Market Research & Insights

The evolving MedTech industry

Health Industry Hub | October 21, 2019 |
[Total: 1    Average: 5/5]

The global medical technology (medtech) industry continues to grow, but its long-term growth outlook is at risk due to underinvestment in R&D and lack of collaboration between industry providers, payers and patients. 

According to the recent EY (Ernst & Young Global) report, Medtech is experiencing major transformation. In the future, industry value will be driven by the personalised, patient-centered care models. Delivering this will require medtech to work outside the comfort zones of its traditional business models. The transformation will bring better outcomes for patients and value-based payers.

Key findings from the report

Metrics suggest the medical technology industry is strong, but warning signs remain.

  • Revenue grew 7% year over year, but the annual growth rate has yet to rebound to pre-2008 levels.
  • Robust R&D spending demonstrates a commitment to innovation, but capital allocation trends suggest there is still more focus on nearterm growth via share repurchases.

Healthy IPO and venture financing totals were a positive, but a two-year decline in total financing may signal the public market’s declining appetite for medtech. The total value of M&A increased more than 50%, but average deal values fell as buyers outside the sector became increasingly prominent. Robotic surgery, diagnostics and artificial intelligence (AI) provide signposts to how medtechs will create value in the future.

  • The robotic surgery market attracted major M&A interest as buyers invested more than US$6 billion on new platforms.
  • Non-imaging diagnostics companies outpaced the broader industry in both revenue growth and share of early-stage venture financing, underscoring the technology’s importance for personalised medtech innovation.
  • AI remains a top area of innovation, with at least 33 algorithms winning US regulatory approval since the beginning of 2018.

For long-term success in a data-driven future, medtech must address some key challenges.

  • With health data breaches on the rise, medtechs must develop secure data ecosystems in which connected devices can easily exchange and use data.
  • As care shifts from traditional settings, medtechs needs to develop faster, more flexible and multidirectional supply chains that meet the real needs of its customers.
  • As new entrants play a more important role in care delivery, medtechs must invest in data-driven, value-based care approaches.
  • To thrive in the shifting health care environment, medtechs need to adapt their business models, first determining who is the customer they are best-placed to serve and what data are required to drive maximum value.

Contact us for a copy of the report.

You may also like Market access trends in Australia

About the author

About the author

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam luctus finibus scelerisque. Nunc bibendum ipsum sed augue fringilla fringilla. Nullam at consectetur leo. Praesent viverra rutrum porta. Quisque vitae mi vel purus vulputate tincidunt. Class aptent taciti sociosqu ad litora torquent per conubia nostra, per inceptos himenaeos. Suspendisse et mi quis nisi rhoncus feugiat at ac tellus. Sed aliquam sodales nulla ac auctor. Sed pretium lobortis purus accumsan ullamcorper. Phasellus sodales vel odio in lobortis. Duis maximus sagittis bibendum. Interdum et malesuada fames ac ante ipsum primis in faucibus. Nunc dictum tincidunt ipsum in vestibulum. Donec ut sem consectetur, aliquam quam vitae, pharetra orci. Nam egestas non velit eu rhoncus. Duis congue neque non lacus tincidunt porta. Vestibulum ultricies pulvinar sem, molestie congue dui aliquet non.
  • Ut imperdiet leo id lorem fermentum consectetur.
  • Ut vitae orci et dui varius tincidunt.
  • Ut id magna non libero vestibulum pharetra ac faucibus nulla.
Aliquam erat volutpat. Vestibulum vitae varius diam. Nulla eget congue ante. Nunc ullamcorper sagittis augue vel dictum. Mauris finibus nibh ut pulvinar auctor. Vestibulum ut faucibus nisi. Orci varius natoque penatibus et magnis dis parturient montes, nascetur ridiculus mus. Quisque porta tortor ac justo malesuada elementum. Nulla tellus ante, cursus nec ex sit amet, suscipit bibendum arcu. Duis posuere orci dui, et mollis enim dictum at. Sed ullamcorper, sapien ut vulputate viverra, sem purus porttitor tellus, nec mattis mauris ligula sed risus. Nulla sagittis id ipsum eu mattis. Link to full profile

News & Trends - Pharmaceuticals

First immunotherapy PBS listed in small cell lung cancer - Pharma News

First immunotherapy treatment PBS listed in small cell lung cancer

Health Industry Hub | February 19, 2020 |

Pharma News: Effective 1 March 2020 the first immunotherapy treatment for small cell lung cancer (SCLC) will be available on […]


News & Trends - Medical Technology

Blood test to improve ovarian cancer diagnosis - MedTech News

Blood test to improve ovarian cancer diagnosis

Health Industry Hub | February 19, 2020 |

MedTech News: Australian researchers have developed a simple blood test that measures the body’s own immune response to improve diagnosis […]



The largest healthcare event in the region - Australian Healthcare Week - Medical News

Don’t miss the largest healthcare event in the region – Australian Healthcare Week

Health Industry Hub | February 19, 2020 |

Health Industry Hub is proud to partner with and support the free-to-attend 10th Annual Australian Healthcare Week Expo, held March […]


News & Trends - Pharmaceuticals

BMS announces new 5-year data in advanced renal cell carcinoma - Pharma News

BMS announces new 5-year data in advanced renal cell carcinoma

Health Industry Hub | February 19, 2020 |

Pharma News: Bristol-Myers Squibb announced five-year follow-up study results demonstrating that Opdivo (nivolumab) treatment delivers superior overall survival (OS) and […]