The worldwide medical device outsourcing market is primed for dramatic growth this decade.

A Transparency Market Research report forecasts the market to expand 11.2 percent annually through 2028, more than doubling its 2020 value of $102.66 billion to reach $232.89 billion. The surge in demand for various medical devices is likely to drive market growth, as will the increasing prevalence of chronic diseases, which has boosted the overall need for better diagnosis, early prevention of disease, and other healthcare services. The quality of healthcare delivered to patients depends on the quality of diagnostic devices. Intense competition in the healthcare industry had made the quality of a medical device a major factor of differentiation, compelling device manufacturers to outsource technology services from third parties.

The report defines medical devices outsourcing primarily as providing outsourcing of a company’s business practices to a hiring party that is not a part of the company. Overall, medical devices are outsourced from a provider to various other hiring parties who can better use the devices. Rise in demand for advanced medical products has increased the need of medical devices outsourcing. Tightening regulations due to changing conditions such as the pandemic has affected medical devices companies due to which they are outsourcing their devices to third parties.
 
The global medical devices outsourcing market is generally classified into product design and development, regulatory consulting and other services, product testing and certification, product implementation, product maintenance, and product upgrade. The product design and development segment accounted for leading share of the global market in 2020 due to an increase in the number of companies upgrading and changing device development.
 
The market is categorized into Class III, Class II, and Class I. The class II segment accounted for major share of the global market in 2020. Class II devices are medium risk devices that involve fewer regulatory issues in comparison to class III. This contributes to the growth of the segment.
 
In terms of application, the market is apportioned into cardiology, neurology, radiology, anesthesia, orthopedic, and others. The others segment dominated the global medical devices outsourcing market in 2020. Medical devices are used for various other applications in the healthcare industry. Hence, demand for medical outsourced devices for the other applications is high.
 
Regionally, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America dominated the global medical devices outsourcing market in 2020, followed by Europe. The region’s dominance can be ascribed to increase in diagnostic facilities and focus of existing and new players on the region. North America was the largest market for medical devices outsourcing in 2020. The region dominated the global market due to substantial investments in the field, impressive economic growth, and increase in incidence of target diseases elevating the need of more medical devices that are upgraded, technological progress, and entry of new manufacturers.
 
Asia Pacific is projected to be a highly lucrative market for medical devices outsourcing during the forecast period. The market in the region is anticipated to expand at a high CAGR during the forecast period.
 
Key market players include Accellent Inc., Active Implants Corporation, Cirtec Medical Systems ll, MDMI Technologies, Inc., Micro Systems Engineering GmbH, Creganna-Tactx Medical, and Avail Medical Product, among others.