2019 Global Medical Device Outsourcing Market, Size, Share and Trend Analysis Report to 2025- Growth Opportunities, Competition, Forecasts and industry Outlook
SOUTHLAKE, TX, UNITED STATES, September 23, 2019 /EINPresswire.com/ — Among the emerging healthcare sub markets, the medical device outsourcing market is marking significant growth with CAGR of 10.18% between 2019 and 2025. Increasing demand for medical devices combined with rising price competition and need to lower costs is expected to drive medical device outsourcing market the growth.
A surge in the global geriatric population is anticipated to boost the demand for medical devices and supplies, thereby fuelling the medical device outsourcing market. Further, high prevalence of chronic disorders coupled with adoption of advance healthcare equipment and modern implantable medical devices (IMDs) to improve desired medical outcome of patients drives the medical device outsourcing market through medium to long term.
However, stringent regulatory environment towards medical devices hinders the medical device outsourcing market growth. The technical obstacles including high investment in obtaining the latest technologies followed by delay in contractual obligations hinder production, thereby adversely affect the profitability of the OEMs and outsourcing medical device industry.
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Emergence of new medical device firms, reduction in product development costs are shaping market size
The entry of new medical device manufacturers prominently drives the medical device manufacturing outsourcing market but new entrants lack experience in manufacturing and have fewer capabilities, thus these companies seek to outsource manufacturers to get a high-quality product in a short span of time at a low cost.
Depending on the company and the product, outsourcing helps in saving up to 15% of total production costs. Medical device manufacturing outsourcing reduces product development costs by 10%-30%, and also saves labour and engineering costs.
Some of the medical device start-ups that have recently entered the market include ShiftLabs, Ekso Bionics, and Providence Medical which are adopting cost efficient strategies to strengthen their market share.
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Further, healthcare budget cuts across the world have increased pricing pressure on medical device manufacturers. As a result, manufacturers have started to cut down their operational costs due to which outsourcing of medical devices is gaining significant importance among OEMs.
Increasing demand of up-to-date technologies in medical device outsourcing market size
OEMs are continuously adopting innovative technologies to meet the demand of up-to-date medical devices such as portable and miniature size of sophisticated medical devices.
In addition, medical device outsourcing market has been witnessing a growing trend of new technologies such as 3D printing technology and Athermal laser. For instance, in 2019, Evonik funded Meditool manufacturers of 3D printed neuro and spine surgery implants to strengthen 3D printed medical implants and healthcare services across healthcare sector.
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In addition, athermal lasers have achieved significant results in the micro precision manufacturing of medical implants and devices compared to conventional thermal laser technology. Norman Noble leads the manufacturing of athermal laser micromachining for medical OEMs; growing adoption of laser technologies by prominent players are expected to continue in the future and will have a positive impact on market growth.
The growing demand for incorporation of wireless technology in medical devices and integrating them with information technology is forcing manufacturers to develop portable devices.
In addition, the transformation of semiconductors from analog to digital enabled the transition from conversion of large medical devices into smaller ones. Key OEMs are implementing miniaturization with advantages of utilizing fewer raw materials, less power, and reduce shipping costs.
Aging population fuels opportunities for contract manufacturers
According to recent predictions of UN Population Division, the number of people aged 60 years and above will increase exponentially in the future. The rise in aging population along with higher life expectancy rates has consequently led to an increase in the incidence of chronic diseases with prone towards complex diseases and strong dependence on medical aid.
Hence, medical device manufacturers and contractors are adopting advance technology and outsourcing of customised medical devices to meet the demand for improved standards of healthcare and sophisticated medical devices across older population.
Outsourcing OEMs marks footprints across emerging countries
Asia Pacific is emerging as strong medical device outsourcing market share holder owing to the lower cost and increased availability of skilled human resources. Followed by, increasing consumption for medical devices owing to growing prevalence of chronic diseases boosts the regional market growth.
Outsourcing of medical device manufacturing to emerging economies is a growing trend in the medical device outsourcing market. Leading medical device vendors take advantage of reduced production costs and position themselves to serve local markets of emerging countries.
Accordingly, in 2018, Phillips-Medisize announced a significant company expansion in Suzhou, China. The company added approximately 140,000 sq. ft. of medical manufacturing space and expanded company’s manufacturing capacities across China along with development of services.
In addition, funding by country's government for R&D investment to foster new product development in emerging economies such as China, India, Malaysia, Mexico, and Brazil have made them the most-favoured destination for outsourcing manufacturing services.
Strategic approaches and key players of medical device outsourcing market
Key players are expanding with FDA approved production facilities to deliver regulated compliance outsourcing service. For instance, in April 2019, Phillips-Medisize expanded its medical manufacturing capacity by announcing is new production facility as compliant with the Current Good Manufacturing Practice (CGMP) regulations enforced by the FDA to Support Growing Customer Needs
Further, market players are entering partnerships to deliver long-term technical and market expertise and the ability manufacture new products with advance technology. The recent partnership among WuXiAppTec Lab Testing Division and AutoGenomics to introduce advanced molecular diagnostic technology is an example of such strategic partnership.
Prominent players operating in the market are Eurofins Scientific, Integer, Plexus, Pace Analytical Services, Tecomet, Phillips-Medisize, Intertek Group, Jabil, MAPI, Flextronics, PPD, Celestica, Freyr Solutions, Sanmina, Wuxi Apptec, Toxikon Inc. and SGS SA.
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Source: EIN Presswire