United States Orthopedic Contract Manufacturing Market By Type (Implants, Instruments, Cases, Trays, Others), By Service (Forging/Casting, Hip Machining & Finishing, Knee Machining & Finishing, Spine & Trauma, Instrument Machining & Finishing, Others), By Region and Competition, Forecast & Opportunities, 2020-2030F

Market Overview

United States Orthopedic Contract Manufacturing Market was valued at USD 2.75 Billion in 2024 and is expected to reach USD 3.74 Billion by 2030 with a CAGR of 5.48%. As the population ages and the prevalence of musculoskeletal conditions continues to rise, the need for joint replacements, spinal implants, and trauma-related orthopedic products is expanding. This has created a strong demand for contract manufacturers that can provide high-quality, compliant, and cost-effective production solutions.

Orthopedic OEMs are increasingly focusing on core competencies such as product design, innovation, and commercialization, while outsourcing complex manufacturing processes to specialized contract manufacturers. These partners offer a range of services including precision machining, forging, casting, surface treatment, assembly, and packaging of implants and surgical instruments. Despite these challenges, the market outlook remains positive. Strategic partnerships, mergers, and acquisitions are common as manufacturers seek to expand capabilities, increase capacity, and better serve OEMs across the full product development cycle.

Key Market Drivers

Growth in Healthcare Industry

The growth of the healthcare industry in the United States is playing a central role in driving the expansion of the orthopaedic contract manufacturing market. In 2023, U.S. health care spending rose by 7.5%, reaching a total of USD 4.9 trillion, or approximately USD 14,570 per person. This level of expenditure accounted for 17.6% of the nation's Gross Domestic Product (GDP). As the population ages and the incidence of musculoskeletal conditions rises, the demand for orthopedic procedures such as joint replacements, spinal surgeries, and trauma-related interventions has increased significantly. This growing need for orthopedic care is directly translating into higher demand for medical devices, implants, and surgical instruments, which in turn fuels the need for reliable, high-quality manufacturing support.

Healthcare providers and medical device companies are under increasing pressure to deliver innovative solutions quickly and cost-effectively. For instance, ARCH Medical Solutions partners with medical OEMs to provide precision machining, contract manufacturing, and supply chain integration for orthopedic, spinal, dental, and robotic-assisted surgical devices and implants. Operating in FDA-registered facilities with advanced CNC technologies, they ensure high-quality standards throughout the manufacturing process. As a result, many orthopedic original equipment manufacturers (OEMs) are turning to contract manufacturing organizations (CMOs) to streamline production, access specialized expertise, and meet regulatory requirements.

Surge in Technological Advancements

The surge in technological advancements is a significant driver propelling the growth of the United States orthopedic contract manufacturing market. In July 2022, 3D printing provider Sculptor partnered with Daniel Robert Orthopedic, a leader in technical orthopedics, to launch the first fully customizable orthosis made from a bio-sourced, recyclable material. Using 3D printing, they produce lightweight, breathable, and flexible products from Polyamide 11 (PA11), derived from castor oil, enabling complex designs tailored to each patient’s unique morphology. Innovations in additive manufacturing (3D printing), computer-aided design (CAD), robotics, and precision machining have transformed the way orthopedic implants and instruments are developed and produced.

Additionally, advancements in materials science, including the development of biocompatible and high-performance materials, are enhancing product durability and patient outcomes. Contract manufacturers that integrate these cutting-edge technologies are better positioned to support OEMs in accelerating product development cycles, ensuring regulatory compliance, and maintaining cost efficiency. As a result, technological innovation remains a key competitive differentiator and a primary growth catalyst within the U.S. orthopedic contract manufacturing landscape.

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Key Market Challenges

Vulnerability in Supply Chain

Vulnerability in the supply chain is a significant challenge facing the United States orthopedic contract manufacturing market. The production of orthopedic devices relies heavily on a steady and timely supply of high-quality raw materials, specialized components, and advanced technologies. Disruptions at any point in this complex supply chain can lead to delays, increased costs, and compromised production schedules, ultimately affecting the ability of contract manufacturers to meet client demands.

Several factors contribute to this vulnerability. First, the dependence on a limited number of suppliers for critical materials such as titanium alloys, cobalt-chromium, and other specialty metals creates risk exposure. Any shortage or delay in sourcing these materials can cascade through the manufacturing process, causing bottlenecks. Second, global geopolitical tensions, trade restrictions, and transportation challenges have introduced uncertainty and increased lead times, making supply chains less predictable.

Key Market Trends

Growth in Instrument Outsourcing

The growth in instrument outsourcing has become a prominent trend within the United States orthopedic contract manufacturing market. As orthopedic device companies strive to optimize their operations, reduce costs, and accelerate time-to-market, outsourcing the production of surgical instruments has gained significant traction. This strategic shift allows original equipment manufacturers (OEMs) to leverage the specialized expertise, advanced technologies, and manufacturing efficiencies offered by contract manufacturers.

