Healthcare Contract Manufacturing Market Size, Share & Trends Analysis Report By Type (Medical Devices, Pharmaceutical), By Region (North America, Latin America, Asia Pacific, MEA, Europe), And Segment Forecasts, 2019 - 2026

Industry Insights

The global healthcare contract manufacturing market size was valued at USD 149.8 billion in 2018 and is projected to expand at a CAGR of 7.0% from 2019 to 2026. Shifting trend of outsourcing the services to third party manufacturers in the developing economies is significantly influencing the growth of this market.

Assurance of quality services and favorable regulatory affairs in developing economies are other major drivers for contract manufacturing market. Furthermore, high demand for cardiovascular devices due to rising cases of heart disorders, growing need for technical expertise, and increased complexities associated with these devices is fueling the outsourcing market.

Medical device manufacturers are striving to reduce cost as profit margins are shrinking. In addition, small- and medium-sized companies do not have skilled labor and technical resources to complete the project. Contract manufacturing services enables addressing such problems.

These services have effectively addressed concerns regarding pharmaceutical manufacturing as well as have accelerated the commercialization of products. Moreover, growing aging population across the globe and consequent rise in age-related diseases has stimulated the progress of pharmaceutical clinical research outsourcing, thus leading to market growth.

Type Insights

Based on type, the market is segmented into medical device and pharmaceutical, both of which cater to their own separate markets too - medical device contract manufacturing market and pharmaceutical contract manufacturing market, respectively. Medical device segment is further divided on the basis of type and therapeutic area. The type segment includes accessories, assembly, component, and device manufacturing. Device manufacturing segment is anticipated to dominate the contract manufacturing market over the forecast period owing to increasing outsourcing of devices due to extensive use and complexity in manufacturing. On the basis of therapeutic areas, the medical devices segment is analyzed for cardiology, medical imaging, orthopedic, IVD, ophthalmic, general & plastic surgery, drug delivery, dental and other areas.

The Cardiology segment held the largest share in 2018 and is also expected to witness a healthy CAGR over the forecast period. Rising demand for cardiovascular devices as a result of increasing cases of associated conditions is attributed to the growth of outsourcing of these devices. Moreover, high complexity of cardiovascular devices and need for technical expertise result in higher outsourcing of these devices. The pharmaceutical segment is divided into Active Pharmaceutical Ingredients (APIs), advanced drug delivery formulations, packaging, and finished dose formulations. Being the key component in drug development, APIs captured the largest share in 2018 and are expected to witness a significant growth in the coming years.

Several companies are opting for the outsourcing of drug development due to limited capacity, insufficient resources, lack of skilled professionals, as well as for cost saving. Various CMOs/CROs offer customized services. Service offered by these organizations range from the manufacturing of API/bulk drugs to clinical trials of a drug candidate. These organizations also offer research services in different therapeutic fields including oncology, vaccines, inflammation & immunology, cardiology, neuroscience, and others.

Regional Insights

Asia Pacific dominated the market in the 2018 and is expected to remain dominant during the forecast period owing to improving healthcare services and economic growth of developing economies. Moreover, low cost of conducting clinical trials in this region ultimately encourages manufacturers to shift their manufacturing units, which in turn drives the market growth in APAC.

North America is also expected to witness a significant growth over the forecast period due to the presence of a large number of key companies in the region. These players are focusing on expanding their manufacturing facilities to satisfy the growing needs for medical devices & pharmaceuticals. This will ultimately drive the pharmaceutical segment in the region. Rising drug development costs and high industry rivalry are stimulating pharma companies to outsource drug development services.

Healthcare Contract Manufacturing Market Share Insights

The prominent companies in the industry include Tecomet INC; Jabil, Inc.; Celestica, Inc.; Integer Holdings Corp.; Plexus Corp.; Sanmina Corp.; West Pharmaceutical Services, Inc.; Flex Ltd.; Cantel Medical Corp.; Viant; Synecco Ltd.; and Angiplast. To sustain in the highly competitive environment and maintain profitability, these companies are taking cost containment measures, to outsource production capabilities.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2026. For the purpose of this study, Grand View Research has segmented the global contract manufacturing market report on the basis of type and region:

• Type Outlook (Revenue, USD Billion, 2015 - 2026)

  • Medical Devices

    • Accessories manufacturing

    • Assembly Manufacturing

    • Component Manufacturing

    • Device Manufacturing

    • Cardiology

    • Diagnostic Imaging

    • Orthopedic

    • IVD

    • Ophthalmic

    • General & Plastic Surgery

    • Drug Delivery

    • Dental

    • Endoscopy

    • Diabetes Care

    • Others

  • Pharmaceutical 

    • API/Bulk Drugs

    • Advanced Drug Delivery Formulations

    • Packaging

    • Finished Dose Formulations

      • Solid

      • Liquid

      • Semi-solid Formulations

• Region Outlook (Revenue, USD Billion, 2015 - 2026)

  • North America

    • U.S.

    • Canada

  • Europe

    • France

    • Germany

  • Asia Pacific

    • China

    • India

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa

    • South Africa