Medical Device Contract Manufacturing Market by Product Type [Diagnostic & Monitoring Devices and Therapeutic Devices], Services [Device Development & Manufacturing Services, Quality Management Services, and Final Goods Assembly Services], Application [Cardiovascular, Orthopedic, Diabetes, Pulmonary, Oncology, and Diagnostic Imaging] – Global Outlook & Forecast 2021-2031

Report Overview

The global medical device contract manufacturing market was pegged at ~US$ 60.6 billion in 2020 and is expected to witness a CAGR of ~10.3% during the forecast period.

Market Fundamentals  

Medical device contract manufacturing is the outsourced fabrication of a medical device for the medical marketplace. Medical device companies can utilize contract manufacturing partners to perform recurring manufacturing and benefit from cost efficiencies, streamlined supply chain, logistical alignment all of which allow them to deliver commercial products to the market while ensuring that all industry requirements are met.

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Market Dynamics

The global medical device contract manufacturing market is mainly driven by the rising incidence of chronic diseases, increasing R&D activities, growing medical device market, and medical device startups opting for contract manufacturing owing to high capital investment for manufacturing. Rising government-supported initiatives for medical device manufacturing are also likely to play a pivotal role in driving the market globally. However, consolidation in the medical devices market is likely to restrain the market growth to a certain extent.

Market Ecosystem

The global medical device contract manufacturing market has been analyzed from four perspectives: Product Type, Services, Application, and Region.

Medical Device Contract Manufacturing Market by Product Type

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Based on product type, the product type market has been segmented into diagnostic & monitoring devices, therapeutic devices, and others (surgical devices, etc.). The diagnostic & monitoring devices segment dominated the market with the largest share owing to the increasing prevalence of chronic diseases such as cancer, heart attack & stroke, chronic respiratory problems, diabetes, etc., and rising demand & adoption of monitoring devices to monitor & diagnose such diseases at an early stage.

Medical Device Contract Manufacturing Market by Services

Based on services, the medical device contract manufacturing market has been segmented into device development & manufacturing services, quality management services, and final goods assembly services. The device development & manufacturing services segment dominated the market with the largest share owing to the growing medical device market, expensive cost of in-house manufacturing of medical devices, and rising trend for the outsourcing of manufacturing of devices owing to cost-effectiveness.

Medical Device Contract Manufacturing Market by Application

Based on application, the medical device contract manufacturing market has been segmented into cardiovascular, orthopedic, diabetes, pulmonary, oncology, diagnostic imaging, and others (urology, gynecology, etc.). The cardiovascular segment is expected to be the fastest-growing application segment during the forecast period. The growth of the segment can be attributed to the growing prevalence of cardiovascular diseases (CVDs) globally coupled with rising awareness among the people regarding regular monitoring of cardiac activity and early diagnosis of CVDs.

Medical Device Contract Manufacturing Market by Region

Based on region, the global medical device contract manufacturing market has been segmented into North America, Europe, Asia Pacific, and the Rest of the World (ROW). North America dominated the medical device contract manufacturing market with the largest share, followed by the Asia Pacific. The large share of North America in the global market can largely be attributed to developed healthcare infrastructure, rising prevalence of chronic & acute diseases owing to changing lifestyles, and significant investment & research in medical devices. The presence of prominent players in the region coupled with their continuous effort to launch technologically advanced products is also expected to propel the growth of the market.

Competitive Landscape

Some of the prominent players operating in the medical device contract manufacturing market includes:-

• Gerresheimer AG
• Integer Holdings Corporation
• West Pharmaceutical Services, Inc
• Benchmark
• Plexus Corp
• Celestica Inc
• NIPRO PHARMA CORPORATION
• Sanmina Corporation
• TE Connectivity
• FLEX LTD, among others

Strategic Developments

• In Sept 2020, Medbio LLC, a contract manufacturer specializing in cleanroom injection molding of plastic components for the medical and biotechnology industries, acquired Polymer Conversions Inc. (PCI). The acquisition was aimed to create a premier medical device manufacturing company, capable of supporting the rapid growth of the company's customers
• In Aug 2020, Vonco Products LLC, an industry leader in the contract manufacturing of liquid-tight medical fluid bags and components for custom medical device applications, announced the acquisition of McFarlane Medical, Inc., with an aim to expand its contract manufacturing capabilities and services
• In Feb 2020, Heraeus Medical Components, a global medical device outsourcing provider, acquired Contract Medical International (CMI). The acquisition was aimed to expand Heraeus's catheter design, development, and manufacturing capabilities.
• In Feb 2017, The Association of Indian Medical Device Industry (AiMeD) and Invest India, the investment promotion and facilitation agency of the union government, signed a memorandum of understanding (MoU) to transform India into a global medical devices manufacturing hub in keeping with the government's eMake in India,s mission

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