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Innovation as a service offers enterprises access to research and development services, analytics services, engineering services, and other consulting offerings related to developing new solutions and bringing them to market. Innovation as a service helps organizations improve innovation capabilities, cut costs associated with building internal R&D functions, and increase business agility. Enterprises leverage innovation as a service to focus on core competencies while leveraging external expertise for new product development and innovation initiatives.
The global Innovation as a Service Market is estimated to be valued at US$ 1.76 Bn in 2024 and is expected to exhibit a CAGR of 17% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the innovation as a service market is the emergence of crowdsourcing as a model. Crowdsourcing helps organizations solicit ideas, feedback and solutions from a geographically dispersed group of individuals through an open call. Crowdsourcing platforms are increasingly being used by companies to source innovation, shorten product development cycles and gain fresh perspectives on solutions. Another notable trend is the growing adoption of design thinking approach which places emphasis on understanding user needs through direct observation and empathy. Innovation as a service providers are integrating design thinking frameworks in their ideation and product development processes to come up with more user-centric solutions.
Key players: Key players operating in the innovation as a service market are Johnson & Johnson (DePuy Synthes), Medtronic plc, Stryker Corporation, Zimmer Biomet Holdings, Inc., Smith & Nephew plc, NuVasive, Inc., Globus Medical, Inc., Wright Medical Group N.V., Arthrex, Inc., DJO Global, Inc., Össur hf., CONMED Corporation, Breg, Inc., Orthofix Medical Inc., Bioventus LLC.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate in this market as it requires initial high capital investment for research and development. However, technological advances are lowering entry barriers.
Bargaining power of buyers: The bargaining power of buyers is high as there are many established players providing innovation as a service solutions. Buyers can negotiate on price and functionality.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are many component suppliers and switching costs are low.
Threat of new substitutes: The threat of new substitutes is high as new technologies like artificial intelligence and virtual reality can provide innovative alternatives.
Competitive rivalry: Competition in the market is high as players compete based on pricing, new offerings, and partnerships.
Regional analysis: North America dominates the market currently due to strong healthcare infrastructure and government support for innovation. The US contributes to the major share. Europe follows North America due to growing healthcare expenditure. However, Asia Pacific is expected to grow at the fastest pace during the forecast period with China and India emerging as lucrative markets.
Key Takeaways
The global Innovation as a Service Market is expected to witness high growth.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
