According to a new report by MarketsandMarkets, the global medical device testing market is projected to surge from its current $8.56 billion valuation to $12.26 billion by 2023, growing at a compound annual growth rate (CAGR) of 6.18%.
The market growth is mainly driven by an increasing need of validation and verification for medical devices, and the imposition of rigorous government regulations and standards in the medical device sector.
Increasing regulatory focus on quality control for manufacturing operations, on additional safety, testing, and reporting measures requires advanced test equipment and instrumentation onsite in manufacturing facilities and laboratories. After all, the accuracy of test results depends largely on the accuracy of test and measurement instruments, used for a particular test process.
What’s more, the medical device testing market for outsourced services is expected to grow at the highest CAGR during the forecast period. In fact, many large firms are increasingly outsourcing medical device testing, inspection, and certification services, as stringent regulations drive the cost to conduct test in-house. As a result, outsourcing testing, inspection, and certification (TIC) services helps manufacturers reduce the overall cost of testing.
Demand for outsourcing TIC services to third-party vendors is also increasing for applications such as consumer goods and manufacturing, owing to the capital-intensive nature of in-house TIC activities.
Moreover, North America accounted for the largest share of the medical device testing market in 2016, with the U.S. comprising the top market.