The product design and development services market size was valued at USD 9.4 billion in 2022 and is anticipated to exhibit a compound annual growth rate (CAGR) of 12.5% from 2023 to 2030. New standards and regulations, the need to reduce cost, and innovate the product quickly, as well as increasing demand for quality products and healthcare, are some of the major factors driving the growth. Developing medical devices often involves strict regulations and cutting-edge technology that gives an extra level of complexity to the manufacturing process. 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 followed 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, especially in developing markets such as India and China. 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.
The COVID-19 pandemic has disrupted product development. There has been a change in the product development practice by restrictions including work from home, uncertain demand, no travel to customers or supplier’s virtual private network, and collaboration software tools. The travel restrictions have led to longer material ordering and shipping times which in turn made the movement of prototypes more difficult and create a need for more creative means to interact with supplies and customers.
Post COVID-19 product design & development services market has developed a few approaches that help in market recovery and for future growth of the market such as strategic alliances, accessing post-COVID risk in the product design and development sector, comparing with competitors by understanding strategic baseline, understanding long-term needs of the market, and network planning.
Based on services, the research, strategy, and concept generation segment dominated the market for product design and development services and accounted for the largest revenue share of 39.8% in 2022. The segment is also anticipated to maintain its position over the forecast period. This may be attributed to the extensive research required in this stage that involves identification of user needs, researching comparative and competitive landscape, along with technological research and assessment.
The process validation and manufacturing transfer segment is expected to witness the fastest growth rate of 13.7% 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.
The surgical instruments segment dominated the market with the largest revenue share of 27.8% in 2022. The segment is anticipated to maintain its position over the forecast period. This is mainly due to the complexity associated, which requires precise design and development. They need to be good enough to perform surgery and not cause any harm to the patients.
The design and development of surgical instruments require advanced techniques to develop special biomedical technology. Since the surgical instrument market is high technology-oriented, price-sensitive as well as quality competitive, the development of surgical instruments should be adjusted and controlled for their quality, safety, performance, feasibility, and manufacturing cost.
The consumables and accessories segment is projected to witness the fastest CAGR of 13.9% 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 as well as physically disabled population is creating more need for devices that assist them in daily activities. This, in turn, is driving the market for product design and development services.
The medical device companies segment accounted for the largest revenue share of 55.5% in 2022. This is attributed to the increasing demand for advanced and quality medical products. Implementation of new and innovative technologies is majorly important for creating and maintaining product competency. The medical device development firms are leading such innovations with the adoption of the latest technology trends such as miniaturization, portability, enhanced reliability, and connectivity. The overall outlook for design services is strong.
Besides, there is an increasing trend towards small and portable products that require more advanced manufacturing technologies, components, and automation techniques. Medical products covering the range of life assist devices, therapeutic devices, drug delivery systems, and patient monitors all are becoming smaller in size while increasing features and performance. Besides, with the patient as the intended user, these new products increasingly include design considerations typically related to consumer-type products such as wireless connectivity, portability, user interface, ruggedness, and industrial design.
Asia Pacific dominated the market and accounted for the largest revenue share of 42.2% in 2022. The key players in developing countries of the Asia Pacific and Latin America are witnessing a considerable rise in their revenue due to the growth in opportunities offered by these regions. Medical device Original Equipment Manufacturers (OEMs) are outsourcing the production of their devices to these economies due to the availability of labor, raw materials, and components at a lower cost.
North America followed Asia Pacific in terms of market share of 25.0% in 2022, due to the strong presence of Contract Manufacturing Organizations (CMOs) that offer product design and development services. Also, the companies based in the region are expanding their reach of services by mergers and acquisitions. Besides, 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 contributing to the growth of the market for product design and development services in the region.
The 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 in order 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 US manufacturing capabilities in order to support its growing US customer base. Some prominent players in the global product design and 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
Report Attribute |
Details |
Market Size value in 2023 |
USD 10.3 billion |
Revenue forecast in 2030 |
USD 24.1 billion |
Growth Rate |
CAGR 12.9% from 2023 to 2030 |
Base year for estimation |
2022 |
Historical data |
2018 - 2021 |
Forecast period |
2023 - 2030 |
Quantitative units |
Revenue in USD Billion and CAGR from 2023 to 2030 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Service, application, end-user, region |
Country scope |
U.S., Canada, UK, Germany, France, Italy, Spain, Norway, Sweden, Denmark, China, Japan, India, South Korea, Thailand, Australia, Brazil, Argentina, Mexico, South Africa, Saudi Arabia, UAE, Kuwait |
Key companies profiled |
Ximedica; DeviceLab; Jabil, Inc.; Flex Ltd; Plexus Corp; Celestica, Inc.; Starfish Medical; Nordson Medical; Planet Innovation; Donatelle; Cambridge Design Partnership; Aran Biomedical |
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This report forecasts revenue growth at the regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global product design & development services market report based on service, application, end-use, and region:
Services Outlook (Revenue, USD Billion, 2018 - 2030)
Research, Strategy, & Concept Generation
Concept & Requirements Development
Detailed Design & Process Development
Design Verification
Process Validation, Manufacturing Transfer & Design Validation
Production & Commercial Support
Application Outlook (Revenue, USD Billion, 2018 - 2030)
Diagnostic Equipment
Therapeutic Equipment
Surgical Instruments
Clinical Laboratory Equipment
Biological Storage
Consumables
Others
End-use Outlook (Revenue, USD Billion, 2018 - 2030)
Medical Device Companies
Pharmaceutical Companies
Biotechnology Companies
Contract Research Organizations
Regional Outlook (Revenue, USD Billion, 2018 - 2030)
North America
U.S.
Canada
Europe
U.K.
Italy
Spain
Germany
France
Norway
Denmark
Sweden
Asia Pacific
India
Japan
China
South Korea
Australia
Thailand
Latin America
Brazil
Mexico
Argentina
MEA
South Africa
Saudi Arabia
UAE
Kuwait
b. The global product design and development services market size was estimated at USD 9,393.3 million in 2022 and is expected to reach USD 10,332.3 million in 2023.
b. The global product design and development services market is expected to grow at a compound annual growth rate of 12.9% from 2023 to 2030 to reach USD 24,092.2 million by 2030.
b. The research, strategy, & concept generation services segment dominated the market with a share of 39.8% in 2022. This is attributable to extensive research, business, and design strategy that generates maximum revenue.
b. Some of the players operating in the product design & development services market are Ximedica; DeviceLab Inc.; Jabil Inc.; Flex Ltd.; Plexus Corp.; Celestica Inc.; Starfish Medical; Nordson MEDICAL; Planet Innovation; and Donatelle.
b. Key factors that are driving the product design and development services market growth include low product cost, short time-to-market, well as increasing demand for quality products and healthcare.
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