With the rising incidence of chronic diseases and the surging healthcare expenditure of several countries, the demand for medical devices is shooting up across the world. For instance, according to the World Health Organization (WHO), cancer caused the deaths of 9.6 million people in 2018 and it was the second biggest cause of death across the world. Furthermore, the organization found the around 422 million people around the world are living with diabetes, and the disease is responsible for 1.6 million deaths every year.
Additionally, as per an article published in the Cardiac Failure Review, 5.7 million heart failures were reported in the U.S. in 2016, and this number is expected to rise to 8 million by 2030. As a result of the rising incidence of these diseases, many medical device manufacturers are outsourcing the production processes as it helps them reduce cost and save time. Moreover, in order to manage maintenance and quality control, medical device manufacturers are outsourcing the production operations to various contract manufacturing organizations (CMOs) located in South Korea, China, and Taiwan.
Because of the aforementioned factors, the medical device outsourcing market is exhibiting huge expansion. According to the estimates of the market research company, P&S Intelligence, the market revenue will grow from $44.9 billion in 2016 to $84.9 billion by 2023. Furthermore, the market is expected to advance at a CAGR of 9.7% from 2017 to 2023 (forecast period). Raw materials/components, finished goods, and electronics are the major medical device products manufactured across the world.
Geographically, North America is predicted to dominate the medical device outsourcing market in the forthcoming years. Europe is expected to be the second biggest regional market in the coming years. This will be because of the existence of a large geriatric population and several well-established medical device manufacturing outsourcing companies in the regions. The popularity of outsourcing medical device manufacturing processes is also expected to surge in the Asia-Pacific and Latin America, Middle East, and Africa regions in the coming years.
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This study covers
- Major factors driving the market and their impact during the short, medium, and long terms
- Market restraints and their impact during the short, medium, and long terms
- Recent trends and evolving opportunities for the market participants
- Historical and the present size of the market segments and understand their comparative future potential
- Potential of on-demand logistics services, so the market players make informed decisions on the sales of their offerings
- Competitive scenario of various market segments across key countries in several regions for uncovering market opportunities for the stakeholders
- Major players operating in the market and their service offerings