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. Outsourcing not only saves the resources and decreased the operating cost but also offers the opportunities for core activities. Medical device industry has the huge pain point in terms of vendor management and relationships. The medical device outsourcing are mainly controlled by the rising demand for quality of medical products and healthcare services. The manufacturers are looking for the option to outsource their medical device manufacturing processes to the third party medical contract manufacturers, thus the medical device outsourcing market is experienced to grow upward on a global level.
Medical Device Outsourcing Market - Drivers
Increasing prevalence cardiovascular diseases drives the growth of medical device outsourcing market. According to the American Heart Association, 2016, cardiovascular diseases account for 17.3 million deaths every year globally, where an estimated 23.3 million people are expected to die from CVD by 2030, thus illustrating the rising need to adopt devices. Also, according to American Heart Association, in 2019, 48% i.e. nearly half of all adults in U.S. have some type of cardiovascular diseases.
Moreover, manufacturers are developing well established strategies by undergoing acquisition to become the leading supplier minimally invasive medical device delivery and access devices which serves medical devices original equipment manufacturers (OME). For instance, in 2016, TE Connectivity Ltd., announced that it has entered into the agreement to acquire the Creganna Medical Group. The acquisition of Creganna Medical is a part of well-established strategy to expand the leadership position of TE connectivity in harsh environment. Medical device outsourcing provides the instant insights about health status thereby, providing significant opportunities in improving medical device outsourcing. For instance, the key players in developing countries of Asia Pacific and Latin America produce the considerable increase in the revenue due to the growth in the opportunities which is offered by these regions.
However, the inadequate reimbursement policies and threat of information loss to the original equipment manufacturers (OEM) are some factor that hinder the growth of the market. OEM in medical devices are linked to share the information related to their product, collaboration, agreements and outsourcing to the third party. This will lead to form the data loss or theft which hold the business of OME. Hence, as a means of cost reduction, OMEs are unsure to adopt the medical device outsourcing, which will directly hampers the medical device outsourcing products.
Medical Device Outsourcing Market - Regional Insights
On the basis of region, the medical device outsourcing market is segmented into North America, Latin America, Europe, Asia Pacific, Middle East, and Africa. North America holds dominant position in the medical device outsourcing market, owing to existence of advanced technological electronic sector, large number of medical device manufacturers. Increasing demand for medical devices like wearable devices, owing to increase prevalence of chronic diseases that fuels the regional market growth. According to the National Health Council, 2015, chronic diseases affect over 70 million individuals in the U.S., which accounts for over 75% of the healthcare expenditures equaling to around US$ 2 trillion. Moreover, rising economic burden with increasing incidences of chronic diseases is expected to increase the adoption of medical device outsourcing, in order to efficiently prevent and treat the diseases. According to the Center for Advanced Life Cycle Engineering, University of Maryland, 2015, the treatment expenditure and loss of productivity is projected to be around US$ 790 billion and US$ 3.363 trillion, respectively in the U.S. in 2023.
Asia Pacific is expected to gain the fastest growth in demand for medical device outsourcing during forecast period, as it consists of tax breaks and incentives such as lower tariffs and duties to foreign companies in this nations offer an opportunity for market growth.
Medical Device Outsourcing Market - Competitive Landscape
The market share of key players is increased by growing number of acquisitions in coming years. For instance, in 2016, Cirtec Medical acquired the Stellar Technologies Inc., a components manufacturer to improve the technology for customers in neuromodulation market. Similarly, in July 2017, GE Healthcare announced the acquisition on Novia Strategies, Inc., which help the healthcare firms to meet the market demand for growing access.
Some of the key players operating in the global medical device 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.
Medical Device Outsourcing Market - Market Taxonomy
On the basis of service type, the global medical device outsourcing market is segmented into:
On the basis of application, the global medical device outsourcing market is segmented into:
On the basis of region, the global medical device outsourcing market is segmented into:
Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:
In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.
Coherent Market Insights desk research is based on a principle set of research techniques:
Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:
Preliminary Data Mining
The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.
Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.
Coherent Statistical model
We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:
Once the findings are derived from the statistical model, large volume of data is process to confirm accurate research results. Data analytics and processing tools are adopted to process large chunk of collected informative data. In case, a client customizes the study during the process, the research finding till then are benchmarked, and the process for new research requirement is initiated again.
This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:
The primary research is conducted with the ecosystem players including, but not limited to:
Finding it difficult to find the research that would cater to your business demands? Give us a chance to help you. One of our Research Consultants will connect to provide a customized solution.[email protected]
Talk to our research consultant to design an exclusive report as per your research needs.
We aim to fulfil client's research demands with tailored research solutions.
We aim to provide research studies in quickest turnaround time and in a much cost effective manner.
We cover each industry from supply and demand side with an aim to provide a most holistic research study.
We strive to provide most accurate and reliable research findings in our research reports.