June 13, 2024

Medical Device Engineering Services Market is Estimated to Witness High Growth Owing to Advancement in New Product Development Technologies

The medical device engineering services market encompasses product design and development, manufacturing process engineering, quality assurance & regulatory affairs, product testing & sterilization validation, product implementation including installation and integration as well as aftermarket services. Growing demand for medical devices across the globe has led to increased focus on innovation, R&D and quality to deliver better health outcomes. Medical device engineering companies leverage technologies such as artificial intelligence, machine learning and virtual simulations to accelerate new product development processes.

The Global medical device engineering services market is estimated to be valued at US$ 5.64 Bn in 2024 and is expected to exhibit a CAGR of 11% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the medical device engineering services market are Infosys Limited, Cyient, Accenture, Embien Technologies India Pvt Ltd., Saraca Solutions Private Limited, Tata Elxsi, Iziel, Wipro, Althea Group, LT Technology Services Limited., Altran, ALTEN Technology, Flextronics International, LTD., Nordson Corporation, ClariMed, Inc. These players focus on providing end-to-end services across the product development life cycle.

In terms of opportunities, there is growing demand for technically skilled Medical Device Engineering Services Market Size  to handle new-age technologies. Emerging markets also present significant headroom for growth.

Advancements in 3D printing, simulation modeling and virtual/augmented reality are enabling faster product development and validation cycles. Technologies such as AI and ML are also finding increasing usage for medical image analysis, clinical decision support and personalized medicine.

Market Drivers

The key driver for the medical device engineering services market is the need to shorten product development timelines and get safer and customized products to market faster. With rising healthcare costs, there is increasing focus on developing high-quality and cost-effective medical devices. Growing geriatric population worldwide and the subsequent increase in the incidence of chronic and lifestyle diseases are also accelerating demand for medical devices and technologies. This is driving outsourcing of engineering services by medical device OEMs to specialized engineering partners.

Current Challenges in Medical Device Engineering Services Market:

The medical device engineering services market is facing various challenges such as shortage of skilled workforce, cyber threats, stringent regulations, replacement of legacy systems and data security concerns. There is lack of sufficient talent having expertise in mechanical & electronics engineering coupled with medical domain knowledge. Some medical devices are highly complex needing multi-disciplinary skills from developers. Cyber attacks have increased manifold in healthcare systems threatening patient safety and privacy. Regulatory bodies increasingly mandate changes to legacy devices posing upgrade challenges. Fragmented technology systems call for robust integrations increasing development costs. With growing digitization, protecting sensitive electronic patient records and networked devices from hackers assumes utmost importance.

SWOT Analysis
Strength: The market players have established base of skilled workforce with engineering expertise and domain knowledge. They have robust quality management systems to meet stringent regulatory standards.
Weakness: High staff attrition poses continuity challenges for long term projects. Developing cutting edge technologies requires huge R&D investments.
Opportunity: Growing digital health adoption increases demand for connected devices, big data analytics and cloud platforms. Aging population worldwide spurs demand for advanced patient care solutions.
Threats: Intense competition from startups with niche expertise. Economic slowdowns can reduce healthcare budgets impacting projects.

Geographical Regions:

North America holds the major share of the medical device engineering services market in terms of value due to high healthcare spending, presence of many medical device companies and stringent regulations. Europe is the second largest regional market driven by favorable government policies supporting R&D initiatives. Asia Pacific region is poised to grow at the highest CAGR during the forecast period owing to outsourcing trend, lower costs and expanding healthcare infrastructure in developing countries.

Fastest Growing Region:

Asia Pacific region promises to be the fastest growing regional market for medical device engineering services during the forecast period from 2024 to 2031. This is because many Asian countries like India, China, Singapore, South Korea have established themselves as medical device outsourcing hubs offering skilled resources at competitive costs. Also, rising affluence, growing medical tourism industry and government programs to modernize healthcare infrastructure fuel the demand for new medical technologies in Asia Pacific creating huge opportunities for engineering service providers.

*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it