Diagnostic Contract Manufacturing Market Worth $44.9 billion | North America is expected to observe significant growth during the forecast period

The North American market is driven by improved industrial and healthcare infrastructure and the competitive manufacturing capabilities of companies providing diagnostic contract manufacturing services. Europe's market is driven by favorable government policies.
The report "Diagnostic Contract Manufacturing Market [https://www.marketsandmarkets.com/Market-Reports/diagnostic-contract-manufacturing-market-5534234.html?utm_source=ABnewswire&utm_medium=Paid&utm_campaign=Referral] by Device (In Vitro Diagnostic Devices and Diagnostic Imaging Devices), Service (Device Development & Manufacturing, Quality Management, and Packaging & Assembly), Application, Region - Global Forecast to 2028", is projected to reach USD 44.9 billion by 2028 from USD 26.0 billion in 2023, at a CAGR of 11.5% during the forecast period. The growth of this market is majorly driven by rising demand for early diagnosis and widening clinical applications scope and growth opportunities in emerging economies with favorable manufacturing conditions and labor costs.

Download an Illustrative overview: https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=5534234 [https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=5534234&utm_source=ABnewswire&utm_medium=Paid&utm_campaign=Referral]

Image: https://www.marketsandmarkets.com/Images/diagnostic-contract-manufacturing-market1.jpg

Global Diagnostic contract manufacturing Dynamics

DRIVER: High cost of in-house IVD manufacturing

Contract manufacturing services in the IVD field have gained significant adoption as companies seek to expand their customer base by providing competitively priced products. Many CMOs are emerging in the Asia Pacific region, providing enormous opportunities for OEMs in IVD. According to a report by the Medical Device Outsourcing Association (MDOA), over 70% of medical device companies considered outsourcing in 2021. Thus, the high cost associated with the in-house manufacturing of IVD products has opened the doors to outsourcing manufacturing.

RESTRAINT: IP protection concerns and the possibility of IP theft

Diagnostic contract manufacturing includes outsourcing the production of the devices like IVD equipment, diagnostic imaging devices, and other devices to third-party manufacturers. OEM shares sensitive and proprietary information with contract manufacturers about diagnostic devices' design, technology, and manufacturing process. And with this exchange of sensitive information, data security becomes crucial.

OPPORTUNITY: Growth opportunities in emerging countries

Developing economies such as India, China, Brazil, South Korea, Turkey, Russia, and South Africa offer high growth opportunities for major players in the diagnostic contract manufacturing market. Furthermore, emerging economies offer lower manufacturing costs. For instance, outsourcing to China would reduce the overall manufacturing cost by ~30% compared to manufacturing in the US.

CHALLENGE: Adoption of refurbished diagnostic imaging systems

due to the strong demand for diagnostic imaging procedures globally, hospitals that cannot afford to invest in new imaging systems opt for refurbished ones. This is because refurbished systems are priced lower than new systems (40% to 60% of the price of new equipment). Many independent suppliers provide high-end refurbished and re-used systems at a significantly lower price.

The IVD Consumables segment is expected to account for the largest share in 2022.

The increased accessibility and demand for reagents & kits and the rising number of IVD tests performed are the key factors driving the growth of this segment. The IVD devices market is segmented into IVD consumables and IVD equipment. The low cost of outsourcing consumables production has supported market growth by ensuring high-scale production.

The CT segment held the largest market share in the diagnostic imaging devices market.

By device type, the global diagnostic imaging devices market is broadly segmented into CT scans, X-rays, MRI, Ultrasound, and Others. The increasing availability of CT devices in major markets and technological advancements in CT offering faster and more precise results drive the growth of this market. These technologically advanced diagnostic imaging systems is high in mature markets. Due to rapid economic growth, the adoption of these devices is expected to increase in developing countries in the coming years.

Asia Pacific dominates the global diagnostic contract manufacturing market.

