Global Medical Device Contract Manufacturing Market Size (2024 - 2029)

Medical Device Contract Manufacturing Market Analysis

The Global Medical Device Contract Manufacturing Market size is estimated at USD 86.84 billion in 2024, and is expected to reach USD 142 billion by 2029, at a CAGR of 10.33% during the forecast period (2024-2029).

Contract manufacturing is one of the growing practices across the medical devices sector. It allows medical device companies to focus on their core competencies, such as research and development (R&D) and strategic planning, among others. Key factors such as the growing demand for medical devices and an increasing number of technological advancements in medical devices are expected to drive market growth over the study period. In addition, the growing demand for customized medical devices, and cost-efficient products are further expected to bolster the demand for contract manufacturing services of medical devices.

Additionally, contract manufacturers' capabilities to scale up and scale down production according to market demand can reduce the capital expenditures of the market players. For instance, according to June 2023 data from Bendable Technology Solutions Private Limited, contract manufacturers have the required manufacturing infrastructure and can quickly scale up and down production to meet market fluctuations. Thus, such capabilities associated with contract manufacturers are likely to heighten their importance in the medical device arena over the coming years.

Furthermore, the growing innovations in medical technology, such as minimally invasive surgical devices, digital health solutions, and advanced materials, necessitate specialized manufacturing capabilities. For instance, according to an article published by the European Cardiology Review (ECR) in August 2023, cardiac devices, including leadless permanent pacemakers, have higher applications in the management of cardiac rhythm issues, and the introduction of advanced battery-less pacemakers has created a significant demand for precise manufacturing to reduce the risk of possible complications. Such evolving medical technology and the requirement for specialized manufacturing capabilities have fueled the demand for medical device contract manufacturers as they have all the required infrastructure, including specialized manufacturing units and regulatory accreditation, among others.

Moreover, the evolving medical device sector worldwide and growing government initiatives to foster the medical devices sector are likely to create new business avenues in medical device manufacturing, and this, in turn, is projected to fuel the industry uptake over the study period. For instance, in April 2023, the Government of India approved a new policy for the medical devices sector in India. Under this initiative, the government initiated the production-linked incentive scheme (PLI) to localize and promote the local manufacturing of medical devices in India. Therefore, such initiatives to foster the medical devices sector push manufacturers to outsource their manufacturing activities to expand their product offerings.

Therefore, the above-mentioned factors, such as technology advancements, growing investment in the medical device arena, and supportive government initiatives to promote contract manufacturing, are expected to accelerate market growth over the forecast period. However, factors such as consolidation in the medical device sector are likely to impede industry uptake over the coming years.

Medical Device Contract Manufacturing Industry Segmentation

As per the scope of the report, medical device contract manufacturing is an outsourcing model where a company specializes in producing medical devices or components on behalf of another organization, ensuring compliance with industry standards and regulations. This arrangement allows clients to focus on core competencies while leveraging the expertise and resources of contract manufacturers to bring high-quality products to market efficiently.

The market is segmented by devices, services, and geography. By devices, the market is segmented as, (IVD devices, diagnostic imaging devices, cardiovascular devices, drug delivery devices, endoscopy devices, ophthalmology devices, orthopedic devices, dental devices, and other devices. By drug delivery devices, the market is sub-segmented as syringes, pen injectors, and others. By services, the market is segmented as device development and manufacturing services, quality management services, and assembly services. The device development and manufacturing services segment is further sub-segmented as, device engineering service, process development service, and device manufacturing service. In addition, the quality management service is further sub-segmented as inspection & testing service and packaging & validation service. By geography the market is segmented as North America, Europe, Asia Pacific, Middle East and Africa, and South America. The report also covers the market sizes and forecasts for the medical device contract manufacturing market in major countries across different regions. For each segment, the market size is provided in terms of value (USD).