MEDICAL DEVICE CONTRACT MANUFACTURING MARKET SIZE TO REACH USD 132 BILLION IN 2026, GROWING AT A CAGR OF 10% DURING 2020-2026

Medical Device Contract Manufacturing Market Size, Share, Trends Analysis Report by Device (Class I, Class II, Class III); Product (Electronics Manufacturing Services, Raw Materials, Finished Goods); Services (Product Manufacturing and Assembly Services, Quality Management Services, Packaging and Sterilization Services, Regulatory Consulting Services, Product Design & Development Services); and Geography (North America, Europe, APAC, Latin America, and Middle East & Africa); Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021–2026

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Most Exhaustive Report

371 Pages

114 Tables

232 Charts

5 Regions

20 Countries

55 Companies

4 Market Segment

GLOBAL MEDICIAL DEVICE CONTRACT MANUFACTURING MARKET REPORT SCOPE

Report Attribute Details
Market Size 132 Billion (2026)
CAGR 10% (2020–2026)
Base Year 2020
Forecast Year 2021–2026
Market Segments Device (Class I, Class II, and Class III); Product (Electronics Manufacturing Services, Raw Materials, and Finished Goods); Services (Product Manufacturing and Assembly Services, Quality Management Services, Packaging and Sterilization Services, Regulatory Consulting Services, and Product Design & Development Services)
Geographic Analysis North America, Europe, APAC, Latin America, and Middle East & Africa
Countries Covered US, Canada, UK, Germany, France, Italy, Spain, China, Japan, South Korea, Australia, India, Brazil, Mexico, Argentina, Columbia, Saudi Arabia, Turkey, South Africa, and UAE

INDUSTRY INSIGHTS

The global medical device contract manufacturing market size to cross USD 132 billion by 2026, growing at a CAGR of over 10% during the period 2020-2026. The global market is experiencing impressive growth due to a wide range of services offered by contract manufacturers. The increasing demand for cost reduction and decrease time to market products are the major factors driving OEMs to focus and develop partnerships with trusted CMOs for developing, manufacturing, and marketing medical devices. Moreover, the growing geriatric populations, the increasing prevalence of minimally invasive surgeries, increased healthcare expenditures, and innovations in medical technology industry are fueling the need for medical device contract manufacturing. The increasing pressure on OEMs to develop high-quality healthcare equipment, reduce price points, and faster time to market are likely to propel the contract manufacturing market across the globe. 

SNIPPETS

  • The EMS segment is likely to witness an absolute growth of over 85% on account of increased complexity in product designs, stringent regulatory compliance, and reduced time to market.
  • North America is likely to lead the global market; however, the Asia Pacific is expected to grow at a higher rate due to the increased demand for medical devices and the presence of large contract manufacturers of medical devices.
  • Class II medical devices are likely to witness an incremental growth of over $35 billion during the forecast period due to the rise in chronic and infectious diseases and rapid advances in diagnostics equipment.
  • Strategic collaborations between OEMs and CMs, the interest of private equity firms in contract manufacturing services are major opportunities increasing the market growth.

GLOBAL MEDICAL DEVICE CONTRACT MANUFACTURING MARKET SEGMENTATION

This research report includes a detailed segmentation by

  • Devices
  • Products
  • Services
  • Geography

INSIGHTS BY DEVICES 

Class II medical devices are expected to grow at the highest CAGR during the forecast period, expecting to reach a revenue of $76 billion by 2026. They include complex equipment and pose a higher risk as they are likely to have sustained contact with the internal organs of the patient. Therefore, the increasing prevalence of chronic illness has increased the demand for Class II devices. Evolving digital technology is empowering monitoring devices, thereby effectively influencing the operational cost. Hence, the demand for these medical devices is likely to grow in the upcoming years.

Class I medical devices are commonly regulated by the FDA, constituting 47% of the approved equipment in the market. They are the fastest and highly promoted as they are low-risk products and have rarely critical to life-supporting care applications. The growth in hospitalization rates has increased the demand for these devices. Elderly and patients with chronic conditions have extended stay in hospitals, which influence the application of medical equipment. These factors are likely to enhance the consumption of Class I devices in healthcare settings. 

