Strategic Alliances between Local and Global Companies to Remain Crucial for Global Medical Devices Outsourcing Market, says TMR
The global medical devices outsourcing market is highly fragmented due to the presence of a large number of local and international players, finds a new report by Transparency Market Research. The top four companies that predominantly outsource product manufacturing and services to small and specialized service providers held only 28% of the market in 2011. These are Johnson and Johnson, GE Healthcare, Medtronic, and Baxter International. The global medical devices outsourcing market is expected to be worth US$40.8 bn by 2018, says TMR. On the basis of application, class II devices account for the largest market share due to moderate risks and minimal regulatory requirements. “Business alliances and partnerships are key strategies adopted by top companies for business growth,” says a TMR analyst. Browse Global Strategic Business Report: http://www.transparencymarketresearch.com/medical-devices-outsourcing-market.html Increased focused on research and development is one of the key growth models that companies receiving outsourced services in the global medical devices outsourcing market are employing for business growth. For instance, the research and development of Creganna-Tactx is focused on developing products with newer component and to develop technologies for minimally and less invasive medical delivery systems. Need to Reduce Production Cost for Competitive Reasons Fuels Market Growth A TMR analyst points out, “The ever-increasing demand for quality healthcare is one of the key factors driving the growth of the global medical devices outsourcing market.” At present, the increasing prevalence of chronic diseases is leading to a rising demand for early disease detection for improved disease management. The quality of healthcare delivered depends on the quality of diagnostic devices. This is forcing device manufacturers to outsource product development to specialized third-party product manufacturers to stay ahead in the competitive healthcare industry. Product outsourcing helps reduce production cost by 10-15% thus allowing companies to survive competition, which is another major factor driving the global medical devices outsourcing market. Today, almost all medical devices are integrated with IT solutions for operational purposes. For