Impact Analysis of Covid-19

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Medical device outsourcing market is the phenomenon that emphasize on contracting with third party for product design, manufacturing, packaging, validation, prototyping and verification of medical devices in sterile and controlled environment for supply chain management.

The global medical devices outsourcing market is estimated to account for US$ 50,775 Mn in terms of value in 2020 and is expected to reach US$ 109,818.8 Mn by the end of 2027.

Global Medical Devices Outsourcing Market: Drivers

Increasing prevalence of chronic diseases is expected to propel growth of the global medical devices outsourcing market over the forecast period. For instance, according to the American Cancer Society, in 2019, there will be an estimated 1,762,450 new cancer cases diagnosed and 606,880 cancer deaths in the U.S.

Moreover, stringent government regulations for acquiring quality certifications are also expected to aid in growth of the market. Class II medical devices require pre-market approvals and 510(K) clearance, obtaining which involves a lengthy procedure. Medical device manufacturers are increasingly engaging consulting services to understand the regulations and the documentation required to obtain pre market approvals. 

Product Design And Development held dominant position in the global medical devices outsourcing market in 2019, accounting for 27.6% share in terms of value, followed by Regulatory Consulting and other services, and Product maintenance, respectively.

Figure 1: Global Medical Devices Outsourcing Market Share (%) Value, By Region, 2019

Medical Devices Outsourcing  | Coherent Market Insights

Global Medical Devices Outsourcing Market: Restraints

Adoption of multiple outsourcing partners is expected to hinder growth of the market.  Healthcare companies such as Boston Scientific and Johnson and Johnson are outsourcing medical device manufacturing services to multiple service providers. Due to the lack of end-to-end service providers, different outsourcing partners are used for different processes such as part manufacturing, product design, process validation, and regulatory consultation. This may hinder the growth of the market for medical devices. Multiple outsourcing also causes time constraints and requires effective coordination to ensure enhanced and optimized productivity.

Moreover, confidential data security issues are also expected to limit the market growth. Services such as product designing, product prototyping and process validation involve intellectual property right concerns. Outsourcing R&D services requires extensive data sharing between a medical device manufacturer and service provider. Many medical device manufacturers are reluctant to outsource such services for fear of losing their trade secrets.

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Laser Vision Correction Market Report Coverage

Report Coverage Details
Base Year: 2019 Market Size in 2019: US$ 45,491.2 Mn
Historical Data for: 2016 to 2019 Forecast Period: 2020 to 2027
Forecast Period 2020 to 2027 CAGR: 11.7% 2027 Value Projection: US$ 109,817.8 Mn
Geographies covered:
  • 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 Countries, Israel, Rest of Middle East
  • Africa: South Africa, North Africa, Central Africa
Segments covered:
  • By Service Type: Product Design And Development, Regulatory Consulting and other services, Product maintenance, Product upgrade, Product testing and certification, Product implementation.
  • By Device Class: Class I, Class II, Class III.
  • By Application: Cardiology, Neurology, Radiology, Anesthesia, Orthopedic, Others.
Companies covered:

Onex Corporation, Cardinal Health, Inc., Integer Holdings Corporation, TE Connectivity Ltd., Flex Ltd., Heraeus Holding GmbH, Plexus Corporation, Sanmina Corporation, West Pharmaceutical Services, Inc., Accellent Inc., Active Implants Corporation, CIRTEC Medical Systems LLC, Mdmi Technologies Inc., Micro Systems Engineering GmbH, Creganna-Tactx Medical, and Avail Medical Product.

Growth Drivers:
  • Increasing prevalence of chronic diseases requiring medical intervention
  • Increasing research and development
Restraints & Challenges:
  • High research and development costs
  • Confidential data security issues

Global Medical Devices Outsourcing Market: Opportunities

Increasing trend of outsourcing IT services is expected to offer lucrative growth opportunities for players in the global medical devices outsourcing market. IT solutions such as SAP, ERP, and CRM have improved the performance of various industries by streamlining the processes and reducing the scope of error. The demand for IT-enabled solutions has also improved with the growing demand for medical devices and the increasing production capacity of medical device manufacturers. IT solutions also help manage outsourcing partners effectively. This offers huge opportunities for firms offering supply chain management solutions such as SAP and ERP. 

Moreover, several countries in Asia Pacific are encouraging outsourcing by setting up special economic zones. The lower taxes in these zones help reduce the cost of medical devices manufactured in the area. This in turn is also expected to aid in growth of the market. 

The global medical devices outsourcing market was valued at US$ 45,491.2 Mn in 2019 and is forecast to reach a value of US$ 109,817.8 Mn by 2027 at a CAGR of 11.7% between 2020 and 2027.

