May 23, 2024

Medical Device Engineering Services Market is Estimated to Witness High Growth Owing to Internet of Things Integration

The medical device engineering services market involves conducting engineering design and development services for the medical devices industry. Such services include product design & development, verification & validation, consulting & training, and other services. There has been an increase in demand for medical technology products for diagnosis, treatment, and disease management, which has led to growth in outsourcing engineering services. The integration of Internet of Things in medical devices has enabled collection of real-time patient data and remote monitoring, thereby improving clinical outcomes.

The Global medical device engineering services market is estimated to be valued at US$ 12.05 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, L&T Technology Services Limited., Altran, ALTEN Technology, Flextronics International, LTD., Nordson Corporation, ClariMed, Inc.
Some of the key opportunities in the market include supporting medical device OEMs across various stages of product development and leveraging expertise in regulatory compliance. The integration of IoT, AI and analytics is opening up opportunities for remote health monitoring and predictive maintenance of medical equipment.

Technological advancements such as 3D printing, virtual reality, and the internet of medical things (IoMT) are helping medical device companies launch new connected health products and services. Medical Device Engineering Services Market  This is augmenting the need for specialized engineering expertise.

Market drivers
The rising geriatric population succumbing to age-related diseases is a key driver boosting demand for advanced medical devices globally. This will promote outsourcing of engineering services from medical technology companies. Furthermore, stringent regulatory norms pertaining to the approval of new medical devices necessitate compliance with quality and safety standards, which requires technical expertise, thereby fuelling demand for medical device engineering services.

Current Challenges in Medical Device Engineering Services Market

The medical device engineering services market is facing challenges due to stringent regulations and certification requirements for medical devices. Compliance with various global regulatory standards such as FDA regulations, European Medical Device Directive (MDD), and ISO standards makes the development process of medical devices complex and time-consuming. Lack of skilled professionals in areas such as robotics, automation, IoT, artificial intelligence poses another challenge for market players. Outsourcing of services also raises privacy and data security concerns which need to be addressed. The COVID-19 pandemic has disrupted business operations and supply chains for service providers and medical device companies globally. This has led to delays in new product development activities.

SWOT Analysis

Strength: Capability to provide end-to-end product development services from concept design to commercialization; Expertise in various medical technologies helps address diverse customer requirements.

Weakness: Heavy dependence on few customers may affect long term growth; Potential threat from emerging low-cost Asian competitors.

Opportunity: Rising demand for connected medical devices and digital health solutions offers scope for innovation; Growing need for outsourcing in areas like 3D printing, robotics process automation.

Threats: Stringent regulations delay market entry of new products; Economic slowdowns can reduce R&D budgets of medical device companies.

Geographical Regions

North America is currently the largest market for medical device engineering services, accounting for over 40% of the global market value. This is attributed to presence of large medical devices companies and their heavy investments in R&D activities in the region. Asia Pacific region is expected to be the fastest growing market in the forecast period due to availability of low-cost skilled resources and increasing government focus on healthcare sectors in countries like China, India, and Japan.

The medical device engineering services market in Europe is concentrated in countries like Germany, UK, France and Italy where major medical devices original equipment manufacturers (OEMs) are headquartered. These companies outsource a significant portion of product engineering work to design and development specialists globally. Other emerging regions seeing growth include Latin America and Middle East & Africa due to rising healthcare infrastructure and demand.

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