Medical device outsourcing is comparatively a novel perception in order to focus on company’s core proficiencies such as technical and clinical innovations. Currently, global medical devices manufacturers have started to outsource their several operations such as production, product designing, supply chain management, and prototyping which were earlier carried out by in-house teams, to external parties on a project-based work organization.
Outsourcing of medical device is gaining significant importance among Original Equipment Manufacturers (OEMs) as it helps to influence company’s uncommon resources and increase its core capabilities. Medical companies are increasingly under pressure to lower their operational costs and reduce the manufacturing costs. Moreover, the process of manufacturing medical devices requires high manufacturing costs, high labour and thus, the need for outsourcing will increase considerably as it helps to eliminate the need for pharmaceutical companies to hire more employees and eventually it also reduces product development costs.
Increased pressure on pricing and growing merger-acquisition activity to increase global portfolio is expected to propel the market growth.
The rapid increase in individuals per head income and growing spending capacity across the globe has augmented the demand for quality healthcare. This has impacted companies operating and manufacturing in the medical devices industry to pay more attention towards the technological advancements which improves patients’ health. Additionally, benefits such as manufacturing time reduction ensures the early entry of product into the market which is combined with the need to meet the regulatory standards, further enhance the market growth.
On the other hand, increasing mergers and acquisitions activity is recognized to be one of the major factor resulting in market growth. Major players are undertaking acquisitions to increase commercial share of the market and improve the global portfolio. As a part of acquisition, manufacturers pursue operative proficiency, which will further propel the market growth. Moreover, factors such as the increasing demand for medical devices and the continuous shift in manufacturing and support services will benefit the medical device manufacturing outsourcing market over the course of next few years.
However, concerns around security threats regarding confidential information and data of the company is anticipated to somewhat affect the growth of this market during the forecast period.
Global Medical Device Outsourcing Market Taxonomy:
The global Medical Device Outsourcing Market is segmented on the basis of Drug Class, Distribution channel, and geography.
On the basis of device type, the global Medical Device Outsourcing market is segmented into:
On the basis of service, the global Medical Device Outsourcing market is segmented into:
On the basis of therapeutics, the global Medical Device Outsourcing market is segmented into:
Geographically, the global market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
Asia Pacific currently dominates the global market majorly due to increased outsourcing in this region due to pricing pressures and efforts to reduce the cost.
On the basis of geography, Asia Pacific dominates the global medical device outsourcing industry. This is majorly due to preference of most of medical device companies to manufacture their devices in Asia, which is predominantly credited to the labour availability, lower labour costs, and low overhead costs. This makes Asia Pacific region the most lucrative region for the medical device outsourcing market. However, North America shares major market which is attributed to the strong manufacturing hubs for reliable, complex, and high-end medical devices. North America is also expected to witness growth in this market during the forecast period.