APAC medical device contract manufacturing market report Size, Share, Growth Drivers, Trends, Opportunities & Forecast 2025–2030
Description
APAC Medical Device Contract Manufacturing Market Overview
The APAC Medical Device Contract Manufacturing Market is valued at USD 31.8 billion, based on a five-year historical analysis. This growth is primarily driven by the increasing demand for advanced medical devices, rapid technological innovations, and the rising prevalence of chronic diseases across the region. The market is also supported by the growing trend of outsourcing manufacturing processes to specialized firms, enabling companies to focus on core competencies while reducing operational costs. Additionally, the expansion of healthcare infrastructure and increased investment in medtech startups are further accelerating market momentum .
Key players in this market include China, Japan, and India, which dominate due to their robust manufacturing capabilities, skilled workforce, and favorable government policies. China stands out for its large-scale production capacity and cost advantages, supported by government incentives and infrastructure investment. Japan is recognized for its technological advancements, stringent regulatory standards, and high-quality manufacturing. India is rapidly emerging as a hub for medical device manufacturing, driven by its expanding healthcare sector, government initiatives such as "Make in India" and the Production Linked Incentive (PLI) scheme, and increasing foreign investments .
In 2023, the Indian government implemented the Medical Devices (Amendment) Rules, 2023, issued by the Ministry of Health and Family Welfare. This regulation mandates that all medical devices must undergo a rigorous approval process, including registration, quality assurance, and post-market surveillance, to ensure safety and efficacy. The rules enhance product quality, require compliance with ISO standards, and foster consumer trust by strengthening regulatory oversight in the Indian medical device market .
APAC Medical Device Contract Manufacturing Market Segmentation
By Product Class:
The product class segmentation includes Class I, Class II, and Class III devices. Class I devices, which are generally low-risk, account for the largest share of the market due to their widespread use in routine healthcare and lower regulatory requirements. Class II devices, which are moderate-risk, represent a significant portion of the market, driven by advancements in diagnostic and therapeutic technologies. Class III devices, being high-risk, have a smaller market share but are essential for complex and critical medical procedures .
By Service Type:
The service type segmentation includes Accessories Manufacturing, Assembly Manufacturing, Component Manufacturing, Device Manufacturing, Packaging and Labeling, and Others. Device Manufacturing is the leading segment, driven by the increasing demand for innovative and high-quality medical devices. Assembly Manufacturing follows, as companies seek to optimize production efficiency and scalability. Accessories Manufacturing and Packaging and Labeling are also significant, reflecting the need for end-to-end service offerings in the medical device sector .
APAC Medical Device Contract Manufacturing Market Competitive Landscape
The APAC Medical Device Contract Manufacturing Market is characterized by a dynamic mix of regional and international players. Leading participants such as Jabil Healthcare, Flex Ltd., Sanmina Corporation, Celestica Inc., SHL Medical, Nipro Corporation, Synecco, SMC Ltd., MDI (Medical Device Innovation), SteriPack Group, United Orthopedic Corporation, Creganna Medical (TE Connectivity), Trelleborg Healthcare & Medical, Elos Medtech, Kinamed Inc. contribute to innovation, geographic expansion, and service delivery in this space.
Jabil Healthcare
1966
St. Petersburg, Florida, USA
Flex Ltd.
1969
Singapore
Sanmina Corporation
1980
San Jose, California, USA
Celestica Inc.
1994
Toronto, Canada
SHL Medical
1989
Zug, Switzerland
Company
Establishment Year
Headquarters
Group Size (Large, Medium, or Small as per industry convention)
Annual Revenue (USD Million)
Revenue Growth Rate (%)
Market Share (%)
Number of Manufacturing Facilities
Geographic Footprint (Number of APAC countries served)
APAC Medical Device Contract Manufacturing Market Industry Analysis
Growth Drivers
Increasing Demand for Medical Devices:
The APAC region is witnessing a surge in demand for medical devices, driven by an aging population and rising chronic diseases. In future, the number of people aged 65 and older in APAC is projected to reach 700 million, increasing the need for advanced medical solutions. Additionally, the World Health Organization estimates that non-communicable diseases will account for 70% of all deaths in the region, further propelling the demand for innovative medical devices.
Advancements in Manufacturing Technologies:
The medical device manufacturing sector in APAC is benefiting from significant technological advancements. In future, investments in automation and robotics are expected to exceed $6 billion, enhancing production efficiency and reducing costs. Moreover, the integration of 3D printing technologies is revolutionizing device customization, allowing manufacturers to produce tailored solutions that meet specific patient needs, thereby driving market growth.
