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The global medical device outsourcing market size is projected to value USD 292.93 billion by 2030, advancing at a CAGR of 12.1% during the period in focus. The rapid expansion in the industry may be accredited to the rising prevalence of chronic diseases along with the regulatory framework pertaining to medical devices.
Notably, medical device outsourcing helps both the supply and manufacturers. It permits device makers to focus on their primary operations such as marketing and product innovations. Moreover, it also helps in lowering the overall time and cost associated with a new product launch in the market. Through medical device outsourcing, companies save on manufacturing expenses, allowing them to compete in the industry. Some of the advantages linked to medical device outsourcing include lowered production time, early introduction of products in the market, along with quality check approvals to match the regulatory criteria. Surging pressure on manufacturers to lower the overhead expenses and cost of operation while maintaining the quality of healthcare services will positively influence the global medical device outsourcing market growth in the times to come.
Another major factor boosting the scope of business is the high geriatric population worldwide. As per credible sources, close to 1 billion of the global population is 60 years and above in age. Elderly people are susceptible to various illnesses, which in turn has contributed to a higher demand for advanced medical devices.
During the coronavirus pandemic, there was a fall in the number of diagnoses for other diseases like cancer. The COVID-19 treatment procedure drove the demand for medical devices to diagnose these diseases. Public entities worldwide are undertaking measures to increase the production of medical equipment in order to prevent any shortage.
Although it is worth noting that the advent of the coronavirus outbreak disrupted the workflows in the medical sector globally. It forced many industries to shut their doors permanently, including many sub-domains of the healthcare sector. The overall impact of the pandemic has proven to be negative for key market players in the medical device outsourcing market. The coronavirus pandemic led to severe disruption in the supply chain owing to temporary lockdown announced by the governments in many parts of the world, as a measure to control burgeoning infection cases.
However, with a gradual decline in caseload and the government lifting restrictions, the supply chain pace is likely to be back on track, proving beneficial for medical device outsourcing companies worldwide.
Considering services, the contract manufacturing segment dominated the market. Growing complexity in manufacturing has contributed to market growth over the years. Production of superior-quality and safe devices for patient care has emerged as a major concern for medical device producers. Additionally, a high level of inspection in developing medical devices with regard to their efficacy, safety, and quality has led to layers of standardization and regulations.
With respect to the scope of application, cardiology led the segment over the years and is expected to dominate through the period in focus. Over the years, cardiovascular diseases have emerged as one of the primary causes of death in young and old people. This may be owing to the high prevalence of conditions such as angina pectoris, hypertensive heart disease, atrial fibrillation, myocardial infarction, and congenital heart disease.
Superior complexity of cardiovascular diseases calls for medical devices that are technologically advanced to offer precision which may also be costly. As a result, this may result in the higher outsourcing of medical devices.
Regionally speaking, North America has emerged as a key marketplace for medical device outsourcing companies due to the highly advanced medical sector, growing awareness among healthcare professionals regarding medical devices, and the constant evolution of technology. High disposable income among people in the region and the ability to spend on up-to-date medical devices are some of the main factors driving the regional market growth. Notably, the region has become home to many medical device providers, who are outsourcing their regulatory and consulting operations to various regulatory service consultants, further supplementing the regional medical device outsourcing market growth.
Research Support Specialist, USA