Medical device contract manufacturing has become an integral part of the medical device industry landscape in recent years. More original equipment manufacturers (OEMs) are outsourcing various aspects of development and production to specialized contract manufacturers to reduce costs and focus on core competencies.
The Growing Role of Contract Manufacturing
Medical device contract manufacturing allows OEMs to reduce lead times, access new manufacturing capabilities and focus on R&D, marketing and sales. The rising complexity of medical devices and stringent regulatory approvals have necessitated that more companies opt for outsourcing. Recent estimates show that over 60% of all medical devices are now manufactured through contract manufacturers.
A KPMG study revealed that over 80% of medical device CEOs expect to outsource more manufacturing in the next 5 years. Factors like shorter product life cycles, pressure to reduce costs and demand for customized devices are driving this trend. The medical device contract manufacturing market is expected to grow at a CAGR of over 10% in the next decade to over $100 billion according to various industry reports.
Attractive Service Offerings
Successful medical device contract manufacturers offer comprehensive services across the product lifecycle – from prototyping to final production. Many provide end-to-end solutions involving design and development services as well. An increasing number of firms have capabilities for specialty operations like electronic manufacturing, cleanroom assembly, plastic injection molding, sterilization and packaging.
Servicing Global Markets
Globalization has enabled contract manufacturers to establish facilities closer to key markets for better responsiveness. Many leading names have operations across Americas, Europe and Asia to serve multinational clients. Geographic expansion allows faster support to OEMs through shorter lead times and localized manufacturing and supply chain infrastructure. This is crucial considering devices often need to meet different regulatory needs across markets.
Regulatory Expertise is Critical
Compliance with international quality standards and regulatory approvals is one the most crucial selection criteria for OEMs. Top tier medical device contract manufacturers have deep expertise navigating regulatory norms of FDA, EU, TGA and other agencies. They help clients with documentation, validation, audits and post-market surveillance filings – tasks that need constant vigilance considering evolving regulations. Their grasp on compliance shortens product development cycles significantly.
Emphasis on Quality and Precision
As devices get more intricate, reliability and precision assume utmost importance. Leaders in medical device contract manufacturing have built robust quality management systems, controlled manufacturing environments, and stringent process validation protocols. Quality excellence is demonstrated through certifications like ISO 13485, CMDCAS and compliance with quality standards of individual markets. Real-time process monitoring tools keep NPI schedules intact.
Focus on Innovation
In addition to scale and efficiencies, innovation is key differentiator sought by progressive OEMs. Leading contract manufacturers actively co-develop new technologies through collaborative R&D efforts and accelerate clients' road to market through rapid prototyping capabilities. Some notable names have in-house product development teams that aid idea conceptualization to pre-clinical studies. For cutting-edge devices, single-sourced partners play a bigger role throughout product lifecycle.
Collaborations and Consolidations Ahead
Going forward, industry experts foresee greater proliferation of strategic partnerships, mergers & acquisitions in medical device contract manufacturing domain. This will enable larger pool of resources, delivery capabilities across broader spectrum of technologies under one roof. Contract manufacturers are also expected tap machine learning, robotics and other Industry 4.0 technologies for improved quality, throughput and cost competitiveness to stay ahead of the curve. Such innovative transformations will cement their position as indispensable allies to OEMs.
In conclusion, medical device contract manufacturing has emerged as a multi-billion dollar vertical attuned to the unique and multifaceted needs of OEMs in terms of quality, compliance, speed and affordability. As devices become more sophisticated, integrated offerings and collaborative innovation will distinguish top providers further. Those with differentiated strengths across R&D, complementary services and global footprint are poised to grow their partnerships with clients. Looking ahead, firms adopting cutting-edge technologies can achieve scale and service excellence while accelerating clients' product development and market access goals.
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The new research report titled "Medical Device Contract Manufacturing Market, Global Industry Analysis, and Forecast to 2027" gives a detailed analysis and future forecasts of the market.
The report highlights the significant players, including market size, share, and demand, development.
This report further covers the latest trends, technological advancements, and growth opportunities.The research report also covers the comprehensive profiles of the key players in the market and an in-depth view of the competitive landscape worldwide.
The major players in the medical device contract manufacturing market include Benchmark Electronics, Inc., Celestica, Creganna Medical, Flextronics, Greatbatch, Inc., Jabil Circuit, Nortech Systems, Inc., Symmetry Medical Inc., Vention Medical, and West Pharmaceutical Services, In..
This section includes a holistic view of the competitive landscape that includes various strategic developments such as key mergers & acquisitions, future capacities, partnerships, financial overviews, collaborations, new product developments, new product launches, and other developments.Get more information on "Global Medical Device Contract Manufacturing Market Research Report" by requesting FREE Sample Copy at https://www.valuemarketresearch.com/contact/medical-device-contract-manufacturing-market/download-sampleMarket DynamicsThe rapidly growing medical devices market across the globe is primarily driving the market growth.
Along with this, the impact of industry 4.0 on the medical devices industry is further fuelling the market demand.
According to research report the medical device contract manufacturing market is projected to reach USD 91.3 billion in 2024 from an estimated USD 55.0 billion by 2024, at a CAGR of 10.6% during the forecast period.Download PDF Brochure: https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=170622851Factors such as increasing automation in the manufacturing of medical devices and advanced technologies integrating electronics and medical devices are expected to drive the growth of the medical device outsourcing market.
The increased connectivity and data-gathering capabilities of these technologies make it possible to build high-volume, regulation-compliant manufacturing processes with efficient inventory and production management.
With the increasing adoption of Industry 4.0 technologies in manufacturing critical and sophisticated medical devices, the medical device contract manufacturing market is expected to grow significantly during the forecast period.Class II medical devices are estimated to hold the largest share of the medical device outsourcing market in 2019Class II medical devices are expected to account for a major share of the market in 2019, followed by Class I and Class III devices, respectively.
The large share of this segment can be attributed to the large number of medical devices that fall under this device class and fewer regulatory compliance necessities than Class III devices.The IVD devices segment is expected to account for the largest share of the medical device contract manufacturing market in 2019In 2019, the IVD devices segment is likely to account for the largest share of the medical device outsourcing market.
The share of this segment can be attributed to the increasing volume of IVD tests performed globally, a growing number of hospitals and clinical laboratories in developing countries, automation and technological advancements in instruments with high-throughput capabilities, and advances in life science research.By service type, the device development and manufacturing services segment is estimated to account for the largest share of this market in 2019In 2019, the device development and manufacturing services segment is expected to account for the largest share of the global medical device outsourcing market.
The increasing adoption of contract manufacturing services by OEMs in the medical device industry, growing consumption of medical devices, and the improving capabilities for device development and manufacturing are the major factors responsible for the large share of the device development and manufacturing services segment.APAC is expected to dominate the market in 2019APAC is estimated to account for the largest share of the medical device outsourcing market in 2019, followed by North America.