Rising Healthcare Expenditure:
Healthcare expenditure in APAC is projected to reach $2 trillion in future, reflecting a growing commitment to improving healthcare systems. Countries like China and India are increasing their healthcare budgets significantly, with China’s healthcare spending expected to grow by 12% annually. This rise in expenditure is facilitating investments in medical device manufacturing, thereby boosting the contract manufacturing market in the region.
Market Challenges
Stringent Regulatory Requirements:
The medical device industry in APAC faces stringent regulatory challenges that can hinder market growth. Compliance with regulations set by authorities such as the FDA and CE marking is essential, requiring manufacturers to invest heavily in quality assurance and testing. In future, the cost of compliance is estimated to reach $3 billion across the region, impacting profit margins and operational efficiency for many manufacturers.
High Competition Among Manufacturers:
The APAC medical device contract manufacturing market is characterized by intense competition, with over 1,200 manufacturers vying for market share. This competitive landscape leads to price wars and reduced profit margins. In future, the average profit margin for manufacturers is projected to decline to 14%, compelling companies to innovate and differentiate their offerings to maintain market position and profitability.
APAC Medical Device Contract Manufacturing Market Future Outlook
The future of the APAC medical device contract manufacturing market appears promising, driven by technological innovations and increasing healthcare investments. As manufacturers adopt automation and digital technologies, production efficiency will improve, enabling faster time-to-market for new devices. Additionally, the shift towards personalized medicine will create opportunities for customized solutions, enhancing patient outcomes. Strategic partnerships among manufacturers and healthcare providers will further facilitate market growth, ensuring that the region remains a key player in the global medical device landscape.
Market Opportunities
Growth in Emerging Markets:
Emerging markets in APAC, such as Vietnam and Indonesia, present significant growth opportunities for medical device manufacturers. With rising disposable incomes and increasing healthcare access, these markets are expected to see a 25% increase in medical device demand in future, creating a favorable environment for contract manufacturing.
Increasing Outsourcing of Manufacturing:
The trend of outsourcing manufacturing is gaining traction in the APAC region, as companies seek to reduce costs and focus on core competencies. In future, it is estimated that 35% of medical device companies will outsource their manufacturing processes, leading to increased demand for contract manufacturing services and fostering collaboration between manufacturers and healthcare firms.
Please Note: It will take 5-7 business days to complete the report upon order confirmation.
The APAC Medical Device Contract Manufacturing Market is valued at USD 31.8 billion, based on a five-year historical analysis. This growth is primarily driven by the increasing demand for advanced medical devices, rapid technological innovations, and the rising prevalence of chronic diseases across the region. The market is also supported by the growing trend of outsourcing manufacturing processes to specialized firms, enabling companies to focus on core competencies while reducing operational costs. Additionally, the expansion of healthcare infrastructure and increased investment in medtech startups are further accelerating market momentum .
Key players in this market include China, Japan, and India, which dominate due to their robust manufacturing capabilities, skilled workforce, and favorable government policies. China stands out for its large-scale production capacity and cost advantages, supported by government incentives and infrastructure investment. Japan is recognized for its technological advancements, stringent regulatory standards, and high-quality manufacturing. India is rapidly emerging as a hub for medical device manufacturing, driven by its expanding healthcare sector, government initiatives such as "Make in India" and the Production Linked Incentive (PLI) scheme, and increasing foreign investments .
In 2023, the Indian government implemented the Medical Devices (Amendment) Rules, 2023, issued by the Ministry of Health and Family Welfare. This regulation mandates that all medical devices must undergo a rigorous approval process, including registration, quality assurance, and post-market surveillance, to ensure safety and efficacy. The rules enhance product quality, require compliance with ISO standards, and foster consumer trust by strengthening regulatory oversight in the Indian medical device market .
APAC Medical Device Contract Manufacturing Market Segmentation
By Product Class:
The product class segmentation includes Class I, Class II, and Class III devices. Class I devices, which are generally low-risk, account for the largest share of the market due to their widespread use in routine healthcare and lower regulatory requirements. Class II devices, which are moderate-risk, represent a significant portion of the market, driven by advancements in diagnostic and therapeutic technologies. Class III devices, being high-risk, have a smaller market share but are essential for complex and critical medical procedures .
By Service Type:
The service type segmentation includes Accessories Manufacturing, Assembly Manufacturing, Component Manufacturing, Device Manufacturing, Packaging and Labeling, and Others. Device Manufacturing is the leading segment, driven by the increasing demand for innovative and high-quality medical devices. Assembly Manufacturing follows, as companies seek to optimize production efficiency and scalability. Accessories Manufacturing and Packaging and Labeling are also significant, reflecting the need for end-to-end service offerings in the medical device sector .
