The Medical Device Contract Manufacturing Market is Projected to Reach USD 126 Billion by 2030, Growing at an Annualized Rate of 8%, Claims Roots Analysis

Owing to numerous technical and regulatory challenges, outsourcing has become a popular business model for medical device developers; in fact, a number of CMOs presently provide specialized manufacturing services to the innovators in this industry

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Roots Analysis

Aug 22, 2019, 11:00 ET

LONDON, Aug. 22, 2019 /PRNewswire/ -- Roots Analysis has announced the addition of "Medical Device Contract Manufacturing Market, 2019-2030" report to its list of offerings.

More than 100 medical devices were approved by the FDA in 2018, while several are currently being evaluated across more than 9,500 (active) clinical trials, worldwide. Further, increase in aging population, coupled with rise in the prevalence of chronic disorders, are likely to drive the demand for medical devices. Therefore, in order to reduce the overall cost and expedite the time to market, majority of original equipment manufacturers (OEMs) are outsourcing their medical device manufacturing operations to CMOs.

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Key Market Insights

Over 275 companies offer contract manufacturing services for finished medical device products

The market is dominated by the presence of mid-sized companies (having 200 to 1,000 employees), which represent close to 53% of the competitive landscape. This is followed by small-sized companies (about 23%) and large firms (nearly 15%).

More than 60% of medical device CMOs are based in the US; majority of these CMOs have their manufacturing capabilities established within North America

Examples of such companies include (in alphabetical order, large and very large companies) Biomedical Innovations, Celestica, East West Manufacturing, Flex, Gerresheimer Jabil, Phillips-Medisize, Plexus Röchling Medical and Viant Medical. In fact, the US is presently considered a key hub for medical device contract manufacturing operations. Further, a significant number of players have also established their manufacturing facilities (more than 140) in Asia and other developing countries of the world.

Over 9,500+ clinical trials are evaluating a number of types of medical devices

Of these, around 60% trials are actively recruiting patients. So far, 4 million patients have been enrolled in ongoing / planned trials of medical devices. Interestingly, majority of these patients (more than 1.6 million) were enrolled in the Asia Pacific region, during the period between 2013 and 2019.

150+ mergers and acquisitions inked between 2014 and 2018

The service portfolios of most of the acquired CMOs included medical device manufacturing services (more than 75%), design-related services (52%) and packaging services (14%). Examples of recent acquisitions in this domain include (in reverse chronological order) acquisition of Arcor Laser Services by Cadence (May 2019), ARCH Global Precision by The Jordan Company (April 2019) and Sparton by Cerberus Capital Management (March 2019). In terms of the device types, majority of the acquisitions were made for companies offering services for implants and instruments.

The market opportunity for medical device CMOs is likely to grow at an annualized rate of over 8% till 2030

Presently, medical device contract manufacturing services for cardiovascular disorders represent the dominant revenue generating segment (over 23%) in the overall market, followed by devices for oncological disorders (close to 12%) and CNS disorders (approximately 11%).

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Key Questions Answered

Who are the leading CMOs in the medical device contract manufacturing market?
Where are the medical device manufacturing facilities located?
What is the global, installed manufacturing capacity for medical devices?
What are the key value drivers behind the merger and acquisition activity in the medical device contract manufacturing industry?
How is the current and future market opportunity likely to be distributed across key market segments?
What are the opportunities offered by emerging markets for medical device contract manufacturing?
What are the prevalent trends in medical device contract manufacturing?
What are the key challenges faced by medical device focused CMOs?
What is the role of automation in medical device manufacturing?
Is it possible to optimize the medical device supply chain to achieve cost benefits and ensure product quality?

The USD 126 billion (by 2030) financial opportunity within the medical device contract manufacturing market has been analyzed across the following segments:

Application areas

Therapeutic devices
Diagnostic devices
Drug delivery devices
Other devices

Device class

Class I medical devices
Class II medical devices
Class III medical devices

Therapeutic areas

Cardiovascular disorders
CNS disorders
Metabolic disorders
Oncological disorders
Orthopedic disorders
Ophthalmic disorders
Pain disorders
Respiratory disorders
Other therapeutic areas

Key geographical regions

North America
Europe
Asia Pacific
Rest of the world

The report also includes information on insights provided by the following industry experts:

Raghu Vadlamudi (Chief Research and Technology Director, Donatelle)
Jan Wahlström (President and Chief Executive Officer, Elos Medtech)

The research covers profiles of key players that offer contract manufacturing services for medical devices, featuring an overview of the company, its service portfolio, details on manufacturing facilities, and an informed future outlook.