The 2022 MedTech Contract Manufacturing Report

Alira Health in collaboration with MassMEDIC

Published on:
March 28, 2022
Written by:
Carlo Stimamiglio, Campbell Roellig, Alice Scala, Brian Johnson

2021 was a remarkable year for the global medical device industry. Just as healthcare systems were learning to cope with the enduring effects of the pandemic, ramping up procedures, and product demand, device manufacturers were hit by the most severe supply chain crisis in decades. 

  • The MedTech industry expanded by +16.8%, driven by the catch-up of elective procedures and the prolonged demand for COVID-related diagnostics and consumables, mitigating the potentially disruptive impact of such a crunch in the supply-demand dynamic. 
  • Outsourced manufacturers also benefitted from the general market recovery since the flat 2020 performance. The US CDMO market, the focus of this report, lagged with a +12.9% aggregate performance, its growth potential constrained by these macro-challenges. 
  • During the last two volatile years, the OEMs’ long-term pursuit of supply chain efficiencies slowed down, in favor of efforts aimed at increasing global capacity, inventories and securing the continuity of product supplies. 
  • Despite the widespread growth across most segments of MedTech and the positive medium-term outlook for outsourcing organizations, many factors threaten the sustainability of the medical device manufacturing industry. 

Our analysis investigates these continuing trends and their meaning for medical device CDMOs and their capital sponsors. 

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