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The medical device contract manufacturing market share is expected to increase by USD 46.18 billion from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 11.19%.
The market report also offers information on several market players, including Benchmark Electronics Inc., Celestica Inc., Flex Ltd., Gerresheimer AG, Integer Holdings Corp., Jabil Inc., Kimball Electronics Inc., Nemera, Nipro Corp., Nordson Corp., Nortech Systems Inc., Plexus Corp., Recipharm AB, Sanmina Corp., Scientific Molding Corp. Ltd., TE Connectivity Ltd., Tecomet Inc., Teleflex Inc., Tessy Plastics Corp., and West Pharmaceutical Services Inc. among others.
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The impact of Industry 4.0 on the medical device industry is notably driving the market growth. However, factors such as consolidation in medical device industry may impede the market growth. The holistic analysis of the drivers will help deduce end goals and refine marketing strategies to gain a competitive edge.
One of the key factors driving growth in the market is the impact of Industry 4.0 on the medical device industry. Innovations in Class III medical devices are on the rise due to the increasing development and production of complex medical devices, such as pacemakers and implantable medical devices. Medical device manufacturing companies face challenges in producing Class III devices in high volumes due to the complex assembly and testing processes involved. Given the level of complexity involved in manufacturing a Class III device in high volumes, automated manufacturing and fabrication have become a necessity. Industry 4.0 technologies, such as cloud computing, machine-to-machine (M2M) communication, and network-physical systems, enable advanced automation that aids medical device contract manufacturers in overcoming these manufacturing challenges. The increased connectivity and data collection capabilities of these advanced technologies enable medical device contract manufacturers to undertake high-volume production, along with regulatory-compliant manufacturing workflows and efficient inventory and production management. Thus, the increased adoption of Industry 4.0 in medical device manufacturing will lead to market growth.
The shift from centralized to point-of-care testing is a major trend shaping the market. A centralized laboratory is used to automate analytical test methods that detect target components. However, the benefits offered by point-of-care testing and diagnostic devices make it increasingly preferable. For instance, in comparison with conventional diagnostic procedures, point-of-care testing is affordable. It provides rapid results for making quick decisions about medical diagnosis and treatment of diseases and conditions. Furthermore, the growth of self-monitoring of blood glucose has been driven by the need for more convenient and effective healthcare services. Thus, these factors are expected to drive market growth during the forecast period.
Consolidation in the medical device industry is a significant challenge hindering the market growth. Several medical device manufacturers are investing in acquiring small and medium-sized specialist companies. These investments are aimed at improving their capabilities and increasing their product portfolios. Consequently, this will limit outsourcing to contract manufacturing organizations (CMOs) as these major players undertake the in-house manufacturing of medical devices. Moreover, many medical device companies have acquired CMOs to reduce the costs involved in contract manufacturing. Hence, these negative factors are expected to restrict market growth during the forecast period.
This market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
The report analyzes the market’s competitive landscape and offers information on several market companies, including:
This statistical study of the market encompasses successful business strategies deployed by the key vendors. The market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.
The market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
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38% of the market’s growth will originate from North America during the forecast period. US and Canada are the key markets for in North America. Market growth in this region will be faster than the growth of the market in the European regions.
The stringent compliance requirements with government regulations, continuous technological advancements, and the increased focus on better patient safety and care will facilitate the market growth and trends in North America over the forecast period. This market research market analysis and report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
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The market growth and forecasting growth in the IVD segment will be significant during the forecast period. The growth of the IVD segment is mainly driven by the growth of the geriatric population and the subsequent increase in the incidence of chronic and infectious diseases, the adoption of fully automated and point-of-care (POC) tools, the rapid growth of the pharmaceutical industry in developed regions, growing awareness of disease diagnostics in developing regions, and the rise in R&D investments by players in the industry to launch new IVD products.
The market caters to various segments like IVD devices and orthopedics, addressing in-house manufacturing costs for medical device players. Factors such as labor costs and an aging population drive demand for non-invasive surgical procedures and post-market product support services. From design to regulatory enforcement, contract manufacturers offer comprehensive services, complemented by pricing and patent analyses. Key stakeholders benefit from diagnostic public-private partnerships and government grants, fostering growth opportunities. With a focus on drug delivery devices like syringes, inhalers, autoinjectors, pen injectors, and prefilled syringes, zero wastage and calibration error ensure quality in the expanding market for contract manufacturing of syringes and infusion devices.
Medical Device Contract Manufacturing Market Scope |
|
Report Coverage |
Details |
Page number |
120 |
Base year |
2021 |
Forecast period |
2022-2026 |
Growth momentum & CAGR |
Accelerate at a CAGR of 11.19% |
Market growth 2022-2026 |
USD 46.18 billion |
Market structure |
Fragmented |
YoY growth (%) |
10.77 |
Regional analysis |
North America, Europe, Asia, and Rest of World (ROW) |
Performing market contribution |
North America at 38% |
Key consumer countries |
US, Canada, Germany, China, Japan, and Republic of Korea |
Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
Key companies profiled |
Benchmark Electronics Inc., Celestica Inc., Flex Ltd., Gerresheimer AG, Integer Holdings Corp., Jabil Inc., Kimball Electronics Inc., Nemera, Nipro Corp., Nordson Corp., Nortech Systems Inc., Plexus Corp., Recipharm AB, Sanmina Corp., Scientific Molding Corp. Ltd., TE Connectivity Ltd., Tecomet Inc., Teleflex Inc., Tessy Plastics Corp., and West Pharmaceutical Services Inc. |
Market dynamics |
Parent market analysis, market research and growth, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our market research report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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