DelveInsight reports that the global medical device contract manufacturing market will grow to $190 billion by 2032.
Medical Device Contract Manufacturing - Market Insight, Competitive Landscape and Market Forecast - 2032
Key Takeaways:
DelveInsight reports the contract manufacturing market is growing to $190 billion by 2032.
Rising R&D spending and a growing shift toward outsourcing among major industry players are key forces propelling the market.
According to PMMI Business Intelligence, 67% of brand owners plan to maintain or increase their use of contract services in the coming years.
DelveInsight reports that the global medical device contract manufacturing market will grow to $190 billion by 2032. Expanding chronic disease burdens, rapid innovation in minimally invasive and digital health devices, and the need for scalable production are further accelerating market momentum. Additionally, regulatory complexities and the push for faster time-to-market are prompting manufacturers to rely more heavily on specialized contract partners.
What is Medical Device Contract Manufacturing?
Medical device contract manufacturing is a specialized service in which companies outsource the production of medical devices or their components to third-party manufacturers with expertise in design, engineering, and large-scale production. These contract manufacturers provide end-to-end capabilities, including product development, prototyping, regulatory compliance support, tooling, assembly, packaging, and sterilization. By leveraging these partners, medical device companies can accelerate time-to-market, reduce operational costs, focus on core innovation, and scale production rapidly while meeting stringent global regulatory standards.
DelveInsight’s Market Summary:
The global medical device contract manufacturing market size is expected to increase from about $79 billion in 2024 to about $196 billion by 2032.
The market is expected to grow at a CAGR of about 12% from 2025 to 2032.
Leading companies working in the space include Integer Holdings Corporation, Flex, Ltd., Gerresheimer AG, Sanmina Corporation, Nipro Corporation, Celestica International Lp., Plexus Corp., Benchmark Electronics Inc., West Pharmaceutical Services, Inc., Jabil Inc., Tecomet Inc., Nortech Systems Inc., TE Connectivity, Forefront Medical Technologies, and Nordson Corporation.
Among all the regions, North America is anticipated to register the fastest growth in the medical device contract manufacturing market during the forecast period.
In the service type segment, the design and development services category accounted for the largest market share in 2024.
Key Market Drivers
Whether it’s for streamlining operations, reducing capital expenditures, or increasing flexibility, outsourcing is a key strategy for CPGs ranging from startups to global giants.
While outsourcing has long supplemented internal production, it serves as the entire operational model for many emerging brands, especially startups or startup divisions that don’t yet have in-house resources. PMMI Business IntelligenceIn late 2024, PMMI Business Intelligence released “Contract Packaging & Manufacturing: Drivers of Machinery Investments,” a report surveying brand owners across the food, beverage, beauty, home care, and healthcare sectors. According to the report, 67% of brand owners plan to maintain or increase their use of contract services in the coming years, reinforcing the sector’s stability, while only 19% of respondents indicated they plan to reduce their reliance on external manufacturing partners.
While various research confirms that contract manufacturing is on the rise, DelveInsight outlines the key market drivers and trends within the medical device contract manufacturing:
· Not surprising is outsourcing: OEMs increasingly rely on contract manufacturers (CMs) for specialized expertise in R&D, design, and production.
· Digital Health: Growth in wearables, IoT, and remote monitoring fuels demand for CMs with digital manufacturing capabilities.
· Automation & Industry 4.0: Integration of robotics, data analytics, and smart manufacturing enhances efficiency and quality.
· Complex Devices: Rising demand for minimally invasive, diagnostic, and drug-delivery devices (syringes, injectors).
· Sustainability: Focus on eco-friendly materials and processes.
Key Factors Contributing to the Rise in Growth
There are several factors that contribute to the rise in growth of the medical device contract manufacturing market; DelveInsight highlights three.
Increasing Chronic Diseases Prevalence
The rising burden of chronic illnesses, including cancer, diabetes, cardiovascular diseases, and respiratory disorders, is fueling strong growth in medical device contract manufacturing. As the need for sophisticated diagnostic, monitoring, and therapeutic equipment expands, OEMs are increasingly turning to contract manufacturers to scale production efficiently. Consequently, the expanding patient base and the heightened demand for dependable, high-quality medical devices are substantially propelling the contract manufacturing market forward.
Surging R&D Investments and Increased Outsourcing
Rising R&D spending and a growing shift toward outsourcing among major industry players are key forces propelling the medical device contract manufacturing market. As companies push to develop cutting-edge, technologically sophisticated devices, they are turning to contract manufacturers for their specialized skills, cost advantages, and deep regulatory knowledge. By outsourcing, OEMs can accelerate product development, optimize production workflows, and reduce operational burdens.
The outlook for outsourced manufacturing and packaging remains strong, creating a win-win scenario for both brands and their external partners. PMMI Business IntelligenceIncrease in Technological Advancements
Advancements in technology, coupled with a strong global medical device pipeline and rising regulatory approvals, are accelerating the growth of medical device contract manufacturing. Breakthroughs in miniaturization, digital health integration, 3D printing, and automation are enabling the creation of increasingly complex devices that demand specialized production capabilities. Consequently, companies are turning to contract manufacturers equipped with advanced technologies and deep regulatory expertise to ensure high-quality output and scalable production.
A Look at The Why
The outlook for outsourced manufacturing and packaging remains strong, creating a win-win scenario for both brands and their external partners. But the reasons why CPGs outsource vary widely, and the world of outsourced partnerships is far from one-size-fits-all.
In the report mentioned above from PMMI, most brand owners told the association that they incorporate some form of contract services into their long-term strategies. The study found that 63% of manufacturers currently outsource between 10% and 49% of their production—a significant portion of their business.
While outsourcing has long supplemented internal production, it serves as the entire operational model for many emerging brands, especially startups or startup divisions that don’t yet have in-house resources.
But, established brands also turn to outsourcing to manage costs. “In a time when there have been pressures on cost and headcount, outsourcing provides a way to keep the business moving forward, especially with newer and/or smaller segments of the business,” says Robby Martin, a consultant in the CPG space.
As reliance on external partners increases, contract manufacturers and packagers must be ready to provide greater agility, advanced technology, and flexible production capabilities to serve both large and small brands alike.
No matter what industry, contract manufacturing is a popular option to assist in growth needs and manage costs. For the medical device industry, devices, and the need for scalable production are further accelerating market momentum.
While outsourcing has long supplemented internal production, it serves as the entire operational model for many emerging brands, especially startups or startup divisions that don’t yet have in-house resources. PMMI Business Intelligence
