Medical Device Contract Manufacturing Market

Medical Device Contract Manufacturing Market Size Survey Report – In a Glance

As per the survey report on global Medical device contract manufacturing market, the market is projected to foresee a CAGR of CAGR value 9.9% between 2024-2033, and further generate a market size of USD 172.5 billion revenue by the end of 2033. In the year 2024, the market size was valued at USD 80.1 billion revenue.

• The global Medical device contract manufacturing market is projected to grow on account of the rising demand for medical devices.
• In Japan, the Medical device contract manufacturing market growth can be attributed to the presence of top-level medical industry.
• KDMI analyst’s growth analysis foresees tough regulatory frameworks to challenge the market growth.
• North America, having the highest market share in the Medical device contract manufacturing market, is projected to dominate the global market.

Medical Device Contract Manufacturing Market Analysis

Medical device contract manufacturing refers to partnering with specialized manufacturers or third-party firms skilled in designing, developing, and producing medical devices on behalf of original equipment manufacturers (OEMs). In today’s world, the fast-growing focus on healthcare is contributing to a greater demand for medical devices and essentials. Besides that, due to extensive population growth, the patient requirements and technological progress are also increasing which is ultimately pushing the external firms to outsource production for affordability and proficiency. Moreover, the total global expenditure on health hit an exceptional value of $9.8 trillion, accounting for 10.3% of global GDP in 2021 alone. Therefore, this rising demand for medical devices is accelerating the medical device contract manufacturing market. Celestica Inc., Phillips-Medisize, Plexus Corp., are some of the significant parties in the global market for Medical device contract manufacturing market.

Analyst’s Observation on Japan Medical Device Contract Manufacturing Market Survey

Japan has a world-class medical industry and its medical devices market ranks among the largest in the world. However, the market growth for medical device contract manufacturing within the country can be attributed to the presence of the top-level medical industry. According to the most recent official reports of the Ministry of Health, Labour and Welfare (MHLW) Annual Pharmaceutical Production Statistics, the Japanese market for medical devices and materials in 2020 was close to $26 billion USD. Hence, due to the top-tier medical industry having advanced technology, high quality standards, and powerful R&D, the nation’s standing as a global medical production hub solidifies, ultimately steering the market. Samsung BioLogics and FUJIFILM Holdings Corp, are some of the significant parties in the market for Medical device contract manufacturing in Japan.

Medical Device Contract Manufacturing Market Growth Drivers and Challenges

Growth Drivers

Advancement in scientific research:

The medical device contract manufacturing market is largely driven by the surge in research and development activities. Moreover, emerging technological innovations inspire the top market stakeholders to invest in extensive research and develop effective solutions. The global financial outlay on R&D has climbed to a record-breaking value of almost US$ 1.7 trillion. The growing preference for minimally invasive surgical tools is known for decreased blood loss and pain, reduced tissue trauma, and improved patient outcomes. Such type of demand for patient-friendly equipment or technology is propelling the medical devices industry growth, boosting the overall market expansion. Furthermore, because of the accelerated progress and manufacturing of cutting-edge products, the production of high-risk and life-supporting medical devices is also on the rise which is eventually driving the global market.

Progressive shift toward 4.0 innovations:

Next-generation industrial technologies or 4.0 innovations like Machine Learning (ML), Artificial Intelligence (AI), Internet of Things (IoT), Big Data and other advanced technologies offer key insights for future advancements and scaling businesses. With the aid of these technologies, it became feasible to design large-scale, legally approved manufacturing systems with streamlined inventory and production management. The 2024 ICT Household Survey revealed that greater than half of the individuals surveyed (54%) wear smart devices such as a smart watch, fitness band/activity tracker, while one in nine (11%) make use of smart solutions for tracking their sugar levels, body weight, blood pressure, etc. However, the adoption of 4.0 technologies boosts productivity, enhances accuracy, and cuts production costs, thereby, driving the medical device contract manufacturing market.

Restraints

Tough regulatory frameworks:

The strict governmental regulations and policies create a major barrier to the medical device contract manufacturing market growth. The necessity for stronger regulations has become essential to provide patients with safe, reliable, and high quality medical devices. However tight regulations lead to higher costs, prolong regulatory clearances and hinder market entry, impeding the overall growth.

Steep costs of healthcare devices:

The steep price of medical devices drives up production and selling prices. This lowers market demand as hospitals and clinics may struggle with the high costs. Therefore, increased manufacturing costs cut profitability for contract manufacturers, restricting new businesses from entering the market and impeding industry development, hence, limiting the medical device contract manufacturing market.

