The global Product Design And Development Services Market size is expected to reach USD 18.6 billion by 2028, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 11.6% from 2021 to 2028. Low product cost, short time-to-market, and demand for advanced technologies are some of the factors boosting the growth. Medical and life sciences companies face extreme cost pressures to develop new and innovative products in shorter time frames while complying with stringent regulatory requirements of medical device.
The manufacturers face more hurdles in getting cost-effective high-quality products to market faster along with some internal factors, such as designing and production. Hence, medical device companies adopt a design-to-manufacturing approach where design, engineering, as well as production teams work in collaboration to develop the product model. This approach enhances both product quality and profitability by decreasing errors in development and designing thereby increasing success rates.
Outsourcing design engineering is anticipated to witness healthy growth over the forecast period as an increased number of manufacturers—from start-up ventures to established companies—capitalize on the benefits related to outsourcing design engineering such as improved product design and cost-effectiveness to attain a competitive edge. Furthermore, with the incorporation of IT into healthcare industry, analysis on 3D models and software, for which the third parties are well trained are expected to promote growth.
However, COVID-19 has added complexity and challenge to the medical device innovation. The product development firms are facing the major challenges so far as how to continue with business operations while evading the effects of the crisis. Product development during the pandemic continues to show optimal scope. The huge cost of development, financial risks of missing the mark, and market timing altogether contribute to the greatest challenges of medical device development and market driving innovation.
Related press Release @ Product Design And Development Services Market Report
Product Design & Development Services Market Report Highlights
- The research, strategy, and concept generation services segment accounted for the highest revenue share of 39.9% in 2020 as the stage requires extensive research and business and design strategy that generate maximum revenue
- The surgical instruments segment held major market share of 27.9% in 2020, due to the complexity of instruments which require detailed designing for making them suitable for direct contact with human body
- Key players in emerging economies of Asia Pacific and Latin America are witnessing significant increase in their revenue owing to the presence of lucrative growth opportunities
- Medical device Original Equipment Manufacturers (OEMs) are outsourcing the production of their devices to developing economies due to availability of labor and raw materials at affordable cost