Medical Devices Outsourcing Market to Expand at 11.6% CAGR till 2018 owing to Increasing Demand for Quality Healthcare Services

Medical devices outsourcing refers to the process of medical device manufacturers hiring third-party members for the completion of business-related functions such as product designing, upgrading, maintenance, and testing. Outsourcing such activities allows medical device manufacturers to focus solely on its core competencies and leave the rest to third party professionals. 

Leading manufacturers in the medical device industry are opting for outsourcing solutions to not only manage their device manufacturing processes but also to cut costs and use saved resources for technical and clinical innovations. Medical devices outsourcing has emerged as a practical and cost-effective solution in various disciplines of medicine including orthopedics, cardiovascular, anesthesiology, radiology, and neurology. 

Product Outsourcing a Rising Trend in Recent Times 

According to a report published by Transparency Market Research, the global medical devices outsourcing market is projected to develop at a CAGR of 11.6% from 2012 to 2018, rising from a value of US$21.1 billion in 2012 to US$40.8 billion by 2018. 

This growth in the medical devices outsourcing market can be attributed to the growing demand for quality healthcare services and significant developments in the field of medical technology. Looking to cut costs and attain sustainability in the long run, more and more players are opting to outsource parallel operations to smaller and more specialized service providers. Functions that were once performed by in-house teams within healthcare companies are now being taken care of by external sources on a project-based routine.  

Product Design Services Most Highly Outsourced Medical Device Service  

On the basis of application, the medical devices outsourcing market is categorized into Class I, Class II, and Class III medical devices. Of these, Class II devices held the largest share of the overall market owing to moderate related risks and limited regulatory requirements. On the basis of service, medical device outsourcing includes product implementation services, product design and development services, product upgrade services, regulatory consulting services, product maintenance services, and product testing services. Rising challenges in manufacturing as well as technical cost containment have made product design services the most frequently outsourced service. This segment held a share of 29% in 2012, making it the largest service segment of the medical devices outsourcing market. 

Driven by Rising Healthcare Costs, North America Emerges Leader in Medical Devices Outsourcing Market  

The global medical devices outsourcing market comprises four main regions: North America, Europe, Asia Pacifica, and Rest of the World. Surging healthcare costs have enabled North America to emerge as the leading regional market for medical devices outsourcing. In addition, increasing number of medical insurance providers and their expanding coverage in the region has resulted in the growing demand for quality healthcare services, thereby forcing industry players to resort to medical devices outsourcing. Asia Pacific, on the other hand, has been identified as an immensely lucrative market for medical devices outsourcing given the region’s recent potential to attract foreign investors. 

The prominent players functioning in the global medical devices outsourcing market include Micro Systems Engineering GmbH, Accellent Inc., Cirtec Medical Systems LLC., Active Implants Corporation, Avail Medical Product, Creganna-Tactx Medical, and Mdmi Technologies Inc. 

For complimentary access to more information on this research, please visit: http://www.transparencymarketresearch.com/medical-devices-outsourcing-market.html