North America dominated the global healthcare contract manufacturing market with the highest market share of around 40%.
According to the latest Arizton's market research report, the global medical device contract manufacturing market size to reach over USD 132 billion by 2026, growing at a CAGR of around 10% during the forecast period.
Global Healthcare Contract Manufacturing Market Growth Analysis
With the continuous innovation in medical equipment, medical device manufacturers are witnesses regular upgrades in terms of equipment design, development, and distribution. Several new compliance and regulation process evolve to ensure safety and efficiency of mobile apps and software in the medical industry. Acquisition of Vention by MedPlast has opened wide opportunities in the healthcare contract manufacturing market. Later, MedPlast rebranded itself into Viant and offers end-to-end solutions for medical device OEMs. The North America will occupy approximately 36% of product manufacturing and assembly services segment in the healthcare contract manufacturing market by 2026. Healthcare medical devices are outsourcing and reshaping the manufacturing of these devices, as most of the OEMs turn toward CMOs for effective solutions with value additions such as time-to-market, quality, pricing, and customization.
What’s Trending in the Market?
- Sanmina offers significant opportunities by majorly targeting the marketing and sales on major end markets within electronics technology industry.
- After the strategic acquisition of Nypro, Jabil plans to innovate and diversify its product range by collaborating with a medical device company and rebranding initiative to Jabil’s Healthcare.
- Celestica collaborated with Medtronic to produce components for Medtronic Puritan Bennett 980 (PB980) ventilators to combat the unprecedented global demand during the COVID-19 pandemic.
- Market Size & Forecast by Revenue | 2020−2026
- Market Dynamics – Leading trends, growth drivers, restraints, and investment opportunities
- Segmentation – A detailed analysis by devices, products, services, and geography
- Competitive Landscape – 7 Key Company Profiles and 48 Other Prominent Vendors
Is North America Leading the Global Healthcare Contract Manufacturing Market?
In 2020, North America dominated the global market with the highest market share of around 40%. According to the estimation of the US Census Bureau, the number of Americans over the age 65 will grow to 72.8 million by 2030. The rise in geriatric population and increase in usage of medical devices is surging the demand for healthcare contract manufacturing market in the region. The continual increase in pressure on OEMs for quality standards, reduced price points, and faster time-to-market are projected to propel the market growth in the future as well. Major players in the global healthcare contract manufacturing market are focusing on diversifying their services by several innovations and developments to meet the future market demand. The presence of major key players such as Jabil and Sanmina in North America makes it the largest shareholder in the healthcare contract manufacturing market. The US is expected to witness incremental growth of around 63% by 2026.
Global Healthcare Contract Manufacturing Market - Competitive Landscape
Established players are forming strategic alliances and entering co-marketing contracts in an effort to increase their competitiveness and penetration of the healthcare contract manufacturing market. Flex, TE Connectivity, Sanmina, Jabil, Celestica, Plexus, and Tecomet are some of the key players offering a diverse range of medical device contract manufacturing services. In the recent years, the current generation medical device contract manufacturing service providers are 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. Over the past three years, the US FDA has approved between 100 to 150 medical devices annually. Since 2000, around 55-65 CMOs have been established. The rising petition for one-stop-shop solutions and versatile supply chain management solutions are further fueling consolidation in this market. For instance, in 2019, Arch Systems, a leading machine-data sensing platform partnered with Flex to supply real-time access and analysis of manufacturing data.
Looking for more information? Click Here
About Arizton Advisory & Intelligence
Arizton Advisory and Intelligence is an innovation and quality-driven firm, which offers cutting-edge research solutions to clients across the world. We excel in providing comprehensive market intelligence reports and advisory and consulting services.
Arizton has gained a paramount standpoint in the market research arena as it offers top of the line solutions to clients to assess market landscape and to finalize fool proof business strategies. We are committed to provide inclusive market research reports and consulting services to clients from diversified industries including– Consumer Goods & Retail Technology, Automotive and Mobility, Smart Tech, Healthcare and Lifesciences, Industrial Machinery, Chemicals and Materials, IT and Media, Logistics and Packaging
Arizton comprises a team of exuberant and well-experienced analysts who have mastered in generating incisive reports. Our specialist analysts possess exemplary skills in market research. We train our team in advanced research practices, techniques, and ethics to outperform in fabricating impregnable research reports.
Arizton Advisory & Intelligence
Chicago, Illinois, 60605
Call: +1-312-235-2040/+1 302 469 0707
Feb 15, 2024
Automotive ADAS Sensors Market Revenue to Reach to $38.54 Billion by 2029, A 2X Growth in the Next 6 Years – Arizton
APAC Dominating the Market with $14.72 Billion Opportunities by 2029 ...
Jan 31, 2024
Global Cordless Power Tools Market Sees Expansion as Consumers Embrace Wireless Solutions - Arizton
Watch Out Huge Market Opportunities in the Next 6 Years ...
Jan 24, 2024
Hyperscale Data Center Market to Reach $196.39 Billion by 2028
US and APAC Regions Witness Unprecedented Surge in Investment...