Medtech industry in good health

illustration © mast3r: ADOBE STOCK

By the numbers: Medtech industry growth in 2025

$584 billion – Overall medtech industry revenue for 2025, marking the 7th consecutive year of top-line growth

$497 million – Average size of M&A deals in 2025, 11% higher than 2024

$36 million – Average amount of venture capital financing rounds, a 122% increase over 2024

Companies have been selective with acquisitions, focusing on high-growth opportunities and later-stage investments.

Addressing challenges across the medtech industry

Challenge: High levels of uncertainty around trade, tariffs, and geopolitical circumstances

Solution: Several medtech companies are exploring the creation of a cross-functional, tariff task force and governance structure

Challenge: Rapidly evolving technology including artificial intelligence (AI)

Solution: 84% of life sciences CEOs agree focusing on data quality and integration, rather than new tools, will best optimize the impact of medtech AI

“Organizations who prioritize differentiated innovation, strategic M&A, and advanced operating models will be best positioned to deliver long-term growth and shareholder value.” - Arda Ural, Ph.D., EY Americas Life Sciences Sector leader

What sectors are attracting medtech’s leaders?

Leading companies are focused on key, high-growth areas, including:

• Pulsed field ablation
• Structural heart disease
• Robotics
• Diabetes

Companies centered on robotics and cardiovascular therapeutic devices captured six of the top 10 U.S. venture capital rounds and two of the top 10 European rounds.

Read the full report: https://www.ey.com/en_us/life-sciences/pulse-of-medtech-industry-outlook