Figure 2: Global Medical Devices Outsourcing Market Value (US$ Mn), 2016 – 2027

Medical Devices Outsourcing  | Coherent Market Insights

Market Trends/Key Takeaways

Major players in the market are focused on investing in R&D. For instance, in June 2020, Integer Holdings Corporation started The Galway Research and Development (R&D) Innovation Centre in Ireland to enhance Integer’s capability to provide high-quality medical devices and technologies.

Major players in the market are also focused on adopting M&A strategies to expand their product portfolio. For instance, in April 2019, Cardinal Health acquired mscripts, a company that delivers patient adherence and engagement solutions through an easy-to-use mobile and web-based health management platform.

Global Medical Devices Outsourcing Market: Competitive Landscape

Major players operating in the global medical devices outsourcing market include, Onex Corporation, Cardinal Health, Inc., Integer Holdings Corporation, TE Connectivity Ltd., Flex Ltd., Heraeus Holding GmbH, Plexus Corporation, Sanmina Corporation, West Pharmaceutical Services, Inc., Accellent Inc., Active Implants Corporation, CIRTEC Medical Systems LLC, Mdmi Technologies Inc., Micro Systems Engineering GmbH, Creganna-Tactx Medical, and Avail Medical Product.

Global Medical Devices Outsourcing Market: Key Developments

Major players in the market are focused on adopting partnership strategies to expand their product portfolio. For instance, in April 2020, Electrochem Solutions, an Integer Holdings Corporation company, signed a technology licensing partnership with Nanoramic Laboratories that allows Electrochem to manufacture, sell and distribute Nanoramic’s FastCAP EE Series ultracapacitors worldwide.

Major players in the market are also focused on adopting M&A strategies to expand their product portfolio. For instance, in February 2020, Heraeus Medical Components, a part of Integer Holdings Corporation, acquired Contract Medical International.

Medical device outsourcing involves contracting with third party organizations who excel in medical device prototyping, conceptualization, and other aspects. Medical device outsourcing market is the phenomenon that emphasize on contracting with third party for product design, manufacturing, packaging, validation, prototyping and verification of medical devices in sterile and controlled environment for supply chain management.

Restraints of the Global Medical Devices Outsourcing Market

Major factors hampering the growth of the medical devices outsourcing market during the forecast period constitutes of high research and development costs, and confidential data security issues.

Key features of the study:

  • This report provides in-depth analysis of the global medical devices outsourcing market and provides market size (US$ Million) and compound annual growth rate (CAGR %) for the forecast period (2019–2027), considering 2018, as the base year
  • It elucidates potential revenue opportunity across different segments and explains attractive investment proposition matrix for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, regional outlook, and competitive strategy adopted by leading players
  • It profiles leading players in the global medical devices outsourcing market based on the following parameters – company overview, financial performance, product portfolio, geographical presence, distribution strategies, key developments, strategies, and future plans
  • Key companies covered as a part of this study include Onex Corporation, Cardinal Health, Inc., Integer Holdings Corporation, TE Connectivity Ltd., Flex Ltd., Heraeus Holding GmbH, Plexus Corporation, Sanmina Corporation, West Pharmaceutical Services, Inc., Accellent Inc., Active Implants Corporation, CIRTEC Medical Systems LLC, Mdmi Technologies Inc., Micro Systems Engineering GmbH, Creganna-Tactx Medical, and Avail Medical Product.
  • Insights from this report would allow marketers and the management authorities of companies to make informed decision regarding future product launches, technology up-gradation, market expansion, and marketing tactics
  • The global medical devices outsourcing market report caters to various stakeholders in this industry including investors, suppliers, product manufacturers, distributors, new entrants, and financial analysts.
  • Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the market.

Detailed Segmentation

  • Global Medical Devices Outsourcing Market, By Service Type:
    • Product Design And Development
    • Regulatory Consulting and other services
    • Product maintenance
    • Product upgrade
    • Product testing and certification
    • Product implementation
  • Global Medical Devices Outsourcing Market, By Device Class:
    • Class I
    • Class II
    • Class III
  • Global Medical Devices Outsourcing Market, By Application:
    • Cardiology
    • Neurology
    • Radiology
    • Anesthesia
    • Orthopedic
    • Others
  • Global Medical Devices Outsourcing Market, By Geography:
    • North America
      • By Service Type
        • Product Design And Development
        • Regulatory Consulting and other services
        • Product maintenance
        • Product upgrade
        • Product testing and certification
        • Product implementation
      • By Device Class
        • Class I
        • Class II
        • Class III
      • By Application
        • Cardiology
        • Neurology
        • Radiology
        • Anesthesia
        • Orthopedic
        • Others
      • By Country:
        • U.S.
        • Canada
    • Europe
      • By Service Type
        • Product Design And Development
        • Regulatory Consulting and other services
        • Product maintenance
        • Product upgrade
        • Product testing and certification
        • Product implementation
      • By Device Class
        • Class I
        • Class II
        • Class III
      • By Application
        • Cardiology
        • Neurology
        • Radiology
        • Anesthesia
        • Orthopedic
        • Others
      • By Country:
        • U.K.
        • Germany
        • Italy
        • France
        • Spain
        • Russia
        • Rest of Europe
    • Asia Pacific
      • By Service Type
        • Product Design And Development
        • Regulatory Consulting and other services
        • Product maintenance
        • Product upgrade
        • Product testing and certification
        • Product implementation
      • By Device Class
        • Class I
        • Class II
        • Class III
      • By Application
        • Cardiology
        • Neurology
        • Radiology
        • Anesthesia
        • Orthopedic
        • Others
      • By Country:
        • China
        • India
        • Japan
        • ASEAN
        • Australia
        • South Korea
        • Rest of Asia Pacific
    • Latin America
      • By Service Type
        • Product Design And Development
        • Regulatory Consulting and other services
        • Product maintenance
        • Product upgrade
        • Product testing and certification
        • Product implementation
      • By Device Class
        • Class I
        • Class II
        • Class III
      • By Application
        • Cardiology
        • Neurology
        • Radiology
        • Anesthesia
        • Orthopedic
        • Others
      • By Country:
        • Brazil
        • Mexico
        • Argentina
        • Rest of Latin America
    • Middle East:
      • By Service Type
        • Product Design And Development
        • Regulatory Consulting and other services
        • Product maintenance
        • Product upgrade
        • Product testing and certification
        • Product implementation
      • By Device Class
        • Class I
        • Class II
        • Class III
      • By Application
        • Cardiology
        • Neurology
        • Radiology
        • Anesthesia
        • Orthopedic
        • Others
      • By Country:
        • GCC
        • Israel
        • Rest of Middle East
    • Africa
      • By Service Type
        • Product Design And Development
        • Regulatory Consulting and other services
        • Product maintenance
        • Product upgrade
        • Product testing and certification
        • Product implementation
      • By Device Class
        • Class I
        • Class II
        • Class III
      • By Application
        • Cardiology
        • Neurology
        • Radiology
        • Anesthesia
        • Orthopedic
        • Others
      • By Country/Region:
        • Central Africa
        • South Africa
        • North Africa
  • Company Profiles
    • Onex Corporation*
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
    • Cardinal Health, Inc.
    • Integer Holdings Corporation
    • TE Connectivity Ltd.
    • Flex Ltd.
    • Heraeus Holding GmbH
    • Plexus Corporation
    • Sanmina Corporation
    • West Pharmaceutical Services, Inc.
    • Accellent Inc.
    • Other Major Players

 “*” marked represents similar segmentation in other categories in the respective section.

