Global Product Design and Development Market Size

Product Design & Development Market Analysis

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.