Based on the region, the diagnostic contract manufacturing market is segmented into North America, Europe, Asia Pacific, and Rest of the World. The North American market is driven by improved industrial and healthcare infrastructure and the competitive manufacturing capabilities of companies providing diagnostic contract manufacturing services. Europe's market is driven by favorable government policies. Asia Pacific will observe high growth during the forecast period with its increasing focus and expansion of players in the market.

Request Sample Pages: https://www.marketsandmarkets.com/requestsampleNew.asp?id=5534234 [https://www.marketsandmarkets.com/requestsampleNew.asp?id=5534234&utm_source=ABnewswire&utm_medium=Paid&utm_campaign=Referral]

Diagnostic Contract Manufacturing Market Dynamics:

Drivers:

* High cost of in-house IVD manufacturing

Restraints:

* High IP protection concerns and the possibility of IP theft

Opportunities:

* Growth opportunities in emerging countries

Challenge:

* Adoption of refurbished diagnostic imaging systems

Key Market Players of Diagnostic Contract Manufacturing Industry:

Major players in the diagnostic contract manufacturing market include Jabil Inc. (US), Flex Ltd. (Singapore), Plexus Corp (US), Sanmina Corporation (US), TE Connectivity Ltd. (Switzerland), and Celestica Inc. (Canada).

Breakdown of supply-side primary interviews by company type, designation, and region:

* By Company Type: Tier 1- 55%, Tier 2- 40%, and Tier 3- 5%
* By Designation: C-level - 37%, Director-level - 48%, and Others-15%
* By Region: North America- 56%, Europe -17%, Asia- Pacific -20%, and Rest of the World -7%

Get 10% Free Customization on this Report: https://www.marketsandmarkets.com/requestCustomizationNew.asp?id=5534234 [https://www.marketsandmarkets.com/requestCustomizationNew.asp?id=5534234&utm_source=ABnewswire&utm_medium=Paid&utm_campaign=Referral]

Diagnostic Contract Manufacturing Market - Key Benefits of Buying the Report:

The report will help the market leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall diagnostic contract manufacturing market and the subsegments. This report will help stakeholders understand the competitive landscape and gain more insights to position their businesses better and plan suitable go-to-market strategies. The report also helps stakeholders understand the pulse of the market and provides them with information on key market drivers, restraints, challenges, and opportunities.

The report provides insights on the following pointers:

* Analysis of key drivers (early diagnosis and widening scope of clinical applications, adoption of robotics and automation in manufacturing processes, growing outsourcing activity by IVD manufacturers, and high cost of in-house IVD manufacturing), restraints (IP protection concerns and possibility of theft), opportunities (growth opportunities in emerging economies), and challenges (Increasing adoption of refurbished diagnostic imaging systems, lack of constant innovation to balance technological capabilities against costs, and shortage of skilled labor).
* Market Development: Comprehensive information about lucrative markets - the report analyses the diagnostic contract manufacturing market across varied regions.
* Market Diversification: Exhaustive information about new products & services, untapped geographies, recent developments, and investments in the diagnostic contract manufacturing market
* Competitive Assessment: In-depth assessment of market shares, growth strategies, and service offerings of leading players like Jabil Inc. (US), Flex Ltd. (Singapore), Plexus Corp. (US), Sanmina Corporation (US), TE Connectivity Ltd. (Switzerland), Celestica Inc. (Canada), among others in the diagnostic contract manufacturing market strategies.

Media Contact
Company Name: MarketsandMarkets Trademark Research Private Ltd.
Contact Person: Mr. Aashish Mehra
Email:Send Email [https://www.abnewswire.com/email_contact_us.php?pr=diagnostic-contract-manufacturing-market-worth-449-billion-north-america-is-expected-to-observe-significant-growth-during-the-forecast-period]
Phone: 18886006441
Address:630 Dundee Road Suite 430
City: Northbrook
State: IL 60062
Country: United States
Website: https://www.prnewswire.com/news-releases/diagnostic-contract-manufacturing-market-worth-44-9-billion--marketsandmarkets-302106973.html



This release was published on openPR.