Asia Pacific Medical Device Contract Manufacturing Market Size, Share & Trends Analysis Report By Product (Class I, Class II, Class III), By Services, By Therapeutic Area, By End Use, By Country, And Segment Forecasts, 2025 - 2033

Asia Pacific Medical Device Contract Manufacturing Market Summary

Moreover, the increasing trend of offshoring medical device manufacturing to developing economies is significantly boosting the demand for contract manufacturing services in the Asia Pacific region. This shift is primarily driven by the need for cost-effective production, access to skilled labor, and the ability to navigate complex regulatory environments efficiently. Developing countries in the APAC region, such as China, Japan, India, and Indonesia, offer substantial cost advantages due to lower labor and operational expenses. invested heavily in building robust manufacturing infrastructures and have developed a skilled workforce in advanced manufacturing techniques. As a result, they have emerged as attractive destinations for OEMs aiming to reduce production costs while maintaining high-quality standards.

In addition, rising demand for advanced medical devices, coupled with technological advancements and supportive regulatory frameworks, is significantly boosting the APAC medical device contract manufacturing market. Contract manufacturers in the region are well-positioned to capitalize on these trends by utilizing their expertise, advanced technologies, and strategic partnerships to deliver high-quality, innovative medical devices that meet the growing needs of the global healthcare industry.

Furthermore, changing regulatory landscape for medical devices in the Asia Pacific region drives the demand for medical device contract manufacturing market growth. Governments across countries such as China, India, Japan, South Korea, and Southeast Asian nations are actively improving their regulatory frameworks to streamline approval processes, enhance higher quality standards, and attract foreign investment in the medical device sector. These reforms enhance compliance transparency and create a favorable environment for global original equipment manufacturers (OEMs) to partner with local contract manufacturers. Such factors are expected to drive the market growth over the estimated time period.

Opportunity Analysis

The Asia Pacific medical device contract manufacturing market offers significant growth opportunities fueled by cost advantages, rising domestic demand, and increased outsourcing by global Original Equipment Manufacturers (OEMs). Countries such as India, Vietnam, and Malaysia are emerging as alternatives destination to China, due to geopolitical tensions and tariff challenges. Thus, countries benefit from low labor costs, a skilled workforce, and supportive government incentives. The growing demand for home healthcare solutions, diagnostic tools, and wearable medical technologies is enabling local contract manufacturers to enhance their value proposition.

Furthermore, the region's efforts toward regulatory alignment with global standards are boosting investor confidence and facilitating access to international markets. The development of medical device parks, partnerships between public and private sectors, and infrastructure improvements are enhancing supply chain efficiency and attracting multinational medtech companies seeking manufacturing and distribution hubs. There remains considerable potential in high-margin service areas such as sterilization, testing, packaging, and regulatory consulting. In addition, the integration of digital health and the increasing need for flexible production platforms present opportunities for innovation-driven contract manufacturing. Moreover, by capitalizing on these emerging trends and enhancing capabilities in complex device assembly and automation, Asia Pacific contract manufacturers can establish themselves as long-term strategic partners to global OEMs across both traditional and next-generation device categories.

Impact of U.S. Tariffs on the Asia Pacific Medical Device Contract Manufacturing Market

The imposition of tariffs by the U.S. on Chinese medical device imports has disrupted established manufacturing and supply chains. Companies like Johnson & Johnson and Abbott Laboratories have reported substantial tariff-related costs, with Johnson & Johnson anticipating approximately USD 400 million in expenses for 2025, primarily affecting its medical technology division. These tariffs have led to increased production costs and supply chain uncertainties, compelling companies to reevaluate their manufacturing strategies. In response, Abbott announced a USD 500 million investment in U.S. manufacturing and research facilities to mitigate the impact of tariffs and stabilize operations.

In light of these challenges, companies are exploring alternative manufacturing hubs within the Asia-Pacific region. Malaysia, India, Malaysia, and Thailand have emerged as attractive destinations for medical device manufacturing. These countries offer competitive labor costs, skilled workforces, and favorable regulatory environments. For instance, Thailand has gained recognition for its efficient manufacturing capabilities, while India is benefiting from increased investments in its pharmaceutical and electronics sectors.  Moreover, the U.S.-China trade war has undeniably impacted the Asia Pacific medical device contract manufacturing market by introducing tariffs that disrupt traditional supply chains. However, this challenge has also opened avenues for growth in alternative Asia Pacific markets. Countries such as Singapore, India, Malaysia, and Thailand are capitalizing on this opportunity by offering attractive manufacturing solutions that cater to the evolving needs of the medical device industry. As companies adapt to the changing trade landscape, Asia Pacific region is poised to become an integral part in the global medical device manufacturing sector.

