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Medical Device Contract Manufacturing adoption estimated to bolster competitiveness for Medical Device Contract Manufacturing Market

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Purvaja
Medical Device Contract Manufacturing adoption estimated to bolster competitiveness for Medical Device Contract Manufacturing Market

Market Overview:

Medical Device Contract Manufacturing refers to outsourcing the manufacturing of medical devices and their components to contract manufacturing organizations. Products manufactured include catheters, cardiac rhythm management devices, drug delivery devices, orthopedic implants and others. Increasing R&D costs and complex regulatory requirements have led medical device companies to utilize contract manufacturers who provide services from product design to scale up manufacturing.

Market Dynamics:

The rising demand for minimally invasive procedures coupled with increasing healthcare expenditure worldwide will drive the growth of the medical device market. This is expected to fuel the demand for contract manufacturers. Additionally, contract manufacturers help reduce operations costs and focus resources on innovation. They offer advanced infrastructure and expertise to produce products at scale. However, maintaining quality control and intellectual property protection presents a challenge for contract manufacturers. Stringent regulatory oversight also increases compliance costs.

Segment Analysis

The Medical Device Contract Manufacturing Market Share is segmented into prototype development, finished device manufacturing, assembly & packaging and testing & regulatory support services. Finished device manufacturing dominates the market and accounts for nearly 50% share as most mid-sized and large medical device OEMs outsource finished device production to contract manufacturers. This is because contract manufacturers have extensive experience, expertise and capabilities to produce finished medical devices at scale efficiently and cost-effectively which helps OEMs focus on their core competencies of product innovation and development.

PEST Analysis

Political: Regulations like the U.S. FDA's Quality System Regulations and the European Union's Medical Device Directive have increased compliance requirements for medical device manufacturers which favors outsourcing to specialized contract manufacturers with expertise in regulatory compliance.

Economic: Emerging economies in Asia are increasingly becoming hubs for medical device outsourcing due to availability of low cost manufacturing capabilities and engineering talent which is driving market growth.

Social: Growing geriatric population globally and rising prevalence of chronic diseases are increasing the demand for advanced medical technologies which is propelling the need for medical device contract manufacturing.

Technological: Adoption of Industry 4.0 concepts like 3D printing, M2M communication and cloud computing by contract manufacturers is enhancing design, production and quality control capabilities to meet evolving technological demands from OEMs.

Key Takeaways

The global medical device contract manufacturing market is expected to witness high growth, exhibiting a CAGR of 10% over the forecast period, due to increasing innovation in medical technologies. North America currently dominates the market aided by presence of majority of large medical device OEMs and stringent regulatory approvals. However, Asia Pacific is projected to be the fastest growing region on back of rising medical tourism, growing healthcare infrastructure and availability of low cost skilled labor.

Key players operating in the medical device contract manufacturing market include Flex, TE Connectivity, Sanmina, Jabil, Celestica, Plexus, and Tecomet, among others. Flex has enhanced its contract manufacturing capabilities through strategic acquisitions of companies like Tech Air andSphere and provides vertically integrated EMS services for products ranging from catheters to power tools. Meanwhile, Jabil Circuits has invested in developing manufacturing expertise in areas such as implantables, diabetes care, surgical and monitoring equipment to gain market share. The market is anticipated to witness increased consolidation activity as large players look to acquire smaller niche players.

Read More:

https://www.marketwebjournal.com/the-medical-device-contract-manufacturing-market/

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