The Clarivate Medtech Trends to Watch in 2024 report noted the resilience of the medtech sector in the face of changing macroeconomic factors and the preparation required to navigate the market’s many complexities. It is likely that 2025 will be no different, with broad changes in the political and economic spheres requiring nimble responses from medtech companies for survival.
At the same time, medtech companies also seem to recognize that the societal and environmental influence they wield extends beyond developing technologies. Improving health equity and facilitating access to high-quality care remain key areas of focus in the health care space, as does sustainability in sourcing, manufacturing and distribution. Medtech companies will thus need to adjust and evolve in response to complex dynamics between the landscape in which they operate and their own power in shaping that market.
Here are five key trends shaping the medtech market in 2025:
Artificial intelligence/machine learning landscape attracts regulators’ attention
We continue to witness remarkable artificial intelligence (AI)/machine learning (ML) advancements that promise to revolutionize how we diagnose, treat and manage patients, fueling greater efficiencies, supporting innovation and addressing critical imbalances in demand for health care services against an increasing shortage of clinicians.
Going forward, health care systems and industry stakeholders will be challenged to work with regulators to provide better oversight of AI/ML. Post-market surveillance of AI/ML technologies, training of clinicians, and use of large and diverse datasets are essential to ensuring the systems function properly when broadly deployed.
Geographic expansion and supply chain risk mitigation remain key
Major medtech competitors recognize the potential for growth in markets outside the U.S., both in terms of establishing additional supply sources and targeting local markets with their products. Consequently, in 2025 it is believed we will see more medtech companies form partnerships with domestic companies or establish local subsidiaries or facilities. Understanding the nuances across different geographies – whether regulatory, political or even environmental – and considering those factors when building strategies will be one of the keys to success on a global scale.
Mainland China remains a critical market for medtech companies, but staying competitive will be challenging against the backdrop of the country’s national volume-based procurement policy and its current economic travails. Further complicating the picture are tensions between Mainland China and the United States, along with the possible passage of the Biosecurity Act by the U.S. Congress barring federal funding of entities in partnership with Mainland Chinese government-affiliated companies and a dynamic tariff environment. A China Plus One strategy allows companies to remain in China while diversifying into other countries to build more resilient supply chains and customer bases.
Medtech competitors continue to rebalance product portfolios
Many major medtech competitors continue to invest in innovation to target fast-growing markets – either through product development via internal research and development efforts or through acquiring niche competitors with innovative technologies. However, leaders in the medtech space also indicate that they recognize the need to nurture mature markets that still generate significant revenue and shed those that do not.
Stryker Corp. Illustrated this balancing act in action in January, announcing both the $4.9 billion acquisition of Inari Medical Inc., which has posted a 20%-plus growth rate in an expanding market, and the sale of its “challenging” spinal implants business, which faces declining demand and keen competition. Stryker CEO Kevin Lobo noted that the sale made sense as the company has “better opportunities to invest our funds in other businesses.”
On-the-go digital technologies enable patients to leave the clinic and home
Remote monitoring technologies continue to enhance preventative health care, improving patient outcomes while reducing the burden on health care systems, both in terms of costs and resources. From hospital-at-home set-ups, remote monitoring has evolved to enable ongoing management of chronic diseases without requiring office visits to allowing users to check key biometrics on the go. One such device, AliveCor’s KardiaMobile Card, can be carried in a wallet and used to detect atrial fibrillation, bradycardia and tachycardia.
Similarly, in 2024, Abbott Laboratories introduced over-the-counter continuous glucose monitors for health-conscious consumers who want to immediately see the connection between their food intake, exercise and blood glucose levels on the go.
Money flows to medtech deals and financings
With multiple large M&A deals already announced in January, CEOs of major medtech companies outlining acquisition plans for 2025, and declining interest rates, the stage is set for a significantly more active year of M&A in medtech. Financings, too, have ticked up and we expect the trend to continue.
Johnson & Johnson, Abbott, Stryker, Boston Scientific Corp. and GE Healthcare Technologies Inc. all saw substantial increases in their cash on hand, closing 2024 in a strong position for acquisitions. Several players wasted no time signing deals as Stryker announced plans to acquire Inari for nearly $5 billion in the opening days of 2025. Boston Scientific followed by inking a $664 million agreement to purchase the balance of Bolt Medical Inc. Lantheus Medical Inc., a mid-sized radiopharmaceutical and precision diagnostics company, signed two deals that could total $1.75 billion.
IPOs also seem likely to pick up in 2025, with one closing in January and another announced. Outside of IPOs, medtech firms raised more than $2.5 billion in the first month of 2025, with six financings of $100 million or more.
For more details on these trends and how they will affect the medtech industry in 2025, look for Clarivate’s e-book Five Medtech Trends to Watch in 2025, coming soon.
For actionable and timely intelligence on advances in medical devices and technologies, please visit BioWorld MedTech.
For actionable medtech market insights, including recent reports on topics including interventional cardiology, ambulatory ECGs, spinal implants and the impact of Mainland China’s volume-based procurement policy, learn more about Medtech 360 from Clarivate.
This post was co-authored by Annette Boyle, Editor, BioWorld MedTech, and April Chan-Tsui, Director, Product Operations, Medtech Content at Clarivate.
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