Electronics Production | November 13, 2009
Outsourcing in Medical to reach US$26.77 Billion by 2014
The global services outsourcing market in medical devices is expected to be worth $26,770 million by 2014, growing at a CAGR of 13.9% from 2009 to 2014, a new market research report predicts.
Medical devices form one of the largest industries in healthcare sector with an estimated size of $250 billion in 2009 and a growth rate of 6%-8%, the new research report Service Outsourcing Opportunities in Medical Device Market (2009–2014) from MarketsandMarkets suggests. The industry has been outsourcing medical device manufacturing services for almost a decade now. This trend has brought about huge profit margins, which has attracted many new players. Outsourcing has helped medical device manufacturers reduce product development cost by 10% to 30%. The services outsourcing industry has also gained from the entry of new medical device manufacturing companies, as these players lack experience in the field, the market report continues. Orthopedic devices hold the largest market share and cardiology devices have the highest growth rate in the medical device manufacturing industry. The increasing regulations for class 2 and class 3 devices have increased the demand for regulatory consulting services. Growing complexities in supply chain and the need for efficient management of client accounts have increased the scope of product lifecycle management solution providers in the medical devices industry. Firms offering chip designing services have also benefitted from the increasing incidence of chronic diseases and the growing use of electronic and embedded systems in cardiovascular and neurology devices.