Global Medical Device Outsourcing Market to Witness Robust Growth by 2025

Posted by Marsh William on May 10th, 2019

The Global Medical Device Outsourcing Market is expected to witness robust growth in coming years owing to increasing in the number of companies manufacturing medical equipment. Companies are producing such devices at lower costs in order to gain competitive edge in the market. Outsourcing of such equipment to third party manufacturers helps in reducing operational and overhead expenses for original equipment manufacturers (OEMs). It also reduces production time and allows early availability of equipment in the market. Hence, most of the OEMs outsource such equipment to provide affordable healthcare equipment and maintain quality of healthcare services.

Availability of quality medical devices has resulted in increase in demand for affordable healthcare services among patients. Rising cases of chronic health problems, such as diabetes and cancer, are expected to increase demand for medical equipment. Integration of information technology into medical equipment can also compel OEMs to outsource production of technologically advanced equipment. For instance, Cytori Therapeutics, Inc., a leading pharmaceutical company of United States, recently announced that it has successfully outsourced an essential assembly portion of production process to Viant Medical. The company has received approval for the celution cell therapy system consumables.

Growing health problems, such as diabetes, arthritis, and respiratory issues, among geriatric population is a key driving factor in the market. This has resulted in increased requirement of regular body diagnosis in order to avoid major health issues. Complex diagnostic tests are expected to fuel demand for technologically advanced and affordable devices offering quick and accurate results

Rising demand for quality healthcare equipment can impel OEMs to outsource their production processes to third party manufacturers. For instance, emerging market players are outsourcing designing of medical devices in order to meet consumer demand. Stringent regulatory policies to maintain quality of devices are also likely to boost the market growth in the forthcoming years.

However, threat of information loss and lack of reimbursement policies can hamper market growth in the coming years. OEMs are likely to share sensitive information related to collaboration, product, and agreements to third party vendors while outsourcing. This may, in turn, result in theft or loss of crucial information, which could further have an impact on businesses of OEMs. Reduction in adoption of medical device outsourcing among OEMs is likely to hinder the market growth.

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