According to a new market report “Medical Devices Outsourcing Market – Global Industry Size, Market Share, Trends, Analysis, and Forecast, 2012 – 2018,” published by Transparency Market Research, the global medical devices outsourcing market, amidst ongoing medical technology development is expected to rise from US$21.1 billion in 2012 to US$40.8 billion in 2018, registering a CAGR of 11.6% for the period.
The global medical devices outsourcing market growth is driven by factors such as growing demand for quality health care, advancement in health care technologies, increasing demand for lower health care costs, entry of new players in the medical device industry, and reduction in cost and time to market, the report says.
Due to technological advances and growing demand for sophisticated equipment, the medical device market is one of the fastest growing and the most dynamic sector in the life sciences industry. However, the report explains, the competition has also grown exponentially, posing challenges for medical device manufacturing companies such as cost, product innovation, time to market, and stiffer regulatory impositions. Outsourcing aids the medical device manufacturing industry to overcome these challenges by offering expertise in product design, regulatory consulting, testing and validation, product implementation and strategic consulting services.
In addition, the growing cost of raw material and increasing pressure to keep product prices competitive has impacted the bottom line of medical device manufacturers and forced them to explore new ways to lower their manufacturing cost and keep their prices competitive. Outsourcing services helps in meeting cost requirements and improved product design by offering innovative material engineering. Moreover, outsourcing these activities also helps in reducing time-to-market and meeting requirements efficiently, which in turn reduces ROI lead time for companies.