According to a new report published by Markets and Markets, the medical device contract manufacturing market is expected to reach $91.3 billion by 2024, up from an estimated $55 billion in 2019, at a CAGR of 10.6%. Factors such as increasing automation in the manufacturing of medical devices and advanced technologies integrating electronics and medical devices are expected to drive growth in the sector.
The increased connectivity and data-gathering capabilities of these technologies make it possible to build high-volume, regulation-compliant manufacturing processes with efficient inventory and production management. With the increasing adoption of Industry 4.0 technologies in manufacturing critical and sophisticated medical devices, the medical device contract manufacturing market is expected to grow significantly during the forecast period.
The IVD devices segment is expected to account for the largest share of the medical device contract manufacturing market in 2019. The share of this segment can be attributed to the increasing volume of IVD tests performed globally, a growing number of hospitals and clinical laboratories in developing countries, automation and technological advancements in instruments with high-throughput capabilities, and advances in life science research.
By service type, the device development and manufacturing services segment is estimated to account for the largest share of this market in 2019. The increasing adoption of contract manufacturing services by OEMs in the medical device industry, growing consumption of medical devices, and the improving capabilities for device development and manufacturing are the major factors responsible for the large share of the device development and manufacturing services segment.
Class II medical devices are expected to account for a major share of the market in 2019, followed by Class I and Class III devices, respectively. The large share of this segment can be attributed to the large number of medical devices that fall under this device class and fewer regulatory compliance necessities than Class III devices.
APAC is estimated to account for the largest share of the medical device contract manufacturing market in 2019, followed by North America. The dominant share of APAC is mainly due to the lower cost of raw material and labor as compared to the developed countries. The increasing demand for medical devices due to the improving healthcare infrastructure, adoption of technologically advanced products, and the less stringent regulatory scenario compared to most developed countries are some of the other factors contributing to the higher market share of the APAC region.