Technological Advancements

Asia Pacific medical device contract manufacturers are rapidly embracing technological advancements to meet the expectations of global Original Equipment Manufacturers (OEMs). The incorporation of Artificial Intelligence (AI) and Machine Learning (ML) is revolutionizing quality control, predictive maintenance, and process optimization, enabling quicker decision-making and reduced downtime. Increasing investments in 3D printing technologies are facilitating rapid prototyping, the creation of personalized implants, and the production of low-volume precision components, significantly accelerating development timelines.

Furthermore, the integration of the Internet of Medical Things into manufacturing processes supports the production of connected devices equipped with sensors and remote diagnostic capabilities, catering to the rising demand for smart and wearable healthcare solutions. Robotics and automation are enhancing production efficiency, particularly in repetitive tasks such as assembly, inspection, and packaging, while also decreasing the likelihood of human error. Moreover, the adoption of smart factory solutions is characterized by real-time data integration, IoT-enabled machinery, and digital twins streamlines operations and enhances traceability throughout the supply chain. Thus, these innovations position Asia Pacific contract manufacturers as agile, technology-driven partners capable of delivering next-generation medical devices that are cost-effective, scalable, and compliant with global standards.

Pricing Model Analysis

In the Asia Pacific medical device contract manufacturing market, several pricing models are employed to accommodate varying client needs, production volumes, and regional market dynamics. The most common pricing models include cost-plus pricing, fixed-price contracts, and time and materials (T&M) pricing.  The cost-plus pricing model is widely used in the APAC medical device contract manufacturing market, especially for projects with less-defined specifications or long-term partnerships. Under this model, the contract manufacturer charges the OEM for the actual production costs incurred, including labor, materials, and overhead, along with a fixed profit margin. This pricing structure is beneficial in developing economies like China and India, where labor and material costs fluctuate.

Besides, the fixed-price contract model is another prevalent pricing strategy, particularly for well-defined, high-volume production runs where the scope of work is clear. In this model, the contract manufacturer provides a set price for the entire project or a specific phase of production, regardless of the actual costs incurred during manufacturing. This pricing model is common in regions like Japan and South Korea, where there are strict quality and compliance standards.  

In addition, the time and materials (T&M) pricing is used for projects where the scope of work is either unclear or expected to evolve throughout the manufacturing process. This model involves charging the OEM for the time spent on manufacturing, usually based on hourly rates and the materials used. The T&M model is applied in emerging APAC markets such as Thailand and Malaysia, where contract manufacturers may not have the full knowledge of a product’s final requirements at the start of the engagement. This pricing model provides flexibility for both parties, as costs are adjusted based on actual work and material usage.

Furthermore, value-based pricing, although less common than other models, is gaining traction in the APAC medical device market for specialized, high-value products such as implants or high-end diagnostic equipment. This model bases pricing on the perceived value that the medical device brings to the customer rather than the cost of production.

Market Concentration & Characteristics

The Asia Pacific medical device contract manufacturing market growth stage is moderate, and growth is accelerating. The market is characterized by the degree of innovation, level of M&A activities, regulatory impact, service expansion, and regional expansion.

The contract manufacturing sector for medical devices in the Asia Pacific region is experiencing significant advancements in innovation. This growth is fueled by the increasing demand for precision engineering, miniaturization, and the integration of digital technology in devices. Companies are focusing on automation, smart manufacturing techniques, and additive manufacturing to boost efficiency and comply with global quality standards. Besides, innovation is particularly apparent in fields like diagnostics, wearable technology, and drug delivery systems. Moreover, collaborations between multinational OEMs and local startups are speeding up the time-to-market and equipping the region with the skills necessary for developing complex, high-value medical technologies.

Regulatory frameworks in the Asia Pacific region are undergoing significant changes, with nations such as China, Japan, and India strengthening compliance standards to better align with international benchmarks. The introduction of stricter quality controls localized regulatory approvals, and harmonization with ISO and FDA standards has increased entry barriers while also enhancing global competitiveness. These updated regulations are encouraging contract manufacturers to improve their quality systems and invest in expertise related to regulatory affairs. However, the presence of inconsistent policies across different markets continues to present challenges for cross-border operations, necessitating careful navigation of region-specific requirements.

M&A activity in the Asia Pacific medical device contract manufacturing sector is steady yet strategically focused, primarily fueled by the rising need to consolidate capabilities, enhance market access, and acquire technological assets. Regional companies are targeting niche manufacturers and quality-certified facilities to grow their operations, while global CDMOs are pursuing acquisitions to strengthen their local presence and broaden their end-to-end service offerings.

