Medical Device Contract Manufacturing Market Insights
The medical device contract manufacturing market is set to embark on an impressive growth trajectory, expanding at a CAGR of 11.3% during the forecast period (2020-2026). With rapid expansion of the healthcare industry, practitioners are increasingly adopting advanced surgical options such as minimally invasive procedures.
This has prompted original equipment manufacturers (OEMs) to take strategic steps to exploit the scenario and develop advanced devices. A number of mergers and acquisitions have occurred in this respect.
For instance, Becton & Dickinson acquired C.R Bard while Hologic Inc. purchased Cynosure in 2017. Such developments have significantly contributed to the medical device contract manufacturing market growth.
The coronavirus pandemic, however, has posed potent challenges to the growth of the medical device contract manufacturing market. As production cycles have halted due to strict social distancing measures, a wide gap has been generated in the demand-supply equation.
Manufacturing units are unable to produce adequate output, leading to acute shortages. As healthcare settings reorient their priorities, the demand for medical equipment for elective procedures has fallen. However, analysts are hopeful that advanced medical devices will prove useful in diagnosing COVID-19 infections, thus keeping growth speculations positive.
Medical Device Contract Manufacturing Market: Technological Insights
Manufacturers are employing advanced technologies to address the growing need for medical devices across the globe. Miniaturization trend has compelled OEMs and contract manufacturers to invent compact devices for minimally invasive procedures.
These devices are smaller, flexible, less expensive, less power-intensive and easier to transport. Moreover, minimally invasive surgeries employ robotics and endoscopic techniques.
3D-printing is emerging as a potential technological advancement in the medical device contract manufacturing industry. The orthopedic devices segment especially presents immense opportunities for 3D-printing systems. 3D-printers are highly useful in designing prosthetics, metal, polymeric & bio-implants and patient specific jigs.
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Medical Device Contract Manufacturing Market: Application Insights
Medical device contract manufacturing for orthopedic treatment continues to influence growth strategies of market players and accounts for over one-fourth of the total revenue. Growing application in manufacturing of cardiovascular devices is likely to result in increased market share.
Increasing geriatric population with conditions such as arthritis and rising need for custom devices are anticipated to spur the entry of new players specifically focused on the orthopedic devices.
Strong focus on the manufacturing of cardiovascular devices is attributed to increasing fatalities arising out of cardiac problems and consequent rise in demand for guidewires, stents, catheters and implantable devices.
Medical Device Contract Manufacturing Market: Regional Insights
North America is set to remain the dominant region for the medical device contract manufacturing market, capturing over 2/5th of the market share and expanding at a CAGR of 9.1% through 2026. However, Asia-Pacific promises to generate credible growth opportunities, registering an average growth rate of 11%.
Strict compliance to governmental regulations, continuous technological advancements, and an increased focus on patient safety and patient care have contributed to the leading share of North America.
The medical device contract manufacturing market is witnessing significant growth in the Asia-Pacific, due to rapid economic growth and favorable government initiatives to provide better healthcare, increase in research and development activities in the pharmaceutical industry, and rise in use of minimally invasive devices for surgeries. In addition, rising prevalence of diabetes, cardiovascular disorders, and obesity in developing economies is driving Asia Pacific’s market growth.
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Medical Device Contract Manufacturing Market: Competition Insights
The medical device contract manufacturing market consists of the following market players: Integer Holdings Corporation, Flex Ltd., Jabil Inc., West Pharmaceutical, Inc., Benchmark Electronics, Inc., Tecomet, Inc., Nortech Systems, Inc., TE Connectivity, Forefront Medical Technologies and Nordson Corporation.
These market players are increasingly targeting developing economies to increase their market penetration. Developing economies present significant growth opportunities in the wake of rapidly increasing populations. Additionally, availability of inexpensive labor and raw materials allow OEMs to reduce manufacturing costs. They are also focusing on developing technologically-enhanced products along with expansions and acquisitions.
For instance, Jabil, Inc. has completed a number of mergers and acquisitions in order to offer medical devices. In July 2018, the company entered into a strategic collaboration with Johnson & Johnson Medical Devices Companies. This collaboration is anticipated to expand Jabil’s medical devices manufacturing portfolio and offer diversification capabilities.
Similarly, in March 2017, the company acquired Lewis Engineering for US$ 95.9 Mn, a firm which focuses on aerospace, semiconductor and medical machine components.
Players such as Integer Holdings concentrate on product launches. The company provides medical and non-medical solutions to prospective clients. In the medical domain, its product portfolio comprises of advanced surgical, orthopedics & portable medical devices, cardio & vascular solutions and cardiac & neuromodulation products.
Within these categories, the company offers arthroscopic & devices components, laparoscopic & general surgery solutions, biopsy & drug delivery solutions and electrophysiology, infusion therapy and hemodialysis products among others.
COVID-19’s Impact on the Market
The COVID-19 pandemic has crippled major businesses across the world, halting production cycles and disrupting supply chains. The healthcare industry is facing immense challenges in eradicating the pandemic, as the number of infections shows no signs of abatement.
