Global Medical Device Contract Manufacturing Market Size

Medical Device Contract Manufacturing Market Analysis

The medical device contract manufacturing market is expected to register a CAGR of 10.5% over the forecast period, 2022-2027.

The contract manufacturing market for medical devices has rebounded with strong demand from customers despite the disruption caused by the COVID-19 pandemic. The strong uptick reflects this in outsourcing providers' merger and acquisition (M&A) activities. Also, as per a 2020 update by the United States Food and Drug Administration (US-FDA), the pandemic triggered an unprecedented demand for medical devices such as ventilators, oxygen concentrators, and COVID-19-related products. Thus, there has been an increase in outsourcing activities for developing medical devices through companies engaged in contract manufacturing. For instance, in October 2020, Relay Medical Corp. and Fio Corporation, together with Fidonet Rapid Response Group, reported that the United States-based would produce its Fionet pandemic response devices with an FDA-approved contract manufacturer, KeyTronic, which offers turnkey services and global reach. The company has reported making COVID-19-related medical devices recently. Also, per an October 2020 update by the National Institutes of Health (NIH), the organization is working in collaboration with the Biomedical Advanced Research and Development Authority (BARDA), reporting the third round of contract awards for scale-up and manufacturing of new COVID-19 testing technologies. Thus, the factors above indicate that the COVID-19 pandemic has positively impacted the market's growth.

Furthermore, the significant factors contributing to the market's growth are the growing medical device market and technological advancements.

The growing medical device market is a significant factor driving the market's growth. For instance, as per the 2022 World Health Organization (WHO) update, there are an estimated 2 million different kinds of medical devices categorized into more than 7000 generic device groups. Also, in June 2021, Rosti Romania secured a new medical device contract for its new manufacturing facility. This indicates the growth in the medical devices market worldwide, which is increasing the demand for contract manufacturing services. Also, some companies do not have in-house capabilities for manufacturing medical devices. As a result, contract manufacturing of such devices is preferred, ultimately boosting the market's growth.

Several initiatives are being launched to expand the use of medical devices. For instance, in October 2021, the Indian government announced plans to draft a new drug, cosmetics, and medical device bill to increase the acceptability of medical devices in the global market. Additionally, in October 2021, SpinaFX Medical Inc. reported signing a commercialization contract manufacturing agreement with StarFish Product Engineering Inc., Canada's largest medical device design, development, and manufacturing services organization.

However, consolidation of the medical device market is a significant factor hindering the medical device contract manufacturing market.