The healthcare industry is witnessing rapid growth because of the surging prevalence of diseases all across the world. The medical industry does not only deal with drugs and therapy, but medical devices are an important part of it. Attributed to this, the medical devices industry is registering swift growth as well. In 2018, the global medical devices market attained a value of $425.5 billion and is predicted to reach $612.7 billion by 2025, registering a 5.4% CAGR during 2018–2025. Medical devices are used widely across different medical settings for both therapeutic and diagnostic purposes.
However, the cost of most of the medical devices is quite high, which makes it difficult for hospitals at times to provide important services to the patients. Because of this reason, medical settings are increasingly outsourcing medical devices. The concept of outsourcing is not a new one, and now the medical device industry is taking advantages of its benefits as well. With the continuous technological advancements going on in the medical industry, medical settings need to keep up with making sure that their patients are being offered the best and latest technology. According to P&S Intelligence, in 2016, the global medical device outsourcing market generated a revenue of $44.9 billion and is expected to attain $84.9 billion, witnessing a 9.7% CAGR during 2017–2023.
Geographically, the largest demand for medical device outsourcing was created by North America in the past, owing to the presence of a large number of medical device manufacturers and easy availability of high-end medical devices in the region. Apart from this, because of the rising availability of low-cost labor and comparatively cheap infrastructure than other developed nations, the demand for medical device outsourcing is expected to increase significantly in the Asia-Pacific region in the coming years.
In conclusion, the need for medical devices outsourcing is growing due to the rising cost of medical devices.
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