New report shows that increased threat from in-house manufacturing is one of the major challenges in the market.
Research and Markets analysts has announced the addition of a new medical device market report, "Global Orthopedic Contract Manufacturing Market 2012-2016."
According to the report, the need to optimize resources is one of the major drivers in the market. The OEMs outsource their manufacturing so that they can focus on and improve their core production and business processes such as product development and R&D.
The analysts forecast the Global Orthopedic Contract Manufacturing market to grow at a CAGR of 11.05% for the period 2012-2016. One of the key factors contributing to this market growth is the need to optimize resources. The Global Orthopedic Contract Manufacturing market has also been witnessing an increasing number of mergers and acquisitions. However, increasing threat of in-house manufacturing could pose a challenge to the growth of this market.
The key vendors dominating this space Greatbatch Inc., Orchid Orthopaedic Solutions LLC, Paragon Medical Inc., Symmetry Medical Inc., and Tecomet Inc.
The other vendors mentioned in the report are Bradshaw Medical Inc., In'Tech Medical S.A.S, and RTI Int’l Metals Inc.
Commenting on the report, an analyst from the team says, “Many major vendors and emerging contenders in the Global Orthopedic Contract Manufacturing market are looking for mergers and acquisitions to enhance their market presence. In addition, OEMs are expected to create alliances with regional, small, and large orthopedic contract manufacturers. Mergers and acquisitions help vendors survive in this competitive market, and the consolidation among the vendors in the market is expected to play a major role in the coming years. For instance, in February 2012, Greatbatch Medical acquired NeuroNexus Technologies Inc., a dynamic neurotechnology company. Additionally, in December 2011, the company acquired Micro Power Electronics Inc. Tecomet acquired Teleflex Medical's OEM orthopedic business in August 2012.
Source: Research and Markets