Medical Component Manufacturing Market

Market Overview

The global medical component manufacturing market size was valued at USD 577.26 billion in 2022. It is estimated to reach USD 864.4 billion by 2031, growing at a CAGR of 5.1% during the forecast period (2023–2031).

Medical component manufacturing pertains to producing medical components utilized in medical equipment, instruments, and implants for monitoring, therapeutics, and diagnostics. The market encompasses a wide range of segments, including surgical instruments and technologies, orthopedics, cardiovascular devices, diagnostic apparatus, dental instruments and technologies, diabetes devices, 3D imaging, quality systems, measurement and inspection, lasers, and assembly, among other areas.

Highlights

• Plastic injection molding dominates the process segment.
• North America is the most significant shareholder in the global market

Market Dynamics

Global Medical Component Manufacturing Market Drivers

Increasing Demand for Medical Devices

The medical device sector will grow fast, reaching USD 795.0 billion by 2030. Lifestyle-related diseases and smart devices like trackers will enhance medical equipment demand. Medical device users will enhance demand for medical component producers. This is because of technological developments allowing for real-time patient data analysis. For instance, AliveCor released a heart rate-monitoring medical band. This gadget tracks heart rate and stroke to detect cardiac issues with a medical bracelet connected to a smart app. The bracelet sends physicians EKG/ECGs from sensors. Similarly, Portable Medical Technology developed an EU-approved app. The software helps physicians decide how to treat lung, colon, breast, and gut stromal tumors.

Furthermore, medical component sales will certainly increase due to medical device collaboration. For instance, IBM Watson Health and Siemens Healthineers offered value-based hospital and community health management. The new venture may assist companies in establishing clinical solutions, imaging, and medical technology data businesses. Medical component manufacture should rise. The aforementioned factors are predicted to drive the medical component manufacturing sector growth.

Rising Geriatric Population

The global aging population has experienced a pattern shift due to declining fertility rates and increasing life expectancy. The trend of longer lifespans has resulted in a high increase in the proportion of elderly individuals or the geriatric population. The geriatric population is forecasted to grow by 100% over the next three decades, with a projected size of 1.5 million by the year 2050. The aging population exhibits greater healthcare requirements in contrast to the younger demographic, thereby anticipated to spur medical device demand and yield a favorable outcome for medical component production.

Additionally, the United States is a huge market for medical devices and has experienced an increase in the elderly population. According to the U.S. Census Bureau estimations, the population is expected to increase to 95 million by 2060. The increasing elderly population is expected to drive the demand for medical devices in the foreseeable future.

Global Medical Component Manufacturing Market Restraint

High Material Costs Associated with 3D Printing

Materials for 3D printing, especially powder metals, can be quite pricey. There could be a 10-100x increase in price due to variations in the materials used. For printing, size, shape, and purity are essential, which can impact the pricing of the final product. According to the SR data, the going rate for 3D-printed stainless steel is USD 8.00 per square centimeter. Stainless steel, which is used in conventional production, is quite pricey.

In addition, the market analysis demonstrates that 3D printing faces quality, multi-material printing, material pricing, size, and scalability issues. In order to address these challenges, 3D printing will be employed in more medical applications as technology and material science progress. SR investigation indicated that the additive manufacturing process requires many hours for each horizontal inch. While working prototypes are possible, widespread production is unlikely. The above factor has the potential to restrain expansion in the production of medical components.

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Technological Advancements

Regulations and technological advancements in medical devices are ongoing. Manufacturers should utilize a comprehensive data management approach to understand their data and maintain compliance. Automation of the supply chain and data-driven decision-making can boost productivity, and continuous innovation is required for new product development. To gain market share, manufacturers might improve their production processes. This can create new opportunities for market growth.

Additionally, an industry study indicates several opportunities for industry providers in China and India. Despite lower penetration rates, large populations have greater market development potential for medical devices. These administrations have enhanced public healthcare by emphasizing medical infrastructure and rural healthcare facilities. Without requiring regulatory approval, the Indian government automatically accepts 100 percent of all foreign direct investment (FDI) in this sector.

Regional Analysis

Based on region, the global medical component manufacturing market is bifurcated into North America, Europe, and Asia-Pacific.

North America Dominates the Global Market

North America is the most significant global medical component manufacturing market shareholder and is estimated to exhibit a CAGR of 4.9% over the forecast period. The North American market for medical component manufacturing is anticipated to experience growth due to heightened investments in healthcare and a surge in demand for medical products. This trend is evident in the United States, Canada, and Mexico. The increasing age of the population and longer life expectancies are anticipated to drive the market for medical devices and associated products. The North American market also saw the U.S. as the top revenue generator, with a share of over 85.0% in 2020.

