Product Design and Development Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Product Design and Development Market is Segmented by Service Type (Research, Strategy, and Concept Generation, Concept and Requirements Development, Design and Process Development, Design and Process Verification, and Other Service Types), Application (Clinical Laboratory Equipment, Therapeutics Equipment, Diagnostic Equipment, Surgical Equipment, Consumables, and Others), End-User (Medical Devices Companies, Pharmaceutical and Biopharmaceutical Companies, and Other End Users) and Geography (North America, Europe, Asia-Pacific, Middle-East and Africa, and South America). The report offers the market sizes and forecasts in value (USD million) for all the above segments.

Market Snapshot

product design and development market
Study Period: 2019-2027
Base Year: 2021
Fastest Growing Market: Asia-Pacific
Largest Market: Asia-Pacific
CAGR: 10.9 %

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Market Overview

The product design and development services market is expected to register a CAGR of 10.9% during the forecast period of the study (2022-2027).

The emergence of the COVID-19 pandemic led to a significant impact on the healthcare market due to the restrictions imposed to curb the spread of the infection. Activities such as research and development, product design, and logistics were impacted, which had an impact on the product design and development market initially. However, the COVID-19 pandemic led to a huge demand for medical supplies such as masks, medical equipment such as ventilators, oxygen concentrators, etc., all over the world, which may have a positive impact on the growth of the studied market. Further, the emergence of telemedicine and the necessity for remote monitoring during the pandemic can have a significant impact on the growth of the market as the demand for remote diagnostics and monitoring devices is increasing all over the world.

The designing and development of the medical devices/instrument are very complex procedures as the design and development of these products must adhere to the laid stringent regulatory policies by the regulatory authorities and involves nexus of technologies for development which make the process very complex and costly. Also, the design and development process requires a specific set of skills and skilled professionals. These factors lay an extra burden on the core medical device/instrument manufacturing companies, and thus, the medical companies are outsourcing the product design and development activity to the companies whose primary business is a product design and development to accelerate the design and development procedures and also, decrease the overall cost of development which is expected to be a significant driver for the growth of the product design and development market.

For instance, according to the research study published by Petra Maresova et al. in July 2020, the medical device development process involves one to seven stages. There are five phases of the comprehensive medical device development (MDD) life cycle, which include opportunity and risk analysis, concept and feasibility, verification and validation, product launch preparation, and product launch and post-launch assessment. These individual MDD phases are linear and separated by gates that are characterized by certain set criteria that must be met before MDD can proceed further, making MDD a very long and complex procedure. Therefore, the demand for medical product design and development service providers is expected to increase over the forecast period of the study, and the studied market will grow.

The other factors that are expected to augment the growth of the studied market are the growing demand for small and portable medical devices such as monitoring devices, diagnostics devices, etc., especially for home care, coupled with the growing integration between the medical technologies with advancement in the digitalization and growing burden of chronic diseases and geriatric population, globally. For instance, according to the World Population Aging Highlight 2020 report published by the United Nations, the global geriatric (population of age 65 years and more) population is expected to increase from 727 million in 2020 to 1.5 billion by 2050, which is expected to increase the demand for various kinds of medical devices such as therapeutics, diagnostics, surgical, etc., and fuel growth in the studied market. However, due to lack of adequate funding for design and development and information security concerns of original equipment manufacturers (OEMs) are expected to restrain the growth of the product design and development market over the forecast period of the study.

Scope of the Report

As per the scope of the report, the process of conceiving, producing, and iterating products that solve users' issues or satisfy specific medical needs is known as product design, and product development refers to the entire process of creating new products and bringing them to market, from conception to deployment. Various companies offer product design and development services to medical device manufacturing companies and other end-users.

The product design and development market is segmented by service type (research, strategy, and concept generation, concept and requirements development, design and process development, design and process verification, and other service types), application (clinical laboratory equipment, therapeutics equipment, diagnostic equipment, surgical equipment, consumables, and others), end-user (medical devices companies, pharmaceutical and biopharmaceutical companies, and other end-users) and geography (North America, Europe, Asia-Pacific, Middle-East and Africa, and South America). The market report also covers the estimated market sizes and trends for 17 different countries across the major regions globally. The report offers the value (in USD million) for all the above segments.

