Matej Mikulic
Research expert covering health, pharma & medtech
Medical technology industry - statistics & facts
Medical technology plays a role in the lives of everyone. It includes, most of all, medical devices that simplify the prevention, diagnosis, and treatment of diseases and illnesses. The most well-known medical technology products are, among others, pacemakers, imaging instruments, dialysis machines, and implants. The global medical technology industry was worth over 631 billion U.S. dollars annually. Established centers of this industry include North America and Western Europe. The United States is home to the world’s largest medical technology companies. As of 2024, Medtronic had the largest global revenue at over 33 billion U.S. dollars. The main focus of devices manufactured by the Minnesota-based company is cardiovascular-focused and for diabetes management. Two other medtech companies that round off the top three largest companies—Johnson & Johnson and Abbott—are both based in the United States. Although, industry trends show that Asia, and in particular China, is about to play a more prominent role in the years to come.
The medical technology industry, while crucial, may still be adjusting to its new level following the spike in the market during the COVID-19 pandemic. Although specific segments look to be particularly well placed for more growth in the future, such as the use of artificial intelligence and the continued use of digital health tools.
Leading segments in medical technology
The strongest segments within the industry are in vitro diagnostics (IVD), cardiology, diagnostic imaging, and orthopedics. IVD accounted for a 13 percent share of the total medical technology industry. Diagnostics is one of the most important parts of healthcare, and IVDs can detect a range of conditions, diseases, and infections. The devices that comprise the IVD industry can range from small, simple tests that can be used in the home to complex laboratory appliances. Cardiology devices had a global market value of almost 75 billion U.S. dollars in 2024, with a forecast to reach over 95 billion U.S. dollars by 2028. No other technology generates nearly as much excitement in the medical technology industry as artificial intelligence. The vast majority of healthcare leaders named it as the technology that will have the biggest bearing on the industry’s future. The impact of artificial intelligence has already been felt in healthcare but will continue to grow in importance in the industry. AI can be of tremendous help with analyzing medical data and images, potentially delivering more accurate diagnoses and better care.Funding trends in the industry
The COVID-19 pandemic had a massive impact on the medical technology industry, as it did in many other industries. The IVD segment experienced massive growth in revenue during the years 2020 and 2021, mainly fueled by increased demands for tests, both rapid and PCR tests. While funding in digital health in the United States had been increasing in the years leading up to the pandemic, it really took off in 2021 with investment of almost 30 billion U.S. dollars. The years since have seen funding stabilizing at a lower level. In the first half of 2025, there were just under 100 M&As in the U.S. medical technology industry, putting this year on course to match 2024 in terms of deals. As was the case globally, 2021 was a bumper year for M&As, with almost 400 in this year alone, before cooling off in subsequent years.The medical technology industry, while crucial, may still be adjusting to its new level following the spike in the market during the COVID-19 pandemic. Although specific segments look to be particularly well placed for more growth in the future, such as the use of artificial intelligence and the continued use of digital health tools.
