MEDICAL DEVICE CONTRACT MANUFACTURING MARKET ANALYSIS

Market Challenges And Opportunities

Global Medical Device Contract Manufacturing Market Drivers:

Rise in burden of chronic diseases to drive market growth

One of the key factors expected to augment growth of the medical device contract manufacturing market during the forecast period is the increasing prevalence of chronic diseases across the world. With the increasing prevalence of chronic diseases, the use or demand for medical devices is also increasing, as they are used to prevent, diagnose, and treat such conditions. According to the World Health Organization (WHO), chronic diseases kill 41 million people each year, equivalent to 74% of all deaths worldwide. Every year, over 17 million people die from a chronic disease before age 70; 86% of these premature deaths occur in low- and middle-income countries.

Increasing demand for medical devices to propel market growth

Another factor driving the growth of the global medical device contract manufacturing market is the increasing demand for medical devices around the world. For instance, with the rise in global disease burden and growing geriatric population around the world, the demand for novel medical devices is also increasing rapidly. In May 2022, Biomerics, one of the leading vertically integrated medical device contract manufacturers serving the interventional device market, opened 2,000 sq. ft. balloon and balloon catheter centre of excellence in Galway. This is Biomerics\' first facility in Europe and the second facility outside the United States after Costa Rica.

Global Medical Device Contract Manufacturing Market Opportunities:

Growing trend of medical device contract manufacturing is expected to provide significant growth opportunities for players in the global medical device contract manufacturing market. For instance, in May 2023, ONCAP planned to invest in Biomerics, a Salt Lake City, Utah-based medical device contract manufacturer focused on micro-plastics, micro-metals, image-guided intervention, and/or final device assembly for interventional sectors. Biomerics will have over 1.2 million square feet of manufacturing space across several locations, making it one of the top Interventional Contract Development and Manufacturing Organizations worldwide.  

The outbreak of COVID-19 (global pandemic) is expected to offer significant growth opportunities for players in the global medical device contract manufacturing market. For instance, COVID-19 pandemic increased the demand for medical device such as personal protective equipment (PPE), ventilators, and diagnostic tests, among others. In March 2022, Medtronic increased the production of ventilators by more than 40% due to the global coronavirus (COVID-19) outbreak and to cater to the increase of demands of patients and healthcare systems across the world; to help meet urgent demand from hospitals worldwide fighting the novel coronavirus.

Global Medical Device Contract Manufacturing Market Restraints:

Stringent rules and regulations to hinder market growth

One of the key factors expected to hamper the growth of the medical device contract manufacturing market is the stringent rules and regulations. With increase in adverse effects by the use of medical devices, countries with strong medical device industry initiated the process of either developing or strengthening their regulatory systems. The need for regulation has increased primarily to enable access to high-quality, safe, and effective medical devices for patients. The product is developed according to the specifications sent by the OEMs in compliance with guidelines.

Risk of consolidation to hamper the market growth

Another factor which is hampering the growth of the global medical device contract manufacturing market is the risk of consolidation. For instance, the top global medical device manufacturers are acquiring small/medium-sized specialized companies to enhance their internal capabilities. Other companies are focusing on acquiring contract manufacturing organizations (CMOs) to reduce their expenses related to the contract manufacturing. This in turn is expected to transfer small percentage of manufacturing from CMOs to OEMs.