OUTSOURCING IS REDEFINING MEDICAL MANUFACTURING

With rising healthcare demands and new technologies, contract manufacturing is reshaping how devices are built, delivered and made accessible worldwide.

- By Team ET Now Machinist

The way medical devices are produced is changing rapidly. Instead of trying to manage everything in-house, many companies are now partnering with specialised manufacturers who can deliver speed, quality and innovation at scale. The Medical Manufacturing & Outsourcing Special Report (September 2025) highlights how this shift is gathering pace across the globe, and why India is especially well-placed to benefit.

A GROWING MARKET

The numbers tell a compelling story. The global medical device contract manufacturing market, valued at $76.8 billion in 2024, is projected to nearly double to $151.98 billion by 2030, growing at a healthy 12.36 percent CAGR. In the United States alone, the sector is expected to rise from $16.7 billion in 2024 to $32.9 billion by 2030.

The reason is straightforward. Device companies want to focus on innovation and patient care, while contract manufacturers handle the complexities of production, regulation and scaling. This model cuts costs, shortens time-to-market and ensures compliance with increasingly strict global standards.

WHY THE SURGE?

One major driver is demographics. By 2050, there will be 2.1 billion people aged 60 and over, more than double the figure in 2020. With an ageing population comes greater demand for pacemakers, orthopaedic implants and other long-term care devices. Rising cases of chronic conditions such as diabetes and cardiovascular disease are also adding pressure on healthcare systems to deliver better diagnostics and monitoring tools.