San Francisco, California, Nov. 24, 2014 (GLOBE NEWSWIRE) -- Global medical device outsourcing market is expected to reach USD 50.37 billion by 2020, according to a new study by Grand View Research, Inc. Increasing pricing pressure on medical device OEMs and the presence of stringent government regulations are some key drivers of the medical device outsourcing market. One such regulation involves the imposition of additional 2.3% excise duty on medical devices in the U.S. The implementation of this act increased manufacturing costs, thereby encouraging OEMs to adopt outsourcing as a cost curbing tool. Budgetary cutbacks undertaken by healthcare establishments is another key reason accounting for the increase in pricing pressure on medical device OEMs.
Product design and development accounted for over 28.0% of the market in 2013. Escalating competition in the medical device industry has heightened the importance of new product development and extensive R&D investments. Manufacturers in an attempt to mitigate risks associated with this rise in capital expenditure levels adhere to cost effective strategies, especially outsourcing. Design and development expertise offered by outsourcing firms are also expected to improve usage rates during the forecast period.
Get More Details About Global Medical Device Outsourcing Market: http://www.grandviewresearch.com/industry-analysis/medical-device-outsourcing-market
Further key findings from the study suggest:
- Product implementation is expected to grow at an attractive rate of 13.5% during the forecast period. Key drivers accounting for such rapid growth include high infrastructure cost pertaining to product implementation and the growing demand for the simultaneous execution of multiple manufacturing processes.
- Class II medical device emerged as the largest application segment of the market in 2013. Presence of high sales volume coupled with relatively less stringent device approval regulations (as compared to class III medical devices) are some factors accounting for high outsourcing rates in this segment.
- North America was the leading regional market in 2013. Increasing prevalence of chronic diseases in the region and the consequent growth in demand for medical devices are some factors attributing for the region's large market share. Presence of stringent government regulations and healthcare related cost curbing endeavors are also expected to enhance the demand for outsourcing.
- Asia Pacific is expected to present this market with lucrative future growth opportunities. Growth of this region as a manufacturing hub offering lower labor and infrastructure costs is expected to fuel future market growth.
- The medical device outsourcing market is consolidated in nature and is marked by the presence of numerous mergers and acquisitions. Some key players of this market include Shandong Weigao Co. Ltd, Sterigenics International Inc., Hamilton Company, Shinva Medical Instruments Co., Inteprod LLC, Mitutoyo Corporation, Kinetics Climax, Inc., CFI Medical, Omnica Corporation, Infinity Plastics Group, Teleflex Medical OEM, Daiichi Jitsugyo Co. Ltd, ProMed Molded Products Inc. and GE.
For the purpose of this study, Grand View Research has segmented the global medical devices outsourcing market on the basis of services, application and region:
Global Medical Device Outsourcing Service Outlook (Revenue, USD Billion, 2012 - 2020)
• Product Design and Development Services
• Regulatory Consulting Services
• Product Testing Services
• Product Implementation Services
• Product Upgrade Services
• Product Maintenance Services
Global Medical Device Outsourcing Application Outlook (Revenue, USD Billion, 2012 - 2020)
• Class I Medical Devices
• Class II Medical Devices
• Class III Medical Devices
Medical Device Outsourcing Regional Outlook (Revenue, USD Billion, 2012 - 2020)
• North America
• Asia Pacific
More Information on Medical Device Outsourcing Market: http://www.grandviewresearch.com/industry-analysis/medical-device-outsourcing-market
About Grand View Research
Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.
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Source:Grand View Research