Made in China: Is China the best destination to outsource medical device supply?

Asia is one of the fastest growing markets for medical devices in the world. In todayï¾Ãƒâ€šÃ‚Æ’??s world, China is the first name that comes in anybodyï¾Ãƒâ€šÃ‚Æ’??s mind when they think of outsourcing the supply of medical devices to a low cost country or in Asia.

1. The key areas which buyers need further visibility on are: Is it really the best decision to outsource supply to China? Is China a sustainable source for outsourcing medical devices? What are the possible risks in sourcing medical devices from China? What are the other options/countries that can be looked into?

Outsourcing in Medical Device Market: Medical devices form one of the largest industries in healthcare sector with an estimated size of USD 286 billion in 2011 and a growth rate of 6%-8%. The global outsourcing market in medical devices is expected to grow at a rate of approximately 13.9% to USD 26,770 million by 2014. Medical device industry has seen a cost reduction ranging from 10% to 30% in the cost of product development as a result of outsourcing. Medical devices industry has a history of huge profit margins. This has been providing a good reason for a lot of new entrants in medical device manufacturing. These new manufacturers having very less experience in the medical device field have a definite inclination towards outsourcing services.

1. Asian Market of Medical Devices:
2. The market of medical devices in Asia is expected to be around USD 52 billion in 2011 and is expected to reach a USD 75 billion mark by the year 2015.