June 17, 2024
Medical Device Engineering Services Market

Medical Device Engineering Services Market Trends by Improved Patient Outcomes

The medical device engineering services market comprises product design and development services that help in the development of medical devices including devices used for in-vitro diagnostics, cardiology, orthopedics, and neurology. Medical device engineering services such as product design and development, regulatory and quality services help simplify the medical device development process and reduce costs associated with regulatory approval and quality management.

The global medical device engineering services market is estimated to be valued at US$ 5.64 Bn in 2024 and is expected to exhibit a CAGR of 11% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the medical device engineering services market are Infosys Limited, Cyient, Accenture, Embien Technologies India Pvt Ltd., Saraca Solutions Private Limited, Tata Elxsi, Iziel, Wipro, Althea Group, LT Technology Services Limited., Altran, ALTEN Technology, Flextronics International, LTD., Nordson Corporation, ClariMed, Inc. Key players help medical device OEMs reduce costs and improve time to market for their products.

The growing demand for medical devices across the world due to the increasing prevalence of chronic diseases and the aging population is fueling the demand for medical device engineering services. Medical device companies are outsourcing engineering services to focus on their core competencies.

The Global Medical Device Engineering Services Market Size is expanding with companies offering localized engineering services close to medical device manufacturers. North America dominated the market in 2024 owing to the presence of large medical devices companies. However, Asia Pacific is expected to grow at the fastest rate during the forecast period due to low-cost engineering solutions and availability of skilled labor.

Market Key Trends

One of the key trends in the medical device engineering services market is improved patient outcomes driven engineering. Engineering companies are working closely with medical device OEMs to develop devices through human factor engineering approaches that improve usability, safety and overall patient experience. This involves early prototype testing with patients and clinicians to understand user needs better. The focus on improving patient outcomes through medical device design is driving greater collaboration between engineering companies and healthcare stakeholders.

Porter’s Analysis
Threat of new entrants: The medical device engineering services market requires high initial capital investment and manufacturing capabilities which make difficult for new players to enter this market. Bargaining power of buyers: Some of the large medical device companies have considerable bargaining power over service providers due to their high spending power and price sensitivity. Bargaining power of suppliers: The market comprises few large service provider companies and many medium and small sized players which limits the bargaining power of suppliers. Threat of new substitutes: Low threat from new substitutes due to specialised skills and capabilities required in this market. Competitive rivalry: Intense competition among existing players to gain market share through quality services, innovation and competitive pricing.

North America is the largest geographical region for medical device engineering services in terms of value owing to high healthcare spending, presence of leading medical device companies and stringent regulatory approvals. Asia Pacific is expected to witness the fastest growth during forecast period driven by improving accessibility and affordability of healthcare services, rising medical tourism and expansion of healthcare infrastructure in emerging economies.

India is an emerging hotspot for medical device engineering services due to availability of skilled workforce, regulatory expertise and competitive costs. Major Indian cities including Bengaluru, Mumbai, Delhi NCR and Pune have emerged as key offshore service delivery centres for global medical device companies. Japan and South Korea are also growing as outsourcing destinations in Asia Pacific region.

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