May 29, 2024

Medical Device Contract Manufacturing Market Is Expected To Gain Momentum By Strategic Alliances And Partnerships

The medical device contract manufacturing market involves manufacturing services on a contractual basis to original equipment manufacturers (OEM). Medical devices manufactured range from simple components and accessories to complex implantable devices across various therapeutic areas including orthopedic, cardiovascular, neurovascular, diagnostic imaging, minimally invasive surgery, wound management, dental, and drug delivery. Companies provide value-added services including product design and development, validation and testing, injection molding, machining, finished device assembly and packaging.

The global medical device contract manufacturing Market is estimated to be valued at Us$ 112.32 Billion in 2024 and is expected to exhibit a CAGR Of 12% over the forecast period 2024 To 2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

Strategic Alliances and Partnerships: Strategic partnerships between medical device OEMs and contract manufacturers have gained momentum in recent years. Such collaborations help OEMs focus on core competencies of innovation while leveraging contract manufacturers’ expertise and infrastructure to efficiently produce medical devices. For instance, in 2021, Smith+Nephew partnered with Flex to strengthen its advanced wound management business and surgical infrastructure. Similarly, LivaNova partnered with Integer Holdings to enhance manufacturing capabilities for cardiovascular devices. This trend is expected to drive the medical device contract manufacturing market during the forecast period.

Growing Medical Device Industry: Expanding base of aging population globally is positively impacting the medical devices market. With increasing lifestyle and chronic diseases, demand for various medical devices for treatment and diagnosis has surged significantly which is translating into growing need for contract manufacturing capabilities. This acts as a key driver for market growth over the forecast period.

 

Segment Analysis

The medical device contract manufacturing market can be segmented into in-vitro diagnostic devices, diagnostic imaging devices, cardiovascular devices, drug delivery devices, orthopedic devices, ophthalmology devices, and others. The diagnostics imaging devices segment dominates the market and accounts for over 25% share owing to rising demand for advanced medical imaging technologies.

PEST Analysis

Political: Regulations around medical device approval and manufacturing are becoming more stringent. This increases compliance requirements for contract manufacturers.

Economic: Growth in the elderly population is driving demand for medical devices. Healthcare expenditure is also rising globally which benefits this market.

Social: Lifestyles diseases are increasing rapidly especially in emerging nations. This is generating more demand for advanced medical treatment and technologies.

Technological: New technologies like 3D printing are enabling complex devices to be produced. Data analytics tools are also helping optimize manufacturing processes.

Key Takeaways

The Global Medical Device Contract Manufacturing Market Demand is expected to witness high growth at a CAGR of 12% during the forecast period of 2024 to 2031.

 

Regional analysis:

 

North America currently dominates due to advanced healthcare infrastructure and high healthcare spending. Asia Pacific is expected to grow the fastest owing to rising healthcare expenditure, growing medical tourism, and presence of low-cost manufacturing destinations.

Key players:

 

Key players operating in the medical device contract manufacturing market are Flex, TE Connectivity, Sanmina, Jabil, Celestica, Plexus, and Tecomet, among others. Flex is one of the leading players with expertise across various device classes.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it