The Global MedTech Industry Outlook 2024

The Global MedTech Industry Outlook 2024

The MedTech Industry went through its ups and downs last year. It was full of innovations, setbacks due to war, and supply chain issues. Innovations in healthcare technology kept the morales of the stakeholders high amid market volatility. Innovations in Healthcare technology led to FDA approvals of 171 artificial intelligence and machine learning (AI/ML)-enabled medical devices for human use, with the maximum in radiology, followed by cardiology and neurology (by Oct’23).

Futuristic medical technologies such as Generative Ai in Medtech is expected to remain the focus this year. M&A are expected to be back on track. AI-enabled devices are expected to be launched by Siemens Healthineers, GE Medical Systems, Fujifilm, and Hologic Inc. Companies are planning to add generative AI in 2024, e.g., Siemens (announced in November 2023) and Medtronic + NVIDIA (announced in March 2023).

MarketsandMarkets has identified more than 60 use cases for generative AI across the entire MedTech value chain and the Global MedTech Industry Outlook 2024 analyses the events of 2023 while exploring new opportunities in 2024.

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Performance of the last year i.e. 2023:

1. The global MedTech market was valued at USD 616 billion in 2022 and is expected to reach USD 642.5 billion by the end of 2023.
2. From global inflation and geopolitical unrest to supply chain disruptions in global markets, MedTech organizations faced a multitude of external pressures (VUCA [volatility, uncertainty, complexity, and ambiguity] and limited growth opportunities for many companies); however, top players made it big despite adversity. Abbott, Medtronic, Siemens, J&J Med, and Stryker made it to the top MedTech companies by revenue.
3. FDA approved a record number of AI-ML-enabled medical devices for human use, with maximum approvals in radiology (79%), followed by cardiology (9%) and neurology (5%), from a total of 171 (till July 2023).
4. The M&A segment did not perform well in 2023. Compared to 2022, where 422 deals totaling USD 67.2 billion were reported, only 173 deals were reported with a deal value of USD 13.6 billion (till H1, 2023).
5. Elective surgeries were back, but the backlog could not be cleared in 12 months across the US, UK, Australia, Europe, and other markets.

Expectations from the year ahead i.e. 2024:

