The market for original equipment manufacturers (OEMs) and contract manufacturer companies processing raw materials for medical device companies will grow from $13.9 billion globally to $25.4 billion by 2011, according to a new report by Kalorama Information, a Rockville, Md.-based healthcare market research firm.
The report, “OEM Contract Manufacturing in Medical Devices, Volume I: Materials Processing,” stated that future growth in the medical device and drug fusion industry is likely to come in orthopedics and implants, as well as in the cardiovascular devices sector. In these sectors, issues of biocompatibility, anti-microbial sterilization, device coatings and drug release mean that specialist contract manufacturers are likely to increase in demand.
According to Steven Heffner, a publisher at Kalorama, outsourcing the cost of manufacturing will rise to “an estimated 90 percent. In the medical device industry across the mainstream nine market segments, the level of outsourcing of manufacturing costs is currently around 30 percent, so there is considerable room for growth and manufacturing efficiencies to be gained during the next five to ten years.”
The report is the first in a three-volume series focusing on manufacturers who currently service brand-name manufacturers within the healthcare medical devices sectors.