Outsourcing instruments enables orthopedic companies to focus their internal resources on product innovation, design, and regulatory compliance, while contract manufacturers handle the complexities of precision machining, assembly, and quality assurance. 3D printed models offer detailed, tangible insights into the anatomical and pathological conditions of various structures. They enhance surgical planning through patient-specific models, improve diagnostic accuracy, and reduce both procedure duration and the need for general anesthesia. Given the increasing complexity and customization demands of orthopedic instruments, manufacturers with dedicated capabilities in instrument production provide significant value by ensuring high standards of accuracy, consistency, and reliability.

Segmental Insights

Type Insights

Based on Type, Implants have emerged as the fastest growing segment in the United States Orthopedic Contract Manufacturing Market in 2024. This is due to increasing demand driven by the rising prevalence of orthopedic conditions such as osteoarthritis, sports injuries, and age-related bone disorders. The growing geriatric population and increasing awareness of advanced surgical options are fueling the need for durable, high-quality orthopedic implants. Additionally, advancements in implant design and materials, including the use of titanium alloys and biocompatible polymers, have improved product performance and patient outcomes, further boosting demand. OEMs are increasingly outsourcing implant manufacturing to specialized contract manufacturers to leverage their technical expertise, advanced production capabilities, and regulatory compliance experience.

Service Insights

Based on Service, Forging/Casting have emerged as the fastest growing segment in the United States Orthopedic Contract Manufacturing Market during the forecast period. This is due to their critical role in producing high-strength, durable components essential for orthopedic implants. These manufacturing techniques enable the creation of complex shapes with excellent mechanical properties, which are vital for ensuring implant reliability and longevity. Additionally, advances in forging and casting technologies have improved precision and efficiency, reducing production lead times and costs.

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Regional Insights

Based on Region, Midwest have emerged as the dominating region in the United States Orthopedic Contract Manufacturing Market in 2024. This is due to its combination of strategic advantages and established industrial strengths. The region benefits from a robust manufacturing infrastructure with state-of-the-art facilities capable of supporting the precision and quality demands of orthopedic device production. Additionally, the Midwest is home to a highly skilled workforce, including engineers, technicians, and regulatory professionals, supported by a strong network of technical universities and training programs.

Recent Development

• In May 2025, Durham-based restor3d, a developer specializing in three-dimensional printed implants for orthopedic applications, successfully raised USD 38 million in venture capital funding. This investment round attracted participation from both existing and new private investors, including Summers Value Partners of Denver. The secured funding will empower restor3d to accelerate the scaling of its innovative technology, expand patient access to truly personalized orthopedic care, and maintain its position at the forefront of advancing treatment standards within the orthopedic industry.
• In July 2025, Autocam Medical, a global leader in precision-machined medical devices, announced plans to build a 100,000 sq. ft. state-of-the-art manufacturing facility in Warsaw, Indiana. This expansion reinforces the company’s long-term commitment to creating high-tech jobs, driving technical innovation, and strengthening its partnership with the City of Warsaw, widely recognized as the “Orthopedic Capital of the World.” The new facility will be situated on a 15-acre site at the northeast corner of N 200W and US-30 and involves a capital investment exceeding USD 70 million in construction and advanced manufacturing equipment.
• In February 2025, Arterex, a leading global medical device developer and contract manufacturer, acquired Adroit USA Inc., a vertically integrated contract manufacturer specializing in end-to-end medical device production. This integration enhances Arthrex’s manufacturing capabilities by adding advanced metal fabrication and machining services, while leveraging cutting-edge technologies to broaden its solution portfolio. The acquisition positions Artifex to offer customers a cost-effective, high-tech alternative to production in China, utilizing Adroit USA Inc.’s established capabilities and workforce to rapidly and efficiently scale production.
• In November 2024, Johnson & Johnson MedTech, a global leader in orthopedic technologies and solutions, announced an exclusive commercial distribution agreement in the United States with Responsive Arthroscopy Inc., an innovative medical device company specializing in sports soft tissue repair solutions. This strategic partnership enhances Johnson & Johnson MedTech’s sports platform by expanding its soft tissue portfolio to address the growing demand for advanced solutions in the rapidly evolving sports soft tissue repair market. By combining Johnson & Johnson MedTech’s orthopedic expertise with Responsive Arthroscopy’s cutting-edge technologies, the agreement will equip healthcare providers with a more comprehensive range of tools to meet changing clinical needs.

Key Market Players

• Tecomet, Inc
• Orchid Orthopedic Solutions
• Cretex companies
• ARCH Medical Solutions Corp.
• Avalign Technologies
• LISI Medical
• Paragon Medical
• Norman Noble, Inc.
• Autocam Medical

Report Scope

In this report, the United States Orthopedic Contract Manufacturing Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• United States Orthopedic Contract Manufacturing Market, By Type:

o   Implants

o   Instruments

o   Cases

o   Trays

o   Others

• United States Orthopedic Contract Manufacturing Market, By Service:

o   Forging/Casting

o   Hip Machining & Finishing

o   Knee Machining & Finishing

o   Spine & Trauma

o   Instrument Machining & Finishing

o   Others

• United States Orthopedic Contract Manufacturing Market, By Region:

o   Northeast

o   Midwest

o   South

o   West

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the United States Orthopedic Contract Manufacturing Market.

Available Customizations:

United States Orthopedic Contract Manufacturing Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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