The medical device manufacturing industry as a whole is directly dependent on the growth of the medical device industry. Any growth in the medical device market will be directly reflected on the contract manufacturing segment as well. The medical device industry has experienced substantial growth in the past decade owing primarily to changes in patient demographics. In recent years, the market has undergone rapid globalisation which has further strengthened the industry. The economic growth of the BRIC (Brazil, Russia, India and China) nations has fuelled much of this growth due to the expanding middle class population that are able to afford improved medical services. However, the medical device industry was not immune to the recession, and companies operating in this industry continue to face pressures to cut costs to restore the profits that drive product development. As a result, in order to maintain company and industry profitability, medical device companies have had to adopt a variety of cost cutting measures; including the increasingly popular strategy of outsourcing. Activities that can be outsourced include product design, prototyping, manufacturing and supply chain management. The market for manufacturing remains the largest segment in medical device outsourcing.
Hemant Mistry, healthcare industry analyst, says: "Growth of the contract manufacturing market is outpacing that of the device industry as a whole. With the worldwide aging population driving the demand for innovative medical devices, coupled with the intensively competitive environment that drives operating costs higher, OEMs (original equipment manufacturers)
Visiongain's research also suggests that the world medical device contract manufacturing market is likely to benefit from the medical device excise tax due to come into effect in 2013, as part of the US Healthcare Reform Act. Although the tax does not apply until 2013, OEMs are likely to make outsourcing decisions this year, and are currently sourcing suitable CMs and vendors.
Visiongain predicts that this market will grow rapidly to 2021. The future of the medical device contract manufacturing market appears promising and has significant potential for growth and investment. This new report adds to visiongain's wide range of analytical reports in healthcare and other industry areas.
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