Full product development IVD CMO comprises companies that partner with OEMs and support them in the development of IVD devices, ranging from concept to commercialization. IVD companies are continuously looking at new ways to optimize resources due to rising cost pressures and regulatory complexities, prompting industry participants to adopt innovative, integrated business models. CMOs are positioning themselves as one-stop-shop solution providers as opposed to the traditional functional service provider model, creating a mutually beneficial symbiotic relationship between OEMs and CMOs in the IVD industry. The IVD contract manufacturing market is highly fragmented, and witnessed a growth rate of 8.5% in 2019. Frost & Sullivan expects this segment to change significantly over the next few years since the majority of large IVD OEMs are focused on assay development, which is facing competition and capacity constraints due to stringent quality and regulatory requirements, strict delivery timelines, the need for good manufacturing practices, and delivery scale. OEMs are also increasingly outsourcing the design and manufacturing of instruments that perform diagnostics tests, heightening the competition among IVD CMOs to provide holistic services.
OEMs face challenges in meeting the rising demand for assays, reagents, and kits for COVID-19 testing, in turn, placing pressure on CMOs to scale up production of automated instruments with high throughput. The key strategic imperative for IVD instrument CMOs is to develop capabilities to manufacture simple, rapid, miniature, easy to use, automated, decentralized, and connected next-generation IVD devices with higher throughput rates to meet the ever-rising test demand. This is expected to boost competition among IVD CMOs to provide holistic services and become strategic partners to OEMs.
The Frost Radar™ reveals the market positioning of companies in an industry using their Growth and Innovation scores, as highlighted in the Frost Radar™ methodology. The document presents competitive profiles on each of the companies in the Frost Radar™ based on their strengths, opportunities, and a small discussion on their positioning. Frost & Sullivan analyzes hundreds of companies in the industry and benchmarks them across 10 criteria on the Frost Radar™, where the leading companies in the industry are then positioned. Industry leaders on both the Growth and Innovation indices are recognized as best practice recipients.
Author: Surbhi Gupta
Strategic Imperative
Strategic Imperative (continued)
Growth Environment
Growth Environment (continued)
Frost Radar™: Global Full Product Development CMO in the IVD Industry
Frost Radar™: Competitive Environment
Frost Radar™: Competitive Environment (continued)
Frost Radar™: Competitive Environment (continued)
BIT Analytical Instruments GmbH
Cambridge Consultants
EKF Diagnostics
Hitachi High-Technologies Co., Ltd.
Invetech
KMC Systems
Nova Biomedical
Phillips-Medisize
Plexus Corporation
Stratec SE
Tecan
Ximedica
Strategic Insights
Significance of Being on the Frost Radar™
Frost Radar™ Empowers the CEO’S Growth Team
Frost Radar™ Empowers Investors
Frost Radar™ Empowers Customers
Frost Radar™ Empowers the Board of Directors
Frost Radar™: Benchmarking Future Growth Potential
Frost Radar™: Benchmarking Future Growth Potential
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Frost Radar™: Benchmarking Future Growth Potential 2 Major Indices, 10 Analytical Ingredients, 1 Platform
Growth Index
Growth Index (GI) is a measure of a company’s growth performance and track record, along with its ability to develop and execute a fully aligned growth strategy and vision; a robust growth pipeline system; and effective market, competitor, and end-user focused sales and marketing strategies.
- Market Share (previous 3 years)
This is a comparison of a company’s market share relative to its competitors in a given market space for the previous 3 years. - Revenue Growth (previous 3 years)
This is a look at a company’s revenue growth rate for the previous 3 years in the market/industry/category that forms the context for the given Frost Radar™. - Growth Pipeline
This is an evaluation of the strength and leverage of a company’s growth pipeline system to continuously capture, analyze, and prioritize its universe of growth opportunities. - Vision and Strategy
This is an assessment of how well a company’s growth strategy is aligned with its vision. Are the investments that a company is making in new products and markets consistent with the stated vision? - Sales and Marketing
This is a measure of the effectiveness of a company’s sales and marketing efforts in helping it drive demand and achieve its growth objectives.
Innovation Index
Innovation Index (II) is a measure of a company’s ability to develop products/ services/ solutions (with a clear understanding of disruptive Mega Trends) that are globally applicable, are able to evolve and expand to serve multiple markets and are aligned to customers’ changing needs.
- INNOVATION SCALABILITY
This determines whether an organization’s innovations are globally scalable and applicable in both developing and mature markets, and also in adjacent and non-adjacent industry verticals. - RESEARCH AND DEVELOPMENT
This is a measure of the efficacy of a company’s R&D strategy, as determined by the size of its R&D investment and how it feeds the innovation pipeline. - PRODUCT PORTFOLIO
This is a measure of a company’s product portfolio, focusing on the relative contribution of new products to its annual revenue. - MEGATRENDS LEVERAGE
This is an assessment of a company’s proactive leverage of evolving, long-term opportunities and new business models, as the foundation of its innovation pipeline. - CUSTOMER ALIGNMENT
This evaluates the applicability of a company’s products/services/solutions to current and potential customers, as well as how its innovation strategy is influenced by evolving customer needs.
Significance of Being on the Frost Radar™
Companies plotted on the Frost RadarTM are the leaders in the industry for growth, innovation, or both. They are instrumental in advancing the industry into the future.
- GROWTH POTENTIAL
Your organization has significant future growth potential, which makes it a Company to Action. - BEST PRACTICES
Your organization is well positioned to shape Growth Pipeline™ best practices in your industry. - COMPETITIVE INTENSITY
Your organization is one of the key drivers of competitive intensity in the growth environment. - CUSTOMER VALUE
Your organization has demonstrated the ability to significantly enhance its customer value proposition. - PARTNER POTENTIAL
Your organization is top of mind for customers, investors, value chain partners, and future talent as a significant value provider.
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Growth Dialog™
A tailored session with you where we identify the:- Strategic Imperatives
- Growth Opportunities
- Best Practices
- Companies to Action
Impacting your company's future growth potential.
| Deliverable Type | Frost Radar |
|---|---|
| No Index | No |
| Podcast | No |
| Author | Surbhi Gupta |
| Industries | Healthcare |
| WIP Number | PB10-01-00-00-00 |
| Is Prebook | No |
| GPS Codes | 9600-B1,9825-B1,9A06-B1,9562-B1,9571-B1,9573-B1,99BF-B1,99C0-B1,99C1-B1,99C6-B1,99C9-B1,99CB-B1,9568-B1,9611-B1,9627-B1 |
Frost Radar™: Global Full Product Development CMO in the IVD Industry, 2020
A Benchmarking System to Spark Companies to Action—Innovation That Fuels New Deal Flow and Growth Pipelines
03-Nov-2020
North America
Frost Radar
