Global Medical Device Outsourcing Market, By Services (Quality Assurance, Regulatory Affairs Services, Product Design and Development Services, Product Testing and Sterilization Services, Product Implementation Services, Product Upgrade Services, Product Maintenance Services, Raw Material Services, Medical Electrical Equipment Services, Contract Manufacturing and Materials, and Chemical Characterization), Product (Finished Goods, Electronics, and Raw Materials), Device Type (Class I, Class II, and Class III), Application (Cardiology, Diagnostic Imaging, Orthopaedic, IVD, Ophthalmic, General, Plastic Surgery, Drug Delivery, Dental, Endoscopy, Diabetes Care, and Others), End User (Small Medical Device Company, Medium Medical Device Company, Large Medical Device Company, and Others) – Industry Trends and Forecast to 2031.
Medical Device Outsourcing Market Analysis and Size
The medical device outsourcing market encompasses services for finished goods, electronics, and raw materials used in medical device manufacturing. For instance, companies may outsource assembly and packaging of finished medical devices, fabrication of electronic components such as sensors, or procurement of raw materials such as polymers for device production. These outsourcing services streamline operations and enhance efficiency in the medical device industry.
Data Bridge Market Research analyses that the global medical device outsourcing market, which was USD 66,281.67 million in 2023, is expected to reach USD 1,68,858.90 million by 2031, at a CAGR of 12.4% during the forecast period 2024 to 2031. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include depth expert analysis, patient epidemiology, pipeline analysis, pricing analysis, and regulatory framework.
Report Scope and Market Segmentation
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Report Metric
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Details
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Forecast Period
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2024 to 2031
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Base Year
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2023
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Historic Years
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2023 (Customizable to 2016-2021)
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Quantitative Units
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Revenue in USD Million, Volumes in Units, Pricing in USD
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Segments Covered
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Services (Quality Assurance, Regulatory Affairs Services, Product Design and Development Services, Product Testing and Sterilization Services, Product Implementation Services, Product Upgrade Services, Product Maintenance Services, Raw Material Services, Medical Electrical Equipment Services, Contract Manufacturing and Materials, and Chemical Characterization), Product (Finished Goods, Electronics, and Raw Materials), Device Type (Class I, Class II, and Class III), Application (Cardiology, Diagnostic Imaging, Orthopaedic, IVD, Ophthalmic, General, Plastic Surgery, Drug Delivery, Dental, Endoscopy, Diabetes Care, and Others), End User (Small Medical Device Company, Medium Medical Device Company, Large Medical Device Company, and Others)
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Countries Covered
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U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America
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Market Players Covered
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SGS Société Générale de Surveillance SA (Switzerland), Pace (U.S.), Intertek Group plc (U.K.), WuXi AppTec (China), North American Science Associates, Inc. (U.S.), Sterigenics U.S., LLC – A Sotera Health company (U.S.), Charles River Laboratories (U.S.), Celestica Inc. (Canada), FLEX LTD. (Singapore), Heraeus Group (Germany), Integer Holdings Corporation (U.S.), Nortech Systems, Inc. (U.S.), Plexus Corp. (U.S.), Sanmina Corporation (U.S.), Eurofins Scientific (France), TE Connectivity (Switzerland), ICON plc (Ireland), Parexel International Corporation (U.S.), Labcorp Drug Development (U.S.), Tecomet, Inc. (U.S.), IQVIA (U.S.), Jabil Inc. (U.S.), Syneos Health (U.S.), PROVIDIEN LLC. (U.S.), East/West Industries, Inc. (U.S.), TÜV SÜD (Germany)
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Market Opportunities
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Market Definition
Medical device outsourcing involves delegating specific tasks or processes related to the design, development, manufacturing, assembly, or testing of medical devices to external vendors or partners. These third-party organizations provide specialized expertise, facilities, and resources to support medical device companies in various aspects of their operations, enabling them to optimize efficiency and productivity.
Global Medical Device Outsourcing Market Dynamics
Drivers
- Globalization Expands Outsourcing Opportunities and Capabilities
With interconnected economies, companies can access diverse expertise and resources worldwide. This facilitates cost-effective outsourcing solutions, enhances innovation, and improves efficiency. By leveraging global networks, medical device firms optimize production processes, ensuring competitiveness in the market. Consequently, globalization serves as a pivotal driver, fueling growth and innovation in the medical device outsourcing sector.
- Demand for Cost-Effective Production Solutions Rises
Outsourcing emerges as a viable strategy for medical device firms seeking to optimize expenses while maintaining quality. Third-party vendors provide specialized expertise and infrastructure, facilitating efficient and economical manufacturing processes. This demand driver compels companies to explore outsourcing partnerships, ensuring competitive pricing, profitability, and compliance with regulatory standards. Therefore, cost-effectiveness stands as a key driver shaping the landscape of the medical device outsourcing industry.
Opportunities
- Aging Population Driving Demand for Medical Devices
The increased need for devices catering to age-related conditions, such as cardiovascular diseases and orthopaedic issues, accompanies the growing elderly population. Outsourcing firms capitalize on this trend by offering specialized devices and services tailored to aging individuals' unique needs. This drives market expansion and innovation as companies focus on developing solutions to meet the healthcare challenges associated with an aging demographic.
- Increased Regulatory Complexities Creating Demand for Support
With stringent regulations governing medical device development and approval, companies seek outsourcing partners to navigate compliance requirements effectively. This creates an opportunity for outsourcing firms to provide regulatory expertise, quality assurance, and compliance support services. By offering comprehensive regulatory support, outsourcing providers meet the industry's needs, fostering market growth and ensuring compliance with evolving regulations.
