Orthopedic Contract Manufacturing Market (By Type: Implants, Instruments; By Services) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

The global orthopedic contract manufacturing market size was estimated at around USD 7.74 billion in 2023 and it is projected to hit around USD 16.3 billion by 2033, growing at a CAGR of 7.73% from 2024 to 2033.

Key Pointers

• North America dominated the market with the largest market share of 37% in 2023.
• Asia Pacific region is poised to witness a notable CAGR from 2024 to 2033.
• By Type, the implants segment took the lead in the market, capturing the largest revenue share at 64% in 2023.
• By Type, the cases segment is predicted to grow at the remarkable CAGR during the forecast period.
• By Services, the forging/casting segment had the largest market share of 33% in 2023.
• By Services, the spine & trauma segment is expected to experience a lucrative CAGR from 2024 to 2033.

Orthopedic Contract Manufacturing Market Overview

The orthopedic contract manufacturing market plays a pivotal role in the dynamic healthcare industry, providing essential services for the production of orthopedic devices and implants. This overview aims to shed light on the key aspects, trends, and factors shaping the landscape of this specialized market.

Orthopedic Contract Manufacturing Market Growth

The growth of the orthopedic contract manufacturing market can be attributed to several key factors. Firstly, the increasing prevalence of musculoskeletal disorders, coupled with a rising aging population, has fueled the demand for orthopedic devices. As a result, manufacturers are turning to contract manufacturing services to efficiently meet this growing market demand. Technological advancements, particularly in 3D printing and robotic-assisted production, contribute significantly to the market's expansion by enhancing precision and customization in the manufacturing process. Moreover, the trend towards personalized orthopedic solutions is gaining traction, with manufacturers focusing on tailored implants to address individual patient needs. Compliance with stringent regulatory standards is another crucial growth factor, as adherence ensures the safety and efficacy of orthopedic devices. Overall, these factors collectively drive the upward trajectory of the orthopedic contract manufacturing market, presenting opportunities for innovation and market differentiation.

Report Scope of the Orthopedic Contract Manufacturing Market

Orthopedic Contract Manufacturing Market Dynamics

What are the Drivers of Orthopedic Contract Manufacturing Market?

• Rising Demand for Orthopedic Devices: The orthopedic contract manufacturing market is propelled by the increasing global demand for orthopedic devices, spurred by factors such as an aging population and a higher prevalence of musculoskeletal disorders.
• Personalization Trends: A notable driver is the shift towards personalized orthopedic solutions. Manufacturers are embracing the demand for tailored implants to address specific anatomical and functional requirements, contributing to increased market adoption.

What are the Restraints of Orthopedic Contract Manufacturing Market?

• Stringent Regulatory Requirements: While regulatory compliance is a driver for market growth, the stringent requirements also pose challenges for manufacturers. Meeting and maintaining compliance with diverse and evolving regulatory standards necessitate significant investments in quality control measures and ongoing adaptations to changing guidelines.
• Pricing Sensitivity in the Healthcare Sector: The healthcare sector is inherently price-sensitive, and this sensitivity extends to orthopedic devices. Price considerations can limit the market potential, particularly for smaller manufacturers who may struggle to achieve economies of scale, resulting in challenges related to pricing competitiveness.

What are the Opportunities of Orthopedic Contract Manufacturing Market?

• Expanding Geriatric Population: The increasing aging population worldwide presents a significant opportunity for the orthopedic contract manufacturing market. As older individuals are more prone to musculoskeletal issues, there is a growing demand for orthopedic devices, creating avenues for contract manufacturers to meet the needs of this demographic.
• Rising Prevalence of Musculoskeletal Disorders: The escalating prevalence of musculoskeletal disorders, influenced by factors such as sedentary lifestyles and increased life expectancy, opens up opportunities for orthopedic contract manufacturers. The demand for joint replacements, spinal implants, and other orthopedic solutions is expected to surge, driving market growth. 

Type Insights

The implants segment took the lead in the market, capturing the largest revenue share at 64% in 2023. This significant share is a result of the escalating demand for orthopedic implants, driven by a rise in orthopedic conditions and advancements in implant materials and designs. Various companies are responding to this heightened demand by concentrating on the development and commercialization of innovative orthopedic implants, resulting in a noticeable uptick in product launches. Additionally, the growing preference for patient-centric products and personalized implants is contributing to the growth of this segment. Notably, in February 2023, CurvaFix, Inc. introduced the 7.5mm CurvaFix IM Implant to streamline surgical procedures for individuals with smaller bone structures. Companies are harnessing cutting-edge technologies like enhanced biomaterials and 3D printing to manufacture implants that offer superior biocompatibility, durability, and customization.

