Medical Device Outsourcing Market Outlook And Trend AnalysisPosted by Mrudula Anil Karmarkar on January 11th, 2021 The global medical device outsourcing market size is expected to reach USD 231.2 billion by 2027, expanding at a CAGR of 10.4%, according to a new report by Grand View Research, Inc. The growing incidence of chronic diseases is one of the major factors contributing to market growth. Regulatory bodies are mainly focusing on the quality of the healthcare devices provided to the public. Hence this is encouraging various players in the market to offer various services like regulatory consulting. For example, the European Medical Device Regulation undertake special spontaneous inspection of outsourced products to test the quality as well as conformity with standards. With Covid-19 infections rising globally, the apprehension regarding a shortage of essential life-saving devices and other essential medical supplies in order to prevent the spread of this pandemic and provide optimum care to the infected also widens. In addition, till a pharmacological treatment is developed, ventilators act as a vital treatment preference for the COVID-19 patients, who may require critical care. Moreover, there is an urgent need for a rapid acceleration in the manufacturing process for a wide range of test-kits (antibody tests, self-administered, and others). The report will account for Covid19 as a key market contributor. The importance of regulatory compliance is expected to boost the growth of consulting services such as remediation, compliance, and quality management systems (QMS), thereby contributing to market growth. Whereas, the budget scrutiny in developed countries, pricing pressure, and changes in reimbursement schemes are some of the major factors anticipated to increase the adoption of cost containment measures by the original equipment manufacturers (OEM). These factors are expected to boost medical device outsourcing to emerging countries like India and China. In addition, increasing difficulties in product engineering along with new entrants in the market are anticipated to shape the future of the market for medical device outsourcing. Whereas rising prevalence of chronic diseases is boosting the demand for medical devices. This, in turn, is helping the market to grow during the forecast period. Various companies are shifting their focus to research and development of new medical devices and are therefore outsourcing these activities to launch efficient medical devices in the market. Oligopolistic nature of most medical device markets coupled with increasing buyer awareness levels has forced manufacturers to adhere to business strategies involving constant R&D investments and new product innovations. These endeavors significantly increase expenditure levels and medical device OEMs are therefore, rapidly adhering to subcontracting as an effective cost curbing tool. Statistics suggest that medical device outsourcing help OEMs reduce cost of production by approximately 15.0%. Medical Device Outsourcing Market Report Highlights
Numerous factors are driving the demand for outsourcing services within the healthcare industry. A few may be enlisted below: - Increasing globalization facilitating product launches in new geographies having varying regulatory policies - Rising activities such as mergers, take-overs, patent filing, and in-licensing - Strengthening of regulatory compliance and amendments of by-laws - Accelerated pace of changes in regulatory environment - Strong growth of outsourcing market - Increasing benefits in subcontracting such as cost efficiency, core competency focus, improved ROI and profit margins, reduced documentary burden and others. Total outsourcing involves subcontracting of entire activity for a project to a third party vendor. The vendor perform start to end management, at their own discretion with feedback from the clients and provide the final output. Rising trend of opting this model by small scale or virtual companies is anticipated over the forecast period. For instance, a startup medical device firm may outsource its legal representation to an established law firm, which manages their end-to-end investment plans to legal proceedings. Furthermore, financial arrangements are crucial, as majority of the medial device manufacturers opt for outsourcing as a means to reduce cost. If the models add on to the cost for company, it will eventually lead to a failed purpose. The two majorly employed pricing models in healthcare outsourcing are: - Fixed fee - Time and material Have a Query? Ask Our Expert: https://www.grandviewresearch.com/inquiry/713/ibb On the basis of application, the market for medical device outsourcing is segmented into cardiology, diagnostic imaging, orthopedic, IVD, ophthalmic, general and plastic surgery, drug delivery, dental, endoscopy, diabetes care, and others. Cardiology is estimated to be the fastest-growing segment over the forecast period. Due to the rising incidence of chronic diseases the demand for medical device outsourcing is expected to increase in the future. This segment led the market for medical device outsourcing in 2020 and is likely to remain dominant throughout the forecast period owing to the growing prevalence of associated conditions. The IVD segment is also expected to grow significantly over the forecast period. Key parameters affecting the competitive nature of the market for medical device outsourcing are the rapid adoption of advanced healthcare technology for improved healthcare. Also, in order to retain market share and diversify the product portfolio, major players are often undertaking mergers and acquisitions along with new product launches. Some of the prominent players in the medical device outsourcing market include:
About Grand View Research Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare. For More Information:www.grandviewresearch.com Like it? Share it! More by this author |