1. The global MedTech sales are projected to grow at 4.0% YOY in 2024, with the diagnostic segment expected to grow at 3.1% and the therapy and management segment to grow at 4.3% in 2024.
2. In the diagnostic segment, Asia Pacific (4.9%) and Europe (2.9%) are expected to outgrow the US market.
3. The therapy and management segment is expected to reach USD 506.2 billion in 2024. The remote patient monitoring (RPM) segment is expected to grow by 5.8% globally as more stakeholders and policymakers focus on it.
4. Cardiology, oncology, ortho (spine), and ophthalmology (eye care) will continue to remain lucrative segments for product launches and investments. Manufacturers are expected to implement technologies around miniaturization, low-power sensors, and wireless communication. High-deal M&As are expected in H1 2024.
5. Generative artificial intelligence (GenAI) will be the most talked about technology this year, as it opens new opportunities for MedTech leaders to assess and integrate emerging technologies into new product offerings, save cost, and reduce the time to market. Many stakeholders are planning to incorporate GenAI or AI-ML in their current business model.
6. Connected MedTech and integrated diagnostics are major themes among manufacturers this year, driven by consumer demand. The market for wearables is expected to move beyond tracking steps and measuring pulse and calories burnt.
7. Companies such as Abbott, Becton, Dickinson and Company, and Siemens Healthineers are already active in the in-home diagnostics space, with offerings ranging from flu and RSV diagnostics to cancer, fertility, and diabetes testing. The global home diagnostics market is expected to reach USD 54.63 billion in 2024.
8. The procedure backlog for elective surgeries is expected to clear only by mid-2024. This has created huge opportunities for accessories, consumables, and medical equipment manufacturers and suppliers. The US, Australia, and the UK have added budgets to purchase additional equipment. Capacity rationalization is creating demand across MedTech. Many countries have invested in ambulatory surgery centers, community clinics, and imaging facilities to limit patient overload in hospital OPDs and clear more daycare surgical procedures that were on hold due to the pandemic.
9. Medtronic’s PulseSelect Pulsed Field Ablation (PFA) System received FDA approval toward the end of 2023 and plans a strong market entry in key markets. Boston Scientific and J&J are also competing in the same segment. Companies that did okay in 2023 plan to make it big this year (BD has announced plans to reach USD 20 billion in sales).
10. Digital Technology in Healthcare will foresee use of GenAI and AI in different sub-segments such as AI platforms connecting radiology, cardiology, pathology, and oncology across MR, CT, diagnostic X-ray, and ultrasound, including MR Smart Speed (by Philips at ECR 2023). Such integrated solutions are expected to enter hospitals this year.
11. China shall remain the prime focus of MedTech companies. Whether to continue in the domestic market (after VBP implementation) or move out? With regulations getting stricter, will it remain viable for MNCs? (China remains one of the highest consumption markets in the world)
12. Australia, the UAE, India, and the UK are other markets that appear promising for the MedTech business this year. How will UAE, KSA, Taiwan perform this year? Ask us?
13. The USA shall remain the centre of focus for the entire Medtech industry. Ambulatory surgery centers are on the rise. The state of California has the maximum number of ASCs (as of 2023). With recent announcements from CMS, this segment is expected to boost an additional 3.1% reimbursement, which will be applicable in 2024. The actual revenue impact can be measured if the number of procedures carried out in ASCs outnumbers hospital OPDs and day surgery centers. Many US hospitals are planning to spend almost 9% of the additional budget to purchase equipment and consumables and reduce the gap of pending elective surgeries.
14. Where will the hospitals spend in 2024? The sales of endoscopic cameras, operating room equipment, and procedural tools will jump in markets such as the US and Australia. Spending on robotic systems for hip and knee procedures is expected to fall, although orthopedic companies could benefit from an uptick in spending on spine robotic systems (Stryker is expected to enter the spine market with Mako).
15. Homecare and Bed-side diagnostic will be a high growth zone for many established players. Abbott, Becton, Dickinson and Company, and Siemens Healthineers are expected to become active in the in-home diagnostics space, with offerings ranging from flu and RSV diagnostics to cancer, fertility, and diabetes testing.
16. The digital diabetes management market is estimated to be worth USD 18.9 billion in 2023. Dexcom, Abbott Laboratories, Medtronic, Senseonics Holdings, GlySens, Roche, Terumo, and POCTech are the market leaders. A new entrant, the Apple Watch Blood Glucose Monitor, could revolutionize the segment in 2024.
17. Across the IVD sector, there is a rise in demand to use AI-ML technologies in their current products. Big and small players want to mint revenue on this tech wave.
18. In the US, the Food and Drug Administration (FDA) regulates laboratory-developed tests (LDT) as medical devices. Minimal residual disease (MRD) testing will become a standard of care in oncology (1.9 million Americans are expected to be diagnosed this year).
19. In Europe, CE-IVDs with a valid IVDD certificate issued by a notified body can be sold until May 2024 (the “grace period”; note that this only concerns certain high-risk tests; see IVDR Art. 110(2)-110(4)).
20. Clinical laboratories are expected to favor using AI, machine learning, and digital workflows. MedTech companies are looking forward to introducing and selling more AI-ML-enabled sector-specific devices. For example, Beckman Coulter Diagnostics foresees a digital transformation in hematology. Who are the other players?
21. Investors and manufacturers from Med-Tech industry may need to watch the US market. A new labeling and packaging clause was proposed in Part 820. Manufacturers may need to comply with new regulations from the end of 2024 or early 2025; Is it a safe market to invest?
22. UK market will be among the most attractive markets in 2024, 160 community diagnostic centers are expected to be operational by March 2024; the demand for equipment and consumables will surge. Which centers are open to equipment purchases? Is there a central purchase system? Who and where are the decision makers?
23. In Australia, the changes to the classification rules for software-based medical devices commenced on February 25, 2021. Manufacturers of all software-based medical devices have been complying with the ARTG; however, the transition ends on Nov ember 1, 2024. It is a wait-and-watch situation before new regulations are introduced. Is Australia safe to invest?
24. “Can I make money in China?” This question no longer has a clear answer in 2024. But we may have some information that may help you in this market.

There are several burning questions like this, and manufacturers, suppliers and distributors are eager to understand the market dynamics by regions, regulation, pricing and more. We, at Markets and Markets cover 100s of such high growth segments by country and by technology. Our reports cover comprehensive market pulse, and our experts can support you through the Go-No Go dilemma phase and provide actionable insights using data sciences, market research and access to key opinion leaders of the industry.

