The global medical device outsourcing market is projected to grow at a CAGR of 10.56% during the forecast period to reach US$77.142 billion by 2026 from US$38.199 billion in 2019. Medical device outsourcing is a service market where companies outsource medical devices in place of purchasing them, hence saving costs. Outsourcing services enables a firm to derive the benefit of a medical device without actually the need to purchase them. The prime reason driving the growth in the market is the surging demand for advanced healthcare services. Growing standards of livings have increased the demand for better, advance, and quality healthcare. However, instead of purchasing these medical devices, institutions tend to rent them for their use and at a feasible cost. This saves the institution’s funds and time. The surging geriatric population is another key factor driving the market growth.
Growing government investment has enabled an increase in expenditure in the industry and derives the benefits of advanced technology, providing stable growth to the market. Particularly in the low- and middle-income countries where the purchase of medical devices is extravagant, medical device outsourcing helps in relieving extra financial needs. Hence, this market has significant growth possibilities.
Increasing governments expenditure around the world to improve the healthcare sector is projected to fuel the industry with funds, of which the medical device outsourcing market will have a significant market share.
The key factor driving the growth in the market during the forecasted period is the rising expenditure of governments in the healthcare sector for decreasing incidences of preventable deaths. Growing living standards coupled with surging population and stabilization have increased the demand for quality healthcare services. Further, the growing prevalence of chronic diseases and their risk on life and the economy has also gained significant concerns which are leading to increasing in government attention and fund allocation.
Further, with the outbreak of the coronavirus pandemic and the trembling of the healthcare sector due to the large volume of infected patients, the government has significantly increased the spending on healthcare. The US government, for instance, the spending has increased to 17.7% of the GDP. In India, government spending on the sector has increased from 1.5% to 1.8% in 2021-22. Similarly, a surge in government expenditure is observed in Russia, China, Japan, and other countries to deal with the pandemic. Increased investment is anticipated to increase the market size of medical device outsourcing significantly.
The rising proportion of the geriatric population in the global demography will drive market growth.
One of the prime factors which can be associated as a proximate cause of medical device outsourcing service growth is the rising proportion of the geriatric population in the global demography, which stood at 9% in 2020. Several key factors such as an increase in education, low fertility, increased women participation in the labor force, rise in healthcare and social facilities, and others have significantly contributed to the expansion of the proportion of the geriatric population in the demography. A United Nations report states that ceteris paribus, this proportion is anticipated to increase over 15% to 1.5 billion people by 2050.
The burgeoning growth of the geriatric population increases the demand for healthcare owing to age-linked diseases and problems which is estimated to drive the market growth of medical device outsourcing services.
Asia Pacific region will hold a noteworthy share in the global medical device outsourcing industry owing to the rise in medical tourism.
Based on regions, the global medical device outsourcing market is divided regionally into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific region. The North American region is anticipated to hold a notable share in the industry owing to the region’s state-of-art health care infrastructure facilities.
However, the Asia Pacific region is projected to showcase robust growth during the forecasted period. The region’s healthcare sector lacks significantly in healthcare investment which will encourage outsourcing of medical device operations instead of purchasing these devices. The rise in medical tourism in the region is one of the prime reasons that show a favorable market for medical device outsourcing. Over the past decade, Asia has become the most preferable destination for medical tourism and related services. Availability of cheap but quality healthcare services is the main factor that attracts patients in the area. Malaysia, Singapore, Thailand, and India are globally leading medical tourism destinations. South Korea is another emerging market that has robust growth potential. Moreover, growing disposable income coupled with the rising standard of living is estimated to support the market growth.
Report Metric | Details |
Market size value in 2019 | US$38.199 billion |
Market size value in 2026 | US$77.142 billion |
Growth Rate | CAGR of 10.56% from 2019 to 2026 |
Base year | 2019 |
Forecast period | 2021–2026 |
Forecast Unit (Value) | USD Billion |
Segments covered | Services, Application, And Geography |
Regions covered | North America, South America, Europe, Middle East and Africa, Asia Pacific |
Companies covered | Parexel, Charles River, Intertek Group plc, WuAXi AppTech Inc., SGS SA |
Customization scope | Free report customization with purchase |
Key Market Segments
Frequently Asked Questions (FAQs)
Q1. What will be the medical device outsourcing market size by 2026?
A1. The global medical device outsourcing market is projected to reach a market size of US$77.142 billion in 2026.
Q2. What is the size of global medical device outsourcing market?
A2. Medical Device Outsourcing Market was valued at US$38.199 billion in 2019.
Q3. What are the growth prospects for the medical device outsourcing market?
A3. The medical device outsourcing market is projected to grow at a CAGR of 10.56% over the forecast period.
Q4. Which region holds the maximum market share of the medical device outsourcing market?
A4. Asia Pacific region will hold a noteworthy share in the global medical device outsourcing industry owing to the rise in medical tourism.
Q5. What factors are anticipated to drive the medical device outsourcing market growth?
A5. The prime reason driving the medical device outsourcing market growth is the surging demand for advanced healthcare services.
Charles River
Intertek Group plc
WuAXi AppTech Inc.
SGS SA
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