Dublin, April 26, 2021 (GLOBE NEWSWIRE) -- The "Medical Device Contract Manufacturing Market - Global Outlook and Forecast 2021-2026" report has been added to ResearchAndMarkets.com's offering.
The global medical devices contract manufacturing market by revenue is expected to grow at a CAGR of over 10% during the period 2020-2026.
The global market is experiencing impressive growth due to a wide range of services offered by contract manufacturers. The increasing demand for cost reduction and decrease time to market products are the factors driving OEMs to focus and develop partnerships with trusted CMOs for developing, manufacturing, and marketing medical devices.
Moreover, the growing elderly populations, the increasing prevalence of minimally invasive surgeries, increased healthcare expenditures, and innovations in medical technology industry are fueling the need for medical device contract manufacturing. The increasing pressure on OEMs to develop high-quality healthcare equipment, reduce price points, and faster time to market are likely to propel the device contract manufacturing market across the globe.
Global Medical Device Contract Manufacturing Market Segmentation
The global medical device contract manufacturing market research report includes a detailed segmentation by devices, products, services, geography. Class II medical devices are expected to grow at the highest CAGR during the forecast period, expecting to reach a revenue of $76 billion by 2026.
They include complex equipment and pose a higher risk as they are likely to have sustained contact with the internal organs of the patient. Therefore, the increasing prevalence of chronic illness has increased the demand for Class II devices. Evolving digital technology is empowering monitoring devices, thereby effectively influencing the operational cost. Hence, the demand for these medical devices is likely to grow in the upcoming years.
Electronics manufacturing services (EMS) accounted for the highest share of the global medical device contract manufacturing market in 2020. The increasing demand for affordable medical devices, a convergence of electronics, and rising cost pressures have bolstered the participation of EMS providers in the last few years. The growing reliance of medical device OEMs on EMS companies is expected to boost the growth of the market.
An increase in personalized medicine, technological innovations, and stringent regulatory requirements have increased collaborations between OEMs and EMS providers, which is contributing the market growth. With product designing becoming more complex than before, EMS providers are skillful at refreshing older designs and updating electronic design and content within an existing medical device design. This tends to lower cost and obsolescence challenges associated with long product lifecycles.
Product manufacturing and assembly services are the most widely applied solutions for medical devices. Outsourcing the manufacture and assembly of medical devices has greatly helped OEMs to manage costs, save time and effort. These services are growing due to several advantages, which include obtaining specialized expertise, increasing time to market, leveraging a strong supply chain, solve capacity limitations. Services offered through contract manufacturing can resolve quality standards and regulatory compliance, especially in the healthcare and environmental segments.
Insights by Vendors
Flex, TE Connectivity, Sanmina, Jabil, Celestica, Plexus, and Tecomet are the key vendors offering a diverse range of medical device contract manufacturing services. Current-generation service providers have been focusing on strengthening in-house capabilities to offer a wider range of services to OEMs, ranging from product design to distribution and marketing, along with regulatory assistance.
As the medical device industry is among the most highly regulated industries, the demand for core competencies, such as design and engineering, prototype development, and high-volume manufacturing is likely to continue in the coming years as well.
This continues demand will drive OEMs to outsource several parts of their product development and manufacturing operations to capable CMOs. Amidst the intense competition, the availability of advanced tools and technologies to manufacturing a range of medical devices is an important differentiating factor.
Key Questions Answered
What market trends and drivers enable the growth of the medical device contract manufacturing market?
What is the impact of COVID-19 on the healthcare contract manufacturing market?
How have innovations affected the growth of the market?
Who are the key players operating in the medical device manufacturing market?
Which regions are likely to contribute highest revenue to the market during the forecast period?
What is the growth rate of the medical device contract manufacturing market during the forecast period?
Market Opportunities & Trends
Strategic Collaborations Between OEMs And CMOs In Medical Device Industry
Growing Interest Of Private Equity Firms In Contract Manufacturing Of Medical Devices
High Growth Potential For Cmos In Emerging And Low-Income Countries
Market Growth Enablers
Favorable Patient Demographics Coupled With Growing Demand For Medical Devices
OEMs Continous Pursuit Of Cost Savings And Operational Efficiencies
Vendors' Focus On Advancing Contract Manufacturing Capabilities
Impact Of COVID-19 On Contract Manufacturers
Need To Mainatin Balance Between Technological Capabilities And Cost
Stringent Guidelines And Regulatory Approvals Impacting Contract Manufacturers' Business
Increasing Consolidation In Medical Device Industry
Other Prominent Vendors
Forefront Medical Technology
Harmac Medical Products
Heraeus Medical Components
Martech Medical Products
MW Industries (MW Medical Solutions)
NextPhase Medical Devices
Odyssey Medical Technologies
Orchid Orthopedic Solutions
RBC Medical Innovations
Stellartech Research Corporation
Swift Manufacturing & Engineering
Teleflex Medical OEM
West Pharmaceutical Services
XACT Wire EDM Corporation
For more information about this report visit https://www.researchandmarkets.com/r/1s2rok
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