The Pulse of 2023: Broad Medtech Trends Changing the Face of Healthcare

Modern medical technology advancements (Medtech) are driving a dynamic transformation of the healthcare landscape. Navigating the future of patient care will require an understanding of these changing trends as we approach 2024. Here, we examine the major ideas influencing the Medtech scene in 2023:

1. Artificial Intelligence (AI) Reimagines Healthcare: AI has been seamlessly incorporated into Medtech, transforming drug discovery, treatment, and diagnosis. AI-driven algorithms carefully examine medical images, enabling faster, more precise diagnosis of conditions like cancer. Personalized therapy plans are guided by AI in treatment, which also expedites drug discovery by searching through large datasets for promising compounds. The revolutionary potential of artificial intelligence is also demonstrated in the operating room, where robots carry out minimally invasive procedures with increased accuracy and security.
2. Wearables: The Digital Defender of Your Body: Wearable technology is now essential to managing chronic diseases and remote patient monitoring; it is no longer just for fitness trackers. Doctors can remotely monitor patients with chronic conditions like diabetes and heart disease thanks to these smart devices that continuously track vital signs like blood sugar and heart rate. Additionally, by giving people real-time insights into their activity levels and general well-being, wearables enable people to take an active role in their health.
3. Data Analytics: Revealing Trends, Changing Healthcare: The proliferation of healthcare data opens up new avenues for robust data analytics, revealing previously undiscovered insights. Researchers can predict health risks, find patterns in disease, and create focused interventions for preventative care by analyzing large datasets. Informed decision-making and the optimal use of healthcare resources are fostered by this data-driven approach, which eventually improves patient outcomes.
4. From Pandemic Wave to Chronic Illness Concentration: Even though the pandemic's effects are still felt, Medtech is progressively turning its attention to addressing the burden of chronic illnesses. Advances that flourished during the pandemic are now being modified to support the management of chronic illnesses, such as telehealth consultations for non-emergency cases. This change is a result of a greater understanding of the enormous challenge that chronic illnesses present and the requirement for technological solutions to effectively address them.
5. Value-Based Healthcare: ROI-Driven Technology Technology is now evaluated on its ability to show value in addition to its novelty in the cost-conscious healthcare environment of today. There is a critical need for Medtech solutions that lower costs and enhance patient outcomes. The move to value-based care promotes the creation of data-driven technologies that show measurable improvements in healthcare economics.
6. Beyond Trends: Difficulties and Possibilities Notwithstanding the fascinating developments, a number of issues still need to be resolved. It is critical to safeguard patient privacy and data security in an increasingly networked healthcare system. To maintain safety and effectiveness, regulatory frameworks must also change quickly to keep up with the latest technological advancements. In order to stop healthcare disparities from getting worse, it is crucial to guarantee that all populations, regardless of wealth or location, have fair access to these innovations.

The Medtech sector clears the path for a time when technology will be a potent instrument to enhance patient outcomes, access to healthcare, and affordability by comprehending these broad trends and tackling the related obstacles.

Global MedTech Outlook in 2024

In 2024, the global MedTech market is anticipated to continue expanding due to a number of important factors. The aging population, the rising demand for minimally invasive procedures, and the increasing prevalence of chronic diseases are all anticipated to drive market expansion. Furthermore, technological developments like robotics, big data, and artificial intelligence (AI) are opening up new avenues for innovation and enhancing the efficacy and efficiency of healthcare delivery.

Key Growth Drivers:

1. AI in MedTech: AI is revolutionizing a number of healthcare domains, including personalized medicine, drug discovery, and medical imaging and diagnostics. It is anticipated that AI-powered solutions will become more and more significant in raising the quality, cost, and efficiency of healthcare.
2. Big Data and Analytics: The healthcare sector is producing enormous volumes of data that can be used to enhance patient care, maximize the use of available resources, and create novel therapeutic approaches. To fully utilize this data and spur innovation in the MedTech sector, big data analytics will be crucial.
3. Remote Patient Monitoring: The COVID-19 pandemic has prompted a greater uptake of technologies that enable medical professionals to monitor patients' conditions from a distance. It is anticipated that this trend will persist in 2024 due to its advantages, which include increased convenience, lower expenses, and early identification of possible health issues.
4. Robotics in Surgery: Because robotic surgery is more precise and requires less invasive procedures, it is gaining popularity. In 2024, it is anticipated that the use of surgical robots will increase, especially in complex procedures like orthopedic and cancer surgery.

