product design and development services Market

The product design and development services market is expected to grow from US$ 9,519.97 million in 2022 to US$ 17,663.12 million by 2028; it is expected to grow at a CAGR of 10.9% from 2022 to 2028.

Technological advancements and high demand for quality products in healthcare due to rising health concerns among the geriatric population fuel the overall market growth of product design and development services market.

The importance of technological advancement for business competitiveness cannot be overstated, particularly with regard to the healthcare sector. Many recent technological developments in healthcare involve the integration of artificial intelligence (AI). AI-based medical devices have the capacity to automate various tasks, combine and analyze data from multiple sources, identify trends, process and interpret data from wearable sensors, diagnose medical conditions or disease onset, assess infection risk associated with complications, and conduct research. The potential of such technologies in healthcare is practically limitless, enabling professionals to diagnose, collect data, and treat medical conditions more accurately and with less invasiveness, ultimately improving global health and healthcare. This, in turn, drives the growth of the product design and development services market.

Traditionally, imaging and diagnostic machines have been large and immobile devices that require patients to visit specific rooms in hospitals or clinics. However, a new generation of compact devices has emerged, which can be brought directly to the patient. For instance, over the last decade, there have been significant improvements in imaging and diagnostic equipment, with costs decreasing and devices becoming more accessible to smaller medical practices and clinics due to technological advancements. This technological progress has resulted in innovative features such as computed tomography (CT) machines evolving from a 16-slice scanner to a 256-slice scanner capable of measuring changes in blood flow and detecting small blockages forming in blood vessels. Therefore, advancements in technology lead to improvements in efficiency, functionality, and reliability, and such factors are expected to drive the growth of the product design and development services market in the forecast period.

As per a report by the National Council on Ageing, the number of Americans aged 65 and above currently stands at around 49 million, and this figure is projected to rise to 98 million by 2060. Maintaining good health is crucial for ensuring the well-being, independence, and productivity of this aging population. However, many elderly individuals face various health challenges on a daily basis, such as falls, chronic illnesses, physical inactivity, oral health issues, and behavioral health disorders, which can significantly affect their quality of life. Additionally, approximately 80% of older adults have at least one chronic condition, while 70% of Medicare beneficiaries have two or more. To address these issues, there is a growing demand for high-quality products with innovative designs. Medical device companies are also leveraging connected products to improve clinical outcomes among patient groups. For instance, Ximedica has developed products that focus on data strategies for equipment, customers, and patients, providing elegant and personalized experiences for clinical users and patients while creating secure, scalable, and compliant digital solutions. Furthermore, medical device manufacturers showcased numerous product innovations at a Radiological Society of North America show in Chicago in November 2021. For example, GE Healthcare featured a new image-guided X-ray system with robot-like functionalities.

The product design and development services market is divided into services, application, and end-user categories. Within the services segment, the product design and development services market is further divided into research, strategy, and concept generation; concept and requirements development; detailed design and process development; design verification; process validation, manufacturing transfer, and design validation; and other services. The research, strategy, and concept generation segment is projected to have the largest market share from 2022 to 2028. However, the process validation, manufacturing transfer, and design validation segment is expected to exhibit the highest compound annual growth rate during the forecast period. Research and strategy play a vital role in inspiring and informing decisions by providing cultural and user insights to build noteworthy product strategies and designs. Concept generation is a process that starts with a set of customer needs and target specifications and leads to a variety of product concept design options, from which a final design is chosen. This service is typically used in the early stages of the product development cycle to inspire innovation and create a compelling and feasible product vision. It is used in a variety of procedures, such as contextual inquiry, user identification, business and design strategy, concept generation, competitive and comparative landscape research, and technology research and assessment. For example, in 2020, the National Human Genome Research Institute (NHGRI) published its Strategic Vision, which provides a compilation of ideas and a compelling glimpse that is expected to create opportunities in the human genomics field during the forecast period. These factors are expected to contribute to the growth of this segment, ultimately benefiting the product design and development services market during the forecast period.

Market Opportunities of Global Product Design and Development Services Market

According to the ISO report, medical devices assist in saving the lives of patients and improving their health. In the global market, 500,000 technology-based devices exist. Additionally, ISO has many international standards and guidance documents to help the healthcare sector ensure product safety and effectiveness by meeting many national, regional, and international regulatory requirements and adhering to product design specifications. For example, ISO 20417 simplifies meeting product information regulations by offering standard generic requirements that are consistent/permanent across all devices across geographies. Moreover, ISO/TR 20416 post-marketing surveillance for manufacturers offers guidance to effectively monitor the device's safety, performance, and everyday use. Such aforementioned factors would create lucrative opportunities for the growth of the product design and development services market during the forecast period.

Gulf Cooperation Council (GCC), Indian National Institute of Metrology Standardization and Industrial Quality, Centers for Disease Control and Prevention, the US Food and Drug Administration, and the American Association for the Advancement of Science are among the primary and secondary sources that were referred to while preparing the report on the global product design and development services market.