APAC Medical Device Contract Manufacturing Market Competitive Landscape
The APAC Medical Device Contract Manufacturing Market is characterized by a dynamic mix of regional and international players. Leading participants such as Jabil Healthcare, Flex Ltd., Sanmina Corporation, Celestica Inc., SHL Medical, Nipro Corporation, Synecco, SMC Ltd., MDI (Medical Device Innovation), SteriPack Group, United Orthopedic Corporation, Creganna Medical (TE Connectivity), Trelleborg Healthcare & Medical, Elos Medtech, Kinamed Inc. contribute to innovation, geographic expansion, and service delivery in this space.
Jabil Healthcare
1966
St. Petersburg, Florida, USA
Flex Ltd.
1969
Singapore
Sanmina Corporation
1980
San Jose, California, USA
Celestica Inc.
1994
Toronto, Canada
SHL Medical
1989
Zug, Switzerland
Company
Establishment Year
Headquarters
Group Size (Large, Medium, or Small as per industry convention)
Annual Revenue (USD Million)
Revenue Growth Rate (%)
Market Share (%)
Number of Manufacturing Facilities
Geographic Footprint (Number of APAC countries served)
APAC Medical Device Contract Manufacturing Market Industry Analysis
Growth Drivers
Increasing Demand for Medical Devices:
The APAC region is witnessing a surge in demand for medical devices, driven by an aging population and rising chronic diseases. In future, the number of people aged 65 and older in APAC is projected to reach 700 million, increasing the need for advanced medical solutions. Additionally, the World Health Organization estimates that non-communicable diseases will account for 70% of all deaths in the region, further propelling the demand for innovative medical devices.
Advancements in Manufacturing Technologies:
The medical device manufacturing sector in APAC is benefiting from significant technological advancements. In future, investments in automation and robotics are expected to exceed $6 billion, enhancing production efficiency and reducing costs. Moreover, the integration of 3D printing technologies is revolutionizing device customization, allowing manufacturers to produce tailored solutions that meet specific patient needs, thereby driving market growth.
Rising Healthcare Expenditure:
Healthcare expenditure in APAC is projected to reach $2 trillion in future, reflecting a growing commitment to improving healthcare systems. Countries like China and India are increasing their healthcare budgets significantly, with China’s healthcare spending expected to grow by 12% annually. This rise in expenditure is facilitating investments in medical device manufacturing, thereby boosting the contract manufacturing market in the region.
Market Challenges
Stringent Regulatory Requirements:
The medical device industry in APAC faces stringent regulatory challenges that can hinder market growth. Compliance with regulations set by authorities such as the FDA and CE marking is essential, requiring manufacturers to invest heavily in quality assurance and testing. In future, the cost of compliance is estimated to reach $3 billion across the region, impacting profit margins and operational efficiency for many manufacturers.
High Competition Among Manufacturers:
The APAC medical device contract manufacturing market is characterized by intense competition, with over 1,200 manufacturers vying for market share. This competitive landscape leads to price wars and reduced profit margins. In future, the average profit margin for manufacturers is projected to decline to 14%, compelling companies to innovate and differentiate their offerings to maintain market position and profitability.
APAC Medical Device Contract Manufacturing Market Future Outlook
The future of the APAC medical device contract manufacturing market appears promising, driven by technological innovations and increasing healthcare investments. As manufacturers adopt automation and digital technologies, production efficiency will improve, enabling faster time-to-market for new devices. Additionally, the shift towards personalized medicine will create opportunities for customized solutions, enhancing patient outcomes. Strategic partnerships among manufacturers and healthcare providers will further facilitate market growth, ensuring that the region remains a key player in the global medical device landscape.
Market Opportunities
Growth in Emerging Markets:
Emerging markets in APAC, such as Vietnam and Indonesia, present significant growth opportunities for medical device manufacturers. With rising disposable incomes and increasing healthcare access, these markets are expected to see a 25% increase in medical device demand in future, creating a favorable environment for contract manufacturing.
Increasing Outsourcing of Manufacturing:
The trend of outsourcing manufacturing is gaining traction in the APAC region, as companies seek to reduce costs and focus on core competencies. In future, it is estimated that 35% of medical device companies will outsource their manufacturing processes, leading to increased demand for contract manufacturing services and fostering collaboration between manufacturers and healthcare firms.
Please Note: It will take 5-7 business days to complete the report upon order confirmation.
Table of Contents
88 Pages
- 1. APAC medical device contract manufacturing Size, Share, Growth Drivers, Trends, Opportunities & – Market Overview
- 1.1. Definition and Scope
- 1.2. Market Taxonomy
- 1.3. Market Growth Rate
- 1.4. Market Segmentation Overview
- 2. APAC medical device contract manufacturing Size, Share, Growth Drivers, Trends, Opportunities & – Market Size (in USD Bn), 2019–2024
- 2.1. Historical Market Size
- 2.2. Year-on-Year Growth Analysis
- 2.3. Key Market Developments and Milestones
- 3. APAC medical device contract manufacturing Size, Share, Growth Drivers, Trends, Opportunities & – Market Analysis
- 3.1. Growth Drivers
- 3.1.1. Increasing demand for medical devices
- 3.1.2. Advancements in manufacturing technologies
- 3.1.3. Rising healthcare expenditure
- 3.1.4. Expansion of healthcare infrastructure
- 3.2. Restraints
- 3.2.1. Stringent regulatory requirements
- 3.2.2. High competition among manufacturers
- 3.2.3. Supply chain disruptions
- 3.2.4. Fluctuating raw material costs
- 3.3. Opportunities
- 3.3.1. Growth in emerging markets
- 3.3.2. Increasing outsourcing of manufacturing
- 3.3.3. Technological innovations in device manufacturing
- 3.3.4. Strategic partnerships and collaborations
- 3.4. Trends
- 3.4.1. Shift towards personalized medicine
- 3.4.2. Adoption of automation in manufacturing
- 3.4.3. Focus on sustainability and eco-friendly practices
- 3.4.4. Integration of digital technologies
- 3.5. Government Regulation
- 3.5.1. Compliance with ISO standards
- 3.5.2. FDA and CE mark requirements
- 3.5.3. Local manufacturing incentives
- 3.5.4. Data protection regulations
- 3.6. SWOT Analysis
- 3.7. Stakeholder Ecosystem
- 3.8. Competition Ecosystem
- 4. APAC medical device contract manufacturing Size, Share, Growth Drivers, Trends, Opportunities & – Market Segmentation, 2024
- 4.1. By Product Class (in Value %)
- 4.1.1. Class I Devices
- 4.1.2. Class II Devices
- 4.1.3. Class III Devices
- 4.1.4. Others
- 4.2. By Service Type (in Value %)
- 4.2.1. Accessories Manufacturing
- 4.2.2. Assembly Manufacturing
- 4.2.3. Component Manufacturing
- 4.2.4. Device Manufacturing
- 4.2.5. Others
- 4.3. By Therapeutic Area (in Value %)
- 4.3.1. Cardiovascular Devices
- 4.3.2. Orthopedic Devices
- 4.3.3. Diagnostic Devices
- 4.3.4. Others
- 4.4. By End Use (in Value %)
- 4.4.1. Original Equipment Manufacturers (OEMs)
- 4.4.2. Pharmaceutical & Biopharmaceutical Companies
- 4.4.3. Others
- 4.5. By Material Type (in Value %)
- 4.5.1. Metals
- 4.5.2. Plastics
- 4.5.3. Composites
- 4.5.4. Others
- 4.6. By Region (in Value %)
- 4.6.1. North India
- 4.6.2. South India
- 4.6.3. East India
- 4.6.4. West India
- 4.6.5. Central India
- 4.6.6. Northeast India
- 4.6.7. Union Territories
- 5. APAC medical device contract manufacturing Size, Share, Growth Drivers, Trends, Opportunities & – Market Cross Comparison
- 5.1. Detailed Profiles of Major Companies
- 5.1.1. Jabil Healthcare
- 5.1.2. Flex Ltd.
- 5.1.3. Sanmina Corporation
- 5.1.4. Celestica Inc.
- 5.1.5. SHL Medical
- 5.2. Cross Comparison Parameters
- 5.2.1. Annual Revenue (USD Million)
- 5.2.2. Number of Manufacturing Facilities
- 5.2.3. Geographic Footprint (Number of APAC countries served)
- 5.2.4. Customer Retention Rate (%)
- 5.2.5. Regulatory Compliance Certifications (ISO 13485, FDA, CE, etc.)
- 6. APAC medical device contract manufacturing Size, Share, Growth Drivers, Trends, Opportunities & – Market Regulatory Framework
- 6.1. Compliance Requirements and Audits
- 6.2. Certification Processes
- 7. APAC medical device contract manufacturing Size, Share, Growth Drivers, Trends, Opportunities & – Market Future Size (in USD Bn), 2025–2030
- 7.1. Future Market Size Projections
- 7.2. Key Factors Driving Future Market Growth
- 8. APAC medical device contract manufacturing Size, Share, Growth Drivers, Trends, Opportunities & – Market Future Segmentation, 2030
- 8.1. By Product Class (in Value %)
- 8.2. By Service Type (in Value %)
- 8.3. By Therapeutic Area (in Value %)
- 8.4. By End Use (in Value %)
- 8.5. By Material Type (in Value %)
- 8.6. By Region (in Value %)
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