Full-device Manufacturing Segment to Lead Medical Contract Manufacturing Market Based on Service Type During 2025–2031
According to our new research study on “Medical Contract Manufacturing Market Forecast to 2031 – Global Analysis – by Service Type and Device Type,” the market is expected to grow from US$90,010.13 million in 2024 to US$1,88,655.12 million by 2031, registering a CAGR of 11.2% during 2025–2031. Major factors driving the medical contract manufacturing market include the rising demand for medical devices, increasing costs associated with in-house production, growing regulatory compliance requirements, and the expertise of contract manufacturers.
The?????? medical contract manufacturing market is about the transfer of production services of medical devices, equipment, and pharmaceutical products to specialized companies that are independent third parties. These contract manufacturers serve as one-stop shops for product design, prototyping, component manufacturing, assembly, sterilization, packaging, and quality control, enabling original equipment manufacturers (OEMs) to focus on research, development, and commercialization. The market is expanding rapidly due to the increasing demand for advanced medical technologies, rising healthcare expenditures, and the growing complexity and cost of in-house production. The primary factors driving the medical contract manufacturing market growth are the rising prevalence of chronic diseases, technological advancements in minimally invasive devices, diagnostic instruments, and wearable healthcare devices, as well as the increasing demand for personalized and home healthcare products. Contract manufacturers offer regulatory expertise, scalable production, and cost-effective solutions, enabling OEMs to shorten the time to market introducton.
Medical Contract Manufacturing Market, by Region, 2024 (%)
Medical Contract Manufacturing Market Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Service Type (Full-device Manufacturing, Sub-assembly and Components, and Materials-specific Services), Device Type (IVD Devices, Diagnostic Imaging Devices, Cardiovascular Devices, Drug Delivery Devices, Orthopedic Devices, Respiratory Care Devices, Ophthalmology Devices, Surgical Devices, Diabetes Care Devices, Dental Devices, Endoscopy and Laparoscopy Devices, Gynecology and Urology Devices, Neurology Devices, Patient Assistive Devices, and Others), and Geography (North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America)
Medical Contract Manufacturing Market Forecast 2031
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Source: The Insight Partners Analysis
Medical Contract Manufacturing Market Analysis Based on Segmental Evaluation:
By service type, the market is segmented into full-device manufacturing, sub-assembly and components, and materials-specific services. Full-device manufacturing accounted for the largest medical contract manufacturing market share in 2024. Full-device manufacturing in the medical contract manufacturing market refers to the outsourcing of the entire production process of a medical device to a specialized contract manufacturer. This end-to-end manufacturing service encompasses everything from initial product design and component development to assembly, testing, sterilization, packaging, and regulatory compliance. Instead of just manufacturing parts, full-device manufacturing covers the full scope of creating complete, ready-to-market medical devices for OEMs.
The scope of the medical contract manufacturing market report encompasses an assessment of the market's performance in North America, Europe, Asia Pacific, South America, Central America, the Middle East, and Africa. In terms of revenue, North America dominated the medical contract manufacturing market in 2024.
The medical contract manufacturing market in North America is segmented into the US, Canada, and Mexico. North America accounted for nearly half of the total global share in 2024. The medical contract manufacturing market in North America is segmented into the US, Canada, and Mexico. North America remains the primary hub for contract manufacturing of medical devices. The region is powered by a well-established healthcare system, stringent regulations, and a dense forest of original equipment manufacturers (OEMs) and contract manufacturing organizations (CMOs), and thus, continues to be at the forefront in this sector.
The changes discussed are indicative of the more profound transition the region is undergoing. For example, several US-based companies are expanding their manufacturing footprint to bring most of their production back home, aligning with supply-chain resilience measures and increasing demand for sophisticated devices. Canada and Mexico are receiving considerable attention. Canada, as a high-quality, regulatory-compliant partner, and Mexico, as a nearshore manufacturing location, for the rest of the Americas. North America remains the preferred region for medical device brand owners seeking technically capable and regulatory-conscious outsourcing close to major markets.
OEMs are increasingly outsourcing production to focus on core competencies such as research, development, innovation, and marketing. This shift reduces capital expenditures on in-house facilities, minimizes operational risks, and leverages specialized expertise from contract manufacturers (CMOs) and aids in the increasing medical contract manufacturing market trends. The trend is amplified by the complexity of modern devices, making it challenging for OEMs to maintain full-scale production internally.
The escalating cost pressures and need for cost-effective production, as in-house manufacturing demands substantial capital for facilities and research and development prompting OEMs to outsource to specialized CMOs for economies of scale and reduced overheads; for instance, in November 2024, Taiwan-based Medeologix acquired three US medical device companies to form a comprehensive outsourcing service group, enabling cost savings through integrated supply chains and streamlined operations.
MICRO, Freudenberg Group, Flex Ltd, Jabil Inc, SMC Ltd, TE Connectivity Ltd, Heraeus Group, Cirtec Medical, Integer Holdings Corp, and Tegra Medical are among the leading companies profiled in the medical contract manufacturing market report.
Based on service type, the medical contract manufacturing market is segmented into full-device manufacturing, sub-assembly and components, and materials-specific services. In terms of device type, the medical contract manufacturing market is categorized into IVD devices, diagnostic imaging devices, cardiovascular devices, drug delivery devices, orthopedic devices, respiratory care devices, ophthalmology devices, surgical devices, diabetes care devices, dental devices, endoscopy and laparoscopy devices, gynecology and urology devices, neurology devices, patient assistive devices, and others. The IVD devices segment held the largest share of the medical contract manufacturing market in 2024. Based on geography, the market is categorized into North America (the US, Canada, and Mexico), Europe (France, Germany, the UK, Spain, Italy, and the Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia, and the Rest of Asia Pacific), the Middle East and Africa (Saudi Arabia, South Africa, the UAE, and the Rest of Middle East and Africa), and South and Central America (Brazil, Argentina, and the Rest of South and Central America).
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