Table of Contents

  1. Research Objective and Assumption
    • Research Objectives
    • Assumptions
    • Abbreviations
  2. Market Purview
    • Report Description
      • Market Definition and Scope
    • Executive Summary
      • Market Snippet, By Service Type
      • Market Snippet, By Device Class
      • Market Snippet, By Application
    • Coherent Opportunity Map (COM)
  3. Market Dynamics, Regulations, and Trends Analysis
    • Market Dynamics
      • Drivers
      • Restraints
      • Market Opportunities
    • Impact Analysis
    • Key Developments
    • Regulatory Scenario
    • PEST Analysis
    • COVID-19 Impact Analysis
  4. Global Medical Devices Outsourcing Market, By Service Type, 2019 – 2027 (US$ Mn)
    • Introduction
      • Market Share Analysis, 2019 and 2027 (%)
      • Y-o-Y Growth Analysis, 2017–2027
      • Segment Trends
    • Product Design And Development
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2016 – 2027, (US$ Mn)
      • Segment Trends
    • Regulatory Consulting and other services
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2016 – 2027, (US$ Mn)
      • Segment Trends
    • Product maintenance
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2016 – 2027, (US$ Mn)
      • Segment Trends
    • Product upgrade
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2016 – 2027, (US$ Mn)
      • Segment Trends
    • Product testing and certification
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2016 – 2027, (US$ Mn)
      • Segment Trends
    • Product implementation
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2016 – 2027, (US$ Mn)
      • Segment Trends
  5. Global Medical Devices Outsourcing Market, By Device Class, 2019 – 2027 (US$ Mn)
    • Introduction
      • Market Share Analysis, 2019 and 2027 (%)
      • Y-o-Y Growth Analysis, 2017–2027
      • Segment Trends
    • Class I
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2016 – 2027, (US$ Mn)
    • Class II
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2016 – 2027, (US$ Mn)
    • Class III
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2016 – 2027, (US$ Mn)
  6. Global Medical Devices Outsourcing Market, By Application, 2019 – 2027 (US$ Mn)
    • Introduction
      • Market Share Analysis, 2019 and 2027 (%)
      • Y-o-Y Growth Analysis, 2017–2027
      • Segment Trends
    • Cardiology
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2016 – 2027, (US$ Mn)
    • Neurology
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2016 – 2027, (US$ Mn)
    • Radiology
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2016 – 2027, (US$ Mn)
    • Anesthesia
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2016 – 2027, (US$ Mn)
    • Orthopedic
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2016 – 2027, (US$ Mn)
    • Others
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2016 – 2027, (US$ Mn)
  7. Global Medical Devices Outsourcing Market, By Regions, 2019 – 2027 (US$ Mn)
    • Introduction
      • Market Share Analysis, 2019 and 2027 (%)
      • Y-o-Y Growth Analysis, 2017–2027
      • Segment Trends
    • North America
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2016 – 2027, (US$ Mn)
        • U.S.
        • Canada
    • Europe
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2016 – 2027, (US$ Mn)
        • U.K.
        • Germany
        • Italy
        • France
        • Spain
        • Russia
        • Rest of Europe
    • Asia Pacific
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2016 – 2027, (US$ Mn)
        • China
        • India
        • Japan
        • ASEAN
        • Australia
        • South Korea
        • Rest of Asia Pacific
    • Latin America
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2016 – 2027, (US$ Mn)
        • Brazil
        • Mexico
        • Argentina
        • Rest of Latin America
    • Middle East
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2016 – 2027, (US$ Mn)
        • GCC
        • Israel
        • Rest of Middle East
    • Africa
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2016 – 2027, (US$ Mn)
        • North Africa
        • Central Africa
        • South Africa
  8. Competitive Landscape
    • Company Profiles
      • Onex Corporation
        • Company Overview
        • Product Portfolio
        • Key Developments
        • Financial Performance
        • Strategies
      • Cardinal Health, Inc.
        • Company Overview
        • Product Portfolio
        • Key Developments
        • Financial Performance
        • Strategies
      • Integer Holdings Corporation
        • Company Overview
        • Product Portfolio
        • Key Developments
        • Financial Performance
        • Strategies
      • TE Connectivity Ltd.
        • Company Overview
        • Product Portfolio
        • Key Developments
        • Financial Performance
        • Strategies
      • Flex Ltd.
        • Company Overview
        • Product Portfolio
        • Key Developments
        • Financial Performance
        • Strategies
      • Heraeus Holding GmbH
        • Company Overview
        • Product Portfolio
        • Key Developments
        • Financial Performance
        • Strategies
      • Plexus Corporation
        • Company Overview
        • Product Portfolio
        • Key Developments
        • Financial Performance
        • Strategies
      • Sanmina Corporation
        • Company Overview
        • Product Portfolio
        • Key Developments
        • Financial Performance
        • Strategies
      • West Pharmaceutical Services, Inc.
        • Company Overview
        • Product Portfolio
        • Key Developments
        • Financial Performance
        • Strategies
      • Accellent Inc.
        • Company Overview
        • Product Portfolio
        • Key Developments
        • Financial Performance
        • Strategies
      • Other Major Players
        • Company Overview
        • Product Portfolio
        • Key Developments
        • Financial Performance
        • Strategies
  9. Section
    • References
    • Research Methodology
    • About us and Sales Contact

*Browse 35 market data tables and 26 figures on “Medical Devices Outsourcing Market – Global forecast to 2027.

Frequently Asked Questions

The global medical devices outsourcing market was valued at US$ 45,491.2 Mn in 2019 and is forecast to reach a value of US$ 109,817.8 Mn by 2027 at a CAGR of 11.7% between 2020 and 2027.
Major factor driving the growth of global medical devices outsourcing market during the forecast period include increasing prevalence of chronic diseases requiring medical intervention, and increasing research and development.
Major factors hampering the growth of the medical devices outsourcing market during the forecast period constitutes of high research and development costs, and confidential data security issues.
Product design and development held dominant position in the global medical devices outsourcing market in 2019.
North America Medical Devices Outsourcing market is expected to generate the highest revenue during the forecast period.
Some of the key players operating in the market are Onex Corporation, Cardinal Health, Inc., Integer Holdings Corporation, TE Connectivity Ltd., Flex Ltd., Heraeus Holding GmbH, Plexus Corporation, Sanmina Corporation, West Pharmaceutical Services, Inc., Accellent Inc., Active Implants Corporation, CIRTEC Medical Systems LLC, Mdmi Technologies Inc., Micro Systems Engineering GmbH, Creganna-Tactx Medical, and Avail Medical Product.
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