Medical Device Manufacturing to Hit $155B
The global market for medical device contract manufacturing is projected to grow from $96.4 billion in 2025 to $155.2 billion by 2030. The forecast from BCC Research indicates strong and sustained growth in the outsourcing of device manufacturing. This trend affects the supply chain and strategic planning for equipment-heavy sectors like diagnostic imaging.
- Payer-led shifts and CMS reimbursement equalization for certain imaging codes are accelerating the migration of procedures from hospital outpatient departments to freestanding imaging centers. Health systems are responding by acquiring, partnering with, or building their own freestanding imaging facilities to retain patient volume. - Lingering supply chain issues for medical device manufacturers include poor visibility across numerous small distribution points, cybersecurity vulnerabilities from expanding vendor networks, and managing the reverse logistics of product recalls. Hospitals often lack a comprehensive inventory of the devices they own, with discrepancies as high as 30%, and typically use only 40% to 50% of their equipment on any given day. - The U.S. Food and Drug Administration (FDA) continues to approve a high volume of AI-enabled medical devices for radiology, with 115 new algorithms cleared in the first half of 2025 alone, bringing the total to 873. This makes medical imaging the single largest target for AI developers, with major equipment manufacturers like GE Healthcare and Siemens Healthineers leading in the number of cleared tools. - A persistent shortage of radiologists, driven by an aging population and burnout, is a significant operational challenge for imaging providers. To mitigate this, imaging centers and hospitals are increasingly relying on teleradiology for 24/7 coverage, flexible staffing models, and AI-powered tools to improve workflow efficiency. - The diagnostic imaging market is experiencing a period of consolidation, as a challenging funding environment makes it difficult for smaller vendors to secure capital. Larger imaging IT companies are better positioned to weather the market softening, while smaller players may be acquired or forced to exit. - While hospitals still accounted for the largest share of the digital X-ray market in 2025, diagnostic imaging centers are projected to be the fastest-growing end-user segment. This is driven by the demand for more cost-effective and accessible outpatient diagnostic services. - The software and services segment of the U.S. diagnostic imaging market is forecast to grow at a 16.73% CAGR through 2031, significantly faster than the hardware segment. This growth is fueled by the adoption of cloud PACS and AI-driven triage algorithms as health systems grapple with workforce shortages.
