Medical Device Manufacturing Outsourcing Market Research Report by Technavio expects USD 27.12 Bn incremental growth

·10 min read

NEW YORK, Aug. 18, 2022 /PRNewswire/ -- The "Medical Device Manufacturing Outsourcing Market by Product, Medical Device Regulatory Classification, and Geography - Forecast and Analysis 2021-2025" report by Technavio expects the market size to grow by USD 27.12 billion between 2020 and 2025. The market witnessed a YOY growth of 5.73% in 2021 and the growth momentum is expected to accelerate at a CAGR of 7.81% during the forecast period. The report identifies North America as the major market for medical device manufacturing outsourcing services. The region will occupy 34% of the global market share. The report provides a comprehensive analysis of recent developments, new product launches, major revenue-generating segments, and market behavior across geographies. Download Sample PDF Report Here

Attractive Opportunities in Medical Device Manufacturing Outsourcing Market by Product, Medical Device Regulatory Classification, and Geography - Forecast and Analysis 2021-2025
Attractive Opportunities in Medical Device Manufacturing Outsourcing Market by Product, Medical Device Regulatory Classification, and Geography - Forecast and Analysis 2021-2025

One of the primary growth drivers for this market is the growing focus of OEMs on reducing medical device manufacturing costs. Manufacturing medical devices require high engineering capabilities and high labor costs. Thus, in order to reduce operational and production costs, manufacturers of medical devices have started outsourcing their manufacturing operations. This trend is gaining significant popularity among OEMs as outsourcing helps them achieve sustainability and reduce product development costs by 10%-30%. All these factors are expected to drive the growth of the global medical device manufacturing outsourcing market during the forecast period.

"The growing complexities in product design and development and expansion of medical device manufacturing plants by OEMs in emerging countries will further accelerate the growth of the market. However, the presence of stringent regulatory environment in most countries will challenge the growth of market players," says a senior analyst at Technavio.

Medical Device Manufacturing Outsourcing Market: Segment by Product

  • By product, the market is analyzed across segments such as EMS, raw materials, and finished goods.

  • The EMS segment will have the largest share of the market.

  • Factors such as an increase in healthcare expenditure, high growth potential arising from emerging economies such as India, China, and Brazil, and rapid advances in medical device technologies are driving the growth of the segment.

  • The market growth in the EMS segment will be significant during the forecast period.

Medical Device Manufacturing Outsourcing Market: Segment by Medical Device Regulatory Classification

  • By medical devices regulatory classification, the market is analyzed across segments such as class II, class III, and class I.

  • The class II medical devices segment generated the maximum revenue in the market in 2021.

  • The segment is driven by the growing preference among OEMs to approach outsourcing companies for manufacturing their class II medical device products.

  • The growing number of surgical procedures and increasing complexity of device designing are also driving the growth of the segment.

Regional Analysis

  • 38% of the growth will originate from the APAC region.

  • Factors such as increasing R&D investments, M&A activities, increasing collaboration between vendors, and growing technological advances are driving the growth of the regional market.

  • Also, the increasing manufacturing of class II medical devices is contributing to the growth of the medical device manufacturing outsourcing market in North America.

  • The US is the key market for medical device manufacturing outsourcing market in North America.

  • Countries such as China, Germany, Japan, and India will also emerge as major markets for medical device manufacturing outsourcing during the forecast period.

Key Notes:

  • The medical device manufacturing outsourcing market size is expected to accelerate at a CAGR of 7.81% during the forecast period.

  • The medical device manufacturing outsourcing market is segmented by product (EMS, raw materials, and finished goods), medical device regulatory classification (class II, class III, and class I), and geography (North America, Asia, Europe, and ROW).

  • The market is fragmented due to the presence of many established vendors holding significant market share.

  • The research report identifies Cadence Inc., Celestica Inc., Eurofins Scientific SE, Flex Ltd., Integer Holdings Corp., Jabil Inc., Nortech Systems Inc., Sanmina Corp., TE Connectivity Ltd., and Tecomet Inc. as dominant players.

