Product Design and Development Services Market Trends and Forecast (2019—2026) By Segment, Services, Application (Surgical Instruments, Diagnostic Equipment), End Use, And Region

The global product design and development services market size was valued at $2.7 billion in 2019 and is expected to grow at a CAGR of 16.4% from 2019 to 2026. The design and development of a medical device is a complex procedure and greatly depends on the requirements, applications, specifications, and guidelines of end-users. All these guidelines must be taken into consideration and followed thoroughly for effective development of a product. The process of product designing and development is much more than designing, developing, and introducing a product to the market. It includes many complex procedures and should abide by the strict regulations for a successful product development.

Rising need for quality surgical instruments to boost the market in coming years

Growing need to decrease the cost, implementation of new standards and protocols, rapid innovations in the product design, and rising demand for healthcare services and quality products are some of the main factors fueling the market growth. With the rapid technological developments in medical industry, the medical device manufacturers all over the world are now shifting from a transaction-based method to a method that focuses on bringing value for patients, providers, financiers, and practitioners by offering medical tools and surgical instruments that are cost-effective, innovative, and are superior in quality.

The medical device manufacturing industry is expected to grow at a tremendous pace in the next few years due to the growing geriatric population and health issues, and increased health care costs. Therefore, manufacturers are taking up new product development projects at a high speed, especially in the emerging countries such as India and China. Hence, the manufacturers will need a proper implementation strategy to identify the concerns and requirements of the patients in the market. This is expected to surge the demand for services, thereby propelling the market growth.

Segment Analysis

The global product design and development services market is segmented based on service type, applications, end-use, and region. By service type, the market is divided into research, strategy, and concept generation; concept and requirements development; detailed design & process development; design verification; manufacturing transfer, design validation and process validation; production and commercial support. Based on applications, the market is bifurcated into diagnostic equipment, therapeutic equipment, clinical laboratory equipment, surgical instruments, biological storage, consumables, and others. By end use, the market is categorized into medical device companies, pharmaceutical companies, biotechnology companies, and contract research organizations. Regionally, the market is studied across Latin America, North America, Asia Pacific, Europe, and MEA. 

Research, strategy, and concept generation segment to lead the market during the forecast period

The research, strategy, and concept generation segment dominated the market with a revenue share of 38.0% in 2018. Additionally, this segment is expected to hold its lead position over the forecast period. This is mainly due to the in-depth research required at this stage that includes identification of user requirements, research related to comparative and competitive landscape, and technological research & assessment.

Surgical instruments segment expected to grab major share of the market during forecast period

The surgical instruments segment was observed as the largest segment holding nearly 26.6% of market share in 2018. This is mainly because of the complex procedures that require detailed designing and development. The instruments are required to fulfill quality standards and perform surgeries without causing any harm to the patients. As the surgical instrument market is technology-oriented, price-sensitive as well as quality competitive, the manufacturing of surgical instrument should be adjusted and checked for its safety, quality, feasibility, performance, and manufacturing cost.

By end-user, the medical device companies segment grabbed a leading market share of about 51.5% in 2018, due to the growing demand for advanced and quality medical products. Nowadays, compact size portable product that need highly advanced manufacturing technologies, components, and automation procedures are highly in demand. Medical products used in treating various health disorders are now becoming smaller in size but increasing their features and quality of performance. Also, by taking into consideration various requirements of the patients, these new products are manufactured using design and features usually related to consumer-type goods such as wireless connectivity, portability, user-friendliness, and ruggedness.

Regional outlook of the market

Asia Pacific was observed to held a dominant market share of around 40.9% in 2018. The major players in evolving countries of Latin America and Asia Pacific are experiencing substantial growth in their revenue due to increase in opportunities offered by these regions. Medical device Original Equipment Manufacturers (OEMs) are outsourcing the development of their devices to these nations because of the availability of labor, raw materials, and components at lower cost.

North America was recorded to hold the second largest market share in 2018, owing to the presence of Contract Research Organizations (CROs) that provide product design and development services. Moreover, the companies located in the region are growing their reach of services by mergers and acquisitions. In addition, rapid growth in the production of medical devices to satisfy the high demand for effective healthcare services in the region is projected to be one of the foremost factors contributing to the growth of the market in this region.

Major players dominating the market

Some of the key players active in the global product design and development services market are Plexus Corp.; DeviceLab Inc.; Jabil Inc.; Starfish Medical; Flex Ltd.; Celestica Inc.; Nordson MEDICAL; Ximedica; Planet Innovation; and Donatelle. Expansion, mergers, and acquisitions are the top strategies adopted by these market players. For example, in May 2018, Jabil started a manufacturing facility of Nypro healthcare in Hungary. Such expansions allow Nypro, a Jabil company, to develop its manufacturing competences in Europe into the life sciences and advanced human diagnostics markets.

Key Benefits for Stakeholders

• This research provides the analytical representation of the global product design and development services market along with the current trends and future predictions to illustrate the upcoming investment pockets.
• The overall market potential is determined to understand the profitable trends to help stakeholders obtain a lead position in the market.
• The report presents information related to key drivers, restraints, and opportunities with an exhaustive impact analysis.
• The current market is quantitatively analyzed from 2019 to 2026 to highlight the financial competency of the industry.
• Porter’s five forces analysis to determine the potency of the buyers and suppliers of the market is also offered in the report.

Key Segments

By Services

• Research, Strategy, & Concept Generation
• Concept & Requirements Development
• Detailed Design & Process Development
• Design Verification
• Process Validation, Manufacturing Transfer & Design Validation
• Production & Commercial Support

By Application 

• Clinical Laboratory Equipment’s
• Diagnostic Equipment’s
• Therapeutic Equipment’s
• Biological Storage
• Surgical Instruments
• Consumables
• Others

By End-Use

• Biotechnology Companies
• Pharmaceutical Companies
• Medical Device Companies
• Contract Research Organizations

By Region

• Europe

  • France
  • U.K.
  • Italy
  • Germany
  • Spain

• North America

  • U.S.
  • Canada

• MEA

  • South Africa
  • Saudi Arabia
  • UAE

• Asia Pacific

  • Japan
  • China
  • India
  • Australia
  • South Korea

• Latin America

  • Brazil
  • Mexico
  • Argentina
  • Colombia