Medical device contract manufacturing market to increase by USD 46.18B

The medical device contract manufacturing market share is expected to increase by USD 46.18 billion from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 11.19%, according to Technavio. The shift from centralized to point-of-care testing is a major trend in the market. A centralized laboratory is where automated analytical test methods are used to detect target components. However, the various advantages point-of-care testing and diagnostic devices offer in comparison with conventional diagnostic procedures are affordability and ease of use and provide the rapid results needed for making quick decisions about medical diagnosis and treatment of diseases and conditions. The increased adoption of POCT devices is highly affected by the need to make healthcare more patient-centric. This includes organizing healthcare services around the patient rather than the provider. Furthermore, the growth of self-monitoring of blood glucose has been driven by the need for more convenient and effective healthcare services. Thus, these factors are expected to drive market growth during the forecast period.

Market dynamics
Key driver – The impact of Industry 4.0 on the medical device industry is one of the key factors driving market growth. The increasing development and production of complex medical devices, which include pacemakers and implantable medical devices, are driving the innovations in Class III medical devices. Furthermore, many medical device manufacturing companies are facing challenges in producing Class III devices in high volumes because of the complex assembly and testing processes involved. Automated manufacturing and fabrication have become popular because of the complexity of manufacturing these devices. As a result, to overcome these challenges, medical device contract manufacturers are using industry 4.0 technologies which include cloud computing, machine-to-machine (M2M) communication, and network-physical systems. Hence, these advanced technologies are expected to drive market growth during the forecast period.

Significant challenges- Consolidation in the medical device industry is a significant challenge restricting market growth. Many major medical device manufacturers are highly investing in acquiring small and medium-sized specialist companies to improve their capabilities and increase their product portfolios. As a result, it will limit outsourcing to contract manufacturing organizations (CMOs) as these major players undertake the in-house manufacturing of medical devices.

For instance, Linden Capital Partners (Linden) acquired Avalign Technologies, Inc, which is a contract manufacturer of precision implants, instruments, cutting tools, specialty instruments, and cases/trays. This acquisition helped the company to grow and significantly expand its capabilities in terms of its product portfolio. Similarly, many other medical device companies have also acquired CMOs to reduce the costs involved in contract manufacturing. Hence, these negative factors are expected to restrict market growth during the forecast period. Technavio