In 2017 the medical device market must adapt to constant changes in the medical landscape to continue its consistent growth. The demand for more advanced, more personalized treatment; increased availability of healthcare; and an aging population are pushing the market and expanding technologies. These advancements require accelerated design and production to get products to market quickly, efficiently, and cost-effectively.
Along with strong growth projections, the rapid pace of advancements continues to alter the look of the industry. Analysts see further convergence of design and manufacture, driving the growth of medical device contract manufacturing/outsourcing; continuing new entrants into the market as technologies further integrate into devices; and in the United States, a wild card may come into play as policies are unveiled from a new administration.
Indicators show that the global market for medical device outsourcing should grow at a compound annual growth rate (CAGR) of 11.60%, reaching $40.8 billion by 2018. Competition among medical device manufacturers drives this growth as companies seek to increase profit margins. However, an uptick in medical device recalls has boosted the demand for testing and validation.
Within the medical device manufacturing industry, orthopedic devices lead outsourcing to contract manufacturers with cardiology coming in a close second. Furthering market growth and guiding the entry of players from different industries into the medical market is the need to integrate supportive technologies such as telecommunications, digital imaging and diagnostics, and robotics. By application, Class II devices hold the largest market share due to the moderate associated risks and limited regulatory requirements.
With contract manufacturing playing an increasingly larger role in medical device development, the market can be viewed in two segments – application and services. Application refers to Class I, II, and III medical devices, while services include product design and development, regulatory consulting, product testing, product implementation, upgrade, and maintenance. Of those, product design holds the largest market segment of outsourced services.
As the market grows, continual investment in advanced manufacturing technologies is required to connect shop floors to the top floor, driving increased quality and output. Organizations need to remain nimble enough to respond quickly to new and changing FDA regulations – such as cyber security as more devices connect – all while producing products that continue to increase in complexity.
The author, KetanDeshpande, lives in Minnesota and writes about a variety of topics in his blog such as global economy, market and industry trends, successful strategies for businesses, and others. Leveraging his global strategic leadership experience from the manufacturing industry to offer insights in to how businesses can meet the sustainable growth and profitability goals.
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