North America Product Design & Development Services Market Size, Share & Trends Analysis Report By End-use (CROs, Medical Device Companies), By Application, By Service, And Segment Forecasts, 2022 - 2030

Report Overview

The North America product design & development services market size was valued at USD 2.15 billion in 2021 and is anticipated to exhibit a compound annual growth rate (CAGR) of 11.7% over the forecast period. The COVID-19 pandemic had a considerable impact on the market. Restrictions on movement & stay-at-home orders helped reduce the spread of the virus. However, this is creating an obstacle in the supply chain, which created a temporary shortage of PPE kits, masks, gloves, and test kits in the region. The COVID-19 pandemic also led to the shut down of manufacturing plants to establish quarantine zones to contain the spread, which has impacted the medical devices industry in the region.

According to an article published by Mondaq, the medical devices industry is heavily reliant on China for the procurement of critical components, such as printed circuit boards and complex finished medical devices. China is among the fourth-largest supplier of medical technology to the U.S. However, a temporary closure of manufacturing facilities in China affected the market in the U.S.The recovery of the market in the post-COVID-19 era started with the reduction in market entry barriers that reduced the shortage in medical supply. The increased production of medical devices, such as test kits, MRI machines, and ventilators, in the region, has started.

For instance, in January 2022, the Biden Administration decided to buy one billion tests kits for people living in the U.S. to support testing in the country. There was also high demand for ventilators during the pandemic, owing to which, the Canadian government ordered around 40,000 ventilators in the country in October 2020. Such initiatives are likely to positively impact market growth. The design and development of a medical device is a complex process predominant with end-user needs, application requirements, specifications, and regulations and must be balanced and & for the successful development of a product.

Hence, there is much more that goes into designing, developing, as well as introducing a product to the market than just coming up with an innovative idea, building a product, and offering it to the masses.Medical technology is rapidly evolving and becoming more interconnected. Universally, the manufacturers of medical devices are shifting from a transaction-based approach to an approach that encompasses focusing on creating value for patients, providers, payers, and practitioners by providing medical tools and surgical instruments that are innovative, highly cost-efficient, and speak volumes about the product quality.

For instance, customized procedure trays that may be tailor-made as per the need of surgeons.The medical device manufacturing industry is anticipated to grow by leaps and bounds due to the increasing geriatric population as well as health concerns and increased health care costs. Thus, manufacturers are undertaking new product development projects at a high speed. Hence, the manufacturers will require a proper execution strategy to address the concerns and needs of the patients in the market. This is likely to increase the demand for the services, thereby boosting the market for product design and development services.

Service Insights

On the basis of services, the market has been further segmented into research, strategy, & concept generation, concept & requirements development, detailed design & process development, design verification and validation, process validation, manufacturing transfer, and production & commercial support. The research, strategy, & concept generation segment dominated the market in 2021 and accounted for the highest share of more than 39.5% of the overall market revenue. The segment is anticipated to lead the market even during the forecast years

This growth can be attributed to the extensive research required in this stage, including identification of user needs, researching comparative & competitive landscape, and technology research & assessment. The process validation and manufacturing transfer sergment is expected to grow at the fastest CAGR over the forecast period. This may be due to the stringent regulations pertaining to the validation of medical devices. As per the Quality System Regulations (QSR), the process ought to be validated with a high degree of assurance when the output of a process cannot be fully verified by following testing and inspection.

Application Insights

The surgical instruments segment dominated the market and accounted for the maximum share of more than 27.6% of the overall market revenue in 2021. The segment is anticipated to maintain its position over the forecast period. This growth can be attributed to the complexity of the instruments, which increases the need for precise designing and development. They need to be effective in performing surgeries and not cause any harm to patients.The surgical instrument market is high technology-oriented, price-sensitive as well as quality competitive.The consumables segment is projected to witness the fastest CAGR over the forecast period.

The segment includes all the medical devices and equipment, which assist people in their daily lives. Examples include mobility aids like wheelchairs, walkers, canes and crutches, scooters, incontinence pads, and urinals. There is an increasing need for home healthcare devices mainly associated with geographic changes and developments in the healthcare system. The increasing geriatric population and rising cases of physical disabilitiesare creating more need for devices that assist patients in their daily activities. This, in turn, is driving the market for product design and development services.

End-use Insights

On the basis of end uses, the market has been divided into medical device companies, pharmaceutical companies, biotechnology companies, and Contract Research Organizations (CROs). Medical devices companies held the largest share of more than 55.00% in 2021. This can mainly be attributed to the increasing demand for advanced and quality medical products. In addition, there is a growing trend of small and more portable products, which requires advanced manufacturing technologies, components, and automation techniques.

The medical device development firms are leading such innovations with the adoption of the latest technology trends, such as miniaturization, portability, along with enhanced reliability and connectivity. The overall outlook for design services is strong. Pharmaceutical companies emerged as the second-largest segment in 2021. The key drivers of this market are increased delivery mechanisms for this application, technological advancements, and the creation of a combination of products. Also, drug delivery systems & drug-eluting stents offer new approaches for treating diseases, and these drug-device combination products are anticipated to have a major impact on the segment growth.

Regional Insights

The U.S. was the largest market in 2021 and accounted for the maximum share of more than 90.5% of the overall market revenue. The regional market is anticipated to grow at a steady CAGR over the forecast period. This is due to the presence of large-scale medical device companies that outsource part of their functions, such as report writing & publishing, clinical trial application services, product design, and product maintenance, to regulatory service providers, thereby contributing to the market growth.The companies based in the U.S. are expanding their reach of services by mergers and acquisitions. Moreover, the rapid increase in the manufacturing of medical devices to meet the high demand for efficient healthcare in the region is expected to be one of the major factors driving the regional market.

Key Companies and Market Share Insights

Market players are constantly involved in providing a wide range of services and equipment, which can be an effective cost-curbing tool for the recipient organization. Participants are also involved in mergers and acquisitions to increase penetration. For instance, in November 2021, Planet Innovation (PI) acquired the North American operations of BIT Analytical Instruments GmbH, which manufactures regulated medical devices. A key aim of the acquisition is for PI to expand its U.S. manufacturing capabilities to support its growing U.S. customer base.Some prominent players in the North America product design & development services market include:

• Ximedica

• DeviceLAb

• Jabil, Inc.

• Flex Ltd.

• Plexus Corp

• Nordson Medical

• Celestica, Inc.

• Starfish Medical

• Planet Innovation

• Donatelle

• Cambridge Design Partnership

• Aran Biomedical

North America Product Design & Development Services Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the regionaland country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the North America product design & development services market report on the basis of services, application, end-use, and region:

• Services Outlook (Revenue, USD Million, 2017 - 2030)

  • Research, Strategy, & Concept Generation

  • Concept & Requirements Development

  • Detailed Design & Process Development

  • Design Verification & Validation

  • Process Validation & Manufacturing Transfer

  • Production & Commercial Support

• Application Outlook (Revenue, USD Million, 2017 - 2030)

  • Diagnostic Equipment

  • Therapeutic Equipment

  • Surgical Instruments

  • Clinical Laboratory Equipment

  • Biological Storage

  • Consumables

  • Others

• End-use Outlook (Revenue, USD Million, 2017 - 2030)

  • Medical Device Companies

  • Pharmaceutical Companies

  • Biotechnology Companies

  • Contract Research Organizations

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada