary and secondary research processes, and forecasting models including the time series model, econometric model, judgmental forecasting model, the Delphi method, among Flywheel Energy Storage. Gathered information for market analysis, competitive landscape, growth trends, product development, and pricing trends is fed into the model and analyzed simultaneously.
Quality Checking & Final Review
The analysis done by the research team is further reviewed to check for the accuracy of the data provided to ensure the clients’ requirements. This approach provides essential checks and balances which facilitate the production of quality data. This Type of revision was done in two phases for the authenticity of the data and negligible errors in the report. After quality checking, the report is reviewed to look after the presentation, Type and to recheck if all the requirements of the clients were addressed.
