The global contract manufacturing market size is expected to reach USD 281.6 billion by 2026 registering a CAGR of 7.0%, according to a new report by Grand View Research, Inc. Increasing demand for advanced products is a major factor driving the market.
Equipment manufacturers are outsourcing the manufacturing services of medical devices to third parties, mainly in emerging nations. Further, rising cases of heart disorders are boosting the demand for cardiac devices, thereby positively affecting the market growth. Budget scrutiny in developed countries, pricing pressure, and changes in reimbursement schemes are some of the major factors anticipated to increase the adoption of cost containment measures by OEMs.
This trend is expected to boost medical device manufacturing outsourcing to emerging countries like India and China. This paradigm shift from in-house manufacturing to contract manufacturing in the pharmaceutical industry has resulted in an increased focus of the companies on Contract Development & Manufacturing Services (CDMOs). These services have effectively addressed the concerns regarding pharmaceutical manufacturing as well as significantly accelerated the commercialization of products.
Moreover, the growing geriatric population across the globe and consequent rise in age-related diseases have stimulated the progress of pharmaceutical clinical research outsourcing, thus leading to contract manufacturing industry growth. Asia Pacific was the dominant market for medical device outsourcing in 2018, owing to lower cost and easy availability of skilled human resources. The rise in the number of medical device manufacturing companies and such companies vying to enter regional markets, such as India and China, is further expected to contribute toward the growth of this market.