Medical Device Contract Manufacturing Market Segmentation

Our experts at KD Market Insights have segmented the global Medical device contract manufacturing market research report as:

Medical Device Contract Manufacturing Market Regional Synopsis

Based on global trends, North America has a thriving medical device contract manufacturing market and is substantially fueled by quick urban development, increasing demand for smart technologies, surging outsourcing requirements and expanding well-established healthcare infrastructure. Another key growth driver of the regional market is the heightened government initiatives promoting healthcare research and development. The United States is the major participant in the market growth, holding the largest revenue share in the region. The growing disease occurrence, escalating number of OEMs (original equipment manufacturers) outsourcing medical device production, the rising requirement for innovative drug options, the increase in partnerships, and the existence of top-tier companies that are mainly engaged in the research and development of new devices for specific therapeutic areas have driven up the need for services. Furthermore, U.S. healthcare spending increased by 7.5 percent in 2023, touching $4.9 trillion or $14,570 per person.

The Asia-Pacific (APAC) region encompassing countries like China, India, Japan, and South Korea has established itself as the quickest growing medical device contract manufacturing market during the forecasted period. The prime factor for the market growth in the region is elevating quality norms in production as well as finished products, availability of a proficient workforce and government-backed scheme for the domestic medical device industry. Additionally, the cost-effectiveness of workers also plays a prime role in the market boom in the region.

In the European region, the rising priority on maximizing efficiency and reducing expenses is making a significant impact on the progression of the market. The market growth is further propelled by the increasing market demand for biologic medicines or biopharma products and amplified attention to R&D activities. On the other hand, Germany and the U.K. are also recording impressive growth in the medical device contract manufacturing market. In Germany, the market expansion is mainly due to the increasingly strict governmental policies, increasing demand for wearable devices, heightened patient safety, and advanced quality management systems. Lastly, in the United Kingdom, the medical device contract manufacturing market is majorly driven by its smart and high-performance medical device production which further guarantees quality control, balances production expenses, and enhances patient safety.

As per our analysts at KD Market Insights, the following five players lead the North America Medical device contract manufacturing market growth:

• Jabil Inc.
• Celestica Inc.
• Plexus Corp.
• Teleflex Incorporated
• Others

Medical Device Contract Manufacturing Market Competitive Landscape

Some of the key players who top the global Medical device contract manufacturing market share:

• Jabil Inc.
• Peter’s Technology
• Gerresheimer AG
• Nordson Corporation
• Nipro Corporation
• MeHow
• Teleflex Incorporated
• Celestica Inc.
• Plexus Corp.
• SteriPack Group Ltd.
• Nortech Systems Inc.
• Invetech Pty Inc.
• Flextronics International Ltd.
• Benchmark Electronics Inc.
• Integer Holdings Corporation
• STRATEC SE

