Product Design and Development Services Market Trends 2028

The product design and development services market is expected to grow from US$ 9,519.97 million in 2022 to US$ 17,663.12 million by 2028; it is expected to register a CAGR of 10.9% from 2022 to 2028.

Product design and development services, provides services related to designing and development of products by analyzing the current market requirements. Various technological advancements and rising health concerns among the population demanding quality products in healthcare are expected to drive the product design and development services market further. However, the product design and development services market revenue growth is restrained by factors such as data breach and information security concerns.

The report offers insights and in-depth analysis of the product design and development services market, emphasizing various parameters such as market trends, technological advancements, and market dynamics; it also provides the competitive landscape analysis of leading market players and the impact of the COVID-19 pandemic on the market across all major regions. The COVID-19 pandemic has disrupted the socioeconomic conditions of various countries worldwide. As per the recent WHO statistics, the US is the world's worst-affected country due to the pandemic, with the highest number of COVID-19 cases. The high number of COVID-19 cases has adversely affected the US economy, and consequently of North America. There has been a decline in overall business activities and growth of various industries operating in the region.

The rapid spread of COVID-19 has provided significant momentum to the product design and development services in 2020. While the COVID-19 pandemic continues to disrupt economies worldwide, the growing volume of medical waste is a huge challenge. However, with the onset of the COVID-19 pandemic, physicians and patients became more concerned about their safety; hence, raising apprehensions about the advancements in medical devices. This increased the demand for product design and development services. However, the risk of infection in surgeries and inappropriate sterilization of medical devices can increase the potential of outbreaks, hindering the market growth. In addition, the R&D of these services has been discontinued temporarily due to the diversion of professionals to satisfy the demand for pandemic-related products. Thus, owing to the above–mentioned factors, the pandemic has adversely affected the product design and development services market.

Based on region, the product design and development services market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South & Central America.

Strategic Insights

Lucrative Regions for Product Design and Development Services Market

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Market Insights

High Demand for Quality Products in Healthcare due to Rising Health Concerns among Geriatric Population Drives Product Design and Development Services Market

According to the National Council on Ageing report, ~49 million Americans are aged 65 and over, and the population of this age is estimated to reach 98 million by 2060. Good health ensures security, independence, and productivity for the older population. However, millions in the aging population struggle daily with health challenges such as falls, chronic diseases, physical inactivity, oral health concerns, and behavioral health issues, thus hampering the quality of life. Furthermore, ~80% of the geriatric population possess at least one chronic condition, and 70% of Medicare beneficiaries have two or more. Demand for quality products with innovative design is rising to overcome such conditions. Moreover, medical device companies are improving clinical outcomes among patient groups through connected products. For example, Ximedica developed products focusing on data strategies for equipment, customers, and patients with elegant and personalized experiences for clinical users and patients by creating secure, scalable, and compliant digital solutions. Additionally, in November 2021, a Radiological Society of North America show in Chicago was arranged where medical device manufacturers showcased numerous product innovations. For example, GE Healthcare featured a new image-guided X-ray system with robot-like functionalities.

Service-Based Insights

Based on service, the product design and development services market is segmented into research, strategy, and concept generation; concept and requirements developments; detailed design and process development; design verification; process validation, manufacturing transfer, and design validation; and other services. In, the research, strategy, and concept generation segment accounted for the largest market share. The market position of this segment is credited to a surge in the adoption of technologies in healthcare. This allows professionals to diagnose, collect data, and treat medical conditions accurately and less invasively, improving people's health globally.

Product Design and Development Services Market, by Services– 2022 and 2028

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Application-Based Insights

Based on application, the product design and development market is segmented into diagnostic equipment, therapeutic equipment, surgical instruments, clinical laboratory equipment, biological storage, consumables, and others. The surgical instruments segment is likely to dominate the market in 2022.

End User-Based Insights

Based on the end user, the product design and development services market has been categorized into medical companies, pharmaceutical companies, biotechnology companies, and contract research organizations (CROs). The medical companies held the largest market share in 2022.

The product design and development services market players adopt organic strategies such as product launch and expansion to expand their footprint and product portfolio worldwide.

By Geography, the product design and development services market is segmented in North America (the US, Canada, and Mexico), Europe (France, Germany, Italy, the UK, Spain, and the Rest of Europe), Asia Pacific (Australia, China, India, Japan, South Korea, and the Rest of APAC), Middle East & Africa (Saudi Arabia, South Africa, the UAE, and the Rest of MEA), and South and Central America (Brazil, Argentina, and the Rest of SCAM).

Ximedica, DeviceLab Inc., Jabil Inc, Flex Ltd, Plexus Corp, Celestics Inc., Starfish Product Engineering Inc., Nordson Corporation, Planet Innovation, and Sterling Medical Devices are among the leading companies operating in the product design and development services market.