By Service Type
Research, Strategy, and Concept Generation
Concept and Requirements Development
Design and Process Development
Design and Process Verification
Other Service Types
By Application
Clinical Laboratory Equipment
Therapeutics Equipment
Diagnostic Equipment
Surgical Equipment
Consumables
Others
By End User
Medical Devices Companies
Pharmaceutical and Biopharmaceutical Companies
Other End Users
Geography
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
France
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Rest of Asia-Pacific
Middle-East and Africa
GCC
South Africa
Rest of Middle-East and Africa
South America
Brazil
Argentina
Rest of South America

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Key Market Trends

Surgical Instrument Segment is Expected to Occupy a Significant Share in the Studied Market

The increasing prevalence and burden of chronic diseases around the world are driving the demand for effective and advanced treatment services that involve surgical procedures and due to which the number of surgical procedures performed around the world is increasing and further expected to increase in the near future and hence, surgical instrument segment is expected to hold a significant share in the studied market as rising in number and demand of surgical procedures will directly increase the demand of the surgical instruments around the world.

For instance, as per the research study published in September 2020, titled “Estimation of the National Surgical Needs in India by Enumerating the Surgical Procedures in an Urban Community Under Universal Health Coverage,” about 11% of the global burden of disease requires surgical, or anesthesia care or both, and an estimated 3,646 surgeries would be required annually to meet the surgical needs of the Indian population as compared to the global estimate which is 5,000 surgeries per 100,000 people. Thus, with the rising demand for surgical procedures around the world, the demand for the design and development of advanced surgical instruments is expected to increase, which will drive growth in the studied segment.

Further, the number of surgeries is increasing globally due to advancement in the various medical devices like implants which are better than the previous ones and offers a better chance of treatment and living a normal life to the patients, which is further expected to drive growth in the surgical instrument segment over the forecast period. For instance, according to the June 2021 report of the Canadian Institute of Health Information, 63,496 hip replacements and 75,073 knee replacements were performed in the period 2019-2020 in Canada, and there was an average increase of about 5% in recent years in the knee and hip replacement procedures in the country. Hence, owing to the rising number of surgeries and technological innovations, the surgical instrument segment is expected to occupy a significant share in the studied market.

 product design and development market analysis

Asia-Pacific is Expected to Hold a Significant Share in the Product Design and Development Market Over the Forecast Period of the Study

The Asia-Pacific region is expected to hold a significant share in the studied market over the forecast period of the study owing to the high growth opportunities offered by the region in terms of design, development, and manufacturing. The Asia-Pacific region is home to some of the fastest-growing economies, such as India and China, which offers raw materials as well as skilled labor at very low cost as compared to the developed nations, and due to this reason, the medical device companies and original equipment manufacturers (OEMs) are outsourcing their design, development and manufacturing services in these regions which are expected to boost growth in the Asia-Pacific region during the forecast period of the study.

Also, the governments of respective countries in the Asia-Pacific region offer various incentives and relaxations in taxation norms to the medical device manufacturers, which further encourages companies to invest in these regions and thus, augment the growth of the studied market in the region. For example, In September 2021, the Government of India launched two new initiatives to boost medical device manufacturing in the country - the Production Linked Incentive Scheme (PLI) and the Promotion of Medical Devices Parks Scheme, and the Production Lined Incentives scheme provides financial incentives to stimulate domestic production and attract big investments in industries including cancer care devices, radiography and imaging equipment, anesthetics devices, and surgical implants, among others.

Further, the new investment in the area by the companies is expected to augment the growth of the studied market in the region. For instance, in February 2022, Warburg Pincus announced an investment of USD 210 million in Indian medical device manufacturing company Micro Life Sciences Private Limited, the parent organization of the Meril group of companies engaged in the design, development, and manufacturing of medical devices. Therefore, due to the above-mentioned factors, the Asia-Pacific region is expected to hold a significant share in the studied market during the forecast period of the study.

