Partnering For Success: Trends In Contract Medical Device Development And Manufacturing
MARCH 9, 2023
The world of healthcare is constantly evolving, and the medical device industry is no exception.
The 2023 U.S. Medtech Contract Manufacturing Report from Alira Health predicts a promising future for the medical device market, with a projected growth rate of +6.1% in 2023, indicating a steady rise despite the unprecedented obstacles presented by the COVID-19 pandemic.
This report highlights one of the most prominent trends in the medical device industry – the surging popularity of Contract Development and Manufacturing Organizations (CDMOs) as the preferred outsourcing option for medical device companies. It is projected that the use of CDMOs by both startups and large organizations alike will grow by +13.1% in 2023.
The following trends offer exciting prospects for growth and innovation in the medical device industry as it progresses and shapes the future of healthcare.
Medical Device Market Growth and Trends
In 2022, the global medical device market grew by around 4%, reaching $542 billion. According to the report, this progress aligned with long-term trends, as medical care providers largely returned to their normal operating and purchasing patterns following the market fluctuations due to COVID-19.
Growth by medical device segment:
Invitro Diagnostics (IVD) (8%) – posted the best performance, driven by a surge of lab and testing volumes, as well as a sustained demand for rapid COVID-19 tests.
Medical Imaging (7.5%) – increased routine screening procedures, with positive contributions from ultrasound and endoscopy devices.
Drug Delivery (3.5%) – new products accounted for revenue growth in this segment (i.e., smartphone-compatible insulin pumps).
Orthopedics (3.5%) – sales benefitted from developing new digital surgery products, robotics-assisted tools, and minimally invasive procedures for knees, hips, and spines.
“Other devices” – still saw growth but on the lower end. This includes ophthalmic equipment, urology & gynecology products, and wound care management.
Despite the funding challenges the life science sector faced in 2022, the report forecasts that life sciences VCs will have access to an impressive amount of capital in 2023 and beyond, approaching record levels. This bodes well for both early and late-stage medical device startups, as they will have significant funding available in the coming years to drive growth and momentum through the current recession.
The Benefits of Outsourcing Medical Device Design & Development
Medical device OEMs are increasingly outsourcing their design, development, and prototyping needs to focus on their core business and respond better to changes in demand.
As we enter 2023, it is predicted that the life sciences industry’s access to capital will hit a record high, leading to more investment in R&D and innovation by medical OEMs. This presents an opportunity for contract design and development companies to support startups and large corporations seeking fresh perspectives, new technologies, and cross-industry expertise.
The diagram above illustrates how contract Design & Development (D&D) services can support multiple stages of a medical device’s pre-commercial lifecycle.
Concept Design
Concept design also allows teams to get feedback from stakeholders through usability testing early in the design process. This can be invaluable in helping to refine the product’s design and ensure that it meets the needs and expectations of its intended audience.
Ultimately, by starting with a strong concept design, product development teams can create products that are both functional and aesthetically pleasing while also delivering value to their intended users.
Functional Product Engineering
The material selection process is an essential aspect of medical device development, as the material used can impact the device’s performance, safety, and effectiveness.
A functional product engineer has the knowledge and expertise to select the appropriate materials based on the device’s intended use, regulatory requirements, and manufacturing processes. This can help optimize a medical device’s design for manufacturing, improve its overall quality and reliability, and reduce the risk of product failure or recall.
Design for Manufacturability
Design for manufacturability is a critical aspect of product development that contract Design & Development companies can support OEMs with.
The ultimate goal is to optimize the manufacturing process to improve quality, reduce costs, and shorten lead times. But it starts by designing products with manufacturability in mind. By considering this upfront, medical OEMs can ensure that their products will be produced efficiently and consistently, which is critical in the highly regulated and competitive medical device industry.
Prototyping
Innovating in the medtech space can be a lengthy and unpredictable process, with many factors that can impact timelines and budgets. A prototyping strategy provides medical OEMs the space to test and validate their ideas, designs, and concepts before investing significant resources into full-scale production.
In this phase, contract Design & Development (D&D) organizations can identify and address design issues and refine product functionality to avoid costly changes and reduce the risk of product failure.
Quality and Regulatory
Outsourcing can also provide medical OEMs access to specialized expertise that may not be available in-house, such as regulatory compliance, testing and validation, and manufacturing scalability. This can help ensure that medical devices meet all regulatory requirements and are safe and effective for patients.
Moreover, outsourcing can help medical OEMs manage the risks associated with product development, as they can share the risks with their outsourced partners, who have the necessary expertise to manage them effectively. This can reduce the financial risks associated with medical device development and allow medical OEMs to allocate their resources more efficiently.
Product Transfer
The product transfer phase identifies potential problems, ensures the accuracy of product documentation, and facilitates effective communication between the product development team and the production team. This helps to reduce the risk of delays, cost overruns, and quality issues.
Overall, the product transfer phase is critical to ensuring that the product development process is completed successfully and that the product is launched on time, on budget, and with the desired quality.
MedTech Industry Outlook for 2023 and Beyond
Outsourcing medical device design, development, and prototyping services can bring significant advantages to medical OEMs, including access to specialized expertise and reduced development costs by utilizing the infrastructure, equipment, and personnel of their outsourcing partners.
Original Publication: Partnering for Success: Trends in contract medical device development and manufacturing — Product Creation Studio
Recent Posts
- Ground-Breaking, Drug-Free, and Clinically Tested BackVive Patch Offers Long-Lasting Relief to Chronic Back Pain Sufferers
- SWIR Vision Systems Announces Acuros GO 6 MP Handheld SWIR Camera
- LumiThera Announces Initiation of EUROLIGHT Registry Study to Evaluate Long-term Benefits of Photobiomodulation (PBM) Treatment using the Valeda® Light Delivery System in Patients with Dry Age-Related Macular Degeneration (AMD)
- SWIR Vision Systems Secures Direct to Phase II SBIR Award for Low-Cost SWIR ALPD Technology
- SWIR Vision Systems Unveils 6.3 MP and 4.2 MP Short Wave Infrared Cameras
Archives
- April 2024
- January 2024
- November 2023
- October 2023
- September 2023
- August 2023
- July 2023
- June 2023
- May 2023
- March 2023
- February 2023
- January 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022
- December 2021
- November 2021
- October 2021
- July 2021
- June 2021
- May 2021
- April 2021
- March 2021
- February 2021
- January 2021
- December 2020
- October 2020
- September 2020
- August 2020
- July 2020
- April 2020
- February 2020
- January 2020
- September 2019
- June 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- October 2018
- September 2018
- July 2018
- June 2018
- April 2018
- March 2018
- January 2018
- October 2017
- April 2017