February 22, 2024

Medical Device Contract Manufacturing Market Is Driven By Increasing Global Disease Prevalence

The medical device contract manufacturing market involves manufacturing of devices and components associated with various medical specialties such as cardiology, orthopedics, neurology, and pain management among others. Medical device contract manufacturing provides cost-effective and high-quality production to original equipment manufacturers. Growing disease prevalence globally has increased the demand for various medical devices for diagnosis and treatment purposes. In 2024, the global medical device contract manufacturing market was valued at US$112.32 billion.

The global Medical Device Contract Manufacturing Market is estimated to be valued at Us$ 158.47 Billion in 2031 and is expected to exhibit a CAGR Of 12% over the forecast period 2024 To 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the major trends in the medical device contract manufacturing market is increasing preference for single-source solutions. Manufacturers prefer outsourcing to contract manufacturers who can offer end-to-end services across various aspects of product development and manufacturing. Such contract manufacturers focusing on single-source solutions help OEMs reduce costs and streamline operations by consolidating their supply chain and operation with a sole partner. This trend allows OEMs to focus on their core competencies of product innovation and commercialization while delegating manufacturing operations.

Porter’s Analysis

Threat of new entrants: The medical device contract manufacturing industry requires high capital investment and technical expertise which poses significant entry barriers for new players.

Bargaining power of buyers: Large medical device OEMs have significant bargaining power over contract manufacturers due to the consolidated nature of the industry.

Bargaining power of suppliers: The specialized components and manufacturing equipment required creates supplier power over contract manufacturers.

Threat of new substitutes: High costs associated with developing and manufacturing substitutes limits threat of substitution in the medical device industry.

Competitive rivalry: The presence of few large players with global scale of operations like Flex and Jabil results in high competition in the industry.

Key Takeaways

The Global Medical Device Contract Manufacturing Market Demand  is expected to witness high growth.

Regional analysis comprises the North America region dominates the global market currently due to presence of major players and rising healthcare expenditure.

Key players operating in the medical device contract manufacturing industry are Flex, TE Connectivity, Sanmina, Jabil, Celestica, Plexus, and Tecomet, among others. Flex has wide range of capabilities across various therapeutic areas while Jabil has strong presence in Europe with acquisitions of companies like Nortech Systems.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it