MedTech Industry Report EY Pulse 2025: MedTech Vital Signs Stabilised, Suppressing Growth and Expanding Market in a Disturbed Healthcare Environment
Despite macro uncertainty and trade headwinds, stable industry growth continues. Amidst the uncertainty of tariffs, the MedTech industry recorded its top-line growth rate for the seventh consecutive year in 2025 – reaching USD 58.4 billion. Shift to lesser but larger transactions: Overall mergers and acquisitions (M&A) spending (USD 38.8 billion) remained below the historic average, but the average trading size has increased 11% from 2024, up 72% from the past decade average. Strong foundations and innovation fueled funding momentum: venture capital investments increased by 16%, with average funding rounds and M&A trading size well above the five-year average, highlighting sector resilience and continued innovation. High-growth leaders emerge: Medtech companies focus on key therapeutic areas for pulse ablation, structural heart, robotics and diabetes.
new york, September 29, 2025 /prnewswire/ – In a turbulent macroeconomic and global trade environment, the Global Medical Technology (MEDTECH) industry continues to perform well, as it describes the 19th Pulse 2025 report of MedTech Industry 2025, written by Ernst & Young LLP (EY US). Surges in revenue, robust investment activities, and advances in AI and digital health not only weather headwinds, they also tell us the industry that builds momentum for the future.
“Encouraging the foundations along with a strong balance sheet creates new opportunities for MedTech to continue thriving. Organizations that prioritize differentiated innovation, strategic M&A and senior operating models are best positioned to deliver long-term growth and shareholder value.”
The Pulse of the MedTech Industry Report captures the current state of sectors covering financial performance, spending trends, M&A, R&D, and other key performance metrics. In addition to the guest perspective, the report highlights five areas we have observed as characteristics of MedTech leaders who are expected to continue to drive industry transformation and position their organization for future success.
Proof of the right to grow: Acquiring high growth for effective capital allocation competitive advantages Integrated Structure: Reinvent trade strategies amid tariff pressure: Task Force to leverage artificial intelligence (AI): Building a resilient supply chain
“MedTech continues to deliver steady growth and performance is driven by innovation and market expansion in high-growth areas such as pulse field ablation as orthopedics, structural heart, robotics, and diabetes.” “The sector has proven to be a safe port within the relatively low-performing healthcare industry, producing stronger results and building trust for the upcoming quarter.”
The report highlights that the MedTech industry continued to perform strongly in the first half of 2025 amid ongoing uncertainty in global trade and wider economic pressures. While companies continue to opt for acquisitions, their focus has been on growth opportunities and later investments.
Venture capital activities are also particularly robust, with an average funding round of USD 36 million (up 122% in 2024), and M&A trading size well above the five-year average, reflecting investors' confidence in the sector.
Other important findings include:
There were 36 deals in the first half valued at US$20.5 billion, bringing them back on track to meet 2025 or exceeding 2024. Medtech leaders have used their strong balance sheets to find growth and improve their capabilities after a temporary reprieve from the Trump administration's high tariff rates. Venture capital (VC) funds flowing into the industry were characterized by focusing on specific funding rounds and targeting high-growth assets by companies. The value of robotics and cardiovascular therapy devices is clear, with companies in the latter space winning six of the top 10 rounds in the US and two of the top 10 rounds in Europe.
The report discovers that while macroeconomic uncertainty and challenges persist, MedTech must look ahead by “proving its right to grow”, and companies that combine innovation, sophisticated data and AI tools are well positioned to do so. By prioritizing agility, patient-centered solutions and optimized operations, industry leaders appear to be set up to deliver stronger results and improve health outcomes around the world.
To read the EY 2025 Pulse in the MedTech Industry Report, check out the Pulse in MedTech Industry Report 2025. ey-we
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