Diagnostic Contract Manufacturing Market by Device (In Vitro Diagnostic Devices and Diagnostic Imaging Devices), Service (Device Development & Manufacturing, Quality Management, and Packaging & Assembly), Application, Region - Global Forecast to 2028
The global diagnostic contract manufacturing market in terms of revenue was estimated to be worth $26.0 billion in 2023 and is poised to reach $44.9 billion by 2028, growing at a CAGR of 11.5% from 2023 to 2028. The new research study consists of an industry trend analysis of the market. The new research study consists of industry trends, pricing analysis, patent analysis, conference and webinar materials, key stakeholders, and buying behaviour in the market.
The growth in this market is attributed to the rising number of diagnostic public-private partnerships, and government grants will increase the use of medical devices in emerging countries, leading to a boom in contract manufacturing. On the other hand, a lack of constant innovation to balance technological capabilities against cost may challenge the growth of the diagnostic contract manufacturing market.
Attractive Opportunities in the Diagnostic contract manufacturing Industry
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Global Diagnostic contract manufacturing Dynamics
DRIVER: High cost of in-house IVD manufacturing
Contract manufacturing services in the IVD field have gained significant adoption as companies seek to expand their customer base by providing competitively priced products. Many CMOs are emerging in the Asia Pacific region, providing enormous opportunities for OEMs in IVD. According to a report by the Medical Device Outsourcing Association (MDOA), over 70% of medical device companies considered outsourcing in 2021. Thus, the high cost associated with the in-house manufacturing of IVD products has opened the doors to outsourcing manufacturing.
RESTRAINT: IP protection concerns and the possibility of IP theft
Diagnostic contract manufacturing includes outsourcing the production of the devices like IVD equipment, diagnostic imaging devices, and other devices to third-party manufacturers. OEM shares sensitive and proprietary information with contract manufacturers about diagnostic devices' design, technology, and manufacturing process. And with this exchange of sensitive information, data security becomes crucial.
OPPORTUNITY: Growth opportunities in emerging countries
Developing economies such as India, China, Brazil, South Korea, Turkey, Russia, and South Africa offer high growth opportunities for major players in the diagnostic contract manufacturing market. Furthermore, emerging economies offer lower manufacturing costs. For instance, outsourcing to China would reduce the overall manufacturing cost by ~30% compared to manufacturing in the US.
CHALLENGE: Adoption of refurbished diagnostic imaging systems
due to the strong demand for diagnostic imaging procedures globally, hospitals that cannot afford to invest in new imaging systems opt for refurbished ones. This is because refurbished systems are priced lower than new systems (40% to 60% of the price of new equipment). Many independent suppliers provide high-end refurbished and re-used systems at a significantly lower price.
Diagnostic Contract Manufacturing Industry Ecosystem
Prominent companies in this market include well-established, financially stable players in diagnostic contract manufacturing. These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Prominent companies in this market include Jabil Inc. (US), Flex Ltd. (Singapore), Plexus Corp (US), Sanmina Corporation (US), TE Connectivity Ltd. (Switzerland), and Celestica Inc. (Canada).
In 2022, In Vitro Diagnostic devices to observe the highest share of the diagnostic contract manufacturing industry, by product.
Based on the devices, the global diagnostic contract manufacturing market is broadly segmented into In vitro diagnostic devices, diagnostic imaging devices, and other devices. IVD equipment and devices are used to conduct laboratory tests to diagnose diseases and medical conditions and monitor patient status. IVD devices observe the highest market share during the forecast period. The high growth rate can be attributed to the increased adoption of automated diagnostic tools.
In 2022, device development and manufacturing services segment to dominate the diagnostic devices industry, by service.
Based on service, the diagnostic contract manufacturing market is segmented into device development and manufacturing services, quality management services, packaging and assembly services, and other services. Diagnostic device makers are currently under intense pressure to bring new devices to market faster and lower production costs. As a result, medical device manufacturing service providers continually evolve their services and find new ways to make production more efficient.
