Medical Device Contract Manufacturing Market by Device Type (IVD, Cardiovascular, Drug Delivery (Autoinjectors, Infusion Pumps), Diabetes Care, Orthopedic, Ophthalmology, Endoscopy, Surgery) Class of Device (I, II, III) Services - Global Forecasts to 2027
Updated on : February 28, 2023
The global medical device contract manufacturing market in terms of revenue was estimated to be worth $71.2 billion in 2022 and is poised to reach $118.9 billion by 2027, growing at a CAGR of 10.8% from 2022 to 2027.
The new research study consists of an analysis of market industry trends. The new research study includes industry trends, pricing analysis, patent analysis, conference and webinar materials, key stakeholders, and buying behavior in the market. The market is mainly driven by factors such as changes in the medical device industry due to Industry 4.0, adoption of automation and robotics by manufacturers, and revival of the medical device market in the developing countries. In this report, the global market is segmented into – device type, device class, service and region.
Medical Device Contract Manufacturing Market Dynamics
Driver: Growth in the Medical Devices Market in Developing Countries
China and India are projected to fuel growth in the Asia-Pacific area in the coming years. Between 2020 and 2040, GDP growth in India and China is predicted to exceed 100%. This can be advantageous to emerging economies. Foreign investment will also rise in this region in order to capitalise on profitable prospects and build units in the Asia-Pacific region. Furthermore, a growth in diagnostic public-private partnerships and government subsidies will lead to an increase in contract manufacturing in the region.
Restraint: Consolidation in the medical device sector via acquisitions of small and medium-sized businesses
The world's leading medical device manufacturers are acquiring specialized small and medium-sized companies to build their internal capabilities. Other companies are focusing on buying CMOs to reduce their contract manufacturing expenses. These advancements are expected to shift a small portion of manufacturing from CMOs to OEMs.
Opportunity: Increasing healthcare investment, infrastructure, and awareness in developing countries
China, India, and other growing economies present considerable development potential for global market players. These nations have less regulatory requirements than other developing countries. Rising healthcare expenses, an increase in the frequency of different chronic and infectious diseases, and an increase in the need for home care are other key drivers driving demand for medical devices in emerging nations. As a result, several manufacturers have established themselves in these nations.
Challenge: Inability to constantly innovate in order to balance technical capabilities and expenses
To remain competitive in a complicated industry like medical devices, firms must constantly innovate. These advances assist contractors in expediting the process, lowering the margin for mistake, and attracting consumers. Process automation, lab automation, robotics, and automated manufacturing are some of the primary capabilities embraced by CMOs in recent years. All of this, though, comes at a cost. Meeting the needs of cutting-edge technology while managing severe cost pressures is a huge problem for CMOs.
Syringes accounted for the greatest proportion of the medical device contract manufacturing market among Drug Delivery Devices.
Based on drug delivery devices, the market is segmented into infusion devices and administration sets, syringes, inhalers, auto-injectors, and injection pens.
The demand for pre-filled syringes has increased due to zero wastage and no medication calibration error during treatment. This is expected to stimulate the syringe contract manufacturing market. Additionally, with the growth of the biologics market and the increasing prevalence of chronic diseases, the overall drug delivery device market is expected to grow significantly.
The packaging and assembly services sector of the medical device contract manufacturing market is predicted to develop at the fastest CAGR during the forecast period, according to Service.
In packaging and assembly services, the primary and secondary packaging services sub-segment occupies the largest share and is the fastest growing segment. This service is very important for patient safety, regulatory compliance and barrier protection. The growing emphasis on patient safety and regulatory guidelines is expected to result in an increase in demand for primary and secondary packaging services.
After China, the United States was the world's second largest market for medical device contract manufacturing.
The United States dominated the medical device contract manufacturing industry in North America and ranked second internationally. This is mostly due to increased pricing pressure from OEMs, which encourages them to accept contract manufacturing as a feasible alternative. Along with this, the need for medical supplies has surged during the COVID-19 pandemic, leading to an increase in contract manufacturing services adoption by major medical device OEMs, mainly in the United States and China.
A few emerging and key players in the Medical Device Contract Manufacturing market include West Pharmaceutical Services, Inc. (US), Integer Holdings Corporation (US), Celestica Inc. (Canada), Nipro Corporation (Japan), Carclo Plc. (UK), Flex Ltd. (Singapore), Sanmina Corporation (US), and Jabil, Inc. (US).
These companies adopted strategies such as service launches, business expansions, agreements, partnerships, and acquisitions to strengthen their presence in the global market.
Medical Device Contract Manufacturing Market Report Scope
The research report categorizes the medical device contract manufacturing market into the following segments and sub-segments:
Device Type
- IVD Devices
- IVD Consumables
- IVD Equipment
- Diagnostic Imaging Devices
- Cardiovascular Devices
- Drug Delivery Devices
- Infusion Devices and Administration Sets
- Syringes
- Inhalers
- Autoinjectors and Pen Injectors
- Orthopedic Devices
- Respiratory Care Devices
- Ophthalmology Devices
- Surgical Devices
- Diabetes Care Devices
- Dental Devices
- Endoscopy and Laparoscopy Devices
- Gynecology and Urology Devices
- Personal Care Devices
- Neurology Devices
- Patient Monitoring Devices
- Patient Assistive Devices
- Other Devices
Class of Device
- Class I Medical Device
- Class II Medical Device
- Class III Medical Device
Service
- Device Development and Manufacturing Services
- Device and Component Manufacturing
- Process Development Services
- Device Engineering Services
- Quality Management Services
- Packaging Validation Services
- Inspection and Testing Services
- Sterilization Services
- Packaging and Assembly Services
- Primary and Secondary Packaging
- Labelling
- Others
- Other Services
Region
- Asia Pacific
- China
- Japan
- Malaysia and Singapore
- India
- Australia and New Zealand
- South Korea
- Rest of Asia Pacific
- North America
- US
- Canada
- Europe
- France
- Germany
- UK
- Italy
- Spain
- Rest of Europe
- Latin America
- Mexico
- Brazil
- Rest of Latin America
- Middle East and Africa
Recent Developments
- In October 2022, Gerresheimer AG (Germany) partnered with Merck, (Germany) for the development of digital solutions for primary packaging systems.
- In October 2022, Sanmina Corporation (US) entered into a joint venture with Reliance Strategic Business Ventures Limited (RSBVL) (India) to prioritize high-technology infrastructure across various industries, including medical and healthcare systems.
- In August 2022, TE Connectivity Ltd. (Switzerland) launched Propelus Prototype Center for medical devices at its existing manufacturing site in Galway, Ireland to connect TE engineers with customers to reduce development time and increase speed to market lifesaving and life-improving medical devices.
In April 2022, Integer Holdings Corporation (US) acquired Aran Biomedical (Ireland) to increase Integer’s ability to offer complete solutions for complex delivery and therapeutic devices in high-growth cardiovascular markets.