Medical device contract manufacturing refers to the process of outsourcing part or all manufacturing activities such as component manufacturing, device assembly, quality control and packaging to a third-party provider. Medical devices such as cardiac devices, diagnostic imaging equipments, orthopedic devices are manufactured using plastic, electronics and other materials. Contract manufacturers offer advantages such as reduced manufacturing costs, focus on core competencies and timely delivery. The growing demand for minimally invasive surgeries and increasing prevalence of chronic diseases are fueling the need for advanced medical technologies.
The global Medical Device Contract Manufacturing Market is estimated to be valued at Us$ 112.32 Bn 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 Opportunity
Reducing Cost and Time-to-Market
Contract manufacturing enables OEMs to reduce manufacturing overheads and focus on product innovation. Outsourcing to specialized manufacturers helps leverage their expertise and scalable infrastructure to compress product development timelines. This provides an opportunity for OEMs to bring new devices to market faster and gain an early foothold. Capital investments in advanced machinery, testing equipment and supply chain capabilities can be avoided. With contract manufacturers undertaking repeat production processes at lower costs, OEMs can derive significant cost savings in component and material procurement. This ensures higher profit margins and price competitiveness for medical devices in a cost-sensitive healthcare industry.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate owing to high capital requirements and stringent regulatory landscape for the medical device industry.
Bargaining power of buyers: The bargaining power of buyers is high as the industry is fragmented with many regional and global players. The sophisticated and highly regulated nature of the industry also empowers buyers.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as key components and raw materials require specialized expertise. Suppliers have low switching costs.
Threat of new substitutes: The threat of new substitutes is low as medical devices have limited substitutes and technologies take time to disrupt existing solutions.
Competitive rivalry: The competitive rivalry is high due to the presence of numerous global and regional players competing for market share and outsourcing opportunities.
SWOT Analysis
Strength: Dominance in major geographical markets, economies of scale, and end-to-end capabilities across the product lifecycle.
Weaknesses: High reliance on a few key clients, price pressures eroding margins, complex compliance requirements.
Opportunities: Growing medical device outsourcing, emerging markets expansion, entry into new segments like electronics and combination products.
Threats: Regulations limiting offshore production, consolidations favoring large players, increasing competition from low-cost regions.
Key Takeaways
The Global Medical Device Contract Manufacturing Market Demand is expected to witness high growth owing to increasing demand for low-cost and customized solutions. The market size for 2024 is estimated to be US$ 112.32 Bn with a projected CAGR of 12% during the forecast period of 2024 to 2031.
Regional analysis indicates North America will continue dominating the market, with the U.S. being the major contributor. Asia Pacific is anticipated to showcase the fastest growth propelled by low-cost manufacturing advantages and growing healthcare expenditures in countries like China, Japan, and India.
Key players operating in the Medical Device Contract Manufacturing market are Flex, TE Connectivity, Sanmina, Jabil, Celestica, Plexus, and Tecomet, among others. Flex has the largest market share globally, while Sanmina, Jabil, and Celestica have substantial operations across multiple regions.
Get more insights on this topic :
Check more trending articles on this topic:
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.
Factors such as the growing industrial applications of hyperspectral imaging and increasing funding and investments are driving the growth of the global hyperspectral imaging systems market.
According to the new market research report Hyperspectral Imaging Systems Market is projected to reach USD 30.0 billion by 2025 from USD 12.4 billion in 2020, at a CAGR of 19.3%.
Download PDF Brochure: https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=246979343The prominent players in this hyperspectral imaging systems market include Headwall Photonics, Inc. (US), Specim, Spectral Imaging Ltd. (Finland), Corning Incorporated (US), Norsk Elektro Optikk AS (Norway), Raytheon Company (US), Resonon Inc. (US), Telops (Canada), Surface Optics Corporation (US), Applied Spectral Imaging Ltd. (US), ChemImage Corporation (US), Cubert GmbH (Germany), BaySpec, Inc. (US).
Between 2017 and 2020, product launches formed the key growth strategy adopted by players such as Headwall Photonics (US), Specim (Finland), Cubert GmbH (Germany), and BaySpec, Inc. (US).Headwall Photonics (US) is one of the prominent players in the hyperspectral imaging systems market.
The company offers products for industrial inspection, defense & security, remote sensing, and research applications.
The company primarily pursues product launches and expansions as its growth strategy in order to widen its sales and distribution network.Specim, Spectral Imaging (Finland) is a leading manufacturer of hyperspectral imaging instruments and systems.
