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The medical device contract manufacturing industry involves production of devices that assist physicians in diagnosing medical conditions and enabling surgical procedures. Medical devices include in-vitro diagnostic equipment, surgical supplies, monitoring systems, implantable devices and prosthetics. Outsourcing production of medical devices helps OEMs focus on core competencies like product development and marketing while leveraging expertise of contract manufacturers in high-precision and quality manufacturing.
The global Medical Device Contract Manufacturing Market is estimated to be valued at US$ 97.5 billion in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the medical device contract manufacturing market is increased focus on quality management systems and compliance with regulatory standards. Given the sensitive nature of medical devices, quality control during production is critical to ensure devices are safe and effective for patient use. Most contract manufacturers have implemented Quality Management Systems compliant with ISO 13485 and adhere to various regulatory frameworks like FDA and EU MDD. Emphasis on quality is expected to further increase as elderly population grows and demand for implantable and life sustaining devices rises globally. Stringent regulations will continue to drive medical device manufacturers and contract partners to optimize manufacturing processes and embrace new technologies to ensure compliance. This focus on quality will be a major driver of market growth over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate due to high initial investments required to set up manufacturing facilities and obtain regulatory approvals.
Bargaining power of buyers: The bargaining power of buyers is high owing to the presence of many suppliers and buyers ability to switch suppliers based on pricing and quality.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as they depend on Medical Device Contract Manufacturing companies for production. However, suppliers can still impact prices if supply is constrained.
Threat of new substitutes: The threat of new substitutes is low as medical devices have limited substitutes.
Competitive rivalry: The competitive rivalry is high due to presence of many global and local players offering similar services and operating at a global scale.
Key Takeaways
The Global Medical Device Contract Manufacturing Market Size is expected to witness high growth over the forecast period of 2023 to 2030.
Regional analysis comprises the highest growth is projected to be witnessed in North America due to presence of numerous MedTech giants and supportive regulatory framework. Asia Pacific is also expected to grow at a robust CAGR during the forecast period owing to lower manufacturing costs and availability of skilled labor.
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 leaders in MDC manufacturing globally. The company offers design, development, and manufacturing services. Sanmina Corporation provides design, manufacturing and supply chain support for medical devices. TE Connectivity is involved in designing and manufacturing components and prototypes for medical devices.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
