Medical Device Contract Manufacturing Market: Key Players and Future Growth Potential
The global medical device contract manufacturing market is projected to reach USD 118.9 billion in 2027 from USD 71.2 billion in 2022, at a CAGR of 10.8% during the forecast period.
The key factors driving the growth of the medical device contract manufacturing market include technological advancements in medical device modalities and the impact of industry 4.0 on the medical device industry. On the other hand, consolidation of market players is set to impede the market growth.
The Key players in the medical device contract manufacturing market include Jabil Inc. (US), Plexus Corp. (US), Flex Ltd. (Singapore), Nipro Corporation (Japan), TE Connectivity Ltd. (Switzerland), Sanmina Corporation (US), and Integer Holdings Corporation (US).
Jabil, Inc.
Jabil, Inc. (US) is a leading player in the medical device contract manufacturing market. Its product portfolio includes a focused range of products and services in the healthcare domain as well as advanced manufacturing technologies. Jabil collaborates with large OEMs for contract manufacturing.
In 2021, the company entered a strategic collaboration with E3D (Israel), a member of Elcam Medical Group (Israel), to develop a high-volume reusable auto-injector and connected variants, which expands its medical device manufacturing capabilities.
Flex Ltd.
Flex Ltd. designs, engineers, manufactures and provides supply chain services and solutions to original equipment manufacturers worldwide. The company has global operations, spread across 40 manufacturing sites across the world. In March 2022, the manufacturing capacity of the company was approximately 27 million square feet.
Sanmina Corporation
Sanmina Corporation has established itself as a global player with a strong presence in almost 40 countries worldwide. The company focuses on technological advancements by offering diverse electronic medical devices and custom medical devices. The increase in geographic reach of the company is achieved by establishing facilities in major industrial centers or economical locations. Many of the operations are located near the company’s customers and end markets.
Driver: Growth in the Medical Devices Market in Developing Countries
In the coming years, China and India are expected to drive growth in the Asia-Pacific region. The GDP growth in India and China is expected to be more than 100% from 2020 to 2040. This can be beneficial for emerging economies. Foreign investments will also rise in this region to capitalize on the abundant opportunities and establish units in the Asia-Pacific region. Additionally, the increasing number of diagnostic public-private partnerships, and government grants will increase the use of medical devices in the region, leading to a boom in contract manufacturing.
Opportunity: Increasing healthcare expenditure, infrastructure, and awareness in developing countries
China, India, and other emerging economies offer significant growth opportunities for companies operating in the global market. Compared to other developing countries, these countries have lenient regulatory requirements. Along with that, the increasing healthcare expenditure, the rising prevalence of various chronic and infectious diseases, and the growing demand for home healthcare are some major factors driving the demand for medical devices in developing countries. This has led many manufacturers to set up facilities in these countries.
Related Links:
https://www.marketsandmarkets.com/PressReleases/medical-device-contract-manufacturing.asp
https://www.marketsandmarkets.com/ResearchInsight/medical-device-contract-manufacturing-market.asp