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Writer's pictureJill Lai

Global medical device contract manufacturing market poised for significant growth


Global medical device contract manufacturing market poised for significant growth

The global medical device contract manufacturing (MDCM) market is on a robust growth trajectory, with revenue projections indicating an increase from US$78.9 billion in 2024 to $149.4 billion by 2029. This growth corresponds to a compound annual growth rate (CAGR) of 11.4% from 2024 to 2029, according to a recent study by ResearchAndMarkets.com.


Medical device contract manufacturing is rapidly revolutionizing the healthcare industry by offering substantial advantages to manufacturers. The integration of Industry 4.0 technologies, such as automation, robotics, and data analytics, is enhancing production efficiency, precision, and consistency. Additionally, additive manufacturing (3D printing) is enabling the creation of complex and customized medical devices, significantly expanding market possibilities.


Driver: Aging population


One of the primary drivers of market growth is the rising global aging population. The United Nations reports that the population aged 60 years and over is expected to nearly double from 1 billion in 2020 to 2.1 billion by 2050. This demographic shift is increasing the demand for healthcare services, particularly for age-related conditions such as dementia, heart disease, and chronic illnesses, thereby driving the demand for advanced medical devices.


Segment insights: Class III devices and drug delivery devices


Class III medical devices, which are critical for treating life-threatening conditions or supporting vital bodily functions, are projected to exhibit the highest CAGR in the MDCM industry from 2024 to 2029. These devices include pacemakers, heart valves, and implantable defibrillators, which significantly enhance patients' quality of life by improving physical capabilities and organ functions.


The drug delivery devices segment, particularly syringes, is also expected to show strong growth. Syringes play a crucial role in administering a wide range of medications, vaccines, and fluids. Their design ensures accurate measurement and delivery, which is essential for patient safety and efficacy.


Cardiovascular device segment to achieve the highest CAGR


Based on device type, the cardiovascular device segment is expected to grow at the highest CAGR in the medical device contract manufacturing market. Devices like pacemakers regulate irregular heartbeats, stents open blocked arteries, and defibrillators prevent sudden cardiac arrest. These advancements reduce mortality risk and improve cardiovascular health. Additionally, technologies like balloon angioplasty and stent placement allow for less invasive procedures compared to traditional open-heart surgery, leading to quicker recovery times, reduced pain, and minimized scarring, which is expected to drive market growth.


Regional insights: Asia Pacific leading the way


The global medical device contract manufacturing market is anticipated to grow due to continuous advancements in the medical devices field, such as robotics and minimally invasive surgery, artificial intelligence (AI) in medical devices, telemedicine, and remote patient monitoring. An aging population with a rising need for medical diagnostics further contributes to market growth. However, stringent regulatory compliance and complexities in supply chain management are expected to limit market growth to a certain extent.


Europe was the largest segment in the medical device contract manufacturing market in 2023. Germany accounted for the largest share of the European medical device contract manufacturing market in 2023. The rising number of chronic diseases and growing awareness regarding medical devices are expected to drive market growth in the European market.


The Asia Pacific region is anticipated to account for the highest CAGR in the global MDCM industry during the forecast period. Factors contributing to this growth include rapid population expansion, increasing healthcare awareness, and rising disposable incomes. Governments in the region are promoting diagnostic health awareness and providing subsidies for various treatments, further stimulating market growth.


Rapid population growth, increasing awareness about medical devices, and a rising middle class translate to a strong demand for MDCM services across the Asia Pacific. Global leaders in medical device contract manufacturing are establishing their presence in APAC, introducing advanced devices, innovative software, and diverse biocompatible materials.


The global medical device contract manufacturing market is set for substantial growth, driven by technological advancements, demographic shifts, and increasing healthcare demands. With significant opportunities in emerging markets and ongoing innovations in medical device technology, the MDCM industry is poised to play a crucial role in the future of healthcare.


Key industry players


Major players in the MDCM market include Flex Ltd. (Singapore), Jabil Inc. (US), TE Connectivity Ltd. (Switzerland), Sanmina Corporation (US), Nipro Corporation (Japan), Celestica Inc. (Canada), Plexus Corp. (US), Integer Holdings Corporation (US), West Pharmaceutical Services, Inc. (US), Benchmark Electronics Inc. (US), Recipharm AB (Sweden), Gerresheimer AG (Germany), Kimball Electronics Inc. (US), Nortech Systems, Inc. (US), Nemera Development S.A. (France), Viant Medical Holdings, Inc. (US), Tecomet, Inc. (US), SMC Ltd. (US), Phillips-Medisize Corporation (US), Tessy Plastics Corp. (US), Carclo Plc (UK), Nolato GW, Inc. (US), MeHow (China), Tekni-Plex (US), and Peter’s Technology (China).

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