In 2022, North America to hold second largest in diagnostic contract manufacturing industry after Asia Pacific.
The global diagnostic contract manufacturing market is segmented into North America, Europe, Asia Pacific, and Rest of the World. North America is expected to observe significant growth during the forecast period, primarily due to the presence of a large number of diagnostic contract manufacturing companies in the region and improved industrial and healthcare infrastructure. The region also offers technological advancements in diagnostic devices, offering innovative solutions to their OEM partners.
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The diagnostic contract manufacturing market is dominated by players such as Jabil Inc. (US), Flex Ltd. (Singapore), Plexus Corp (US), Sanmina Corporation (US), TE Connectivity Ltd. (Switzerland), and Celestica Inc. (Canada).
Scope of the Diagnostics Contract Manufacturing Industry
|
Report Metric |
Details |
|
Market Revenue in 2023 |
$26.0 billion |
|
Projected Revenue by 2028 |
$44.9 billion |
|
Revenue Rate |
Poised to Grow at a CAGR of 11.5% |
|
Market Driver |
High cost of in-house IVD manufacturing |
|
Market Opportunity |
Growth opportunities in emerging countries |
This research report categorizes the Diagnostic contract manufacturing market to forecast revenue and analyze trends in each of the following submarkets:
By Region
- North America
- Europe
- Asia Pacific
- Rest of the World
By Product
-
In Vitro Diagnostic Devices
- IVD Consumables
- IVD Equipment
-
Diagnostic Imaging Devices
- CT
- X-ray
- Ultrasound
- MRI
- Others
- Other Devices
By Service
- Device Development and Manufacturing Services
- Quality Management Services
- Packaging and Assembly Services
- Other Services
By Application
-
In Vitro Diagnostic Devices
- Infectious Diseases
- Diabetes
- Oncology
- Cardiology
- Other Applications
-
Diagnostic Imaging Devices
- Cardiology
- Oncology
- Orthopedics
- Neurology
- Other Applications
-
Other Devices
- Gastroenterology
- Gynecology
- Other Applications
Recent Developments of Diagnostic Contract Manufacturing Industry:
- In 2022, IdentifySensors Biologics partnered with Jabil Inc. to develop processes for the reliable and robust manufacturing of portable devices that rapidly detect a wide range of infections at the molecular level with an accuracy that is superior to PCR testing.
- In 2022, Plexus Corp. expanded its manufacturing facility in Bangkok, Thailand.
- In 2021, TE Connectivity (US) acquired three companies focused on microfluidic cartridge and blister reagent package development, usability testing, and clinical research and manufacturing.
- In 2020, Sanmina Corporation achieved the Medical Device Single Audit Program (MDSAP) Certification at facilities in Malaysia, Singapore, and Sweden. The certification ensures its compliance with quality practices and audits.
Frequently Asked Questions (FAQ):
What is the projected market revenue value of the global diagnostic contract manufacturing market?
The global diagnostic contract manufacturing market boasts a total revenue value of $44.9 billion by 2028.
What is the estimated growth rate (CAGR) of the global diagnostic contract manufacturing market?
The global diagnostic contract manufacturing market has an estimated compound annual growth rate (CAGR) of 11.5% and a revenue size in the region of $26.0 billion in 2023. .
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The objective of the study is to analyze the key market dynamics, such as drivers, opportunities, challenges, restraints, and key player strategies. To track company developments such as acquisitions, product/service launches, expansions, collaborations, agreements, and partnerships of the leading players, the competitive landscape of the diagnostic contract manufacturing market to analyze market players on various parameters within the broad categories of business and product strategy. Top-down and bottom-up approaches were used to estimate the market size. To estimate the market size of segments and subsegments, the market breakdown and data triangulation were used.
