- Growing demand for outsourcing services is driving the market.
- Potential risks associated with outsourcing are some the barriers in medical devices outsourcing market.
- The Asia Pacific region remains the preferred medical devices outsourcing destination.
The latest market report published by Credence Research, Inc. “Medical Devices Outsourcing Market – Growth, Future Prospects, Competitive Analysis, 2018 – 2026,” the global medical devices outsourcing market was valued at $39.20 billion in 2017 and expected to grow at compound annual growth rate (CAGR) of 10.6% during the forecast period from 2018 to 2026.
The global medical devices outsourcing market is projected to grow at a steady rate during the forecast period owing to growing demand for outsourcing services to minimize the OEM production overheads and operational cost while maintaining the quality of the products. Moreover, outsourcing reduces the production time and accelerates the market entry of the products. Service providers have broadened their portfolio by providing various services apart from manufacturing such as regulatory compliance services, product design and development, product up gradation and maintenance.
This has led to the growing demand for medical devices outsourcing market in the recent years. The prime reason for the growth of the market is the growing medical devices industry worldwide leading to outsourcing of the services. Outsourcing helps manufacturers to improve the return on investment and helps in acquiring special knowledge, facilities and expertise at an inexpensive rate which would otherwise be expensive in house.
However, potential risks associated with outsourcing such as regulatory scrutiny and civil lawsuits of medical devices from consumers, high quality product expectation from payers and risk of data security are some the barriers in medical devices outsourcing market.
In terms of applications, cardiology segment held the largest share in the market owing to growing cardiology devices market worldwide. Growing cardiac ailments have boosted the growth of cardiology devices market, subsequently driving the cardiology devices outsourcing. In terms of geography, Asia Pacific held the largest share in the global medical devices outsourcing market. Asia Pacific, especially China and India are the global hub for medical devices and pharmaceutical outsourcing.
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Growing number of contract research organizations (CROs) and contract development and manufacturing organizations (CDMOs) are the major driving factor of the market. Growing efforts to improve the quality of services as per international standards for quality management systems will further promote companies to opt for Asia Pacific as the preferred medical devices outsourcing destination. North America and Europe also hold substantial market share in the global market.
However, high service cost compared to Asia Pacific is the major growth driver for the regions. The key players currently engaged in medical devices outsourcing market include Covance, Inc., Pharmaceutical Product Development, LLC. (PPD), Charles River Laboratories International, Inc., Laboratory Corporation of America, ICON plc., inVentiv Health, Parexel International, Eurofins Scientific, Toxikon, Inc. and Pace Analytical Services, LLC.