INSIGHTS BY PRODUCTS 

Electronics manufacturing services (EMS) accounted for the highest share of the global medical device contract manufacturing market in 2020. The increasing demand for affordable medical devices, a convergence of electronics, and rising cost pressures have bolstered the participation of EMS providers in the last few years. The growing reliance of medical device OEMs on EMS companies is expected to boost the growth of the market. An increase in personalized medicine, technological innovations, and stringent regulatory requirements have increased collaborations between OEMs and EMS providers, which is contributing the market growth. With product designing becoming more complex than before, EMS providers are skillful at refreshing older designs and updating electronic design and content within an existing medical device design. This tends to lower cost and obsolescence challenges associated with long product lifecycles.

INSIGHTS BY SERVICES

Product manufacturing and assembly services are the most widely applied solutions for medical devices. Outsourcing the manufacture and assembly of medical devices has greatly helped OEMs to manage costs, save time and effort. These services are growing due to several advantages, which include obtaining specialized expertise, increasing time to market, leveraging a strong supply chain, solve capacity limitations. Services offered through contract manufacturing can resolve quality standards and regulatory compliance, especially in the healthcare and environmental segments.

The need to reduce costs, prevent errors, improve and control processes is increasing the demand for quality management services. In 2020, the packaging and sterilization services segment accounted for a share of 17% for the global medical device contract manufacturing market. Packaging and sterilization are rapidly expanding markets in the medical device industry. They are critical to ensure that the equipment are safe to use, contamination-free, and can withstand a broad range of shipping and storage conditions. 

INSIGHTS BY GEOGRAPHY

North America is expected to account for the highest revenue in the medical device contract manufacturing market share. High demand for medical device development and contract manufacturing in the region due to the presence of major contract manufacturing companies with enhanced manufacturing capabilities is a major factor, contributing to the growth of the market. Moreover, the growing population density and the prevalence of chronic diseases, increased usage of healthcare equipment, the high demand for technological advancements in healthcare products, growing investment and research for medical devices, and increased spending on healthcare are other factors influencing the market growth. The presence of major key vendors such as Jabil and Sanmina in North America is also responsible for the highest revenue share.

INSIGHTS BY VENDORS

Flex, TE Connectivity, Sanmina, Jabil, Celestica, Plexus, and Tecomet are the key medical device companies offering a diverse range of contract manufacturing services. Current-generation service providers have been focusing on strengthening in-house capabilities to offer a wider range of services to OEMs, ranging from product design to distribution and marketing, along with regulatory assistance. As the medical device industry is among the most highly regulated industries, the demand for core competencies, such as design and engineering, prototype development, and high-volume manufacturing is likely to continue in the coming years as well. This continuous demand will drive OEMs to outsource several parts of their product development and manufacturing operations to capable CMOs. Amidst the intense competition and major players, the availability of advanced tools and technologies to manufacturing a range of medical devices is an important differentiating factor.

The global medical device contract manufacturing market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:

Device

  • Class I
  • Class II
  • Class III

Product

  • Electronics Manufacturing Services
  • Raw Materials
  • Finished Goods

Services

  • Product Manufacturing and Assembly Services
  • Quality Management Services
  • Packaging and Sterilization Services
  • Regulatory Consulting Services
  • Product Design & Development Services

Geography

  • North America
    • US
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
  • APAC
    • China
    • India
    • Japan
    • South Korea
    • Australia
  • Latin America
    • Mexico
    • Brazil
    • Argentina
    • Colombia
  • Middle East & Africa
    • Saudi Arabia
    • Turkey
    • South Africa
    • UAE

Frequently Asked Questions

The medical device contract manufacturing market is expected to grow at a CAGR of over 10% during 2020–2026.
The outbreak of the COVID-19 pandemic has caused supply chain disruptions, increase in operational expenditure, and partial or temporary closures of CMO facilities.
Constant innovations in the medical device industry have posed unique challenges for medical device manufacturers to comply with a stringent regulatory scenario, especially in the US and Europe.
Flex, TE Connectivity, Sanmina Corporation, Jabil, Celestica, Plexus, and Tecomet are the key players operating in the market.
North America and Europe are expected to contribute the highest revenues to the market.
The increase in strategic collaborations between OEMs and CMOs in medical device industry and high growth potential for CMOs in emerging and low-income countries are major factors influencing the market growth.
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