Medical Device Contract Manufacturing Market: Growth, Size, Share, and Trends

Market Growth Outlook Summary

The global medical device contract manufacturing market growth forecasted to transform from USD 78.9 billion in 2024 to USD 149.4 billion by 2029, driven by a CAGR of 11.4%. Medical device contract manufacturing is rapidly transforming the industry, offering significant advantages for manufacturers. Industry 4.0 includes integration of automation, robotics, and data analytics in MDCM enhances production efficiency, precision, and consistency. Additive manufacturing (3D printing) technology allows for the creation of complex and customized medical devices, expanding the possibilities for innovative solutions which is expected drive the market growth.

Medical Device Contract Manufacturing Market Size, Dynamics & Ecosystem

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Medical device contract manufacturing market Dynamics

Driver: Rising aging population

Life expectancy is increasing globally, while birth rates are declining in many countries. This leads to a larger proportion of older adults in the population pyramid, the United Nations reports that the global population aged 60 years or over is projected to nearly double from 1 billion in 2020 to 2.1 billion by 2050 an aging population creates a higher demand for healthcare services, particularly those related to age-related conditions like dementia, heart disease, and chronic illnesses which is expected to drive the market growth.

Restraint: Stringent regulatory guidelines for medical devices.

Devices are categorized based on their level of potential risk to patients (e.g., Class I - low risk, Class III - high risk). Stringency of regulations increases with higher risk classifications, manufacturers must demonstrate a documented and controlled design process that adheres to safety and performance standards further manufacturers are obligated to monitor their devices after they reach the market and report any adverse events which is expected to restrain the market growth.

Opportunity: Potential for growth in emerging countries

The potential for medical device contract manufacturing in emerging countries is significant, offering exciting opportunities for improved diagnostic devices access and enhanced treatment approaches. Emerging economies are experiencing rapid population growth, leading to an increased demand for healthcare services and medical devices. A burgeoning middle class with rising disposable income creates a larger consumer base willing to spend on advanced medical treatments and technologies. Governments in emerging countries are increasingly allocating resources towards improving healthcare accessibility and affordability. This can involve subsidies for medical devices or promoting local manufacturing which is expected to create opportunities for the growth of the market.

Challenge: Lack of constant innovation to balance technological capabilities against costs

High costs of innovation which includes expensive materials, complex manufacturing processes, and extensive clinical trials also strict regulatory guidelines necessitate rigorous testing and data collection, further adding to the overall cost of bringing new devices to market. The substantial investment required for innovation can translate to higher priced medical devices. This can limit accessibility for patients, especially in regions with limited resources which is expected to challenge the market growth.

The medical device contract manufacturing market is becoming increasingly competitive, with new players entering the market and established players vying for market share. This competition drives down prices as companies try to undercut each other. The cost of materials, equipment, and labor is increasing, putting pressure on dental businesses to maintain profitability while keeping prices competitive. Consolidation within the dental industry, particularly the rise of dental laboratories creates larger entities with greater purchasing power. This can lead to lower prices for supplies and equipment, further pressuring smaller players also government regulations and changes in insurance coverage can impact reimbursement rates for dental procedures, forcing providers to adjust their pricing strategies

Medical Device Contract Manufacturing Market Segmentation & Geographical Spread

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By class of devices, class III is expected to show the highest CAGR of medical device contract manufacturing industry from 2024 to 2029.

The class of device segment is segmented into class I, class II and class III devices.

Class III devices are often critical for treating life-threatening conditions or supporting vital bodily functions. Examples include pacemakers, heart valves, and implantable defibrillators. These devices can restore or improve a patient's physical capabilities or organ function, significantly enhancing their quality of life which is expected to drive the segment growth.

By drug delivery devices, syringes is expected to show the highest CAGR of medical device contract manufacturing industry from 2024 to 2029.

The drug delivery devices market segment is segmented into infusion sets/administration sets, syringes, inhalers and autoinjectors & pedn injectors.

Syringes play a crucial role in various drug delivery devices, serving as a core component due to several advantages. Syringes can be adapted to deliver a wide range of drugs, including medications, vaccines, and fluids also the design of syringes allows for accurate measurement and administration of specific drug volumes, ensuring patients receive the intended dosage. which is expected to drive the market growth.

