Medical Device Outsourcing Market is Estimated To Reach A Valuation of USD 227.1 Billion by 2028: Grand View Research Inc.
Today’s Covid-19 pandemic world shows a macrocosm of the challenges for companies in the life sciences field. The global Covid-19 death toll surpassed three million and new cases continue to spike as we head into the second quarter of the year. However, the medical device companies are still striving to adapt to the rapidly changing needs of the healthcare system and the supply chain ecosystem– whether it’s dealing with the decline in sales of elective surgery equipment or struggling to keep up with the mounting demand for ventilators, personal protective equipment, testing equipment, and oxygen cylinders, which has been overwhelming. Therefore, most of the companies have made a shift toward outsourcing R&D services to reduce costs, hasten product market entry, and minimize business risks, and thus fuel the overall market growth.
On top of that, the medtech industry is working out the optimal ways to respond to the enormous disruptions caused by Covid-19 outbreak that hampered daily working life. Device development, recruitment, sales, quality management, and medical investigations aren’t an optional measure for most device manufacturing companies. Since they want to stay afloat during this extraordinary period of disruption, they have distributed these functions under the yoke of social distancing norms, while wholly justified, making it difficult than ever to collaborate effectually.
As the supply chains adapt to a reformed distanced world, let’s check out the benefits of outsourcing your medical checklist.
Capitalize on resources: Medical device outsourcing empowers OEMs to take advantage of the available third-party resources. It eliminates the need to store or source them locally and is more cost-effective. Countries including China, Korea, and Taiwan are top medical device manufacturers. It is therefore more viable for US-based companies to outsource manufacturing operations overseas.
Focus on core activities: given the time saved because of outsourcing, companies can better utilize their time and local resources on improving other core activities such as marketing, R&D of new devices, and promotion of existing products.
Data and information security: One of the key pressing challenges in medical device manufacturing activities is the threat of private information breach. In the outsourcing process, companies are becoming more aware and informed to avoid such breaches with the help of security contracts.
Reimbursement policies: The incessant pressure on companies to reduce the product costs is hampering the medical device market. Though there is a protuberant surge in healthcare expenditure, many medical providers are still unwilling to reimburse medical devices. However, reformed reimbursement policies are likely to ace the outsourcing infrastructure in the coming years
Medical Device Outsourcing Market Highlights
- The contract manufacturing was the leading segment in 2020 with a revenue share of 55.4% and is anticipated to retain its position throughout the forecast period
- The market is driven by the increasing outsourcing activities by OEMs to third-party manufacturers, particularly in emerging countries
- Asia Pacific was the dominant regional market in 2020 and can be attributed to the easy availability of skilled human resources
List of Key Players of Medical Device Outsourcing Market
- SGS SA
- Toxikon, Inc.
- Eurofins Scientific SE
- Pace Analytical Services, Inc.
- Intertek Group plc
- WuXi AppTec, Inc.
- North American Science Associates, Inc.
- Charles River Laboratories International, Inc.
- PAREXEL International Corp.
Industries need to adopt permanent, long-term solutions to challenges that arose due to the COVID-19 pandemic. Groundbreaking innovations resolving supply chain resiliency, coupled with product supply chain lifecycle management are the vital pillars to pivot adequacy in the face of an unexpected event in the future. Global supply chains are here to stay and investing in building a strong supply base and risk management systems such as predictive supply chain management is considered the best road to tread in the post-COVID world.