Orthopedic Contract Manufacturing Market Size, Share, and Trends 2024 to 2034

Orthopedic Contract Manufacturing Market Size and Forecast 2024 to 2034

The global orthopedic contract manufacturing market size is expected to be valued at USD 8.39 billion in 2024 and is anticipated to reach around USD 17.67 billion by 2034, expanding at a solid CAGR of 7.73% over the forecast period from 2024 to 2034. The North America orthopedic contract manufacturing market size reached USD 2.88 billion in 2023. Innovations in technology, rising incidence of orthopedic disorders, increased orthopedic surgeries, and cost efficiencies associated with outsourcing are a few of the factors driving the orthopedic contract manufacturing market growth.

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Orthopedic Contract Manufacturing Market Key Takeaways

• North America led the global orthopedic contract manufacturing market with the largest market share of 37% in 2023.
• Asia Pacific is expected to host the fastest-growing market throughout the forecast period.
• By type, the implants segment has contributed more than 64% of market share in 2023.
• By type, the cases segment is expected to show considerable growth in the market over the forecast period.
• By services, the forging/casting segment has generated more than 33% of market share in 2023.
• By services, the spine & trauma segment is expected to grow at the fastest rate during the forecast period.

U.S. Orthopedic Contract Manufacturing Market Size and Growth 2024 to 2034

The U.S. orthopedic contract manufacturing market size was exhibited at USD 2.16 billion in 2023 and is projected to be worth around USD 5 billion by 2034, poised to grow at a CAGR of 7.92% from 2024 to 2034.

North America led the global orthopedic contract manufacturing market in 2023. Due to the growing demand for advanced orthopedic devices and increased healthcare spending, the region is anticipated to hold the largest share of the global orthopedic contract manufacturing market during the forecast period. The United States stands out as a key market for orthopedic contract manufacturing, driven by the high demand for customized orthopedic implants and devices. Numerous leading orthopedic device manufacturers in the country outsource manufacturing to contract manufacturers to minimize costs and concentrate on their core competencies.

• In October 2022, Orthofix, a global medical device company with a spine and orthopedics focus, and SeaSpine, a global medical technology company focused on surgical solutions for the treatment of spinal disorders, announced they have entered into a definitive agreement to combine in an all-stock merger of equals. The combined company, to be named prior to the transaction’s closing, will be a leading global spine and orthopedics company with highly complementary portfolios of biologics.

Asia Pacific is expected to host the fastest-growing orthopedic contract manufacturing market throughout the forecast period. Several factors, including raised budget scrutiny in developed economies, pricing pressures, and changes in reimbursement schemes, are driving OEMs to implement cost-containment strategies. China emerged as a significant market for orthopedic contract manufacturing, boasting numerous companies that provide an extensive array of services, from prototype development to large-scale production. Also, the country’s lower labor costs and substantial manufacturing capacity make it an appealing destination for outsourcing orthopedic manufacturing.

Japan is also a prominent player of the orthopedic contract manufacturing market, renowned for its emphasis on precision engineering and superior-quality production. The country's reputation for advanced technology and a highly skilled workforce make it a favored choice for contract manufacturing services.

Market Overview

The orthopedic contract manufacturing market is a critical component of the ever-evolving healthcare sector, which offers vital services for the production of orthopedic devices and implants. Orthopedic contract manufacturers excel in specific processes or activities and provide valuable advice based on their expertise. They offer a range of services, including process verification, product innovation and validation, procurement, specialized production, and distribution. Additionally, they manage the supply chain and ensure the delivery of goods to the end customer, which benefits clients, customers, and medical device manufacturers.

Orthopedic Contract Manufacturing Market Growth Factors

• Collaborations between orthopedic device companies and contract manufacturers can fuel the orthopedic contract manufacturing market growth in the upcoming years.
• Rising pressure on OEMs to reduce costs and enhance the timeline for taking an orthopedic product market is expected to boost the orthopedic contract manufacturing market growth further.
• Increasing pressure on OEMs to reduce costs and improve the timeline for taking an orthopedic product to market is one of the key factors driving the orthopedic contract manufacturing market growth.
• The rise of musculoskeletal disorders caused by obesity and sedentary lifestyles can drive market growth shortly.

Market Scope

Market Dynamics

Driver

Rising adoption of customized implants

The increasing demand for personalized implants tailored to individual patients' needs and anatomy is driving the need for specialized contract manufacturers in the orthopedic contract manufacturing market. Additionally, the growth of medical tourism, where patients travel abroad for bone health treatments, is leading to a greater demand for outsourced manufacturing of orthopedic implants. These trends are boosting the use of contract manufacturing services in the orthopedic sector, leading to market growth and providing opportunities for innovation and market differentiation.

• In December 2023, DePuy Synthes, an orthopedic and neurosurgery company owned by Johnson & Johnson, announced the launch of their new flagship technology, the Concorde Lift Interbody Implant. The new implantable device was designed to help treat patients suffering from degenerative disc disease, a condition that can cause extreme pain from damaged discs in the spine.