Asia Pacific accounted for the largest CAGR of the global medical device contract manufacturing industry, by region in the forecast period.

The medical device contract manufacturing market in Asia Pacific is expected to grow at the highest CAGR due to a combination of factors that highlight the region's changing healthcare landscape. Some APAC governments are promoting diagnostic health awareness and offering subsidies for several treatments, further stimulating market growth. The aging population in APAC is increasing the demand for medical devices to address several chronic diseases. Increasing wealth in APAC countries is leading to higher spending on healthcare, including medical device contract manufacturing.

The key players in the Medical device contract manufacturing market include Flex Ltd. (Singapore), Jabil Inc. (US), TE Connectivity Ltd. (Switzerland), Sanmina Corporation (US), Nipro Corporation (Japan), Celestica Inc. (Canada), Plexus Corp. (US), Integer Holdings Corporation (US), West Pharmaceutical Services, Inc. (US), Benchmark Electronics Inc. (US), Recipharm AB (Sweden), Gerresheimer AG (Germany), Kimball Electronics Inc. (US), Nortech Systems, Inc. (US), Nemera Development S.A. (France), Viant Medical Holdings, Inc. (US), Tecomet, Inc. (US), SMC Ltd. (US), Phillips-Medisize Corporation (US), Tessy Plastics Corp. (US), Carclo Plc (UK), Nolato GW, Inc. (US), MeHow (China), Tekni-Plex (US), and Peter’s Technology (China).

Medical Device Contract Manufacturing Market Report Scope

The study categorizes the medical device contract manufacturing market to forecast revenue and analyze trends in each of the following submarkets:.

By Device Type

• IVD Devices
  • IVD Consumables
  • IVD Equipment
• Diagnostic Imaging Devices
• Cardiovascular Devices
• Drug Delivery Devices
  • Infusion Devices and Administration Sets
  • Syringes
  • Inhalers
  • Autoinjectors and Pen Injectors
• Orthopedic Devices
• Respiratory Care Devices
• Ophthalmology Devices
• Surgical Devices
• Diabetes Care Devices
• Dental Devices
• Endoscopy and Laparoscopy Devices
• Gynecology and Urology Devices
• Personal Care Devices
• Neurology Devices
• Patient Monitoring Devices
• Patient Assistive Devices
• Other Devices

By Class of Device

• Class I Medical Device
• Class II Medical Device
• Class III Medical Device

By Service

• Device Development and Manufacturing Services
  • Device and Component Manufacturing
  • Process Development Services
  • Device Engineering Services
• Quality Management Services
  • Packaging Validation Services
  • Inspection and Testing Services
  • Sterilization Services
• Packaging and Assembly Services
  • Primary and Secondary Packaging
  • Labelling
  • Others
• Other Services

By Region

• Asia Pacific
  • China
  • Japan
  • Malaysia and Singapore
  • India
  • Australia and New Zealand
  • South Korea
  • Rest of Asia Pacific
• North America
  • US
  • Canada
• Europe
  • France
  • Germany
  • UK
  • Italy
  • Spain
  • Rest of Europe
• Latin America
  • Mexico
  • Brazil
  • Rest of Latin America
• Middle East and Africa
• GCC Countries

Recent Developments of Medical Device Contract Manufacturing Market

• In November 2023, Jabil Inc. announced the successful acquisition of Retronix, an innovative provider in the reclamation and refurbishment of electronic components, completed earlier this year.
• In January 2023, Integer announced the acquisition of Pulse Technologies, Inc., a privately held technology, engineering and contract manufacturing company focused on complex micro machining of medical device components for high growth structural heart, heart pump, electrophysiology, leadless pacing, and neuromodulation markets.
• In January 2022, MixComm, the mmWave Antennas to Algorithms pioneer, announced it has selected Advanced Microsystems Technologies, a division of Sanmina as a lead partner to productize its 5G wireless infrastructure solutions
• In November 2021, Nipro Corporation entered into a partnership with toyobo for cellulose triacetate (CTA) dialyzers (artificial kidneys).

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