The world of medical device manufacturing is rapidly evolving as technological advances continue to drastically shape the way medical devices are designed, manufactured, and brought to market. In this article, we'll take a look at the top five medical device manufacturing trends in 2018 and how medical device manufacturers can take the most advantage of them.
1) Minimally Invasive Devices are Prioritized
Driven largely by the miniaturization of technology, more and more medical device manufacturers are starting to prioritize producing medical devices that are minimally invasive to the patient. According to some research, the market for minimally invasive medical devices is set to reach $50 billion by the end of the decade. The move toward less invasive medical devices creates an opportunity for manufacturers to have a lot of success creating devices that perform common tasks in a minimally invasive manner.
More and more, OEMs within the medical device industry are choosing to outsource technical and production services to trusted partners in order to reduce their manufacturing footprint. Outsourcing the production of various components in a medical device allows manufacturers to be more dynamic and cost-effective in their production of medical devices.
Medical device manufacturing companies are consolidating at a rate faster than ever before in order to secure more resources to develop and produce more advanced medical devices that will have a larger impact on the market. Examples of recent major consolidations within the medical device industry include Flextronics purchasing Avail in 2007, Jabil’s acquisition of Nypro, and Molex's purchase of Phillips-Medisize in 2016. The trend of medical device manufacturers consolidating is one that is likely to continue if not accelerate as time goes on.
Recent years have seen more and more private equity entering the medical device industry. What was once an industry lead by smaller owner-operators has become one that is now lead by the guidance of major private equity firms. This increase in private equity within the industry has brought with it merger and acquisition knowledge, liquidity, and a larger degree of professional management, helping drive the industry forward.
As medical device manufacturers have come to rely more heavily on third-party manufacturers, the complexity of the services offered by these third-party manufacturers has increased as well. In addition to the standard role of producing the components requested, third-party manufacturers have also begun to offer services such as aiding in concept development, supply chain management, and highly specialized manufacturing. Being able to more heavily rely on third-party manufacturers for services such as these has not only helped fuel the trend for increased outsourcing within the medical device industry but has also helped medical device manufacturers bring products to market more quickly and effectively.
The past few years have delivered some major changes to the medical device industry, with most all of them being positive changes that have helped drive the industry forward. Some of the biggest trends in the medical device industry have centered around the role that third-party manufacturers play in the design and production of new medical devices.
At Hartford Technologies, we are proud to partner with medical device manufacturers in order to help them develop components that will make their device as effective and as affordable as it possibly can be. If you would like to learn more about the many products and services we offer to medical device manufacturers, we invite you to contact us today.
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