Contract manufacturers in the Asia Pacific region are enhancing their offerings by expanding into design support, prototyping, packaging, and regulatory consulting, effectively providing comprehensive, full-cycle solutions. This extensive offering of services aims to strengthen collaborations with OEMs, shorten project timelines, and maximize value capture. In addition, high-margin services like sterilization and testing are being prioritized for in-house development.

To minimize geopolitical risks and expand their client bases, contract manufacturers are looking beyond traditional markets such as China and Singapore and exploring emerging hubs such as Vietnam, Malaysia, and India. These countries present cost advantages, enhanced infrastructure, and favorable government incentives. The regional expansion strategy also involves creating satellite facilities near key export markets and developing multi-country manufacturing networks to facilitate agile, low-risk supply chains that meet the evolving demands of global medtech clients.

Product Insights

On the basis of product segment, in 2024, class II segment held the largest market share of 71.15%. The demand for Class II medical devices is driven by the expansion of healthcare infrastructure, growing aging population, and the increasing prevalence of non-communicable diseases. Besides, the Asia Pacific region is emerging as an attractive center for domestic manufacturing and the international launch of Class II medical devices, further enhancing market growth.

Moreover, Class II medical devices represent moderate-risk products, including infusion pumps, syringes, diagnostic equipment, and surgical drapes. These devices carry a higher risk than Class I devices as they are in continuous contact with patients. Besides, Class II devices may include equipment and diagnostic tools that interact with patients’ internal organs or cardiovascular systems. Thus, these devices require more stringent regulatory requirements than Class I devices. This includes detailed technical documentation, clinical evidence where necessary, and conformity assessments. However, regulatory frameworks differ according to country but align with international standards such as ISO 13485 and the Common Submission Dossier Template (CSDT) as mentioned in the ASEAN Medical Device Directive (AMDD).

The Class I is anticipated to grow at the second-fastest CAGR over the forecast period. Class I medical devices in Asia Pacific are considered low- to moderate-risk for patients such as surgical gloves, bandages, and manual stethoscopes. The Class I devices are regulated with minimal regulatory control, primarily emphasizing safety, labeling, and quality assurance. These devices do not come into contact with a patient's internal organs, cardiovascular system or central nervous system, which further leads to a low impact on a patient's overall health. In addition, these devices are the fastest & easiest to bring to market due to the low amount of risk to the patient, and they rarely provide critical life-sustaining care.In addition, regulatory authorities are increasingly embracing digital solutions for submission and review processes, assisting streamline approvals and enhanced post-market surveillance. Thus, with the increasing demand for a variety of medical devices, Class I devices are expected to play a major role in preventive care, diagnostics, and primary treatment delivery across patients’ population.

Services Insights

On the basis of services segment, the accessory manufacturing segment accounted for the largest market share in 2024. Accessory manufacturing is a finished device designed to support & enhance the functionality and performance of parent devices. A parent device is a finished product that benefits from the support and enhancement provided by these accessories. This accessory manufacturing sector includes innovations of components such as catheters, tubing, connectors, housing, and electronic accessories utilized across various medical applications. Furthermore, in the Asia Pacific region, the growth in accessory manufacturing can be attributed to factors such as cost efficiency, skilled labor availability, robust supply chain networks, and supportive government policies.

The device manufacturing segment is anticipated to grow at the fastest CAGR over the forecast period.  The medical device contract manufacturing market in the Asia Pacific region is rapidly evolving, fueled by increased investments in advanced manufacturing technologies, a rising incidence of chronic diseases, and a trend towards local medical device production. Some other factors contributing to the segment growth are cost efficiency, a skilled workforce, favorable regulatory environments, and a growing demand for medical technologies in Asian countries. In addition, the expanding need for high-precision medical devices such as robotic-assisted surgical systems, cardiovascular implants, and neuromodulation devices has led contract manufacturers to broaden their product offerings.

Therapeutic Area Insights

On the basis of therapeutic area segment, the cardiovascular devices segment held the largest market share in 2024. Cardiology devices are increasingly outsourced due to the increased prevalence of cardiovascular devices, an aging population, and technological advancements. Rising incidences of cardiology diseases such as angina pectoris, myocardial infarction, hypertensive heart disease, rheumatic heart diseases, atrial fibrillation, and congenital heart disease drives the need for this industry. For instance, according to the Lancet 2025 to 2050, cardiovascular mortality will rise by 91.2% from 2025 to 2050 despite an anticipated 23.0% decline in the age-standardized cardiovascular mortality rate. By 2050, ischemic heart disease and stroke are expected to remain the major cause of ASMR.