Even with a bright future, the MedTech sector will still face a number of difficulties in 2024. Concerns about cybersecurity, data privacy, and regulatory obstacles must all be addressed. Furthermore, it is still difficult to guarantee that all populations have fair access to new technologies.

All things considered, the MedTech sector worldwide is expected to keep expanding in 2024. The healthcare sector has a significant opportunity to improve patient outcomes globally by adopting new technologies and tackling current issues.

Medical Technology Industry Trends in 2024

The medical technology sector is characterized by constant change and innovation due to developments in fields such as robotics, big data, and artificial intelligence (AI). These developments are reshaping healthcare delivery and present promising chances to boost productivity and patient outcomes.

AI is revolutionizing medication discovery, diagnosis, and treatment. Artificial intelligence (AI) algorithms can already analyze medical images more accurately than humans, which can result in earlier and more accurate diagnoses. Analytics and big data are providing important new insights that will enhance healthcare. Large volumes of data are generated by the healthcare sector, and sophisticated analytics tools are assisting in transforming this data into insights that can be put to use. Researchers can forecast health risks, find patterns in disease, and create focused interventions for preventative care by evaluating patient data.

The practice of remotely monitoring patients is gaining popularity. Remote patient monitoring technologies are becoming more and more popular, driven by the COVID-19 pandemic and the increasing need for managing chronic diseases. With the use of these technologies, medical professionals can monitor patients' health from a distance, which saves money, increases convenience, and enables early identification of possible health issues. Surgery is becoming less invasive and more precise thanks to robotics. Surgical robots are being utilized in a greater variety of procedures because they provide advantages like increased accuracy, decreased blood loss, and quicker patient recovery. In the upcoming years, robotic technology should become even more important in surgery as it develops.

However, the MedTech sector faces difficulties in addition to these fascinating developments. It is imperative to tackle regulatory obstacles, data privacy issues, and cybersecurity risks to guarantee the moral and conscientious application of novel technologies. Furthermore, it is still crucial to guarantee that all populations have fair access to these innovations.

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Latest Technology in Healthcare

Patient care is being revolutionized in the healthcare industry by a wave of technological advances. AI is driving this trend, enabling superhuman accuracy in medical image analysis for intelligent diagnostics that can identify diseases early and enhance treatment outcomes. Surgery is being revolutionized by robotics, as less invasive procedures carried out by robots provide greater accuracy, quicker recovery periods, and fewer complications. Advanced analytics is sifting through massive datasets to predict health risks, personalize treatment plans, and optimize resource allocation for better preventative care. Data is quickly becoming the goldmine of healthcare. Beyond fitness trackers, wearable technology has developed into essential instruments for remote patient monitoring, enabling medical professionals to monitor chronic illnesses like diabetes and heart disease in real time. A move toward truly targeted healthcare is being made possible by the growing fields of genomics and personalized medicine, which are opening the door to therapies catered to each patient's unique genetic profile. These innovative technologies have the potential to bring about a future in which healthcare is more preventive, individualized, and efficient for everyone, along with ethical considerations and responsible data management.

A Glimpse into the Future: Emerging Medical Technology Innovations:

