State of the MedTech Industry in 2024 and Outlook for 2025

Executive Summary

The medical technology (MedTech) sector in 2024 navigated a complex landscape marked by strategic consolidation, technological innovation, and significant operational challenges. The year was characterised by profound industry shifts that tested the resilience and adaptability of leading companies.

Strategic Consolidation and Market Reshaping

The year witnessed transformative mergers and acquisitions that redefined
the competitive ecosystem:

• Johnson & Johnson acquired Shockwave Medical for $13.1 billion, significantly expanding its cardiovascular portfolio with innovative intravascular lithotripsy (IVL) technology.
• BD (Becton, Dickinson and Company) purchased Edwards Lifesciences’ Critical Care business for $4.2 billion, strengthening its advanced patient monitoring capabilities.
• Boston Scientific completed a $3.7 billion acquisition of Axonics, enhancing its sacral neuromodulation technologies for treating overactive bladder conditions.

These strategic moves not only diversified product offerings but also positioned companies to lead in high-growth market segments. Strategic acquisitions and divestitures are reshaping portfolios to align with growth opportunities. Leading firms are pursuing programmatic acquisitions in adjacent markets and step-out deals targeting unmet patient needs. Divestitures, meanwhile, are unlocking dormant value and enabling sharper focus on core strengths.

Supply Chain Resilience and Optimisation

Global economic uncertainties prompted comprehensive supply chain transformations: Semiconductor shortages and geopolitical tensions challenged industry stability. Medtronic implemented a regional manufacturing model to mitigate global transportation risks. Baxter International adopted a dual-sourcing strategy to reduce supplier dependency. BD integrated predictive analytics into inventory management, achieving a 20% improvement in forecast accuracy.

Technological Innovation Driving Growth

Breakthrough technologies emerged as key differentiators: Abbott Laboratories launched Lingo™, a next-generation continuous glucose monitor with advanced AI algorithms. Siemens Healthineers introduced Luminos Q.namix, an AI-powered imaging platform revolutionising diagnostic workflows. Boston Scientific’s AGENT™ Drug-Coated Balloon set new standards in minimally invasive cardiovascular interventions.

Workforce and Operational Realignment

The industry has been undergoing significant restructuring while investing in AI capabilities for digital transformation:

• Major players announced layoffs affecting over 14,000 employees.
• Increased focus on operational efficiency and strategic realignment.
• Implementation of AI in key commercial use-cases.

Financial Performance and Market Dynamics

• By December 2024, the industry faced considerable headwinds: Approximately 65% of top 200 MedTech stocks traded near 52-week lows.
• Investor expectations for profitability remained unmet.
• Margins became critical valuation metrics.
• Performance variability across global markets, with particular challenges outside the United States.

The 2024 MedTech landscape demonstrated the industry’s capacity for resilience, innovation, and strategic adaptation. Companies that successfully balanced technological advancement, operational efficiency, and strategic investments were best positioned to navigate the complex global healthcare technology ecosystem.

Key Highlights of 2024

Global Market Growth

The MedTech sector displayed remarkable resilience in 2024, achieving a robust growth rate of 5–7% despite global macroeconomic pressures. This expansion was fuelled by surging demand across key categories, notably wearable devices and AI-enabled diagnostic and surgical solutions, highlighting a shift towards unit volume growth over price hikes.

Abbott Laboratories, for instance, reported substantial adoption of its Lingo™ continuous glucose monitoring system, underscoring the growing appeal of AI-driven, patient-centric technologies. Similarly, Boston Scientific’s AGENT™ Drug-Coated Balloon catalysed increased procedural volumes, solidifying its position in coronary intervention innovations.

Minimally invasive procedures further bolstered market dynamics, with patients and providers favouring solutions that reduced recovery times and improved outcomes. In parallel, emerging markets played a pivotal role, driven by investments in healthcare infrastructure and government initiatives in regions like China, which prioritised affordable access to advanced medical tools.

By embracing cost-effective, scalable technologies, the industry not only adapted to economic constraints but also positioned itself for sustained growth in diverse and underserved markets. This adaptability underscores MedTech’s evolving focus on delivering impactful, accessible solutions globally.

Regional Market Analysis

NORTH AMERICA

North America maintained its leadership in innovation and market size, driven by advancements in digital health solutions and strong investment in R&D. However, economic pressures, particularly reduced volumes of elective procedures, created headwinds for growth. Companies such as Medtronic reported robust adoption of AI-integrated surgical technologies, underscoring the region’s commitment to innovation despite economic challenges.

EUROPE

Europe faced profitability challenges due to stringent regulatory compliance costs associated with the MDR and tender-driven pricing pressures. However, sustainability initiatives gained traction, with Siemens Healthineers leading efforts in energy-efficient manufacturing processes and eco-friendly product designs.

ASIA-PACIFIC

The region experienced robust growth fueled by rapid adoption of digital health technologies and significant investments in healthcare infrastructure, particularly in China and India. Notably, Abbott Laboratories expanded its presence in Asia with scalable solutions tailored for the growing middle-class population, driving high unit sales in wearables and diagnostics.

EMERGING MARKETS

Infrastructure limitations and uneven regulatory environments presented challenges, but demand for value-segment products remained strong. For instance, Baxter International increased its focus on affordable medical devices in Latin America and Southeast Asia, leveraging local manufacturing hubs to reduce costs and improve market accessibility.

Key Performance Indicators

REVENUE GROWTH

Revenue growth in 2024 was largely attributed to increased unit sales in high demand segments, bolstered by key tendering and contracting successes. For example, Abbott Laboratories secured significant contracts with major healthcare systems in North America for its Lingo™ continuous glucose monitoring system, which resulted in a surge in unit sales driven by its advanced AI features and accessibility. Similarly, Boston Scientific’s AGENT™ Drug- Coated Balloon achieved strong market penetration through successful tenders in Europe and Asia, where its adoption for coronary procedures was widely endorsed by healthcare providers. In emerging markets, Medtronic’s value-based contracting approach in India and Brazil, offering bundled solutions for diabetes care, further supported sales growth by addressing affordability and accessibility challenges in these regions.

MARGIN PERFORMANCE

Margin improvements in 2024 were largely driven by targeted digital transformation initiatives, portfolio re-alignment, and strategic operational adjustments. Medtronic optimised its manufacturing processes through the integration of AI-driven analytics, which reduced production inefficiencies and addressed supply chain challenges, contributing to cost savings. Baxter International implemented a dualsourcing strategy that stabilised margins by mitigating risks associated with singlesource dependency. Furthermore, BD successfully leveraged long-term tender contracts in Europe and North America, securing predictable revenue streams and operational efficiency. For example, BD’s five-year supply agreement with a major European healthcare consortium not only streamlined logistics but also ensured stable pricing amidst inflationary pressures.

INNOVATION METRICS

R&D investments surged in 2024, driving the approval of several breakthrough products that underscored the industry’s commitment to innovation. Siemens Healthineers debuted its AI-powered Luminos Q.namix imaging platform, which enhanced diagnostic accuracy and streamlined radiography workflows, earning widespread adoption in European markets. In April 2024, the Symani Surgical System by Medical Microinstruments (MMI) became the first FDA-approved robotic platform for microsurgery, enhancing precision in delicate procedures. Additionally, companies like Know Labs and Afon Technology made significant strides in developing non-invasive glucose monitoring systems, utilising radiofrequency and optical sensing techniques to aid diabetes management without the need for finger stick testing. These innovations highlight how targeted R&D spending in 2024 accelerated the development of transformative medical technologies tailored to patient-centric care.

2024 Top Product Launches