Furthermore, North America is estimated to experience the highest growth rate in the 3D printing market, driven by an increasing need for 3D printers that offer larger sizes, enhanced features, and greater compatibility with various materials. 3D medical printing technology is expected to offer a plethora of opportunities shortly. There is potential for research hospitals and universities in the United States to engage in collaborative efforts to investigate emerging opportunities in various fields. These may include developing innovative applications for spinal surgery, tumor removal, and craniofacial surgery, using 3D printing technology for surgical planning, and creating live cells and biomaterials.

In Europe, the German market for medical and related products is expected to experience growth, with exports being a key factor in driving this trend. According to market research, the medical device industry in the country is currently the largest in Europe and ranks third globally. In 2020, the medical device export market was dominated by European countries, which held the largest share at 41%. The increasing healthcare expenses in the country, despite a high percentage of the insured population, are fuelling the need for medical devices. The projection indicates potential benefits for manufacturers of medical components. In addition, the medical device industry in Germany primarily comprises small and medium-sized enterprises, with a significant portion of their revenue generated from exports. As of 2020, the medical device industry in Germany comprises more than 1,200 manufacturers.

Asia-Pacific is expected to grow substantially over the forecast period. The region is responsible for 60% of the world's total population. The medical component manufacturing market is predicted to benefit from the projected increase in demand for medical devices in the region due to factors such as the expanding private healthcare sector, rising income levels, and government incentives for medical device companies. A high aging population in certain countries, such as Japan, is the primary driver of the medical component manufacturing market in the region. Due to large numbers of small and medium-sized manufacturers, the region has established itself as a prominent provider of medical components. According to market research, Olympus, Terumo, Hoya, Sonic Healthcare, Nipro, and Shimadzu are among the top medical device companies. The Asia-Pacific region is dominated by key product manufacturers such as China, Japan, and South Korea due to the strong industrial infrastructure in these economies.

Segmental Analysis

The global medical component manufacturing market is segmented into processes.

Based on process, the global medical component manufacturing market is bifurcated into forging, metal injection modeling, 3D printing, ceramic injection modeling, investment casting, and plastic injection modeling.

The plastic injection molding technique dominates the global market and is estimated to grow at a CAGR of 4.2% during the forecast period. Plastic injection molding is a typical industrial technique that involves pumping molten material into a mold to create various components. The procedure is utilized extensively in the medical business because of its efficacy, cost-effectiveness, cost-effectiveness, durability of the result, and regulatory compliance. The method manufactures various items, including surgical equipment, housings, and casings for laboratory and medical equipment, containers, implants, and orthopedics-related components. Advantages of the plastic injection molding process include the ability of medical components manufactured using this process to meet regulatory standards and exact specifications of the medical industry.

Furthermore, the process is used to develop surgical equipment and parts; housings and casings for medical and laboratory equipment; test tubes, beakers, and other containers; drug delivery equipment and components; and orthopedic products. In addition, the process can be utilized in nearly every area for sterilization-friendly and durable parts with high volume and precise production. The materials used in the plastic injection molding process include silicone, polycarbonate, polyethylene, and polypropylene. Likewise, the process can help component manufacturers produce cost-effective products in various sizes and shapes. Some low-cost products include disposable gloves, syringes, plastic instruments, and different one-time products for healthcare facilities.

The penetration of medical component manufacturing is likely to be the highest in the 3D printing segment. The process of 3D printing involves the design of three-dimensional components using layer deposition. The process involves utilizing digital data to produce medical components through 3D printing technology. 3D printing technology has produced various surgical instruments, including hemostats, needle drivers, scalpel handles, medical clamps, retractors, and forceps. Additionally, it has facilitated the creation of customized body parts and prosthetics, as well as orthopedic implants for hips, knees, and wrists.

Recent Developments

• May 2023- IIT-Madras developed a new portable device called Artsens to check Vascular Health.
• March 2023- Renishaw, Wotton-Under-Edge, Gloucestershire, UK, collaborated with medical devices specialist Permedica, Lecco, Italy, to develop Additive Manufacturing processes for the mass production of medical components in the healthcare industry. The adoption of three RenAM 500Q Additive Manufacturing machines follows a longstanding partnership between the companies.