Medical Device Outsourcing Market To Generate USD 273.0 Billion by 2030

Outsourcing the manufacture of medical equipment is known as medical device outsourcing. Medical device firms can outsource routine production and gain from cost savings, a simplified supply chain, and logistical alignment. These advantages enable them to bring commercial goods to market while guaranteeing that all requirements set out by the industry are satisfied.

The medical device's component that is outsourced to service providers and contract manufacturers includes a variety of services, including device assembly, design consultation, manufacturing process design, shipping packaging, process improvement identification, recurring processing, package testing validation, and sterilization validation.

According to a report by P&S Intelligence, the medical device outsourcing market is expected to reach USD 273.0 billion by 2030. This may be ascribed to the ongoing developments, increase in R&D spending in the healthcare industry, rise in need for medical devices, increased pricing rivalry, the need to cut costs, and an increase in the number of CMO/CDMOs throughout the world.

Globally, there is a growing need for outsourcing finished goods. This can be attributed to the surge in demand for inexpensive medical items and the mounting financial strain on the industry. Additionally, the healthcare industry's rapid technological development, high level of innovation, and significant player investment are propelling market expansion.

In 2022, the category of class II accounted for the biggest revenue share, of over 70%, and it will continue to hold that position going forward. This can be due to the rise in surgical operations performed throughout the world.

Category with Highest Sales Is Cardiology

The market's greatest share belongs to the cardiology category. This is due to an increase in surgical operations as well as an increase in cardiovascular illnesses, such as atrial fibrillation, myocardial infarction, angina pectoris, hypertensive heart disease, rheumatic heart disease, and congenital heart disease.

In the years to come, plastic surgery is predicted to grow at the quickest rate. This can be attributed to the rise in minimally invasive aesthetic procedures and the expanding outsourced product selection.

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Huge Growth Expected in Medical Device Outsourcing Market in Future

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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