The market for medical device outsourcing and contract manufacturers as brand owners is expected to increase to more than $12 billion by 2018.
Outsourcing will stem from budgetary pressures worldwide, including the medical device excise tax in the U.S. and the ongoing debt crisis in Europe. The Millennium Research Group's study found such outsourcing will happen for high-volume, low-margin devices such as endoscopes and surgical instrumentation.
Another reason for outsourcing to a contract manufacturer is to increase a company's device presence in developing markets, such as Brazil, India and China.
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