Healthcare Contract Manufacturing Market Registering At A CAGR Of 7.7% From 2021 To 2028

 San Francisco, 1 Feb 2021: The Report Healthcare Contract Manufacturing Market Size, Share & Trends Analysis Report By Type (Medical Device, Pharmaceutical), By Region (North America, Europe, Asia Pacific, Latin America, MEA), And Segment Forecasts, 2021 - 2028

The global healthcare contract manufacturing market size is expected to reach USD 323.6 billion by 2028, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 7.7% from 2021 to 2028. The changing regulatory landscape, coupled with rising offshoring to emerging countries, is anticipated to propel the market growth over the forecast period.

Increasing demand for advanced products is a major factor driving the market. Original equipment manufacturers (OEMs) are outsourcing the manufacturing activities of medical devices to third parties, mainly to developing countries to gain economic benefits. Furthermore, these regions are witnessing rising cases of chronic conditions, such as heart disorders, thereby positively affecting the market growth. Changes in reimbursement schemes are anticipated to increase the adoption of cost containment measures by OEMs. For instance, to prevent reimbursement issues from impacting financing goals, device manufacturers are developing a well-planned reimbursement strategy in parallel with their regulatory and clinical strategies in the early phases of product development.

Moreover, the growing geriatric population across the globe and the consequent rise in age-related diseases have stimulated the progress of pharmaceutical and medical device development, thus leading to the growth of the healthcare manufacturing industry. With a rise in demand, the market now witnesses an influx of manufacturing service providers. Asia Pacific was the dominant regional market for medical device outsourcing in 2020 owing to lower cost and easy availability of skilled human resources. For instance, according to IBEF, M&A deals in the healthcare sector in India increased by 155% (USD 1.09 billion) in 2019.

A rise in the number of medical device companies vying to enter regional markets, such as India and China, is further expected to contribute to the growth of this market. For instance, the Chinese government’s Marketing Authorization Holder (MAH) scheme facilitates international healthcare players to produce their products within the local Chinese market equipped with state-of-the-art centers. The expansion of production capacity by players such as WuxiBiologics is a distinguished example of this deliberate plan.

Due to the emergence of infections, such as COVD-19, many organizations are attempting to accelerate production to meet the growing demand. Thus, these companies are appointing healthcare CMOs to speed up their production processes as well as reduce their overall costs to meet the increasing demand for medical products. The worldwide effort to develop a vaccine and therapeutic agent against COVID-19 has created the greatest opportunity for many large as well as small CMOs as the pharmaceutical companies are manufacturing vaccine doses on a large scale. Hence, we can say that the pandemic has had a positive impact on this industry.

This paradigm shift from in-house manufacturing to contract manufacturing in the pharmaceutical and medical device industry has resulted in the increased focus of the companies on contract manufacturing service vendors. These services have effectively addressed the concerns regarding pharmaceutical and medical device manufacturing as well as significantly accelerated the commercialization of products.

Access Research Report of Healthcare Contract Manufacturing Market @ https://www.grandviewresearch.com/industry-analysis/contract-manufacturing-market

Healthcare Contract Manufacturing Market Report Highlights

• By type, the pharmaceutical segment dominated the market with a share of 75.2% in 2020 owing to low manufacturing budget and highly sophisticated contract manufacturing service offerings
• The medical device type segment is expected to be the fastest-growing segment with a CAGR of 9.7% over the forecast period owing to increasing pressure on OEMs to reduce costs and enhance the timeline for taking a product to market
• Cardiology was the dominant therapeutic area segment in the medical device contract manufacturing market in 2020 owing to rising demand for cardiovascular devices as a result of the increasing prevalence of associated heart conditions
• Asia Pacific dominated the market in 2020 and is expected to witness the fastest growth over the forecast period owing to the presence of a large number of service providers, lower costs, and growing demand for medical devices in the region

List of Key Players of Healthcare Contract Manufacturing Market

• Nordson Corporation
• Integer Holdings Corporation
• Jabil Inc.
• Viant Technology LLC
• FLEX LTD.
• Celestica Inc.
• Sanmina Corporation
• Plexus Corp.
• Phillips-Medisize
• Synecco
• Catalent, Inc.

Access Press Release of Healthcare Contract Manufacturing Market @ https://www.grandviewresearch.com/press-release/global-contract-manufacturing-market