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The global medical device contract manufacturing market is expected to see $102.9 billion in spending in 2021, according to a new report by market analyst visiongain.
Outsourcing of various processes in the medical device development cycle is now seen as an essential strategy by OEMs to ensure return on investment, the report noted. The medical device contract manufacturing market is highly fragmented, with several thousand companies providing a range of services from machining, moulding, stamping, assembly, to packaging.
The industry has many small organizations generating revenue of less than $5 million annually. These companies tend to be specialists in one technology. There are also several large contract manufacturers generating revenues of over $100 million.
The medical device contract manufacturing industry has witnessed consolidation and increasing business from the OEMs. visiongain believes the industry is expected to witness more consolidation in the near future.