On the other hand, the cases segment is expected to experience a steady CAGR during the analysis period. The increasing prevalence of bone health conditions, such as osteoarthritis, plays a pivotal role in driving the demand for high-quality orthopedic implants, devices, cases, and related solutions. According to the World Health Organization, the global number of people affected by osteoarthritis has surged by 113% since 1990, reaching more than 550 million. Many orthopedic Original Equipment Manufacturers (OEMs) are turning to contract manufacturers to leverage their advanced technologies, specialized expertise, and cost-effective solutions to efficiently meet this growing demand. Consequently, these factors are expected to bolster the growth of the cases segment in the foreseeable future.

Services Insights

In 2023, the forging/casting segment dominated the market with the largest revenue share, accounting for 33%. A key factor contributing to the growth of this segment is the increasing presence of contract manufacturers in the orthopedic industry. The expanding focus of these manufacturers on diversifying their services has led to a heightened demand for orthopedic contract manufacturing, particularly in services such as forging and casting of orthopedic products. Furthermore, many contract manufacturers are investing in the development of advanced materials for innovative orthopedic products. For example, in June 2022, Tecomet, Inc., a prominent contract manufacturer in the orthopedic sector, announced a strategic investment of USD 4 million in its facility in Cork, Ireland, aimed at enhancing the facility's plastic and polyethylene machining capabilities. This move solidifies its position as a global center of excellence for polymeric materials used in orthopedic products.

On the other hand, the spine & trauma segment is expected to experience a lucrative CAGR during the forecast period. The substantial growth of this segment is primarily driven by the increasing global demand for spine and trauma products. Additionally, the rising incidence of sports injuries is another significant factor contributing to the demand for trauma devices. For instance, in September 2023, Orthofix Medical Inc., a leading global company specializing in trauma and spine solutions, announced the U.S. launch of the Galaxy Fixation Gemini system, designed for external fixation in trauma settings. The continuous introduction of spine and trauma devices concurrently fuels the demand for contract manufacturing services, thereby supporting the growth of this segment.

Regional Insights

In 2023, North America dominated the market with the largest market share of 37%. The region stands as a key contributor to overall market growth, hosting numerous medical device companies that opt to outsource specific manufacturing functions to contract service providers. This practice significantly fuels market expansion. The high cost of manufacturing poses a notable challenge, prompting many medical device companies in North America to enlist the expertise of third-party vendors. The United States, within North America, clinched the largest market share. Notably, major medical device companies in the U.S. are increasingly outsourcing manufacturing services to Contract Manufacturing Organizations (CMOs). This shift is attributed to the utilization of advanced technologies and specialized capabilities, contributing significantly to market growth. These companies are also drawn towards medical device outsourcing due to the need for high-maintenance and efficient systems for managing raw materials, resulting in minimized overall setup costs. Furthermore, manufacturing service outsourcing enables companies to focus on core capabilities, share associated risks, and enhance service delivery, essential elements in gaining a competitive edge.

Looking ahead, the Asia Pacific region is poised to witness a notable CAGR over the forecast period. Factors such as pricing pressures, budget scrutiny in developed economies, and fluctuations in reimbursement schemes are anticipated to drive the adoption of cost-containment measures by Original Equipment Manufacturers (OEMs). This trend is expected to boost the outsourcing of orthopedic device manufacturing to emerging countries like India and China. Contract manufacturers in these regions offer benefits such as robust export infrastructure, artificially low currency values, cost-effective labor, and government incentives for local manufacturers, particularly in China. Consequently, these factors are expected to underpin the growth of the orthopedic contract manufacturing market in the Asia Pacific region.

Key Companies:

• Tecomet, Inc
• Orchid Orthopedic Solutions
• Cretex companies
• Viant
• ARCH Medical Solutions Corp.
• Avalign Technologies
• LISI Medical
• Paragon Medical
• Norman Noble, Inc.
• Autocam Medical

Orthopedic Contract Manufacturing Market Segmentations:

By Type

• Implants
• Instruments
• Cases
• Trays

By Services

• Forging/Casting
• Hip Machining & Finishing
• Knee Machining & Finishing
• Spine & Trauma
• Instrument Machining & Finishing
• Others

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa (MEA)