Technavio's sample reports are free of charge and contain multiple sections of the report, such as the market size and forecast, drivers, challenges, trends, and more. Request Sample Report Now

Related Reports:

Medical Device Manufacturing Outsourcing Market Scope

Report Coverage

Details

Page number

120

Base year

2020

Forecast period

2021-2025

Growth momentum & CAGR

Accelerate at a CAGR of 7.81%

Market growth 2020-2024

USD 27.12 billion

Market structure

Fragmented

YoY growth (%)

5.73

Regional analysis

North America, Asia, Europe, and ROW

Performing market contribution

North America at 34%

Key consumer countries

US, China, Germany, Japan, and India

Competitive landscape

Leading companies, competitive strategies, consumer engagement scope

Companies profiled

Cadence Inc., Celestica Inc., Eurofins Scientific SE, Flex Ltd., Integer Holdings Corp., Jabil Inc., Nortech Systems Inc., Sanmina Corp., TE Connectivity Ltd., and Tecomet Inc.

Market Dynamics

Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and future consumer dynamics, and market condition analysis for the forecast period.

Customization purview

If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

Table of Contents:

1 Executive Summary

2 Market Landscape

  • 2.1 Market ecosystem

  • 2.2 Value chain analysis

3 Market Sizing

  • 3.1 Market definition

  • 3.2 Market segment analysis

  • 3.3 Market size 2020

  • 3.4 Market outlook: Forecast for 2020 - 2025

4 Five Forces Analysis

  • 4.1 Five forces summary

  • 4.2 Bargaining power of buyers

  • 4.3 Bargaining power of suppliers

  • 4.4 Threat of new entrants

  • 4.5 Threat of substitutes

  • 4.6 Threat of rivalry

  • 4.7 Market condition

5 Market Segmentation by Product

  • 5.1 Market segments

  • 5.2 Comparison by Product

  • 5.3 EMS - Market size and forecast 2020-2025

  • 5.4 Raw materials - Market size and forecast 2020-2025

  • 5.5 Finished goods - Market size and forecast 2020-2025

  • 5.6 Market opportunity by Product

6 Market Segmentation by Medical device regulatory classification

  • 6.1 Market segments

  • 6.2 Comparison by Medical device regulatory classification

  • 6.3 Class II - Market size and forecast 2020-2025

  • 6.4 Class III - Market size and forecast 2020-2025

  • 6.5 Class I - Market size and forecast 2020-2025

  • 6.6 Market opportunity by Medical device regulatory classification

7 Customer landscape

8 Geographic Landscape

  • 8.1 Geographic segmentation

  • 8.2 Geographic comparison

  • 8.3 North America - Market size and forecast 2020-2025

  • 8.4 Asia - Market size and forecast 2020-2025

  • 8.5 Europe - Market size and forecast 2020-2025

  • 8.6 ROW - Market size and forecast 2020-2025

  • 8.7 Key leading countries

  • 8.8 Market opportunity by geography

9 Drivers, Challenges, and Trends

  • 9.1 Market drivers

  • 9.2 Market challenges

  • 9.3 Market trends

10 Vendor Landscape

  • 10.1 Overview

  • 10.2 Vendor landscape

  • 10.3 Landscape disruption

11 Vendor Analysis

  • 11.1 Vendors covered

  • 11.2 Market positioning of vendors

  • 11.3 Cadence Inc.

  • 11.4 Celestica Inc.

  • 11.5 Eurofins Scientific SE

  • 11.6 Flex Ltd.

  • 11.7 Integer Holdings Corp.

  • 11.8 Jabil Inc.

  • 11.9 Nortech Systems Inc.

  • 11.10 Sanmina Corp.

  • 11.11 TE Connectivity Ltd.

  • 11.12 Tecomet Inc.

12 Appendix

  • 12.1 Scope of the report

  • 12.2 Currency conversion rates for US$

  • 12.3 Research methodology

  • 12.4 List of abbreviations

About Us

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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