MEDICAL DEVICE ENGINEERING SERVICES MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Market Size and Trends

Global medical device engineering services market is estimated to be valued at USD 5.64 Bn in 2024 and is expected to reach USD 12.05 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 11.5% from 2024 to 2031.

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The market trend in the medical device engineering services sector has been positive with increasing momentum year-over-year. Key growth drivers of the market include rising healthcare expenditures in major markets, imminent patent cliffs leading to higher R&D activities for pharmaceutical and device companies, lower costs and faster development achieved through outsourcing, and growing need for technologies like IoT and digital health solutions across care pathway.

Market Driver – Increasing Product Launches by key market players

Increasing adoption of organic growth strategies such as product launches by key market players is expected to drive the global medical device engineering services market growth over the forecast period. For instance, on February 6, 2024, MGS, a leading end-to-end solutions provider, launched its global engineering services group that brings together more than 85 engineers and 200 toolmakers globally, enabling pharma, diagnostic and medtech innovators to take healthcare projects from napkin sketch to validated product, process, and production cell setup.

Market Concentration and Competitive Landscape

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A notable shift from conventional treatment-centric approach to preventive healthcare models which aim to address the root causes of chronic diseases and reduce long-term healthcare costs. Regulatory bodies and private insurers are promoting wellness programs, spreading awareness on lifestyle modifications and encouraging individuals to proactively monitor key health metrics. Various types of trackers, sensors and connected health platforms empowering remote patient monitoring are allowing continuous data collection outside traditional clinical settings. This generates huge volumes of patient-generated health data which needs to be analyzed for predictive insights, risk identification and personalized care interventions. At the same time, preventive approaches require innovative diagnostic tools integrated with digital health solutions for increased access, affordability and early detection. Medical device engineering services plays a critical role in developing such digital and remote healthcare technologies. This is expected to generate strong momentum for the overall medical device engineering services market.

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The global medical device engineering services market has been facing intense competition among leading players which has posed challenges for market growth in recent years. With several big corporations providing end-to-end device development services, there is high competition to acquire new clients and projects. Many large outsourcing companies have expanded their service portfolios and invested heavily in capabilities like product design and development, prototyping, testing, and manufacturing support services across many therapeutic areas. This level of consolidation and expanded capabilities among the top players has made it difficult for smaller and mid-sized players to compete for sizeable long-term contracts from medical device OEMs and startups.

Market Opportunities – Rising demand for upgraded healthcare infrastructure

The medical device engineering services market witness strong growth opportunities owing to rising demand for upgraded healthcare infrastructure across major markets. Continued expansion in healthcare expenditure globally leads to higher spending on medical technologies. Outsourcing of research and development activities is also surging among medical device OEMs to focus on their core offerings. This opens up opportunities for engineering service providers to take on greater product development responsibilities.

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Service Type segment is sub-segmented into product development, clinical trial services, quality management, others. The product development segment is expected to hold 43.5% of the market share in 2024 due to rising demand for innovation in the healthcare sector. New diseases conditions are constantly being discovered, requiring novel solutions. At the same time, existing diseases continue evolving, necessitating improvements to current treatment methods and technologies. Product development aids medical device companies in addressing these needs through the entire life cycle of transforming an idea into a commercialized product. Stringent regulatory standards make the product development process longer and more complex. External providers help navigate these compliance requirements and approval pathways. Their expertise shortens time to market while ensuring products meet safety and efficacy benchmarks.

Insights, By Device Type: IVD devices lead product type segment due to point-of-care convenience

Device Type segment is sub-segmented into IVD Devices, diagnostic imaging, monitoring devices, others. IVD Devices is expected to hold 34.7% of the market share in 2024 owing to growing demand for point-of-care diagnostic convenience. consumables. Rather than sending samples to centralized labs, IVD technologies enable testing and obtaining results in a physician's office, hospital bedside, pharmacy, or even the home. Their portability offers significant advantages over traditional lab-based methods.

Regional Insights

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North America remains the dominant region in the global medical device engineering services market and is anticipated to hold 34.7% of the market share in 2024, owing to the strong presence of related industries and infrastructure support in the region. The U.S. accounts for the majority share driven by significant domestic demand and a growing patient pool requiring medical devices. Furthermore, favorable business environments and policies have attracted many international players to set up manufacturing and R&D hubs in the region to cater to the local as well as global markets.

Asia Pacific region has emerged as the fastest growing market for medical device engineering services. Countries like China, India, Japan and Singapore have established themselves as key hubs for medical devices outsourcing due to availability of low-cost yet high-skilled talent pool. International companies are extensively outsourcing engineering design and development works as well as contract manufacturing to the Asian markets to leverage cost advantages.

Market Report Scope

Key Developments

• In November 2023, L&T Technology Services Limited, a leading global pure-play engineering services company, announced a collaboration with NVIDIA, a technology company, to develop software-defined architectures for medical devices focused on endoscopy. It will enhance the image quality and scalability of products.
• In October 2020, Tata Elxsi, a global design and technology services company, opened a Global Engineering Center (GEC) with Aesculap AG, a subsidiary of B. Braun, one of the world´s leading manufacturers of medical devices and pharmaceutical products and services. Tata Elxsi has been selected as the global engineering services partner by Aesculap. The GEC is part of a strategic multi-year engagement in the field of engineering services

*Definition: Medical Device Engineering Services Market provides engineering design, development and testing services to medical device companies. It helps companies design and develop innovative medical equipment, devices, components and accessories used in various medical applications like drug delivery, in-vitro diagnostics, cardiology, radiology and many more. Medical device engineering services include concept design, product development and testing, validation and regulatory services which ensure medical devices meet necessary safety, efficacy and quality standards.

Market Segmentation

•  Service Type Insights (Revenue, USD Bn, 2019 - 2031)
  • Product Development
  • Clinical Trial Services
  • Quality Management
  • Others
•  Device Type Insights (Revenue, USD Bn, 2019 - 2031)
  • IVD Devices
  • Diagnostic Imaging
  • Monitoring Devices
  • Others
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • 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.