Medical device manufacturing has rebounded back from covid-19 in 2021. According to this article, the contract manufacturing market grew due to strong demand from customers. This is reflected by the strong uptick of merger and acquisition (M&A) activities among outsourcing providers. According to GlobalData’s Medical Devices Deals Database, the total value of the deals in this field reached a record high of $1.6bn this year.
The two main reasons for this growth is the advancement of new technologies and processes and a growing ageing population. Although demand remains strong, the industry did face a lot of issues last year. The industry was heavily affected by the pandemic as elective surgical procedures were abruptly halted worldwide due to lockdowns, isolations, and social distancing. Another challenge covid-19 brought was supply chain disruptions, which was very similar to other industries.
According to the article, the contract manufacturing market is recovering with strong organic growth, and consolidation in the market continues at a fast pace. Outsourced manufacturing capacity is expected to be saturated with orders due to the backlog of demand from end-users. CMOs that focus on pre-clinical research and development (R&D) will enjoy revenue growth with the restarting of early-stage device programmes.
At Polestar, we are currently handling many deals in the healthcare space. If you would like more details in this space, or need help on growing your business, please reach out!
The medical device contract manufacturing market has rebounded despite the disruption of the pandemic with strong customer demand.