Global Product Design and Development Services Market Size Expected to Reach $18.6bn by 2028
A market size of approximately 18.6 billion USD is expected to be reached by product design and development services worldwide by 2028.
Between 2021 and 2028, the market is forecast to grow at a CAGR of 11.6%.
Low product costs, quick market entry times, and the growing need for advanced technologies are among the factors boosting growth.
It is extremely challenging for medical and life science companies to develop cutting-edge products within short timeframes and comply with strict regulatory requirements for medical devices while keeping costs down.
In addition to internal factors, such as designing and production, manufacturers face significant challenges when it comes to getting high-quality, cost-effective products to market faster. Design, engineering, and manufacturing teams work together to develop product models in medical device companies following a design-to-manufacturing approach. As a result, this increases the effectiveness of the development and designing process as well as product quality.
It is anticipated that outsourcing design engineering will witness healthy growth over the forecast period as more manufacturers – from startups to established firms – gain leverage from design engineering outsourcing benefits such as product design improvement and reduced costs to gain a competitive edge.
Further growth is anticipated as a result of IT being incorporated into the larger healthcare industry, as well as improved analysis regarding both 3D models and other software, with third party employees being trained in this field, aiding development speeds.
Medical device innovation nevertheless has become more complex and challenging due to COVID-19.
As far as how to conduct business operations while avoiding the effects of the crisis is concerned, product development firms are having major challenges.
While the pandemic is ongoing, product development continues to be optimal, however.
Developing a medical device and introducing it to the market are characterized by two major challenges: the high development cost, and financial risks of missing the mark.
These are highlights from the Product Design and Development Services Market Report:
• As a result of the extensive business and design strategies to generate maximum revenue, the segment responsible for 39.9% of the revenue share in 2020 is research, strategy, and concept generation services.
• In 2020, surgical instruments accounted for a significant market share of 27.9% as a result of their complex design, which requires detailed planning to become compatible with direct body contact.
• Due to lucrative growth opportunities available in emerging economies in Latin America and Asia Pacific, key players have increased their revenues substantially.
• Due to the availability of labor and raw materials at a reasonable cost, Original Equipment Manufacturers (OEMs) of medical devices are outsourcing production to developing countries