Global Medtech Outsourcing Market Grows to $89B in 2024 as CDMOs Emerge as Strategic Partners, Finds Alira Health

Fifth annual report reveals growing OEM reliance on CDMOs, M&A momentum, and innovation in polymers and orthopedics

FRAMINGHAM, Mass., May 15, 2025 (GLOBE NEWSWIRE) -- Alira Health, a global healthcare consulting and research organization, today released its fifth annual report on the state of the contract development and manufacturing organization (CDMO) market in medtech, analyzing trends and data from 2024. The findings show the global market reached $89.0 billion last year, reflecting a 9.2% year-over-year growth.

The data reflects a clear trend: CDMOs are no longer just contract manufacturers—they are strategic partners. These organizations now play a central role in helping original equipment manufacturers (OEMs) manage product complexity, accelerate development timelines, and maintain cost efficiency throughout the device lifecycle.

"Outsourcing in medtech has become a growth lever,” said Sofia Puzzi, Principal, Alira Health. "CDMOs are stepping into more integrated, high-value roles that allow OEMs to access specialized capabilities and scale faster. At the same time, CDMOs must navigate ongoing challenges such as geopolitical risks, inventory adjustments, market consolidation, and intensified pricing competition.”

Key themes from the 2024 market analysis include:

• Vertical Integration to Bridge Competency Gaps: Leading CDMOs now offer full-service solutions—from design and development to regulatory support and manufacturing—positioning themselves as critical partners in medtech innovation.
• Industry Areas to Watch:
  • Material innovation—especially in plastics—is accelerating, driven by sustainability mandates and expanded use in medical devices. This is fueling demand for high-performance and bioabsorbable materials.
  • The orthopedics segment, previously affected by destocking in 2023 and early 2024, is now showing signs of recovery and is expected to enter a phase of sustained growth.
• Sustained M&A Activity: The market saw 64 M&A deals in 2024, involving both strategic acquirers and financial sponsors. The report also analyzes over 90 private equity–backed platforms now active in medtech manufacturing services.
  

Now in its fifth edition, Alira Health’s 2025 Global Medtech Contract Development and Manufacturing Report provides data-driven insights into how outsourcing partners are reshaping the medtech innovation ecosystem. The report was developed in partnership with MassMEDIC, the Massachusetts Medical Device Industry Council, which is the largest regional medtech association in the US and Alira Health’s medtech community partner.

The full report is available at https://alirahealth.com/education-hub/global-medtech-contract-manufacturing-report-2025.

About Alira Health

Alira Health is a global advisory and clinical research firm committed to humanizing healthcare. We partner with life sciences companies across the product lifecycle—integrating consulting, technology, and real-world evidence—to co-create solutions with patients, not just for them, and to accelerate the delivery of meaningful, patient-centered innovation.

PRESS CONTACT

Alira Health: Susan Irving – susan.irving@alirahealth.com