Market intelligence company, Transparency Market Research has released a new report on the outsourcing market of medical devices exploring the various aspects of the industry such as its size, trends, analysis and market share for the period 2012-2018.
With the advancement in medical technology, the global market for medical devices outsourcing is estimated to increase to $40.8 billion in the year 2018 from $21.1 billion in the year 2012, at a compound annual growth rate of 11.6% during this period.
Product design segment holds the maximum share, about 29%, with class II devices forming the largest application market. This is because these products have lesser regulations on them compared to class III devices.
The medical devices market has emerged as one among the fastest growing markets in life sciences industry due to its dynamic growth caused by increased profit margins as well as rising demands for medical devices.
There are mainly three major participants in this industry- product outsourcing companies, services outsourcing companies and device manufacturers. These three segments have worked to improve product lifecycle management for device manufacturing. This has resulted in highly efficient products as well as reduced costs.
Role of outsourcing in medical devices industry
In recent years, there has been a tremendous increase in the growth of medical devices industry due to technological development as well as the demand for better and sophisticated equipments. Along with this growth, a rise in the competition is also seen in the industry. This has posed a lot of challenges to the companies in this industry in terms of cost, time to market, stricter regulations and product innovation.
Outsourcing proved to be a savior for these companies in dealing with these issues in a better manner. This has resulted in a significant growth of medical devices outsourcing industry.
- Outsourcing helps the manufacturing industry of medical devices to face the challenges by providing expertise in a lot of areas. These areas include regulatory consulting, product implementation, strategic consulting services, product design and testing and validation.
- Outsourcing services meets cost requirements and improves product design. The outsourcing services adopt innovative material engineering to deliver these services.
- Outsourcing also helps reduce time-to-market and meets the requirements efficiently. This helps in considerable reduction of ROI lead time of companies.
Growth drivers of medical devices outsourcing market globally
The growth of medical devices outsourcing market is driven globally with the help of several growth drivers:
- Technological advancement in health care
- Entry of more new players in the industry
- Rising demand for decreased cost of health care
- Reduction in time to market and cost
- Demand for increased quality of health care
Some of the major companies in the outsourcing market of medical devices are Active Implants Corporation, MDMI Technologies Inc., Creganna – Tactx Medical, Avail Medical Products, Accellent Inc., CIRTEC Medical Systems LLC and Micro Systems Engineering GMBH.