Furthermore, elevated systolic blood pressure will be the major contributor to ASMR across Asia, except in Central Asia, where the highest impact will come from high fasting plasma glucose, leading to 546 deaths per 100,000 population. Some other factors contributing to the segment growth are rising demand for smaller, minimally invasive cardiac implants, growing adoption of connected cardiovascular devices due to remote monitoring trends, increasing use of bioabsorbable materials, and faster time-to-market through regulatory alignment and tech transfer capabilities

The surgical instrument segment is expected to grow at the fastest CAGR during the forecast period. The segment growth is driven by the rising volume of surgical procedures, increased healthcare investments, and cost advantages offered by outsourcing. In addition, the number of surgical devices like fixation devices, extremity splints, and epilators require specialized molding, and machining processes are outsourced to component manufacturers. Besides, the rising need for minimally invasive cosmetic & reconstructive procedures conducted in Asia Pacific is expected to drive the demand for such surgical instruments over the estimated time.

End Use Insights

On the basis of the end use segment, the original equipment manufacturers (OEMs) segment accounted for the largest market share in 2024. Currently, original equipment manufacturers (OEMs) are witnessing an increased demand for contract manufacturing, which allows them to outsource specialized design, engineering, and scalable production expertise to external providers. These services enable OEMs to concentrate on their core strengths while reducing the operational challenges and significant capital costs associated with maintaining in-house manufacturing facilities. In addition, these services assist OEMs to overcome the industry challenge and enhance speed, flexibility, and cost-efficiency in a competitive market. 

Besides, with the presence of established medical device contract manufacturers in Asia Pacific countries such as China, Japan, India, OEMs can maintain vertically integrated production lines. This accelerates innovation cycles, helps manage risks, and meets the rising need for complex, high-quality, patient-centric medical devices across various regions. Thus, it reduces the need for significant investments in expensive equipment and infrastructure.

The pharmaceutical & biopharmaceutical companies’ segment is expected to grow at the second fastest CAGR during the forecast period. The pharmaceutical & biopharmaceutical companies are opting for medical device contract manufacturing to meet the growing demand for innovative drug-delivery systems and combination products. This trend is driven by patient-centric therapies, self-administration, and personalized medicine. Besides, many pharmaceutical and biopharmaceutical companies are seeking to develop drug-device combination products, including wearable injectors, autoinjectors, prefilled syringes, inhalers, and advanced delivery systems. With evolving global regulations and cost pressures, outsourcing manufacturing processes allows for faster time-to-market, scalability, and effective risk management.

Furthermore, designing, producing and delivering a new commercially product to market within pharmaceutical and biopharmaceutical industry can be a long process, especially when it involves drug delivery devices or the integration of drugs with such devices. Besides, most of the companies lack the in-house expertise that is required for this type of development, which increases the demand for device development services. Thus, such factors have increased the need for collaboration with external partners, such as medical device contract manufacturers to facilitate the creation of new drug delivery devices and combination products.

Regional Insights

Asia Pacific is expected to grow at a CAGR of 14.12% over the forecast period. The Asia Pacific medical device contract manufacturing market is driven by various factors such increasing focus on patient safety standards, cost-effective production, skilled labor, expanding healthcare demand, and increasing OEMs outsourcing. Moreover, the growing adoption of research and development standards to meet international requirements and low operating costs are key factors driving the demand for outsourcing services across the Asia Pacific region. In addition, presence of countries such as China, Japan, India, South Korea, Australia, Thailand, Taiwan, Singapore, Malaysia, and Indonesia contributes to the market growth. As CMOs in these countries are enhancing their capabilities in various areas such as diagnostics, surgical instruments, implants, wearable devices, and homecare solutions, the Asia Pacific market is expected to witness new growth opportunities.

China Medical Device Contract Manufacturing Market Trends

The medical device contract manufacturing market in China is driven by increasing demand for medical devices, rapid technological advancements, and robust economic growth. Some other factors contributing to the market growth are rising investments, and stringent standards for the development of medical devices within the country.  The country’s medical device contract manufacturing market plays a crucial role in assisting companies to navigate the complex regulatory landscape and formulating effective business strategies for the Chinese market. In addition, the country has become a strategic hub for OEMs to outsource the production of diagnostic devices, surgical instruments, respiratory equipment, and implantable technologies. As multinational OEMs seek resilient, scalable, and compliant manufacturing partners, China continues to strengthen its position as a vital component of the medical device contract manufacturing market.

