Medical device service provider market to near $27bln in 5 years

medical-device-marketThe market for service providers catering to medical device makers could be worth $27 billion by 2014, according to the Markets and Markets consulting firm.

The worldwide market for service providers catering to the medical device industry could approach $27 billion in five years, according to a report by the MarketsandMarkets consulting firm.

The compound annual growth rate for the sector is expected to be almost 14 percent a year from 2009 to 214, according to the report.

Citing the numbers for the medical device industry — an estimated size of $250 billion in 2009 and a growth rate of up to 8 percent — the report predicts that the 10-year trend of device makers seeking outsource service providers will gain steam. That’s because the practice has helped medical device manufacturers reduce product development cost by 10 percent to 30 percent, according to the report.

Service providers catering to the orthopedic and cardiovascular markets, which enjoy the industry’s largest market share and highest growth rate, respectively, are well-positioned to take advantage of the growth. Increased regulation of Class II and Class III devices represents an opportunity for regulatory consultants, and the ever-more-complex global supply chain is good for logistics management firms. And the rise of electronics embedded in cardiovascular and neurological devices is a boon for chip design providers.