Restraint

Rising consolidation within the medical devices sector

Amidst the global financial crisis, the orthopedic industry has experienced a significant decline in global revenue. Hence, leveraging business process outsourcing services to trim operational, management, and infrastructure expenses has proven to be an effective strategy. To streamline capital expenditure and reduce labor costs, medical device companies are also intensifying their outsourcing efforts. However, market expansion faces obstacles due to increased consolidation within the medical devices sector. Major players are focusing on improving their manufacturing capabilities by acquiring smaller firms and contract manufacturing organizations (CMOs). This trend could potentially impact the growth of the orthopedic contract manufacturing market.

Opportunity

Opportunities in product innovations

Achieving reduced procedure times is increasingly important for meeting the demands of both patients and healthcare providers. With a growing aging population driving up the need for orthopedic procedures, there is a pressing requirement for advanced and highly precise products. Additionally, leveraging advanced technology has simplified these devices by making them more intuitive and accurate. However, the most daunting challenge remains to create devices that encompass all these attributes while remaining affordable. This continues to be a significant obstacle for leading firms in the global orthopedic contract manufacturing market.

• In April 2022, The Orthopedic Implant Company announced the FDA clearance of its high-value dorsal spanning plate. This latest inclusion in the company's orthopedic trauma implant lineup extends the potential clinical benefits of the DRPx wrist fracture plating system, solidifying its position as the most comprehensive and cost-effective alternative to other premium-priced plating systems.

Type Insights

The implants segment dominated the orthopedic contract manufacturing market in 2023. The rise in this percentage is driven by technological innovations in implant materials and designs, as well as increasing demand for orthopedic implants due to the rising incidence of orthopedic conditions. Companies responding to the growing demand for orthopedic products are concentrating on the development and launch of novel implants, leading to a notable upsurge in product introductions. Furthermore, the segmental growth is bolstered by the increasing demand for patient-centric products and customized implants specific to individual needs.

• In January 2024, restor3d launches cost-competitive 3D-printed femoral implants. The initiative comes upon the completion of the Conformis acquisition. The initiative comes upon the finalization of the acquisition of Conformis, Inc. by restor3d. With this merger complete, the company sees a tremendous opportunity to deliver clinically differentiated and cost-effective solutions across the orthopedic landscape.

The cases segment is expected to show considerable growth in the orthopedic contract manufacturing market over the forecast period. The demand for high-quality orthopedic implants, devices, cases, and related solutions is being driven by the increasing prevalence of bone health conditions, such as osteoarthritis. To efficiently meet this growing demand, many orthopedic original equipment manufacturers (OEMs) are leveraging contract manufacturers' advanced technologies, specialized expertise, and cost-effective solutions. As a result, the growth of the cases in the segment is expected to be driven by these factors in the near future.

Services Insights

The orthopedic contract manufacturing market was mainly led by the forging/casting segment in terms of services. Contract manufacturers are significantly expanding their service offerings, contributing to the orthopedic contract manufacturing market. The dominance of the forging/casting segment is driven by the growing demand for its services in creating orthopedic products, as there is an increasing number of contract manufacturers in the orthopedic industry. Additionally, many are focusing on developing advanced materials for innovative orthopedic products, further facilitating the growth of this segment.

The orthopedic contract manufacturing market is expected to see the fastest growth in the spine & trauma segment. Most injuries occur in the low cervical and thoracolumbar areas, such as the cervicothoracic, low cervical, thoracic, thoracolumbar, and low lumbar segments of the spine. Additionally, the increasing occurrence of sports injuries is a significant factor driving the demand for trauma devices. The substantial growth of this segment is mainly due to the rising global demand for spine and trauma products.

• In October 2023, Aspen Medical Products, the industry leader in spine solutions for pain and mobility management, launched the VRTX System. the first fully integrated spinal support system on the market for post-operative and trauma care. The VRTX System is the first-ever cervical-to-sacrum system designed to redefine spinal care in acute care settings. The prefabricated design with intuitively adjustable sizing helps clinicians to fit patients and stabilize the spine immediately.

Orthopedic Contract Manufacturing Market Companies

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

Recent Developments

• In March 2024, Medibrane Ltd, a prominent contract manufacturer in the Medical Device industry, is excited to announce a significant milestone with the signing of a manufacturing representation agreement with HnG Medical Incorporated, a leading player in the Chinese healthcare market.
• In March 2024, The Canadian Life Science and Technology Park, Allyant, and IPS announced a strategic, multi-year partnership aimed at advancing the design and engineering of a state-of-the-art Life Science, Healthcare, and Technology Park.
• In October 2023, Orthofix Medical disclosed the 510k clearance for OsteoCove, an innovative bioactive synthetic graft used in orthopedic procedures. This clearance opens doors for contract manufacturers to provide large-scale manufacturing solutions.
• In June 2023, EOS, Tecomet, Orthopaedic Innovation Centre (OIC), & Precision ADM formed a collaborative alliance to offer a comprehensive solution for medical device additive manufacturing. It includes the initial design and engineering of the device, machine validation, 510k approvals, pre-clinical testing, & device commercialization.
• In November 2022, Marle Group completed the acquisition of Elite Medical, a top-tier vertically integrated orthopedic implants and precision instruments contract manufacturer headquartered in Tennessee.

Segments Covered in the Report

By Type

• Implants
• Instruments
• Cases
• Trays

By Services

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

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa