MedTech Contract Manufacturing Organization (CMO) market is growing slightly ahead of the underlying growth in MedTech market as a result of increased outsourcing by OEMs and higher growth rates in segments like Drug delivery and MIS (Minimally Invasive Surgery).
Medi-Tech Insights’ research on MedTech CMO analyses the market with respect to end-market segments, geography, technologies and materials
Based on our research, the MedTech CMO market can be split into various end-market related segments like Orthopaedics, MIS, Cardiovascular, Surgical instruments, IVD and other end-market segments. While segments such as Orthopaedics are mature in terms of level of outsourcing, increasing use of robotics, single-use devices are causing higher growth. In terms of geography, United States followed by Germany, UK, Ireland, China, Malaysia and Singapore are some key countries with large presence of MedTech CMO sites. Metals and Polymers contribute to over 75% of the total value of MedTech CMO while injection molding, cutting and machining are the dominant manufacturing techniques used.
“Renewed focus on growth & freeing up cash to invest in new technologies is driving decisions for outsourcing”- Sr. Director, Strategic Supply Chain, Top 5 MedTech Company
Post-Covid-19 trends include increased focus on resiliency of supply chains, increased outsourcing and consolidation of suppliers
Prior to the pandemic, increasing sophistication by CMOs has made large OEMs more comfortable to outsource complete products- this trend is likely to continue. However, OEMs are now increasingly looking at resiliency of their suppliers, their supply chains and potentially looking to consolidate the supplier base to build deeper partnerships with few select suppliers.
“Undoubtedly, Covid-19 challenged both the OEMs and CDMOs. However, this impact is likely to be short-term and the fundamental trajectory of both the industries is expected to remain on track with long-term gains”- Exec VP, CFO, Leading U.S MedTech CMO
MedTech CMO market is highly fragmented with presence of few large players and over 300 small, mid-size companies
Jabil, Flex Corporation, Integer Corporation, Tecomet, TE Connectivity, Gerresheimer are some of the large players in MedTech CMO market, capturing less than 25% of the market. The MedTech CMO market is highly fragmented with presence of large number of regional/local small, mid-size companies operating in niche technologies or markets.
Key market trends include end-to-end services being offered and specialization in emerging technologies
Sophisticated MedTech CMOs are increasingly focused on offering a complete set of services from design, development to manufacturing and logistics/supply chain management to the OEMs. Design and development capabilities in areas like miniaturization of batteries, data/connectivity, IoT are highly valued by OEMs when looking for strategic partnerships with CMOs. Further, CMOs who have deep knowledge about the end-markets are well placed to spot emerging trends and technologies, in order to differentiate themselves from competitors.
Key Strategic Questions Addressed
- What is the market size & forecast of MedTech CMO market?
- What are historical, present, and forecasted market shares and growth rates of various segments and sub-segments of MedTech CMO market?
- What are the key trends defining the MedTech CMO market?
- What are the major factors impacting the market?
- What are the opportunities prevailing in the market?
- Which region has the highest share in the global market? Which region is expected to witness highest growth rate in the next 5 years?
- Who are the key end-users of the MedTech CMO market?
- Who are the major players operating in the MedTech CMO market?
- Who are the new players entering the market?
- What are the key strategies adopted by players?
The study has been compiled based on the extensive primary and secondary research.
Secondary Research (Indicative List)
To validate research findings (market size & forecasts, market segmentation, market dynamics, competitive landscape, key industry trends, etc.), extensive primary interviews were conducted with both supply and demand side stakeholders.
Supply Side Stakeholders:
- Senior Management Level: CEOs, Presidents, Vice-Presidents, Directors, Chief Technology Officers, Chief Commercial Officers
- Mid-Management Level: Product Managers, Sales Managers, Brand Managers, R&D Managers, Business Development Managers, Consultants
Demand Side Stakeholders:
- Stakeholders from Procurement/Purchasing/Strategic Supply Chain Management in MedTech companies.
Breakdown of Primary Interviews
Market Size Estimation
Both ‘Top-Down and Bottom-Up Approaches’ were used to derive market size estimates and forecasts
Research findings derived through secondary sources & internal analysis was validated with Primary Interviews, Internal Knowledge Repository and Company’s Sales Data