Restraints/Challenges
- Rising Labor Costs in Outsourcing Destinations
Increased labor expenses can diminish profit margins for outsourcing firms, leading to higher prices for services rendered. This could result in reduced competitiveness and demand for outsourcing services, potentially hindering market growth. Additionally, companies may seek alternative strategies such as automation or relocating operations, impacting the dynamics of the outsourcing landscape.
- Supply Chain Disruptions Affect Outsourcing Operations
Supply chain disruptions pose a significant restraint on the medical device outsourcing market by affecting operations and delivery schedules. Interruptions in the supply chain can lead to delays in manufacturing and distribution of medical devices, impacting overall efficiency and customer satisfaction. Such disruptions increase costs and decrease reliability, discouraging companies from outsourcing. Consequently, market growth is hindered as businesses face challenges in maintaining consistent and timely production of medical devices.
This global medical device outsourcing market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the global medical device outsourcing market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.
Recent Developments
- In 2023, Labcorp announced that its clinical development business spin-off entity will be named Fortrea. This development in the healthcare sector impacts the medical device outsourcing market as Fortrea's establishment could lead to potential collaborations, partnerships, or outsourcing opportunities in clinical trial management and medical device research
- In 2023, Emergo partnered with the Shanghai Center for Medical Testing and Inspection (CMTC) to conduct ongoing usability testing of medical devices in China. This collaboration aligns with China's NMPA guidelines for Human Factors Engineering, potentially fostering growth in the medical device outsourcing market by addressing regulatory compliance and enhancing product usability
- In 2022, NAMSA and InspireMD formed an outsourcing partnership to expedite medical device development and commercialization. This collaboration is poised to impact the medical device outsourcing market by leveraging NAMSA's expertise in regulatory affairs and clinical research to facilitate InspireMD's product development and market entry strategies, potentially driving market growth
- In 2021, BREATHE and IQVIA's collaboration aimed to expedite early diagnosis and treatment of respiratory conditions, potentially driving growth in the Medical Device Outsourcing Market. This strategic partnership seeks to enhance health outcomes and quality of life for U.K. residents with respiratory issues, spurring demand for outsourced medical device development and distribution services
Global Medical Device Outsourcing Market Scope
The global medical device outsourcing market is segmented on the basis of services, product, device type, application and end user. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Services
- Quality Assurance
- Regulatory Affairs Services
- Product Design and Development Services
- Product Testing and Sterilization Services
- Product Implementation Services
- Product Upgrade Services
- Product Maintenance Services
- Raw Material Services
- Medical Electrical Equipment Services
- Contract Manufacturing and Materials
- Chemical Characterization
Product
- Finished Goods
- Electronics
- Raw Materials
Device Type
- Class I
- Class II
- Class III
Application
- Cardiology
- Diagnostic Imaging
- Orthopaedic
- IVD
- Ophthalmic
- General
- Plastic Surgery
- Drug Delivery
- Dental
- Endoscopy
- Diabetes Care
- Others
End User
- Small Medical Device Company
- Medium Medical Device Company
- Large Medical Device Company
- Others
Global Medical Device Outsourcing Market Regional Analysis/Insights
The global medical device outsourcing market is analysed and market size insights and trends are provided by services, product, device type, application and end user as referenced above.
The countries covered in the global medical device outsourcing market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.
The North America is expected to dominate the market due to increased outsourcing of regulatory and consulting functions by medical device companies. This trend addresses challenges such as high R&D costs by leveraging specialized expertise from third-party vendors. The region's concentration of medical device firms fuels market growth through strategic partnerships and collaborations.
The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points such as down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.
Healthcare Infrastructure Growth Installed base and New Technology Penetration
The global medical device outsourcing market also provides you with detailed market analysis for every country growth in healthcare expenditure for capital equipment, installed base of different kind of products for global medical device outsourcing market, impact of technology using life line curves and changes in healthcare regulatory scenarios and their impact on the global medical device outsourcing market. The data is available for historic period 2016-2021.
Competitive Landscape and Global Medical Device Outsourcing Market Share Analysis
The global medical device outsourcing market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to global medical device outsourcing market.
Some of the major players operating in the global medical device outsourcing market are:
- SGS Société Générale de Surveillance SA (Switzerland)
- Pace (U.S.)
- Intertek Group plc (U.K.)
- WuXi AppTec (China)
- North American Science Associates, Inc. (U.S.)
- Sterigenics U.S., LLC – A Sotera Health company (U.S.)
- Charles River Laboratories (U.S.)
- Celestica Inc. (Canada)
- FLEX LTD. (Singapore)
- Heraeus Group (Germany)
- Integer Holdings Corporation (U.S.)
- Nortech Systems, Inc. (U.S.)
- Plexus Corp. (U.S.)
- Sanmina Corporation (U.S.)
- Eurofins Scientific (France)
- TE Connectivity (Switzerland)
- ICON plc (Ireland)
- Parexel International Corporation (U.S.)
- Labcorp Drug Development (U.S.)
- Tecomet, Inc. (U.S.)
- IQVIA (U.S.)
- Jabil Inc. (U.S.)
- Syneos Health (U.S.)
- PROVIDIEN LLC. (U.S.)
- East/West Industries, Inc. (U.S.)
- TÜV SÜD (Germany)
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