The four steps involved in estimating the market size are
Collecting Secondary Data
The secondary research data collection process involves the usage of secondary sources, directories, databases (such as Bloomberg Businessweek, Factiva, and D&B), annual reports, investor presentations, and SEC filings of companies. Secondary research was used to identify and collect information useful for the extensive, technical, market-oriented, and commercial study of the diagnostic contract manufacturing market. A database of the key industry leaders was also prepared using secondary research.
Collecting Primary Data
The primary research data was conducted after acquiring knowledge about the diagnostic contract manufacturing market scenario through secondary research. A significant number of primary interviews were conducted with stakeholders from both the demand side (such as clinical laboratories, hospitals, and academic & research institutes) and supply side (such as included various industry experts, such as Directors, Chief X Officers (CXOs), Vice Presidents (VPs) from business development, marketing, and product development teams, product manufacturers, wholesalers, channel partners, and distributors) across major countries of North America, Europe, Asia Pacific, and Rest of the World. Approximately 40% of the primary interviews were conducted with stakeholders from the demand side, while those from the supply side accounted for the remaining 60%. Primary data for this report was collected through questionnaires, emails, and telephonic interviews.
A breakdown of the primary respondents is provided below:
Breakdown of Primary Participants:
Note 1: *Others include sales managers, marketing managers, and product managers.
Note 2: Tiers are defined based on a company’s total revenue as of 2022: Tier 1=> USD 1 billion, Tier 2 = USD 500 million to USD 1 billion, and Tier 3=< USD 500 million.
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Market Size Estimation
All major product manufacturers offering various sleep apnea were identified at the global/regional level. Revenue mapping was done for the major players and was extrapolated to arrive at the global market value of each type of segment. The market value diagnostic contract manufacturing market was also split into various segments and subsegments at the regional and country level based on the following:
- Product mapping of various manufacturers for each type of diagnostic contract manufacturing market at the regional and country-level
- Relative adoption pattern of each diagnostic contract manufacturing market among key application segments at the regional and/or country-level
- Detailed primary research to gather qualitative and quantitative information related to segments and subsegments at the regional and/or country level.
- Detailed secondary research to gauge the prevailing market trends at the regional and/or country-level
Global Diagnostic contract manufacturing Market Size: Botton Up Approach
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Global Diagnostic contract manufacturing market Size: Top-Down Approach
Data Triangulation
After arriving at the overall market size—using the market size estimation processes—the market was split into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment, data triangulation and market breakdown procedures were employed, wherever applicable. The data was triangulated by studying various factors and trends from both the demand and supply sides in the Diagnostic contract manufacturing industry.
Market Definition
Diagnostic contract manufacturing is a process wherein a manufacturing company makes diagnostic devices or the components of devices that can be sold later by other companies. Diagnostic device contract manufacturers specialize in a certain process or task and offer expertise due to their frequent practice of manufacturing.
Key Stakeholders
- Senior Management
- End User
- Finance/Procurement Department
- R&D Department
Report Objectives
- To define, describe, segment, and forecast the global diagnostic contract manufacturing market by device type, service, application, and region
- To provide detailed information regarding the major factors influencing the market growth (such as drivers, restraints, opportunities, challenges, and trends)
- To analyze the micro markets with respect to individual growth trends, prospects, and contributions to the overall diagnostic contract manufacturing market
- To analyze market opportunities for stakeholders and provide details of the competitive landscape for key players
- To forecast the size of the market segments with respect to four regions, namely, North America, Europe, the Asia Pacific, and the Rest of the World
- To profile the key players and comprehensively analyze their product portfolios, market positions, and core competencies
- To benchmark players within the market using the proprietary Company Evaluation Matrix framework, which analyzes market players on various parameters within the broad categories of business and product excellence
Available Customizations
MarketsandMarkets offers the following customizations for this market report:
Additional country-level analysis of the Diagnostic contract manufacturing market
- Profiling of additional market players (up to 5)
Product Analysis
- Product matrix, which provides a detailed comparison of the product portfolio of each company in the Diagnostic contract manufacturing Market
Growth opportunities and latent adjacency in Diagnostic Contract Manufacturing Market