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

Human Resources

Human Resource Management - MSD revealed as finalist in Australian HR Awards

MSD revealed as finalist in Australian HR Awards

Health Industry Hub | July 13, 2020 |

The Australian HR Awards celebrates the outstanding achievements of the country’s top Human Resources leaders, companies and teams. MSD reveals […]


News & Trends - Medical Technology

MedTech News - Radiologists report a significant drop in diagnostic imaging services during COVID-19

Radiologists report a significant drop in diagnostic imaging during COVID-19

Health Industry Hub | July 13, 2020 |

MedTech News: Clinical radiologists are concerned that patients are delaying their required imaging procedures and encourage people to continue their […]



Medical Pharma Biotech MedTech - First-of-its-kind liver cancer research

First-of-its-kind liver cancer research

Health Industry Hub | July 13, 2020 |

Medical News: Primary liver cancer patients will benefit from a new research project in Western Australia that will apply the […]


News & Trends - Biotechnology

Biotech News - Australian researchers' cancer vaccine shows early promise

Australian researchers’ cancer vaccine shows early promise

Health Industry Hub | July 13, 2020 |

Biotech News: Mater University of Queensland Researchers have achieved publication in the highly-ranked journal, Clinical and Translational Immunology detailing their […]