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, 2019 - 2026

  • Published Date: Dec, 2019
  • Base Year for Estimate: 2018
  • Report ID: GVR-4-68038-144-3
  • Format: Electronic (PDF)
  • Historical Data: 2015 - 2017
  • Number of Pages: 150

Report Overview

The global product design and development services market size was valued at USD 7.4 billion in 2018 and is anticipated to exhibit a CAGR of 10.9% over the forecast period. 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

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 product, and offering it to the masses.

Medical technology is becoming faster and more interconnected. Since many medical devices are being marketed to have ease of usage, they need to be simple and have intuitive user interfaces. Product design is much more complicated than what most people think. The design is knowing and understanding the problems and demands of customers and finding solutions for them. 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.

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 growth.

New ideas, scientific discoveries as well as changes to manufacturing technologies frequently drive innovative medical device development. There are numerous changes taking place in the life sciences sector globally from a regulatory standpoint. Each regulatory body around the world is adopting enhanced compliance requirements, changing the development process. Hence, many companies provide services including market analysis, forecasting, and regulatory services, thereby providing valuable insight that can lead to revolutionary products and market dominance.

Services Insights

Based on services, the market is segmented into research, strategy, and concept generation; concept and requirements development; detailed design & process development; design verification; manufacturing transfer, design validation, and process validation; production and commercial support. The research, strategy, and concept generation segment dominated the market with a revenue share of 38.0% in 2018. It is also anticipated to lead the market over the forecast period, owing 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.

Application Insights

Based on the application, the product design and development services market is divided into diagnostic equipment, therapeutic equipment, clinical laboratory equipment, surgical instruments, biological storage, consumables, and others. The surgical instruments segment was identified as the largest segment accounting for 26.6% of the market share in 2018. This is mainly due to complexity associated, that require 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 its quality, safety, performance, feasibility, and manufacturing cost.

End-use Insights

Based on end-use, the global market is segmented into medical device companies, pharmaceutical companies, biotechnology companies, and contract research organizations. The medical device companies segment held the leading market share of 51.5% in 2018 owing to the increasing demand for advanced and quality medical products.

Global product design and development services market

Besides, there is an increasing trend towards a small and more portable product that requires 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

The Asia Pacific held the dominant market share of 40.9% in 2018. 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 the Asia Pacific in terms of market share in 2018, due to the strong presence of Contract Research Organizations (CROs) 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 regional market growth.

Key Companies & Market Share Insights

Some of the players operating in this market are Ximedica; DeviceLab Inc.; Jabil Inc.; Flex Ltd.; Plexus Corp.; Celestica Inc.; Starfish Medical; Nordson MEDICAL; Planet Innovation; and Donatelle. Expansion, and mergers and acquisitions, are the key strategies undertaken by the market players. For instance, in May 2018, Jabil opened a manufacturing facility of 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.

Product Design & Development Services Market Report Scope

Report Attribute

Details

The market size value in 2020

USD 9.2 billion

The revenue forecast in 2026

USD 17.1 billion

Growth Rate

CAGR of 10.9% from 2019 to 2026

The base year for estimation

2018

Historical data

2015 - 2017

Forecast period

2019 - 2026

Quantitative units

Revenue in USD million and CAGR from 2019 to 2026

Report coverage

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

Segments covered

Services, 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; China; India; Japan; Australia; South Korea; Mexico; Brazil; Argentina; Colombia; South Africa; Saudi Arabia; UAE

Key companies profiled

Ximedica; DeviceLab Inc.; Jabil Inc.; Flex Ltd.; Plexus Corp.; Celestica Inc.; Starfish Medical; Nordson MEDICAL; Planet Innovation; Donatelle

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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 2015 to 2026. For this study, Grand View Research has segmented the global product design and development services market report based on services, application, end-use, and region:

  • Services Outlook (Revenue, USD Million, 2015 - 2026)

    • 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, 2015 - 2026)

    • Diagnostic Equipment’s

    • Therapeutic Equipment’s

    • Surgical Instruments

    • Clinical Laboratory Equipment’s

    • Biological Storage

    • Consumables

    • Others

  • End-use Outlook (Revenue, USD Million, 2015 - 2026)

    • Medical Device Companies

    • Pharmaceutical Companies

    • Biotechnology Companies

    • Contract Research Organizations

  • Regional Outlook (Revenue, USD Million, 2015 - 2026)

    • North America

      • The U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

      • France

      • Italy

      • Spain

    • Asia Pacific

      • Japan

      • China

      • India

      • Australia

      • South Korea

    • Latin America

      • Brazil

      • Mexico

      • Argentina

      • Colombia

    • MEA

      • South Africa

      • Saudi Arabia

      • UAE

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