Global

Competitive Landscape

The product design and development market are moderately competitive, with many players in the market providing their services. Also, the new business expansion initiative such as mergers and acquisitions, expansion, collaboration, etc., are expected to increase the market competitiveness over the years. Some of the key players in the studied market are Jabil Inc., Sterling Medical Devices, Flex Ltd., DeviceLab Inc., Ximedica, and others.

Recent Development

  • In November 2021, Planet innovation acquired the North American operations of a medical device manufacturing company called BIT Analytical Instruments GmbH to strengthen its manufacturing capacity in the United States.
  • In December 2021, Flex Ltd. completed the acquisition of Anord Mardix to strengthen its industrial business.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

      1. 4.2.1 High Complexity Associated with Product Design and Development

      2. 4.2.2 Growing Demand for Small and Portable Medical Devices and Integration of Electronics with Medical Products

      3. 4.2.3 Increasing Burden of Chronic Diseases and Growing Geriatric Population

    3. 4.3 Market Restraints

      1. 4.3.1 Lack of Adequate Funding for Design and Development

      2. 4.3.2 Information Security Concerns of Original Equipment Manufacturers (OEMs)

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Service Type

      1. 5.1.1 Research, Strategy, and Concept Generation

      2. 5.1.2 Concept and Requirements Development

      3. 5.1.3 Design and Process Development

      4. 5.1.4 Design and Process Verification

      5. 5.1.5 Other Service Types

    2. 5.2 By Application

      1. 5.2.1 Clinical Laboratory Equipment

      2. 5.2.2 Therapeutics Equipment

      3. 5.2.3 Diagnostic Equipment

      4. 5.2.4 Surgical Equipment

      5. 5.2.5 Consumables

      6. 5.2.6 Others

    3. 5.3 By End User

      1. 5.3.1 Medical Devices Companies

      2. 5.3.2 Pharmaceutical and Biopharmaceutical Companies

      3. 5.3.3 Other End Users

    4. 5.4 Geography

      1. 5.4.1 North America

        1. 5.4.1.1 United States

        2. 5.4.1.2 Canada

        3. 5.4.1.3 Mexico

      2. 5.4.2 Europe

        1. 5.4.2.1 Germany

        2. 5.4.2.2 United Kingdom

        3. 5.4.2.3 France

        4. 5.4.2.4 Italy

        5. 5.4.2.5 Spain

        6. 5.4.2.6 Rest of Europe

      3. 5.4.3 Asia-Pacific

        1. 5.4.3.1 China

        2. 5.4.3.2 Japan

        3. 5.4.3.3 India

        4. 5.4.3.4 Australia

        5. 5.4.3.5 South Korea

        6. 5.4.3.6 Rest of Asia-Pacific

      4. 5.4.4 Middle-East and Africa

        1. 5.4.4.1 GCC

        2. 5.4.4.2 South Africa

        3. 5.4.4.3 Rest of Middle-East and Africa

      5. 5.4.5 South America

        1. 5.4.5.1 Brazil

        2. 5.4.5.2 Argentina

        3. 5.4.5.3 Rest of South America

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 Jabil Inc.

      2. 6.1.2 Sterling Medical Devices

      3. 6.1.3 Flex Ltd.

      4. 6.1.4 Ximedica

      5. 6.1.5 Gilero

      6. 6.1.6 Devicelab, Inc.

      7. 6.1.7 Starrfish Medical

      8. 6.1.8 Celestica Inc.

      9. 6.1.9 Plexus Corp

      10. 6.1.10 Planet Innovation

      11. 6.1.11 Aran Biomedica

      12. 6.1.12 Viant

    2. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Competitive Landscape covers- Business Overview, Financials, Products and Strategies and Recent Developments

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Frequently Asked Questions

The Global Product Design and Development Market market is studied from 2019 - 2027.

The Global Product Design and Development Market is growing at a CAGR of 10.9% over the next 5 years.

Asia-Pacific is growing at the highest CAGR over 2021- 2026.

Asia-Pacific holds highest share in 2021.

Jabil Inc., Sterling Medical Devices, Flex Ltd., DeviceLab Inc., Ximedica are the major companies operating in Global Product Design and Development Market.

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