(PharmaNewsWire.Com, February 16, 2022 ) Potential opportunity worth USD 110 Bn is expected to open up in Medical Device Contract Manufacturing as the OEMs and medical device manufacturers are increasingly opting to outsource technical and production services to CMOS to reduce their manufacturing cost burden. The global medical device contract manufacturing market is estimated to be valued at USD 113 Bn by 2026, owing to the overall growth of the medical devices market, mainly due to rising disease prevalence, life expectancy, and the geriatric population.
According to MarketsandMarkets analysis,
• There is ~USD 110 Bn potential for contract manufacturing within various medical device types, more than half of which is collectively contributed by IVD, diagnostic imaging, and cardiovascular devices.
• Medical device contract manufacturing market is estimated to grow at a healthy CAGR of 10-12% in coming 5 years, driven by growth of medical device market and technological advancements in medical device modalities.
• Geographic Expansion and merger & acquisitions (M&A) are the key strategies adopted by CMOs to expand their presence across the globe.
• Adjacent markets hold a potential of more than USD 250 Bn in medical device contract manufacturing, majority of which will be contributed by IVD.
• In hydrogen economy market, we are witnessing an increased adoption of electrolyze technology which can disrupt the demand for hydrogen, in turn impacting the growth of the market.
Currently, businesses have low access to primary intelligence to clarify some unknowns and adjacencies in these opportunity areas –
• Industry 4.0 technologies include cloud computing, machine-to-machine communication, and cyber-physical systems enable advanced automation that helps overcome production challenges. The increasing adoption of Industry 4.0 technologies in the manufacturing of critical and sophisticated medical devices and the growing focus on enhancing the technology pool are expected to drive the growth of the medical device contract manufacturing market.
• For OEMs and start-ups, it is more efficient to leverage the experience and facilities of third-party organizations for device development rather than recruit and train people, purchase equipment, and develop facilities to manufacture medical devices. In line with this, contract manufacturing organizations continue to refine their operations to serve the evolving needs of OEMs better.
• Adjacent markets such as IVD, cardiovascular devices, diagnostic imaging devices provide immense growth opportunities with respect to contract manufacturing owing to changing focus of manufacturers towards outsourcing of production
Some of the growth problems encountered by CMOs in the medical devices space are:
Customer prioritization and assessing unmet needs:
• What are the disruptions in our clients' businesses? How can we support them for our own growth?
• Who are the most potential customers going forward? Should we prioritize large, mid-sized, or small medical device companies?
• What are the key unmet needs of customers? Who are the key stakeholders in different types of customers? Do vendor selection criteria differ by customers type? Which services should be added to the existing services?
Where to play:
• Which services should we focus on? Should it be device development & manufacturing, quality management, packaging & assembly or any other?
• Which device types and class of devices should we focus on? Should it be IVD, diagnostic imaging, cardiovascular, drug delivery devices or any other?
• Which regions should we place our bets on? Should we continue with developed countries or do developing countries offer more growth opportunities?
Building a compelling Right-to-Win (RTW):
• For M&A, which are the right targets for us? Should we target device companies or consumables companies? Should we enter new markets directly or through partners?
• How can we differentiate from top players? What is their right-to-win vs ours?
Key uncertainties/perspectives which industry leaders seek answers to:
For medical device CMOs:
• What services will be relevant and redundant in the next 5 years?
• Which type of products/ projects (high tech vs low tech) are frequently outsourced by customers?
• Is there a preference for geographic proximity? Or benefit of manufacturing in a geographical market
• Which is the leading device class segment of the medical device contract manufacturing market?
• Which are the top industry players in the medical device contract manufacturing market? Does competitive intensity differ by region?
• What are the revenues and/or volumes of target products manufactured by top CMOs?
• What is the business model of top CMOs? What are the strategies adopted by top CMOs?
• What are some of the best practices in the CMO market for providers?
For Companies in Adjacent markets:
• What are the regulations involved in medical device & medical device contract manufacturing industry?
• What will be the impact of contract manufacturing on medical device industry?
• What are the potential revenue opportunities in adjacent medical device outsourcing services in next 5 years?
• Who are top 4-5 medical device companies & medical device CMOs and what are their market shares?
• How is the competitive intensity in overall medical device industry?
Therefore, MarketsandMarkets research and analysis focuses on high growth and niche markets, such as IoMT medical devices, mHealth solutions, medical device connectivity, medical wearables, and related markets, which will become ~80% of the revenues of hydrogen ecosystem in the next 5-10 years.
MarketsandMarkets™ provides quantified B2B research on 30,000 high growth niche opportunities/threats which will impact 70% to 80% of worldwide companies’ revenues. Currently servicing 7500 customers worldwide including 80% of global Fortune 1000 companies as clients. Almost 75,000 top officers across eight industries worldwide approach MarketsandMarkets™ for their painpoints around revenues decisions.
Our 850 fulltime analyst and SMEs at MarketsandMarkets™ are tracking global high growth markets following the "Growth Engagement Model – GEM". The GEM aims at proactive collaboration with the clients to identify new opportunities, identify most important customers, write "Attack, avoid and defend" strategies, identify sources of incremental revenues for both the company and its competitors.
MarketsandMarkets™ now coming up with 1,500 MicroQuadrants (Positioning top players across leaders, emerging companies, innovators, strategic players) annually in high growth emerging segments. MarketsandMarkets™ is determined to benefit more than 10,000 companies this year for their revenue planning and help them take their innovations/disruptions early to the market by providing them research ahead of the curve.
MarketsandMarkets’s flagship competitive intelligence and market research platform, "Knowledge Store" connects over 200,000 markets and entire value chains for deeper understanding of the unmet insights along with market sizing and forecasts of niche markets.
We are pleased to offer you this exciting, new, and entirely free professional resource. Visit our Free Biotechnology & Pharmaceuticals resource center today to browse our selection of 600+ complimentary Biotechnology & Pharmaceuticals magazines, white papers, webinars, podcasts, and more. Get popular titles including:
