Product Design And Development Services Market Size, Share & Trends Analysis Report By Service (Research, Strategy, Concept Generation, Concept & Requirements Development), By Application, By End Use, And Segment Forecasts, 2022 - 2030

Product Design And Development Services Market Growth & Trends

The global product design and development services market is expected to reach USD 24.1 billion by 2030, registering a CAGR of 12.5%, according to a new report by Grand View Research, Inc. The major drivers of this market are increasing demand for advanced technology, decreasing product costs, and decreasing time to design and manufacture a product. Life science and medical device companies face great pressure for cost and to develop innovative products in a short time frame as they have to comply with stringent regulatory requirements for medical devices.

The manufacturers face more hurdles in getting cost-effective high-quality products to market faster along with some internal factors, such as design and production. Hence, medical device companies adopt a design-to-manufacturing approach where design, engineering, as well as production teams work in collaboration to develop the product model. This approach enhances both product quality and profitability by decreasing errors in development and designing thereby increasing success rates.

Outsourcing design engineering is anticipated to witness healthy growth in the forecast period as an increased number of manufacturers-from start-up ventures to established companies-capitalize on the benefits related to outsourcing design engineerings such as improved product design and cost-effectiveness to attain a competitive edge. Furthermore, with the incorporation of IT into the healthcare industry, analysis of 3D models and software, for which the third parties are well trained are expected to promote growth.

COVID-19 has added complexity and challenge to medical device innovation. The product development firms are facing major challenges, such as how to continue with business operations while evading the effects of the crisis. Product development during the pandemic continues to show optimal scope. However, companies have started several strategic initiatives to combat this and shape their business. For instance, in April 2020, FLEX partnered with PHILIPS and JABIL INC for the manufacturing of hospital ventilators for the treatment of COVID-19 patients.

Product Design And Development Services Market Report Highlights

• Research, strategy, and concept generation dominated the market with a share of 39.9% in 2021, as a considerable amount of research and business and design strategy are essential to generate maximum revenue.
• The surgical instruments segment held a major market share of 27.9% in 2021, due to the detail designing require for making them suitable for direct contact with the human body.
• The medical device companies are projected to exhibit the fastest growth of 13.0% over the forecast period. This can be due to the increasing demand for advanced and quality medical products.