Japan Medical Device Contract Manufacturing Market Trends

The medical device contract manufacturing market in the Japan accounted for the highest share of the Asia Pacific market. The country’s growth is driven by due to technological advancements, a rising demand for outsourcing services, and increasing healthcare expenditure. In addition, the country has presence of established medical devices sector along with emerging number of medical companies looking to enter the Japanese with the support of outsourcing services such as medical device contract manufacturing for assistance in developing business for medical devices. Moreover, expanding focus on preventive care is further amplifying the demand for contract manufacturing services in the medical device sector. Furthermore, market dynamics have prompted many manufacturers to prioritize medical device testing services for new product development, which is expected to drive market growth.

India Medical Device Contract Manufacturing Market Trends

The India's medical device contract manufacturing market are anticipated to grow significantly over the forecast period. The country has become one of the preferred sites for medical device companies to outsource their medical device components, assembly manufacturing due to its diversified technology innovations, lower costs of labor, improved healthcare infrastructure, and a large number of technical experts. Besides, with robust government support through initiatives such as ‘Make in India’ and the establishment of medical device parks, the country is attracting global OEMs seeking agile and scalable manufacturing partners for devices such as diagnostics, disposables, surgical instruments, and implantable.

South Korea Medical Device Contract Manufacturing Market Trends

The medical device contract manufacturing market in South Korea is driven by industry's remarkable expansion, advanced manufacturing facilities, robust research infrastructure, increased healthcare spending, stringent manufacturing standards, effective hygiene controls, quality assurance practices, and comprehensive training & maintenance protocols for medical devices. In addition, the country is emerging as a leading center for contract manufacturing medical devices, renowned for producing high-precision, top-quality products, particularly in the areas of diagnostics, imaging, minimally invasive surgical instruments, and innovative wearable health technologies. This trend is likely to enhance the demand for medical device contract manufacturing in the country.

Key Asia Pacific Medical Device Contract Manufacturing Company Insights

The key players operating across the market are adopting strategic initiatives such as service launches, mergers & acquisitions, partnerships & agreements, and expansions to gain a competitive edge in the market. For instance, in January 2024, the Integer Holdings Corporation announced the acquisition of Pulse Technologies, a contract manufacturer specializing in complex micro-machining of medical device components, for USD 140 million. This acquisition supported Integer’s strategy to enhance its capabilities and capacity in key growth markets.

Recent Developments

• In February 2025, Jabil Inc. announced the acquisition of Pharmaceutics International Inc., a CDMO that focuses on early-stage, clinical, and large-scale aseptic filling, lyophilization, and oral solid dose manufacturing. This strategic acquisition will strengthen Jabil's existing Pharmaceutical Solutions portfolio in the areas of pen injectors, auto-injectors, inhalers, and on-body pumps.

• In November 2024, Terumo BCT partnered with Terumo Medical Products Co., Ltd. to invest in a production facility in Hangzhou. This partnership aimed to provide high-quality medical products made locally for the Chinese market. The plant specializes in manufacturing devices for blood collection, separation, and treatment of various medical conditions. The products that are produced on-site include the Trima Accel Automated Blood Collection System and disposable sets and the Spectra Optia Apheresis System and disposable sets.

Asia Pacific Medical Device Contract Manufacturing Market Report Scope

Asia Pacific Medical Device Contract Manufacturing Market Report Segmentation

This report forecasts revenue growth at regional and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Grand View Research has segmented the Asia Pacific medical device contract manufacturing market report based on product, services, therapeutic area, end use, and country.

• Product Outlook (Revenue, USD Million, 2021 - 2033)

  • Class I

  • Class II

  • Class III

• Services Outlook (Revenue, USD Million, 2021 - 2033)

  • Accessories Manufacturing

  • Assembly Manufacturing

  • Component Manufacturing

  • Device Manufacturing

  • Packaging and Labeling

  • Others

• Therapeutic Area Outlook (Revenue, USD Million, 2021 - 2033)

  • Cardiovascular Devices

  • Orthopedic Devices

  • Ophthalmic Devices

  • Diagnostic Devices

  • Respiratory Devices

  • Surgical Instruments

  • Dental

  • Others

• End Use Outlook (Revenue, USD Million, 2021 - 2033)

  • Original Equipment Manufacturers (OEMs)

  • Pharmaceutical & Biopharmaceutical Companies

  • Others

• Regional Outlook (Revenue, USD Million, 2021 - 2033)

  • Asia Pacific

    • Japan

    • China

    • India

    • Thailand

    • South Korea

    • Australia

    • Singapore

    • Malaysia

    • Indonesia

    • Taiwan