Reading time ( words)
The medical device contract manufacturing market is expected to reach $91.3 Billion by 2024 from an estimated $55.0 billion in 2019, at a CAGR of 10.6%.
The key factors driving the growth of the medical device contract manufacturing market include the overall growth of the medical devices market as a whole, mainly due to rising disease prevalence, life expectancy, and the geriatric population. Technological advancements have prompted end users to overhaul or update their manufacturing systems. As this is a costly process, they look to contract manufacturing.
Cardiovascular devices and endoscopy devices are projected to witness the highest growth during the forecast period
Based on device type, cardiovascular devices and endoscopy devices are projected to register the highest CAGRs during the forecast period. While growth in the cardiovascular devices segment can be attributed to the rising adoption of cardiovascular devices such as pacemakers, catheters, and stents due to the increasing prevalence of cardiovascular diseases across the globe, the endoscopy devices segment is mainly driven by the increasing adoption of endoscopy devices in hospitals and diagnostic laboratories.
The final goods assembly services segment is expected to grow at the highest CAGR during the forecast period
Based on the service type, the final goods assembly services segment is expected to grow at the highest the CAGR during the forecast period. These services are mostly required by OEMs, medical device companies, and pharmaceutical companies that are involved in the manufacturing and sales of fully integrated single-use medical devices, such as pen needles, inhalers, autoinjectors, and pre-filled syringes. The growing prevalence of targeted therapies, rising incidence of anaphylaxis, increasing number of regulatory approvals for single-use medical devices, and the availability of the generic versions of autoinjectors are some of the factors contributing to the growth of these devices. This is, in turn, expected to increase the utilization of final goods assembly services.
Class III medical devices to register the highest CAGR during the forecast period
Based on the class of device, the medical device contract manufacturing market is segmented into Class I, Class II, and Class III medical devices. The Class III medical devices segment is expected to register the highest growth during the forecast period. The large share of this segment can be attributed to a large number of medical devices that fall under this device class and the utilization of a higher volume of these devices by end-users and caregivers in the healthcare industry.
The Asia Pacific to witness the highest growth during the forecast period
The Asia Pacific is expected to witness the highest growth during the forecast period 2019 to 2024. The high demand for diagnostic imaging, patient monitoring, and in vitro diagnostic IVD devices is expected to drive the medical device market in the Asia Pacific. The low labor cost in Asia Pacific countries is another factor driving the medical device contract manufacturing services market. Labor costs in China are significantly lower than the US; the cost of labor in China is around $264 per month for an individual as compared to approximately $8,000 in the US Source: China Labor Bulletin. This is a major factor attracting medical device companies from across the world to expand their contract manufacturing operations in China.