June 17, 2024

Medical Device Engineering Services Market Is Growing through Partnerships

Medical device engineering services help in areas such as product design and development, regulatory compliance, product maintenance and testing. The need for these outsourced services has increased due to rising complexity of medical device design, stringent regulatory scenario and the need to reduce costs.

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: Key players operating in the medical device engineering services 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. These key players provide engineering and manufacturing services across different categories like product design and development, regulatory compliance, product maintenance etc.

Growing demand: There is a growing demand for outsourced Medical Device Engineering Services Market Size owing to advantages like reduced costs, efficient resource utilization and access to advanced infrastructure. Medical device manufacturers are increasingly relying on outsourcing to optimize operations and focus on core competencies.

Global expansion: Key service providers are expanding their global footprint to cater to rising international demand. Players are strengthening presence in emerging markets of Asia Pacific, Latin America, Middle East and Africa through partnerships and acquisitions. This helps clients achieve geographical expansion and compliance with varying regulatory standards worldwide.

Market Key Trends

One of the key trends in the medical device engineering services market is the growing number of partnerships between OEMs and service providers. These partnerships help OEMs supplement their capabilities through specialized engineering services. They also help service providers gain larger clientele and long-term commitment. For instance, Cyient partnered with Medtronic to provide product engineering services for their cardiovascular and patient monitoring devices. Accenture collaborated with Johnson and Johnson to set up an innovation lab focussed on digital health solutions. Such partnerships are driven by need to streamline product development and achieve faster market access. This trend will continue to propel the medical device engineering services market growth over the coming years.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in this market is moderate. Significant capital investments are required for R&D, and certifications and approval processes are long and rigorous. However, opportunities exist for new players to specialize in sub-segments or geographic regions.

Bargaining power of buyers: The bargaining power of buyers is high due to the large presence of established medical device manufacturers. Buyers can threaten to forward integrate by developing capabilities in-house if prices are too high.

Bargaining power of suppliers: The bargaining power of suppliers is low given the fragmented nature of suppliers and their dependence on the medical device industry for revenues. However, suppliers of specialized components may wield some power.

Threat of new substitutes: The threat of substitutes is moderate due to the life-critical nature of most medical devices and established clinical practices. However, new treatments or technological developments may replace certain existing medical device technologies over the long term.

Competitive rivalry: The industry features strong competition among numerous global and regional players. Companies compete based on quality, innovation, service, and price.

Geographical Regions

North America accounts for the largest share of the market currently valued at over 40% due to significant expenditures on healthcare and medical innovation in the US and Canada.

Asia Pacific is poised to grow the fastest over the forecast period driven by increasing investments in medical infrastructure, emergence of low-cost hubs for medical device manufacturing and R&D, and rising healthcare expenditures in China, India and other developing nations in the region.

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