Ship Repair and Maintenance Service Market Assessment, By Vessel [Commercial Vessel, Defense Vessel], By Service [Hull Maintenance, Machinery, Electrical Systems, Navigation and Communication System, Deck and Superstructure, Others], By Region, Opportunit

Ship Repair and Maintenance Service Market Assessment, By Vessel [Commercial Vessel, Defense Vessel], By Service [Hull Maintenance, Machinery, Electrical Systems, Navigation and Communication System, Deck and Superstructure, Others], By Region, Opportunities and Forecast, 2017-2031F

Global medical device contract manufacturing market is projected to witness a CAGR of 10.32% during the forecast period 2024-2031F, growing from USD 77,340.00 million in 2023 to USD 166,150.00 million in 2031F. The market has experienced significant growth in recent years and is expected to maintain a strong pace of expansion in the coming years.

The medical device market has witnessed the rise of contract manufacturing, which is the practice of outsourcing production operations to external companies. This method's innate efficiency and cost-effectiveness have contributed to its rise in popularity. Multiple factors, such as the growing need for cutting-edge medical products and technological advancements, drive market expansion for medical device contract manufacturing. There is a direct correlation between the advancement of technology in the healthcare industry and the need for more advanced medical equipment. Medical device firms are turning to contract manufacturers due to their experience, capabilities, and the intricacy with which they manufacture devices to fulfill the market’s demand. Second, medical device manufacturers can focus on their developmental skills due to the outsourcing of production processes. By assigning the manufacturing task to skilled contract manufacturers, these businesses are able to focus their resources and energy on areas like marketing, development, and research. This strategic initiative will help them accomplish better results and keep their competitive advantage in the market. Furthermore, the need for sophisticated medical devices has increased due to the rise in the incidence of chronic diseases. With their vast experience and resources, contract manufacturers are well-positioned to meet this demand and provide premium products that cater to patients' specific needs. In the upcoming years, the global market for contract manufacturing of medical devices is expected to increase at a strong rate. For instance, Taiwanese contract manufacturing company Medeologix, Inc. acquired three medical device firms in November 2022, forming a fully functional integrated service group. This improved the business's capacity for design and development and helped it establish a stronger reputation as a leading contract manufacturer of medical devices for the interventional and surgical device markets.

Increasing Complexity of Medical Devices Leading to Market Growth

Medical equipment has become more sophisticated and complex over time because of the integration of new-age technology such as robots, artificial intelligence (AI), and the Internet of Things (IoT). These state-of-the-art tools have improved patient care, enabled remote health monitoring, and dramatically increased diagnostic accuracy, all of which have revolutionized the healthcare sector. Medical devices can analyze enormous volumes of patient data to give a more accurate diagnosis and individualize treatment options by utilizing machine learning and Al algorithms. Moreover, incorporating low-power transmission functionalities facilitates smoother connection and exchange of data among medical equipment, permitting instantaneous monitoring and data exchange. Due to their interconnection, healthcare providers can better coordinate patient care and make well-informed decisions based on current, comprehensive data. However, the greater intricacy of these sophisticated gadgets has also brought up new challenges for producers.

Sophisticated machinery, rigorous quality control procedures, and specialized knowledge are needed to produce these complex medical devices. To guarantee patient safety and product efficacy, producers must also negotiate a challenging terrain of regulatory requirements and guarantee compliance with changing medical device laws. Due to their complexity, many businesses find it impractical or too expensive to manufacture these devices internally. This is where contract manufacturing comes into play. Medical device firms can use contract manufacturers' advanced equipment, specialized knowledge, and well-established quality control systems by outsourcing their production process. Contract manufacturers are a popular choice for many players in the healthcare sector since they frequently have the tools and resources required to build these sophisticated devices effectively and economically. In short, integrating cutting-edge technologies into medical equipment has transformed healthcare by enhancing patient care, diagnosis precision, and remote health monitoring. However, this advancement has led to many complexities, creating difficulties for the industrial sector.

For instance, in February 2023, Lonza Group Ltd. stated that it was expanding its bioconjugation facility in Switzerland. Lonza Group Ltd.'s customer base has grown considerably, including businesses starting clinical manufacturing. This investment strengthens Lonza's capabilities and flexibility to support both clinical and commercial supply, and it will play a key role in meeting the growing market demand for bioconjugates. The expansion includes two manufacturing suites and supports infrastructure. It will support an extended customer portfolio, including companies entering clinical development. Medical device firms may focus on innovation and providing high-quality products for better patient outcomes by utilizing contract manufacturing, which offers specialized skills and resources to build these intricate devices efficiently. For instance, Jabil, Inc. revealed in November 2023 that it had successfully acquired Retronix Ltd, a cutting-edge supplier for the refurbishment and reclamation of electronic components, earlier in the year.

Rising Adoption of Miniature and Wearable Healthcare Devices Drives the Market

The progress in miniaturizing medical devices, making them more compact and smaller, has accelerated significantly in recent years. The increasing demand for comfortable and transportable medical solutions, particularly in the context of ‘at-home’ healthcare, is driving this development. Patients can benefit from non-invasive treatment alternatives and increased mobility and convenience when medical devices are smaller. Contract manufacturers have become indispensable in this domain to accomplish miniaturization. Utilizing their technological know-how and cutting-edge machinery, they have what it takes to produce complex, compact medical devices. Due to this, there has been a notable increase in the demand for contract manufacturing services in the healthcare field. The demand for wearable medical equipment has increased exponentially with a drive towards miniaturization. These cutting-edge gadgets provide continuous health monitoring and data collection and can be discreetly worn on the body or discreetly incorporated into garments. Wearable medical technology has completely changed the way people think about healthcare by enabling individualized treatment regimens and offering insightful data about patients' health. Again, contract manufacturers are leading the way in supplying wearable medical gadgets to fulfill the growing demand. They provide complete end-to-end solutions that cover the design, development, manufacturing, and post-sale support of these state-of-the-art devices.

