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Pulse of the MedTech Industry report 2024
The 18th annual Pulse of the MedTech Industry report finds the medical technology (MedTech) industry continuing to push at new frontiers, as ongoing breakthroughs in MedTech AI and renewed hope for MedTech M&A hold out the possibility of making devices smarter, smaller and more personalized.
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Understand how the industry sees growth, innovation and profitability
2024 key takeaways from the MedTech industry:
Taking on the top-line challenge, where can the MedTech industry go to find growth?
The industry has successfully converted incremental innovation into steady growth over the past decade, achievingat least 4% revenue growth in each of the past eight years.
In a highly diversified MedTech landscape, finding high-growth spaces can be challenging, but higher growth is clearly achievable in some specific niches, like cardiovascular therapeutics.
MedTech industry struggles for profitability as input costs rise
In 2023, profits nearly doubled year over year, compared with 2022, but gains were still 9% below the pre-pandemic totals.
While R&D expenses have remained between 5% and 6% of total revenues for the last five years, selling, general and administrative (SG&A) expenses consumed 22% of revenues in 2023, totaling US$127.2 billion.
The rise of AI in MedTech is shifting the landscape
In 2023, the FDA’s published list of approved algorithms and devices list for MedTech AI swelled to record levels, with a 43% year-on-year increase in approvals.
AI, including generative AI, can also deliver operational efficiencies in areas where MedTechs are currently experiencing cost and capacity pressures.
Seizing the moment: MedTech’s opportunity to enter consumer health
There is a growing market — driven by hyper-conscious health care consumers — for devices like continuous glucose monitors (CGMs).
For MedTech companies, which have typically sold to doctors and hospital systems, direct-to-consumer offerings hold the promise of a new revenue stream.