1. Artificial Intelligence (AI) Shaping Healthcare: AI is quickly changing a number of areas of medicine; it's no longer just science fiction. AI is improving diagnostic precision and streamlining workflows, from virtual assistants supporting physicians and nurses to diagnostics powered by AI that analyze medical images with superhuman accuracy. Artificial intelligence (AI) algorithms that quickly sort through enormous datasets to find viable drug candidates are even speeding up the process of finding new drugs.
2. The Emergence of Precision Medicine: Personalized medicine, in which treatments are customized to each patient's specific genetic profile and medical requirements, is gradually replacing the "one-size-fits-all" approach to healthcare. This change is largely due to genomic sequencing, which enables medical professionals to pinpoint disease-specific genetic mutations and develop customized treatments. Furthermore, wearable technology continuously monitors personal health data, allowing for tailored preventative measures and proactive interventions.
3. Robots Taking Over the Operating Room: The days of doing surgery only by humans are coming to an end. Surgical robots, which provide unparalleled precision, minimal invasiveness, and quicker patient recovery times, are helping surgeons perform more complicated surgeries. The possibilities are truly revolutionary: just think of robots helping with delicate brain surgery with unmatched accuracy or performing microsurgery with tremor-free movements.
4. Big Data: Revealing Hidden Patterns in Healthcare Massive volumes of data are generated by the healthcare sector, and sophisticated analytics are turning this data into a gold mine of insights. Researchers can forecast health risks, spot disease trends, and create focused interventions for preventative care by evaluating patient data. In healthcare systems, this data-driven approach can also optimize resource allocation and decision-making, resulting in more effective and economical care.
5. Telehealth: Accessible Medical Care: Telehealth technologies, which enable patients to consult with doctors remotely and receive care from the comfort of their homes, have become more popular as a result of the COVID-19 pandemic. Telehealth is predicted to be a major factor in expanding access to healthcare, especially for those with mobility issues or in remote locations, so this trend is not going away. Imagine being able to virtually receive follow-up care or consult with a specialist who lives miles away—telehealth is making healthcare more convenient and accessible than it has ever been.

These are only a few teases of what lies ahead for medical technology. There is no denying that these innovations have the potential to enhance patient outcomes, expedite healthcare delivery, and make it more individualized and accessible—even though obstacles like regulatory hurdles, data privacy concerns, and equitable access must be addressed. Without a doubt, technology will drive healthcare in the future, and everyone will benefit from it being healthier.

Innovative Health Technologies

Innovative health technologies are changing the face of medicine, from robots performing complex surgeries to AI-powered assistants providing real-time medical advice. Our health is constantly being monitored by wearable technology, which also foretells dangers and suggests precautions. Big data analytics sort through massive amounts of data to identify patterns in disease and inform individualized treatment programs. Telehealth platforms break down barriers of geography by providing specialized care at our fingertips. With the use of 3D printing, people who were previously thought to be incurable can now have personalized prosthetics and even bioprinted organs. These developments paint a picture of a future in which healthcare is more precise, preventive, and accessible than ever before, ultimately enabling people to take an active role in their own well-being, even though they also present ethical and legal challenges.

Futuristic Medical Technology

Peer through the looking glass into a world where medical technology rewrites the script on healthcare. Buckle up, because we're venturing into the realm of the futuristic:

1. AI Heals: Visualize AI-guided nanobots that swim through your bloodstream, precisely aiming at diseased cells. Imagine, for example, AI surgeons carrying out intricate procedures with robotic arms that possess unmatched precision. In addition to diagnostics, AI will customize treatment regimens based on your individual genetic composition, anticipating and averting disease before it manifests.
2. Regenerative Revolution: 3D bioprinting creates personalized organs made from your own cells, leaping beyond prosthetics. Imagine receiving living replicas in place of damaged hearts, kidneys, or even limbs to restore complete function. Stem cell treatments, on the other hand, enable the body to regenerate itself, curing degenerative illnesses and healing wounds.
3. Mind-Meld Medicine: Direct thought-to-device communication is made possible by the widespread use of brain-computer interfaces. Imagine using neural feedback to provide emotional support in real-time or using your mind to control prosthetic limbs. With unmatched effectiveness, advanced VR therapies treat phobias and PTSD by immersing you in simulated environments.
4. Think of Augmented Reality for Health: as having AR overlays that allow doctors to view your body in real time, highlighting any tumors or fractures. AR-guided instruments could be used by surgeons to operate with minimally invasive procedures and unmatched precision. AR has the potential to revolutionize patient education by enabling interactive, immersive visualization of intricate medical procedures and anatomy.
5. Personalized Wellness Pods: Enter your customized pod to generate a unique wellness plan based on an analysis of your lifestyle, biometrics, and DNA. With features like biofeedback-guided meditation and targeted nutrition, these pods serve as centers for preventative healthcare, enhancing your wellbeing before illness strikes.
6. Global Healthcare Network: Expert consultations can be had virtually from any location in the world thanks to telehealth, which cuts beyond national boundaries. Imagine AI-powered robots in underserved areas using real-time diagnosis, or nanobots transmitting health data from far-off places so that everyone has access to the best care available.