May 23, 2024

Medical Device Engineering Services Market is Rapidly Innovating to Enhance Quality Care

Medical device engineering services involve conceptualization, design, development, testing and regulatory compliance of an array of devices, implants, instruments and technologies. These services help reduce the time to market for devices, lower the costs associated with research and development activities and ensure that high product and process standards are maintained.

The global medical device engineering services market is estimated to be valued at US$ 12.05 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 are Infosys Limited, Cyient, Accenture, Embien Technologies India Pvt Ltd., Saraca Solutions Private Limited, Tata Elxsi, Iziel, Wipro, Althea Group, L&T Technology Services Limited., Altran, ALTEN Technology, Flextronics International, LTD., Nordson Corporation, ClariMed, Inc. Key players provide end-to-end product development and engineering capabilities across therapeutic areas.

The growing demand for medical devices from an aging global population and the rising incidence of chronic and lifestyle diseases is expected to drive the need for medical device engineering services. Outsourcing engineering services help organizations focus on their core competencies and ensure speed to market through global delivery models.

The market is witnessing significant expansion opportunities in emerging economies of Asia Pacific, Latin America, Middle East and Africa. These regions present a large patient pool and growing medical infrastructure with increasing healthcare budgets. This is attracting global medical device companies to invest in engineering service hubs to capitalize on opportunities.

Market Key Trends

The Medical Device Engineering Services Market is transforming with new technology adoption and innovations. 3D printing is gaining popularity for rapid prototyping, custom devices and manufacturing. It offers benefits like cost effectiveness, reduced turnaround time, complex designs and customized solutions. Artificial intelligence and machine learning are also being leveraged for product design, simulations, clinical decision support and quality assurance. With focus on collaborative product development, open innovation ecosystems comprising startups, universities, innovators are increasingly partnering with engineering service providers to foster innovations. These trends are accentuating the potential of the medical device engineering services industry.

Porter’s Analysis
Threat of new entrants: Low costs of entry coupled with high intellectual resource costs pose moderate threat.
Bargaining power of buyers: Large medical device manufactures yield high power over outsourcing partners due to the competitive nature of the industry.
Bargaining power of suppliers: Specialized engineering skillsets hold some power but increasing demand mitigates this.
Threat of new substitutes: No major substitutes present but digitally enabled services continue to evolve the landscape.
Competitive rivalry: Intense competition exists among service providers to offer comprehensive solutions at competitive prices.

Geographical Regions
North America accounts for around 45% of the global market value driven by extensive research activities and a favorable regulatory environment for new product development. Asia Pacific is growing at the fastest pace led by countries like India, China and Japan. Their large, low-cost engineering talent pool and rising medical expenditures are attracting new investments into this region for medical device outsourcing.

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