Medical Device Outsourcing Market Size To Rise USD 430.55 Bn By 2032

The global medical device outsourcing market size reached USD 142.19 billion in 2023 and is predicted to hit USD 430.55 billion by 2032, growing at a CAGR of around 13.10% during the period 2023 to 2032.

Key Points

Asia Pacific led the market with the largest market share around 41.68% in 2023.
North America is expected to expand at the fastest CAGR of 12.56% between 2023 and 2032.
By Service, the quality assurance segment has contributed around 9.42% in 2023.
By Service, the regulatory affairs services is projected to grow at a CAGR of 13.54% between 2023 and 2032.
By Application, the drug delivery segment has contributed around 20.83% in 2023.
By Application, the ophthalmic segment is estimated to grow at a CAGR of 13.39% between 2023 and 2032

Medical device outsourcing incorporates the assistance of third party companies for the manufacturing process of medical devices. The shifting trend from in house manufacturing of OEMS towards outsourcing the medical device value chain has fostered the market growth. Additionally, medical devices outsourcing for R&D activities to manufacture quality medical devices is further adding boost to the market growth. Moreover, the growing ageing populations that are more prone to chronic diseases, soaring demand for technological advanced products, stringent regulations for market approval and hasten market entry for novel devices is contributing for the significant market growth. Furthermore, the growing strategic moves such as collaboration and merger & acquisition among CROs and OEMs have supplemented the market for medical device outsourcing. However, the leakage of confidential data is poised to impede the market growth to certain extent.

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Medical Device Outsourcing services as a cost effective curbing tool

Rising awareness of the buyers of medical device industry has enforced manufacturers to adhere various strategies for novel product innovations and administer R&D investments in a cost effective manner. Medical device Original Equipment Manufacturer (OEMs), abruptly adhering to outsourcing services as acost effective curbing tool. Additionally, medical device outsourcing services have benefited the OEMs to reduce R&D and production scale up time as the medical device market has gained high competitiveness in the previous few years.

Medical Device Outsourcing Market Scope

Report Highlights	Details
Market Size in 2023	USD 142.19 Bn
Market Size by 2032	USD 430.55 Bn
Growth Rate from 2023 to 2032	CAGR of 13.10%
Largest Market	Asia Pacific
Fastest Growing Market	North America
Base Year	2023
Forecast Period	2023 to 2032
Segments Covered	Service Type, Application Type, Region Type

Regulatory compliance outsourcing is gaining traction in the current market scenario

Medical device manufacturing players are endlessly collaborating with numerous regulatory compliance outsourcing firms to get their devices launched with economical approval in the global market. The outsourcing firms aids in getting quick approval and timely launch of medical devices with several productive benefits including market penetration in emerging countries.

Furthermore, the key characteristics of medical device industry such as rapid time-to-market (TTM), time-to-volume (TTV), and time-to-profit (TTP) are the crucial part of value chain and are fulfilled through third party manufacturing bodies. The OEMs of different companies have adopted the novel strategy to outsource various business prospects such as production, manufacturing, product designing, prototyping and supply chain management among others. This has further helped in reducing the production time and labor cost and the companies can focus on their core skills such as clinical as well as technological advancements.

KEY HIGHLIGHTS OF THE STUDY

The cardiovascular segment is estimated to grow at the remarkable rate during the study period.
Asia Pacific region is projected to grow at the fastest CAGR during the forecast period owing to the growing spending and up gradation of healthcare industry across the region.
U.S. dominated the North America Medical Device Outsourcing market and is projected to retain its trend throughout the forecast period.
Contract Manufacturing of the services segment exhibited major revenue share in the year 2020, whereas, quality assurance service segment poised to grow at the fastest rate during the foresee future.
In the past one decade, the key medtech companies such as Boston Scientific, Medtronic and Abbott have leveraged the benefit of outsourcing medical device manufacturing process to gain operational efficiencies and market competitiveness.

Asia Pacific exhibited as the most lucrative region in the medical device outsourcing market

Asia Pacific region has outpaced in terms of growth primarily contributed by its key countries such as India and China among others. The emerging countries have contributed immensely for the market growth owing to the high population base, growing demand for single use medical devices, ongoing innovations and technological advancements in medical device industry and increasing chronic diseases have added boost to the market growth. Moreover, the Asia Pacific countries have become attractive outsourcing hubs for medical device manufactures owing to the low operational and labor costs, prominent talent pool and presence of numerous locations for clinical trials.

Market Competitiveness and Business Outlook

Medical device companies have focused more towards outsourcing their production framework to third parties. In the U.S. and Europe especially the smaller players are seeking third party assistance from more experienced manufacturers to comply with the ISO standards. Also, the Covid 19 pandemic had propelled the need for versatile, distinct supply chain as well as production means to offset the impact of crises in foresee future.The report provides an extensive competitive analysis and profiles of the key market players, such as Intertek Group PLC, TüvSüd AG, Wuxi Apptec, SGS SA, Toxikon, INC., Eurofins Scientific, American Preclinical Services, Sterigenics International LLC, Pace Analytical Services LLC., North American Science Associates, Inc., Charles River Laboratories International, Inc. and others. Theother players operating in the value chain are IQVIA, Accellent Inc., Benchmark Electronic Inc., Celestica Inc., Cadence Inc., Providien LLC, Thermo Fischer Scientific Inc. and West Pharmaceuticals Services Inc. among others.

Segments Covered in the Report

By Service

Product Upgrade Services
Regulatory Affairs Services
- Legal representation
- Clinical trials applications
- Regulatory writing and publishing
Quality Assurance
Product Maintenance Services
Product Testing & Sterilization Services
Product Design and Development Services
- Molding
- Designing & engineering
- Machining
- Packaging
Product Implementation Services
Contract Manufacturing
- Accessories manufacturing
- Component manufacturing
- Device manufacturing
- Assembly manufacturing