Medical Device Design and Development Services Market (By Services; By Medical Devices; By Therapeutic Area: Cardiovascular, Diagnostic; By End-use) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

The global medical device design and development services market size was estimated at USD 10.38 billion in 2023 and it is expected to surpass around USD 36.02 billion by 2033, poised to grow at a CAGR of 13.25% from 2024 to 2033. The medical device design and development services market is witnessing significant growth driven by the increasing demand for innovative medical devices, advancements in technology, and the growing emphasis on patient-centric healthcare solutions.

Key Pointers

• Asia Pacific region dominated the market with the largest market share of 43% in 2023.
• By Services, the designing and engineering segment held the largest revenue share of 36% in 2023.
• By Services, the machining segment is expected to expand at the highest CAGR of 12.73% from 2024 to 2033.
• By Medical, the drug delivery devices segment generated the maximum market share of 17% in 2023.
• By Therapeutic Area, the "others" segment captured the maximum market share of 71% in 2023.
• By End-use, the medical device companies segment registered the maximum market share of 81% in 2023.

Medical Device Design and Development Services Market Growth

The growth of the medical device design and development services market is propelled by several key factors. Firstly, the increasing demand for advanced and innovative medical devices to address complex healthcare challenges, such as an aging population and the prevalence of chronic diseases, drives the need for comprehensive design and development services. Secondly, technological advancements, including 3D printing, artificial intelligence, and advanced materials, enable the development of more personalized and efficient devices, thereby fueling market growth. Additionally, stringent regulatory requirements imposed by regulatory bodies necessitate expertise in navigating complex regulatory pathways, emphasizing the importance of specialized design and development services. Moreover, the trend towards patient-centric healthcare solutions and the focus on improving patient outcomes further contribute to the growth of this market. Overall, these factors combined create a conducive environment for the expansion of the medical device design and development services market.

Medical Device Design and Development Services Market Trends:

• Increased Emphasis on Human-Centered Design: There's a growing focus on designing medical devices with enhanced usability and user experience. Human-centered design principles are being integrated into the development process to ensure that devices meet the needs and preferences of end-users, including patients, caregivers, and healthcare professionals.
• Rapid Prototyping and Iterative Design: The adoption of rapid prototyping technologies, such as 3D printing, enables faster iteration and validation of device designs. This iterative approach accelerates the development process, reduces costs, and allows for more efficient optimization of product features.
• Integration of Connected Technologies: With the rise of the Internet of Medical Things (IoMT), medical devices are increasingly incorporating connectivity features, such as wireless communication and data analytics capabilities. Design and development services providers are focusing on integrating these connected technologies to enable remote monitoring, real-time data analysis, and interoperability with other healthcare systems.
• Adoption of Agile Development Methods: Agile development methodologies, borrowed from software development, are gaining traction in the medical device industry. These iterative and flexible approaches allow for faster adaptation to changing requirements, improved collaboration between cross-functional teams, and better alignment with customer needs.

Services Insights

Based on the array of services provided, the designing and engineering sector emerged as the dominant market segment, capturing the largest revenue share of 36% in 2023. The market is categorized into designing & engineering, machining, and molding packaging. Design and engineering firms have demonstrated their proficiency by meeting stringent regulatory standards, even amidst highly intricate, diverse, and demanding projects. Furthermore, the mounting pressure to curtail expenses, intensifying competition, burgeoning demand from emerging economies, and technological advancements are compelling device manufacturers to explore outsourcing options for design and engineering tasks. These factors are poised to propel growth within this segment.

The machining segment is projected to exhibit the most rapid Compound Annual Growth Rate (CAGR) of 12.73% over the forecast period. The segment's expansion is primarily driven by the escalating demand for miniaturized and intricate devices. The capability to machine complex materials in adherence to regulatory guidelines, coupled with technological innovations in medical machining such as laser micromachining, Computerized Numerical Control (CNC), and precision machining of micro-components, is anticipated to further stimulate growth in the machining market.

Medical Devices Insights

The drug delivery devices segment emerged as the leading revenue contributor in the medical devices market, capturing a substantial share of 17% in 2023. This market segment encompasses a diverse range of medical devices, including cardiovascular devices, point-of-care (POC) diagnostic equipment, orthopedic devices, dental devices, surgical devices, imaging devices, and more. Within the drug delivery devices segment, various subcategories such as auto-injectors, infusion pumps, prefilled syringes, inhalers, nebulizers, nasal sprays, intrauterine devices (IUDs), and transdermal patches are identified. Growth in the drug delivery devices sector is propelled by evolving trends in drug delivery methods, increasing demand for enhanced therapies, cost advantages for patients and healthcare systems, and rapid technological advancements.