1. Executive Summary
   1. Market Overview
   2. Key Findings
   3. Market Trends
   4. Market Outlook
2. Introduction
   1. Scope of the Report
   2. Research Methodology
   3. Definitions and Assumptions
   4. Acronyms and Abbreviations
3. Market Dynamics
   1. Drivers
   2. Restraints
   3. Opportunities
   4. Challenges
4. Global Medical Device Contract Manufacturing Market
   1. Market Overview
   2. Market Size and Forecast
   3. Market Segmentation
      1. By Device
      2. By Type of manufacturing
      3. By Service
      4. By Risk type
      5. By application
      6. By End-user
      7. By Region
5. Market Segmentation by Device
   1. 1. In-vitro diagnostic (IVD) medical devices
      2. Diagnostic imaging and medical equipment
      3. Drug delivery devices
      4. Patient monitoring devices
      5. Minimally access surgical instruments
      6. Therapeutic patient assistive devices
      7. Others
6. Market Segmentation by Type of manufacturing
   1. 1. Raw materials
      2. Electronics
      3. Finished goods
      4. Others
7. Market Segmentation by Service
   1. 1. Design and development
      2. Manufacturing
      3. Testing and validation
      4. Quality assurance
      5. Implementation and maintenance services
      6. Packaging services
      7. Regulatory affairs services
      8. Others
8. Market Segmentation by Risk type
   1. 1. Low-risk medical devices
      2. Moderate risk medical devices
      3. High-risk medical devices
      4. Others
9. Market Segmentation by Application
   1. 1. IVD
      2. Drug delivery
      3. Dental applications
      4. Diabetes
      5. Diagnostic imaging applications
      6. Cardiology applications
      7. Orthopaedic applications
      8. Endoscopy applications
      9. Surgical applications
      10. Others
10. Market Segmentation by End-user
    1. 1. Large-scale medical device companies
       2. Medium-scale medical device companies
       3. Small-scale medical device companies
       4. Others
11. Regional Analysis
    1. North America
       1. United States
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Device, Type of manufacturing, Service, Risk type, Application and End-user
       2. Canada
          1. Market Size and Forecast
          2. Key Trends and Developments
       3. Market Analysis by Device, Type of manufacturing, Service, Risk type, Application and End-user
       4. Mexico
          1. Market Size and Forecast
          2. Key Trends and Developments
    2. Market Analysis by Device, Type of manufacturing, Service, Risk type, Application and End-user
    3. Europe
       1. United Kingdom
          1. Market Size and Forecast
          2. Key Trends and Developments
       2. Market Analysis by Device, Type of manufacturing, Service, Risk type, Application and End-user
       3. Germany
          1. Market Size and Forecast
          2. Key Trends and Developments
       4. Market Analysis by Device, Type of manufacturing, Service, Risk type, Application and End-user
       5. France
          1. Market Size and Forecast
          2. Key Trends and Developments
       6. Market Analysis by Device, Type of manufacturing, Service, Risk type, Application and End-user
       7. Italy
          1. Market Size and Forecast
          2. Key Trends and Developments
       8. Market Analysis by Device, Type of manufacturing, Service, Risk type, Application and End-user
       9. Spain
          1. Market Size and Forecast
          2. Key Trends and Developments
       10. Market Analysis by Device, Type of manufacturing, Service, Risk type, Application and End-user
       11. Rest of Europe
           1. Market Size and Forecast
           2. Key Trends and Developments
    4. Market Analysis by Device, Type of manufacturing, Service, Risk type, Application and End-user
    5. Asia Pacific
       1. China
          1. Market Size and Forecast
          2. Key Trends and Developments
       2. Market Analysis by Device, Type of manufacturing, Service, Risk type, Application and End-user
       3. Japan
          1. Market Size and Forecast
          2. Key Trends and Developments
       4. Market Analysis by Device, Type of manufacturing, Service, Risk type, Application and End-user
       5. India
          1. Market Size and Forecast
          2. Key Trends and Developments
       6. Market Analysis by Device, Type of manufacturing, Service, Risk type, Application and End-user
       7. Australia
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Device, Type of manufacturing, Service, Risk type, Application and End-user
          4. South Korea
          5. Market Size and Forecast
          6. Key Trends and Developments
       8. Market Analysis by Device, Type of manufacturing, Service, Risk type, Application and End-user
       9. Rest of Asia Pacific
          1. Market Size and Forecast
          2. Key Trends and Developments
    6. Market Analysis by Device, Type of manufacturing, Service, Risk type, Application and End-user
    7. Latin America
       1. Brazil
          1. Market Size and Forecast
          2. Key Trends and Developments
       2. Market Analysis by Device, Type of manufacturing, Service, Risk type, Application and End-user
       3. Argentina
          1. Market Size and Forecast
          2. Key Trends and Developments
       4. Market Analysis by Device, Type of manufacturing, Service, Risk type, Application and End-user
       5. Colombia
          1. Market Size and Forecast
          2. Key Trends and Developments
       6. Market Analysis by Device, Type of manufacturing, Service, Risk type, Application and End-user
       7. Rest of Latin America
          1. Market Size and Forecast
          2. Key Trends and Developments
    8. Market Analysis by Device, Type of manufacturing, Service, Risk type, Application and End-user
    9. Middle East & Africa
       1. South Africa
          1. Market Size and Forecast
          2. Key Trends and Developments
       2. Market Analysis by Device, Type of manufacturing, Service, Risk type, Application and End-user
       3. Saudi Arabia
          1. Market Size and Forecast
          2. Key Trends and Developments
       4. Market Analysis by Device, Type of manufacturing, Service, Risk type, Application and End-user
       5. UAE
          1. Market Size and Forecast
          2. Key Trends and Developments
       6. Market Analysis by Device, Type of manufacturing, Service, Risk type, Application and End-user
       7. Rest of Middle East & Africa
          1. Market Size and Forecast
          2. Key Trends and Developments
12. Market Analysis by Device, Type of manufacturing, Service, Risk type, Application and End-user
13. Competitive Landscape
    1. Market Share Analysis
    2. Company Profiles
    3. Jabil Inc.
    4. Peter’s Technology
    5. Gerresheimer AG
    6. Nordson Corporation
    7. Nipro Corporation
    8. MeHow
    9. Teleflex Incorporated
    10. Celestica Inc.
    11. Plexus Corp.
    12. SteriPack Group Ltd.
14. Strategic Recommendations
15. Appendix
    1. List of Tables
    2. List of Figures
16. References