The medical device contract manufacturing market is anticipated to be impacted by the pandemic as the demand for medical devices for elective procedures has fallen. At the same time, the demand for medical devices such as medical ventilators and respirators is on a significant rise, thereby improving growth prospects for the medical device contract manufacturers.
Players such as Integer Holdings have been constantly monitoring the situation since the pandemic’s onset. The company has ensured that there are minimal supply chain disruptions to their clients.
To ensure safety, the company has also implemented more rigorous cleaning and disinfection procedures; enforcing visitor guidance and screening; restricting business travel; setting up remote working arrangements and strict quarantine measures.
An Adaptive Approach to Modern-day Research Needs
“The medical device contract manufacturing market shows healthy growth prospects. Advancements in medical technologies have prompted important market players to expand their production capacities by penetrating into developing economies. While the COVID-19 pandemic is poised to decline demand for surgical procedures, the market is expected to expand on the back of rising need for advanced ventilators and respirators”.
Medical Device Contract Manufacturing Market: Report Scope
The recent study on the medical device contract manufacturing market by Fact.MR incorporates a 6-year forecast period (2020-2026). The report explicates on the vital dynamics such as the drivers, restraints and opportunities of medical device contract manufacturers.
The report has provided an in-depth analysis based on revenue, market share and year-on-year growth forecast. Furthermore, the market has been segmented on the basis of device, type of manufacturing, services and application.
A section on regional analysis of the market incorporates the abovementioned segments. For the purpose of this report, the regional analysis is based on the following five geographies: North America, Europe, Asia-Pacific, Latin America and Middle East & Africa.
The final section consists of a detailed competition landscape, incorporating information on key market players and their revenue shares, product portfolios, key collaborations and future growth prospects. In addition, a SWOT analysis for each market player has been provided to portray a realistic scenario.
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Medical Device Contract Manufacturing: Market Segmentation
Fact.MR has studied the medical device contract manufacturing market with detailed segmentation on the basis of device, type of manufacturing, services, application, and region.
- In-vitro Diagnostic Medical Devices
- Diagnostic Imaging & Medical Equipment
- Drug Delivery Devices
- Patient Monitoring Devices
- Minimally Access Surgical Instruments
- Therapeutic Patient Assistive Devices
Type of Manufacturing
- Raw Materials
- Finished Goods
- Prototype Development
- Finished Device Manufacturing
- Assembly & Packaging
- Testing & Regulatory Support Services
- Molding & Casting
- Urology & Gynecology
- North America
- Asia Pacific
- Latin America
- Middle East & Africa (MEA)
“This taxonomy prepared is confidential and intended exclusively for the individual or entity with whom it is being shared. Reading, disseminating, distributing, or copying this to any party other than addressee(s) is unauthorized and prohibited.”
Medical Device Contract Manufacturing Market: Report Summary
The study offers a comprehensive analysis on diverse features including production capacities, demand, product developments, revenue generation and sales in the medical device contract manufacturing markets across the globe.
A comprehensive estimate of the market has been provided through an optimistic as well as a conservative scenario, taking into account the sales in the medical device contract manufacturing market during the forecast period. Price point comparison by region with global average price is also considered in the study.
Medical Device Contract Manufacturing Market: Market Size Evaluation
The medical device contract manufacturing market has been analyzed for each market segment, in terms of value (US$ Mn).
Market estimates at global and regional levels for medical device contract manufacturing is available in terms of “US$ Mn” for value. A Y-o-Y growth contrast on prominent medical device contract manufacturing market segments, along with market attractiveness evaluation, has been incorporated in the report.
Medical Device Contract Manufacturing Market: Inspected Assessment on Regional Segments
Key sections have been elaborated in the medical device contract manufacturing market report, which have helped deliver projections on regional markets. These chapters include the regional macros (economic and business environment outlook), which are expected to have a momentous influence on the growth of the medical device contract manufacturing market during the forecast period.
Country-specific valuation on demand for medical device contract manufacturing has been offered for each regional market, along with the market scope estimate and forecast, price index, and impact analysis of dynamics of prominence in regions and countries. For all regional markets, Y-o-Y growth estimates have also been incorporated in the report.
Detailed breakup in terms of value for emerging countries has also been included in the report.
Medical Device Contract Manufacturing Market: In-Depth Analysis on Competitive Landscape
The report sheds light on the leading medical device contract manufacturers along with their detailed profiles. Essential and up-to-date data information related to market performers, who are principally engaged in medical device contract manufacturing, has been brought with the help of a detailed dashboard view. Market share analysis and comparison of prominent players provided in the report permit the report readers to take preemptive steps in advancing their businesses.
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Is the market research conducted by Fact.MR?
Yes, the report has been compiled by expert analysts of Fact.MR, through a combination of primary and secondary research. To know more about how the research was conducted, you can speak to a research analyst.
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Fact.MR follows a methodology that encompasses the demand-side assessment of the market, and triangulates the same through a supply-side analysis. This methodology is based on the use of standard market structure, methods, and definitions.
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