Global Market for Medical Device Outsourcing Services to Reach US$44.7 Billion by 2017, According to a New Report by Global Industry Analysts, Inc.
GIA announces the release of a comprehensive global report on Medical Device Outsourcing market. The global market for Medical Device Outsourcing Services is forecast to reach US$44.7 billion by the year 2017, primarily driven by Medical Device OEMs need to reduce costs, and accelerate time to market and to ensure that the product is commercialized efficiently and on-time. Strong growth in the medical device market supported by aging population, increased spending on healthcare, enhanced disease screening/detection techniques, development in minimally invasive therapies/diagnostics and therapeutics, is forecast to echo downstream into the medical device outsourcing market.
Medical Device Outsourcing: A Global Strategic Business Report
San Jose, California (PRWEB) October 06, 2011
As companies modernize their business practices, driven by the need to remain competitive and retain critical survival capabilities, such as, agility and flexibility in a fast changing marketplace, it is opportunities galore for players in the Medical Device Outsourcing market. Outsourcing offers several advantages to OEMs, which include access to dedicated product design teams/expertise, manufacturing-cost reductions, minimizing the number of process steps involved, cost-effective customized products, and improved time to market, among others. Interestingly, in comparison with other manufacturing industries like automotive and industrial equipments, the medical devices industry has been relatively late to latch on to the outsourcing trend, deterred primarily by thorny legislative issues.
Regulatory issues have been a major barrier, given the fact that medical devices are strictly governed by medical legislations. However, in recent years, the economic advantages of outsourcing have far outweighed the bottlenecks confronted and as a result outsourcing is currently a growing trend with major medical device OEMs. With the future characterized by volatility in commodity prices, and currency fluctuations, manufacturing processes, including that for medical devices, will come under direct pressure requiring OEMs to remain cost effective and flexible and to rapidly adjust to changing external market stimulants. Outsourcing against this backdrop will emerge even higher to be the sharpest competitive edge for medical device OEMs.
The healthcare industry is resilient but not immune from the developments in macro-economic environment. Under such a scenario, growth in the medical-device outsourcing market decelerated to single digits in the year 2009 discouraged by reductions in contract manufacturing orders from OEMs burdened with softening demand, liquidity shortages and longer sales cycle of products However, the recession interestingly has pushed the concept of outsourcing medical device development and manufacturing out of its orbit. Several medical device OEMs have and are continuing to re-evaluate supply chain dynamics in a bid to leverage cost efficiency under a scenario where increasing profitability is solely dependent upon reducing production/manufacturing costs. The year 2010 has already witnessed a “rubber band effect” with contract manufacturing orders/deals springing back into force with recovery in the economy. The vigorous snapping back of growth is largely the result of OEMs recalibrating strategies to reduce costs, lead times, increase execution speeds, and flexibility. Steady growth is forecasted for the upcoming years, as revenue starved companies’ prowl for outsourcing solutions that are cost-effective, and convert their costs from fixed to variable.
Most medical device outsourcing service providers are focusing on expanding their capability and expertise with end-to-end full service portfolio offerings. Full-length services typically range from product design, development and production including, value added services such as R&D, engineering services, packaging, and supply chain management. In the upcoming years, companies with dual prototyping and production abilities are poised to score the maximum gains as OEM preferences skew steeply towards service offerings that promise radical reductions in time to market. Like other industries, shift of manufacturing bases to low-cost destinations has been gaining pace in the medical device industry. In the upcoming years, Asia is expected to lead the way as the most preferred offshore destination because of the quality and scale of labor it has to offer. Sensing opportunities, several European companies have relocated significant portion of their operations to Asian economies to reap the benefits of lower operational costs.
As stated by the new market research report, the US accounts for a major share of the global Medical Device Outsourcing Services market. By device category, outsourcing services offered for Class II Devices is the largest segment. OEMs leveraging the most of specialized outsourcing services are expected to be those operating in a business environment where cost-containment and product differentiation represents perennial needs. In the post-recession period, organizations will continue to retain their appetite for cost effective solutions, but will however demand more value-creating productivity. Growing recognition of the economic and operational efficiencies and benefits of a device outsourcing model promises strong future growth. World Medical Device Outsourcing Services in the field of Radiology is expected to surge at a projected CAGR of 9.4% over the analysis period.
Major players in the global marketplace include Accellent Inc, Advanced Scientifics Inc, ATEK Medical, Flextronics International, Benchmark Electronics, Inc, Code Refinery LLC, Creganna Tactx Medical, EtQ Management Consultants Inc, Greatbatch Inc, HCL’s Life Science, Intertech Engineering Associates Inc., Lake Region Medical, Medical Device Consultants Inc (MDCI) Inc, Memry Corporation, Minnetronix, Inc, Nortech Systems Inc, Plexus Corporation, RTEmd, Sandvik Materials Technology GmbH, Symmetry Medical Inc., Vention Medical, among others.
The research report titled “Medical Device Outsourcing: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections for Medical Device Outsourcing Services in (US$ Million) for major geographic markets including United States, Canada, Japan, Europe (Germany, Italy, UK, Spain and Rest of Europe), Asia-Pacific and Rest of World.
For more details about this comprehensive market research report, please visit – http://www.strategyr.com/Medical_Device_Outsourcing_Market_Report.asp
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world’s largest and reputed market research firms.
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