The point-of-care (POC) diagnostic equipment segment is poised to exhibit the fastest Compound Annual Growth Rate (CAGR) of 15.72% over the forecast period. POC devices offer rapid and reliable test results at the point of need, presenting unique design challenges. Moreover, the design of POC diagnostic equipment ensures accurate results while maintaining the integrity of specimen samples, leading to increased adoption of rapid diagnostic tests. Additionally, stringent regulatory standards and ongoing technological advancements are expected to further bolster the growth of POC diagnostic equipment within the market

Therapeutic Area Insights

In terms of therapeutic areas, the "others" segment emerged as the dominant revenue contributor, holding a significant market share of 71% in 2023. This segment is categorized into cardiovascular, diagnostic, and other therapeutic areas. The "others" category encompasses a wide range of medical devices related to drug delivery, orthopedic conditions, dental care, surgical procedures, respiratory treatments, and various other medical applications. The growth of this segment is driven by several factors, including the potential for improved patient outcomes across diverse diseases and the ability to potentially reduce treatment costs.

The cardiovascular segment is projected to exhibit the fastest Compound Annual Growth Rate (CAGR) of 15.15% over the forecast period. Cardiovascular devices play a pivotal role in advancing treatments for heart failure, heart disease, arrhythmias, and other cardiac conditions. This growth is attributed to the increasing number of products in development pipelines and continuous enhancements in cardiovascular device technologies. Furthermore, there's a growing emphasis on technology-driven solutions, competitive pricing strategies, and ensuring high quality standards for new device approvals, which are all accelerating the demand for robust cardiovascular devices.

End-use Insights

In terms of end-use, the medical device companies segment emerged as the market leader, commanding the largest revenue share of 81% in 2023. The market is categorized into two main segments: medical device companies and biotechnology companies. The substantial growth of the medical device companies segment can be attributed to the escalating global demand for high-quality medical device products. Additionally, factors such as the increasing aging population and the prevalence of diseases have spurred research and development activities in medical device design and development.

On the other hand, the biotechnology companies segment is expected to exhibit the fastest Compound Annual Growth Rate (CAGR) of 12.34% over the forecast period. Recent trends indicate a significant shift in medical devices, with notable advancements in diagnosis and treatment modalities. Moreover, the scope of medical devices within biotechnology companies extends to the development of healthcare products and procedures aimed at diagnosing, treating, or preventing diseases through the integration of pharmaceuticals or biologics.

Regional Insights

The Asia Pacific region emerged as the dominant force in the market, capturing the largest revenue share of 43% in 2023. This significant share can be attributed primarily to the evolving business landscape of medical device outsourcing and Research and Development (R&D) activities within the region. Countries like India and China offer strong cost-efficiency through their medical device design and development companies, further bolstering the region's prominence in this sector.

The North American market is anticipated to experience the fastest Compound Annual Growth Rate (CAGR) of 12.85% during the forecast period. This rapid growth can be attributed to the region's established manufacturing companies and a consistent focus on innovation to deliver high-quality products.

Medical Device Design and Development Services Market Key Companies

• Ximedica
• DeviceLAb
• Jabil, Inc.
• Flex Ltd
• Plbexus Corp
• Nordson Medical
• Celestica, Inc.
• Starfish Medical
• Planet Innovation
• Donatelle
• Cambridge Design Partnership
• Aran Biomedical
• Cirtec

Medical Device Design and Development Services Market Segmentations:

By Services

• Designing & Engineering
• Machining
• Molding
• Packaging

By Medical

• Cardiovascular Devices
  • Ventricular Assist Devices
  • Total Artificial Hearts
  • Pacemakers
  • Implantable Cardioverter Defibrillators (ICDs)
  • Cardiac Loop Recorders
  • Holter Monitors
  • Event Monitors
  • ECMO Systems
  • Consumables
• POC Diagnostic Equipment
  • Blood Glucose Monitor
  • Blood Analyzer
  • Blood Pressure Monitor
  • Pregnancy Test Kit
  • Infectious Diseases Testing
• Hb1Ac Testing
  • Coagulation Testing Kit
  • Cardiac Markers Test
  • Thyroid Stimulating Hormone Test
  • Others
• Drug Delivery Devices
  • Autoinjectors
  • Infusion Pumps
  • Prefilled Syringes
  • Inhalers
  • Nebulizers
  • Nasal Spray
  • Intrauterine Devices (IUDs)
  • Transdermal Patches
• Orthopedic Devices
  • Prosthetics
  • Orthopedic Navigation Systems
  • Others
• Dental Devices
• Surgical Devices
  • Surgical Robots
  • Others
• Imagining Devices
  • X-Ray
  • MRI Scanners
  • Ultrasound
  • CT Scanners
  • Nuclear Imaging Scanners
• Sleep & Respiratory Devices
  • Positive Airway Pressure (PAP) Devices
  • Ventilators
  • Oxygen Concentrators
  • Others
• Ophthalmology Devices
  • Fundus Cameras
  • Slit Lamps
  • Optical Coherence Tomography
  • Corneal Topography Systems
  • Others
• Endoscopy
• Diabetes Care
• Cochlear Implants
  • Bionic Ear
  • Bionic Eye
• Neurostimulators
  • Spinal Cord Stimulators
  • Deep Brain Stimulators
  • Others
• Others

By Therapeutic Area

• Cardiovascular
• Diagnostic
• Others

By End-use

• Medical Device Companies
• Biotechnology Companies

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa (MEA)