Market Trends of Global Medical Device Contract Manufacturing Industry
IVD Devices Segment is Expected to Witness Considerable Growth Over the Forecast Period
In-vitro diagnostic devices are used to diagnose, treat, or prevent health conditions. They are meant to collect and examine biological samples like blood, saliva, or tissue. With the increasing prevalence of chronic and infectious diseases, the demand for IVD equipment is surging. Furthermore, strategic agreements among market players, designed to reshape the outsourcing landscape of IVD devices, are set further to fuel this segment's growth in the years ahead. For instance, according to the Health Facts Report 2023 published by the Ministry of Health Indonesia, infectious disease and parasitic infections ranked 6th among the ten principal causes of hospitalizations in MOH (Medical Officer of Health) hospitals in 2022. This alarming surge in the paradigm of infectious diseases highlights the need for rapid diagnostics to diagnose disease at the early stage for better outcomes.
In addition, according to November 2023 data from China’s Center for Disease Control and Prevention (CDC), the prevalence rate of reported HIV/Aids cases rose from 1.09 per 100,000 people in the past decade to 79.62 in this decade, an increase of more than 7,000% since the past decade. This anticipated rise in the burden of infectious diseases has created a massive demand for rapid IVD tests, and this trend is anticipated to propel the manufacturing of IVD devices, thereby creating a significant demand for contract manufacturing.
Moreover, expanding business agreements and collaborations between manufacturers to widen contract manufacturing of IVD devices are further anticipated to bolster industry uptake over the coming years. For instance, in April 2024, Prolight Diagnostics appointed FlexMedical Solutions as a contract manufacturing partner to produce disposable cartridges for the Psyros point-of-care system. Similarly, in January 2024, Agape Diagnostics Ltd. and Fujirebio Holdings, Inc. signed a CDMO agreement to manufacture Cartridge CLIA system reagents for immunology devices Mispa i121 and Mispa i60. Such ongoing agreements and deals between market players to transform contract manufacturing practices in the IVD arena are further expected to offer lucrative business opportunities for segment growth.
Hence, the factors mentioned above, including the growing demand for IVD devices amid the increased disease burden and surge in initiatives by market players, are expected to boost market growth over the study period.
North America Is Expected to Witness Considerable Growth Over the Forecast Period
North America is expected to witness significant growth opportunities over the forecast period. Factors such as the region's increasing demand for medical devices, growing demand for technologically advanced medical devices, and supportive government initiatives to foster medical device manufacturing in North America are anticipated to support the regional market. Moreover, the surge in the burden of chronic diseases has further propelled the demand for new-generation medical diagnostics.
The rise in the burden of chronic diseases in the region is projected to support regional market growth over the forecast period. For instance, according to the American Cancer Society, the estimated number of new cancer cases ramped up from 1.9 million in 2023 to 2.0 million in 2024. The most common type of cancers diagnosed in 2023 were breast, lung, and hematological malignancies. This significant rise in the burden of chronic diseases has created a robust demand for medical devices in the region, and this trend is likely to facilitate regional market expansion over the coming years.
Moreover, growing strategic developments such as acquisitions and mergers in the medical device sector are further expected to offer new growth avenues for market growth in the region. For instance, in January 2024, TekniPlex Healthcare acquired Seisa Medical following their strategic agreement. This acquisition helped TekniPlex Healthcare expand its offerings in minimally invasive and interventional therapies. In addition, it helped the company foster its contract manufacturing capabilities in the medical device sector. Such growing strategic business activities are further expected to shape the regional market uptake.
Therefore, the growing demand for medical devices, the surge in the incidence of chronic diseases, and rising strategic acquisitions are expected to support regional market growth over the study period.
