2. www.visiongain.com Page 18
Medical Device Contract Manufacturing:
World Market Outlook 2014-2024
& Future Prospects for Leading Companies
1. Executive Summary
1.1 Sector Highlights
This report covers trends in the medical device contract manufacturing industry from 2012 and
2013 onwards. In particular, it discusses the market as a whole, as well as regional forecasts
across primary international markets. The market growth potential of contract manufacturing, the
submarkets and leading companies are also discussed. This report also addresses market drivers
and restraints, in addition to the examination of opportunities and challenges that exist within the
market.
The medical device industry has shown significant growth in recent years and has outpaced the
growth of the pharma industry as a whole. According to visiongain estimates, the global market
was worth $320.00bn in 2012. The growth is due to the ageing population worldwide which has
driven the need for medical devices. Much of this growth is linked to the rising prevalence of a
number of diseases worldwide; most notably cardiac and neurological disorders. In the past, the
medical device industry maintained a low level of outsourcing and has been slow on the uptake of
outsourcing services as compared to other industries. This was primarily due to concerns over
quality, delays and regulatory compliance. In the last 10 to 15 years however, outsourcing has
become a common practice amongst original equipment manufacturers, owing to the rising costs
medical device manufacturers face and the global competitive nature of the industry. This is a
particularly fast growing segment of the medical device industry. In response to its revenue
generating potential, contract manufacturers themselves have started to diversify their capabilities
over the years and can offer a range of services, including design, engineering, packaging and
distribution.
The main findings of this report are as follows:
• Total sales in the medical device contract manufacturing markets is estimated to be worth
$41.60bn 2012 (i.e. 13.0% of medical device industry) and $45.27bn in 2013.
• Electronics will be the fastest growing segment of the medical device contract
manufacturing market and is predicted to reach $68.40bn in 2024
• The US market in 2012 accounted for 46% of total revenues and will continue to be the
largest market across the world during the forecast period. In 2013, we estimate this region
accounted for 45% of the global market.
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Medical Device Contract Manufacturing:
World Market Outlook 2014-2024
& Future Prospects for Leading Companies
• An increased prevalence in lifestyle and age related disorders are the primary factors
driving the demand for new innovative medical devices, putting pressures on the
capacities of the medical device manufacturers
• There are many companies that specialise exclusively in contract medical device work
and many more companies that have a segment of their company working with medical
devices
• The industry has traditionally been highly fragmented with several 1000 companies but it
has become more consolidated over the last few years and will continue to do so, with
large companies emerging from the field and dominating the industry
• With an increasingly consolidated medical device industry, the competition for customers is
intensifying in the contract manufacturing market.
• Notable companies in the medical device contract manufacturing market include Accellent,
Benchmark Electronics, Creganna-Tactx Medical, Flextronics, Greatbatch Medical, Jabil
Circuit, Inc, Nortech systems , Symmetry Medical, The Tech Group and Vention Medical
1.2 Chapter Outline
In summary, the chapters of this report cover the following topics:
Chapter 2 introduces medical devices, their classification, outsourcing and overview of the
contractual agreements between the two parties.
Chapter 3 explores the state of the medical device contract manufacturing market in 2012 and
2013 forecasting revenues to 2024
Chapter 4 analyses the three sub segments of the contract manufacturing market: materials
processing, electronics, and finished products. Forecasts are provided to 2024.
Chapter 5 analyses the leading national contract manufacturing markets, looking at their
performance in 2012 and 2013 and forecasting market growth to 2024. The national markets
forecasted in this chapter are the US, Japan, Germany, France, Italy, UK, Spain, India, China,
Central and South America and the Rest of the World.
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Medical Device Contract Manufacturing:
World Market Outlook 2014-2024
& Future Prospects for Leading Companies
Chapter 6 discusses the leading companies operating in the contract manufacturing market.
Services offered by each company are discussed, as are recent financial performance and future
business strategies for the market leaders.
Chapter 7 identifies strengths, weaknesses, opportunities and threats facing the industry and
market. The main drivers and restraints are also described, in addition to the current issues facing
the medical device contract manufacturing market between 2013 and 2024.
Chapter 8 contains transcripts of interviews conducted by visiongain with experts in the sector.
Chapter 9 is a summary of the report, highlighting conclusions from our research and analysis.
1.3 Research and Analysis Methods
Visiongain’s reports incorporate primary and secondary research. Our studies provide global
market forecasts (revenues by segments and leading national markets) and analysis of market
drivers and restraints (including SWOT analysis). Our analyses are original, benefiting from insight
gained through our consulting experts in industry, academia, medical practice and other roles. Our
analysts also refer to industry databases, company reports, news and trade articles, public health
data, policy documents and other analysts’ views. We conduct primary research by telephone
interviews, correspondence or face-to-face discussions.
Our reports contain quantitative and qualitative analytical content, covering the present and future
of important healthcare markets. While our reports are market-centred, we include medical and
technical information. We include analysis of unmet market needs from the present looking
forward. Our revenues forecasting assesses the magnitude and effects of driving and restraining
forces, to determine annual growth and total revenues across a series of years. We base our
forecasts upon knowledge of financial performance, disease prevalence, product/technology
characteristics and other factors, as well as data and opinions gathered from primary and
secondary sources.
Revenue figures in this report are for the respective world market, or market segment, unless
stated otherwise. Values are expressed in $US. Historical sales and revenue data are whole year
values from company reports or analyst estimates. Tabulated revenue values for later years
(20123 onwards) are whole year predictions (January to December) by visiongain. Compound
annual growth rate (CAGR) values are grouped for the years 2012-2017 and 2018-2024. Due to
rounding anomalies, values may not add up exactly.
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Medical Device Contract Manufacturing:
World Market Outlook 2014-2024
& Future Prospects for Leading Companies
1.4 Glossary of Terms Related to the Report
A number of abbreviations are used in this report. Those that occur most commonly are:
• CMO – Contract Manufacturing Organisation
• OEM – Original Equipment Manufacturer
• FDA – Food and Drug Administration
• PMA – Premarket Approval
• GMP – Good Manufacturing Practice
• FY – Fiscal Year
• EMS – Electronics Manufacturing Services
• ISO – International Organization for Standardization
