Mexico, Brazil most-favored destinations in Latin America for medical devices manufacturing outsourcing
According to a research report published by Research and Markets, the global medical devices manufacturing outsourcing market is estimated to expand at a compound annual growth rate (CAGR) of 11.39% over 2016-2020. The report reveals that emerging economies such as China, India, Malaysia, Mexico, and Brazil are the most-recommended destinations for outsourcing of medical device manufacturing services owing to low cost of labor, high level of technical proficiency, and financing by governments as R&D investments to promote new product development. The major factor driving the growth of the market is the entry of new medical devices manufacturers, which has led to increased demand in the market. But these companies lack experience in manufacturing and have less capabilities. So, they seek to outsource manufacturing to get a high-quality product in a short time at a low cost. Simultaneously, major medical devices companies outsource manufacturing to not only take advantage of reduced costs but also position themselves strongly to serve better local markets of the emerging countries. However, tough competition prevailing in the market may confine growth.