Medical device contract manufacturing is experiencing significant growth due to the convergence of wearable technology and miniaturization. The advancement of wearable technology and the reduction in the size of medical equipment are changing the face of patient care as the healthcare sector undergoes further transformation. More innovation and growth in the medical device manufacturing industry can be anticipated since contract manufacturers have been instrumental in these breakthroughs. For instance, a privately held technology, engineering, and contract manufacturing business, Pulse Technologies, Inc., was acquired by Integer Holdings Corporation in January 2023. The company specializes in complex micromachining of medical device components for rapidly expanding structural heart, heart pump, electrophysiology, leadless pacing, and neuromodulation markets.

Increasing Dominance of IVD Devices Segment to Fuel Market Growth

The in-vitro diagnostic (IVD) devices segment is projected to account for a sizeable portion of the market. Several variables can explain this, including the high incidence of chronic diseases, the expansion of healthcare infrastructure, the rising number of hospitals in emerging nations, and the global increase in IVD test volume. Diagnostic medical devices are in vitro tests performed on biological samples to assess an individual's health status. In-vitro diagnostics (IVDs) cover many procedures, from simple pregnancy self-tests and blood glucose monitoring for individuals with diabetes to complex diagnoses in clinical laboratories. Since end users are adopting IVD devices at a higher rate, medical facilities are using them more. The rise of this market is attributed to the need for point-of-care devices and their capacity to detect, diagnose, and prevent illnesses. The market for IVD devices will expand faster due to the growing need for individualized, sophisticated, and quick diagnostic tools. The implementation of strategic initiatives by many industry competitors is aiding the expansion of this segment. In addition, the requirement for manufacturing services to support the development of in-vitro diagnostic devices is growing because of the rising global incidence of various chronic diseases such as cancer and the corresponding increase in demand for IVD devices. For instance, a roadmap outlining the United Kingdom Medicines and Healthcare Products Regulatory Agency's goals for 2024, including the development of future core regulations, has been adopted. The 2023 roadmap also takes a retrospective look at the developments completed by MHRA, outlining how it will permit the continued use of some medical devices in the market as the European Union moves towards implementing the Medical Device Regulation (MDR) and the In Vitro Diagnostic Medical Device Regulation (IVDR). The roadmap provides information on medical devices and details medical device and IVD regulations the agency will consider this year.

North America Dominates Medical Device Contract Manufacturing Market

With the largest market share in terms of value, North America emerged as the leading region in the global medical device contract manufacturing market. North America, especially the United States, has a strong and well-established healthcare system that gives special attention to research and development and patient care. The region's world-class medical device industries and prestigious research institutes bear witness to its persistent commitment to advancing medical innovations. The resources and experience coming together to form this ideal ecosystem foster innovation and expansion in the medical device industry. Moreover, North America continues to lead the way in groundbreaking technology developments for the medical industry. Even the region shows the highest instances of people having heart disease very often, which automatically causes huge demand in the market.

For example, according to a February 2022 update from the Centers for Disease Control and Prevention (CDC), 4.6% of people in 2020 had received a diagnosis of coronary heart disease. This unwavering quest for advancement fuels the need for more advanced medical equipment to transform patient care and improve results. In this regard, contract manufacturers become essential collaborators, offering priceless knowledge and resources to design and produce these state-of-the-art medical products efficiently.

Future Market Scenario (2024-2031F)

The main factors contributing to the anticipated growth of the medical device contract manufacturing market are the increasing prevalence of chronic disorders like cancer and the increasing demand for compact devices that are not just advanced but are also wearable or portable. Not only this, but the level of complexity that has been seen increasing in devices that can only be manufactured with vast knowledge and mechanisms are also factors that will always propel market growth in the future. Given that technology is advancing, cutting-edge technology in the region is expected. Players in this market are expanding at an unparalleled rate, introducing cost-effective and efficient technologies. For instance, Albany Molecular Research Inc. (AMRI), Curia Global, Inc., and Corning Incorporated collaborated in March 2023 to promote biopharmaceutical continuous-flow development and manufacturing initiatives.

Key Players Landscape and Outlook

Several companies such as Jabil, Inc., FLEX LTD., and others, are expanding business by planning and adopting new strategies. They are complying with new strategic initiatives regarding the launches of newly developed technologies and mechanisms to help researchers and increase their market presence. New product launches, agreements based on contracts, acquisitions and mergers, investments, and partnerships are a few ways through which they are trying to achieve the same.

The signing of a manufacturing representation agreement, which took place in March 2024, between HnG Medical Incorporated, a major participant in the healthcare market, and Medibrane Ltd., which is a well-known medical device contract manufacturer, marked a milestone. This partnership is a testament to Medibrane Ltd.'s dedication to expanding its worldwide reach and bringing its innovative solutions to China's rapidly evolving healthcare market.

A strategic, multi-year collaboration between the Canadian Life Science and Technology Park, Allyant, and IPS-Integrated Project Services, LLC was announced in March 2024 with the goal of advancing the engineering and design of a cutting-edge life science, healthcare, and technology park. This partnership makes use of expertise and prior experience in construction, supervision, and design, specifically for turnkey businesses, commercial manufacturing, and extensive support facilities.