The global medical devices contract manufacturing market was valued at $70 billion in 2017, and is forecasted to increase to $115 billion in 2022, a compound annual growth rate (CAGR) of 9.5%1.
The medical device contract manufacturing industry can be segmented on the basis of device type (Class I, II, and III devices), application (orthopedic and spine, cardiovascular, radiology and general medical devices) and service (prototype development, finished device manufacturing, assembly and packaging, and testing and regulatory support services). The market is experiencing tremendous growth due to the reduction in overall cost and decrease in time required to bring a product to market. These dynamics allow for original equipment manufacturers (OEMs) to focus their efforts internally and partner with trusted contract manufacturing organizations (CMOs) to produce their products or vital components of those products.
Activity in the sector is being driven by growing pressure on medical device OEMs to reduce production costs and accelerate the timeline for taking a product to market. In addition, macroeconomic factors such as an aging worldwide population and the increasing prevalence of noninvasive surgical procedures are driving the demand for medical devices. To remain competitive in markets that are highly specialized and increasingly segmented, OEMs must rely on CMOs for everything from added manufacturing capacity to product design and technical expertise.
Anytime an industry is highly fragmented and includes companies with deep customer relationships, technical manufacturing expertise and significant growth potential, consolidation is likely. In this report, we will analyze the market trends impacting the CMO space, as well as highlight the rationale for what we see as a trend of ongoing consolidation for the foreseeable future.
1Source: Global Medical Device Contract Manufacturing Market Forecast - Visiongain