Product Design And Development Services Market Size, Share & Trends Report

Product Design And Development Services Market Size, Share & Trends Analysis Report By Services, By Application (Diagnostic Equipment, Surgical Instruments), By End Use, By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: Jan, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-4-68038-144-3
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2019
  • Number of Pages: 120

Report Overview

The global product design and development services market size was valued at USD 7.9 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 11.6% from 2021 to 2028. 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 it an extra level of complexity to the manufacturing process.

U.S. product design and development services market size, by application, 2016 - 2028 (USD Billion)

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.

However, COVID-19 disease 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.

Services Insights

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 39.9% in 2020. 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 projected to witness the fastest growth rate of 12.4% 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 product design and development services market for product design and development services and accounted for the largest revenue share of 27.9% in 2020. The segment is anticipated to maintain its position over the forecast period. This is mainly due to the complexity associated, which requires precise designing 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 instrument 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 12.6% over the forecast period. The segment includes all the medical devices and equipment which assist people in their daily lives. The 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.

End-use Insights

The medical device companies segment led the market for product design and development services and accounted for the largest revenue share of more than 50.0% in 2020. 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, along with enhanced reliability and connectivity. The overall outlook for design services is strong.

Global product design and development services market share, by end use, 2020 (%)

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, 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.

Regional Insights

Asia Pacific dominated the market for product design and development services and accounted for the largest revenue share of more than 40.0% in 2020. 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 in 2020, 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.

Key Companies and Market Share Insights

Expansion, and mergers and acquisitions, are the key strategies undertaken by the market players. For instance, in May 2018, Jabil opened a manufacturing facility for Nypro healthcare in Hungary. This development allows Nypro, a Jabil company, to expand its manufacturing capabilities in Europe into the life sciences and advanced human diagnostics markets.

Furthermore, in the midst of COVID-19, market players continued to hire employees at work. For instance, in September 2020, Jabil, Inc. announced its plan to fill over 200 positions by the end of the year in its healthcare manufacturing facility at Auburn Hills to expand the company’s nationwide network in producing COVID-19 testing kits. Also, in June 2020 the company declared the launch of a significant face mask manufacturing operation in the U.S. to meet the growing demand for face masks and other PPE equipment. Some of the prominent players in the product design and development services market include:

  • Ximedica

  • DeviceLab Inc.

  • Nordson MEDICAL

  • Starfish Medical

  • Donatelle

Product Design And Development Services Market Report Scope

Report Attribute

Details

Market Size value in 2021

USD 8.6 billion

Revenue forecast in 2028

USD 18.6 billion

Growth Rate

CAGR of 11.6% from 2021 to 2028

Base year for estimation

2020

Historical data

2016 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD Million and CAGR from 2021 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Service, application, end-use, region

Regional scope

North America; Europe; Asia Pacific; Latin America; Middle East & Africa

Country scope

U.S.; Canada; U.K.; Germany; France; Italy; Spain; Russia; Ukraine; Netherlands; Switzerland; Sweden; India; Japan; China; Australia; South Korea; Indonesia; Malaysia; Singapore; Thailand; Taiwan; Brazil; Mexico; Argentina; Colombia; South Africa; Saudi Arabia; UAE; Egypt

Key companies profiled

Ximedica; DeviceLab; Starfish Medical; Planet Innovation; Aran Biomedical

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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 2016 to 2028. For the purpose of this study, Grand View Research has segmented the global product design and development services market on the basis of services, application, end-use, and region:

  • Services Outlook (Revenue, USD Million, 2016 - 2028)

    • 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 Million, 2016 - 2028)

    • Diagnostic Equipment

    • Therapeutic Equipment

    • Surgical Instruments

    • Clinical Laboratory Equipment

    • Biological Storage

    • Consumables

    • Others

  • End-use Outlook (Revenue, USD Million, 2016 - 2028)

    • Medical Device Companies

    • Pharmaceutical Companies

    • Biotechnology Companies

    • Contract Research Organizations

  • Regional Outlook (Revenue, USD Million, 2016 - 2028)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

      • France

      • Italy

      • Spain

      • Russia

      • Ukraine

      • Netherlands

      • Switzerland

      • Sweden

    • Asia Pacific

      • India

      • Japan

      • China

      • Australia

      • South Korea

      • Indonesia

      • Malaysia

      • Singapore

      • Thailand

      • Taiwan

    • Latin America

      • Brazil

      • Mexico

      • Argentina

      • Colombia

    • Middle East & Africa

      • South Africa

      • Saudi Arabia

      • UAE

      • Egypt

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