The medical technology, or medtech, industry is focused on developing and manufacturing various technologies — both physical and digital — to improve patient care, increase efficiency in the healthcare system, and create more equity.
Medical devices, the physical products resulting from the medtech industry’s innovations, include any instrument, apparatus, machine, tool, implant, or similar product that is used to treat, prevent, diagnose, mitigate, or cure disease and other health conditions.
This sector has grown at a rapid clip during the last five years, spurred by public health crises and innovations in artificial intelligence and automation. The result has been improved patient outcomes, enhanced healthcare delivery, and a fundamental transformation of the healthcare industry.
The medical device industry is expected to stay on its growth trajectory, with its value projected to reach $1.3 trillion by 2029, a CAGR of 9.8%. This growth is largely driven by an aging global population, an increasing prevalence of chronic diseases, and continued advancements in digital health technologies.
The industry is currently led by a few large companies, including Abbott, Johnson & Johnson, and Medtronic. However, emerging companies, particularly from China, are gaining traction for their innovative products and competitive pricing and could soon pose a threat to big market players.
Below, we cover five major trends shaping the medical device space in 2025.
For a look at last year’s trends, check out our Top Medical Device Trends and Outlook for 2024.
Rise of AI-Powered Diagnostics
AI and machine learning are revolutionizing the area of diagnostics, and by extension, the healthcare industry. This technology can analyze medical data, including imaging, lab results, and patient histories, to detect conditions more accurately and at earlier stages than traditional methods. AI systems can process thousands of medical images in seconds — a task that could take human specialists several days.
AI-powered diagnostics have another benefit — increasing access to quality healthcare in areas with limited access to medical specialists. A reliable diagnostic aid, AI can help ensure patients receive high-quality care regardless of where they live. This could help narrow the healthcare access gap between urban and rural areas, as well as across different socioeconomic groups, ultimately facilitating a more equitable healthcare system.
Increased Demand for AI-Integrated Wearables
Wearable and biometric technology has been steadily growing in popularity for decades now, and the market has only accelerated its growth trajectory in the last few years. The global market for wearable medical technology is projected to grow at a CAGR of 25.53% from 2025 to 2030.
Unlike mainstream wearable tech, like Fitbits and Apple Watches, which are intended to track activity and fitness, wearable medical devices — such as electrocardiogram (ECG) sensors, photoplethysmogram (PPG) sensors, and hydration and sweat sensors — have the unique capacity to diagnose and manage health conditions, empowering consumers and patients to manage their own health.
Continuous glucose monitors (CGMs), which have been used as a tool for managing diabetes for years, are now more accessible than ever to the general population. In 2024, the FDA approved over-the-counter CGMs from Abbott and DexCom, and there is currently tremendous market opportunity for new entrants. Unlike traditional CGMs, these OTC devices are also marketed toward the general population of people who are looking to monitor their glucose levels for overall health and wellness. As this market continues to expand, we will likely see improved health outcomes and fewer diabetes-related complications on a global scale.
In 2025, demand for continuous health monitoring devices is expected to continue increasing — particularly as these products become increasingly ubiquitous in the cultural zeitgeist. Additionally, advancements in sensor technology and edge computing will make these devices even more precise and valuable. Advanced predictive analytics can work to identify risk factors and predict health events with exceptional accuracy — even potentially preventing heart attacks by detecting abnormal heart rate fluctuations before symptoms occur.
Continued Growth of Telemedicine and Remote Care
The COVID-19 pandemic catapulted the rapid growth of telemedicine and remote care and cemented them as integral parts of the healthcare system long after the pandemic’s end. In 2025, the growth of telemedicine and remote care is expected to accelerate, largely due to technological advancements.
Telemedicine and remote care rely heavily on Internet of Medical Things (IoMT) devices, which enable real-time monitoring, data analysis, and home-based treatment.
Remote patient monitoring (RPM) already relies on devices such as smartwatches, glucose monitors, and insulin pumps. In 2025, RPM will likely incorporate even more sensitive IoMT devices, such as smart prosthetics and implantable cardiac monitors, which will provide more nuance and precision to remote care.
IoMT devices — such as blood pressure monitors, ECG machines, and oxygen level sensors — also support hospital-at-home care, which is ideal for patients who require close monitoring but don’t need to or cannot stay indefinitely in a hospital. As these devices become more sophisticated and cost-effective, adoption of hospital-at-home care is expected to increase.
Finally, these devices excel at amassing and analyzing large volumes of patient data, and they can provide doctors with almost real-time patient analytics so that certain issues can be caught early. This, in turn, decreases hospitalizations, reduces emergency room visits, and lessens strain on healthcare resources. However, because these IoMT devices transmit patient data, they are vulnerable to cyberattacks and may compromise patient safety or expose sensitive data.
In 2025, we will likely see the aforementioned use cases for IoMT play out more in telemedicine and remote care, and we will see more of the implications and benefits of this technology on the healthcare system and patient outcomes.
Global Innovations for Personalized Medicine
2025 is expected to bring a new wave of innovation to the medical device space, particularly focused on personalized and precision medicine.
3D Printing Technology
3D printing technology brings unprecedented possibilities to personalized medicine. It provides the ability to create prosthetics or implants that are specifically designed for the patient, leading to better health outcomes and reduced recovery times. It also allows surgeons to practice procedures using 3D-printed organ models.
Currently, the United States ranks as the largest market in 3D printing, accounting for nearly 60% of the overall market, according to a report found in AlphaSense.
In 2025, adoption of this technology is expected to grow, reflecting a strong focus on improving healthcare delivery through cutting-edge research and development practices. The healthcare industry is a particularly significant contributor to 3D printing market growth, due to the various applications of this technology — including surgery, implants, dental procedures, and medical education.
We will also likely see even more advancement and precision in this technology in 2025. In a recent earnings call, 3D Systems Corporation reported progress in the precision and speed of printing extremely fine structures for production applications of organs in the human body, with expectations to hit milestones in 2025.
Surgical Robots
Surgical robots are a key innovation in the medical device space, and adoption is growing rapidly as the surgery discipline increasingly favors minimally invasive procedures. These robots have been found to decrease recovery times and minimize complications during surgery.
The surgical robotics market is valued at over $8 billion in 2025 and growing at a double-digit rate, with sales expected to more than triple by 2032. However, currently only 2% of surgeries use robots, so there is still tremendous room for growth.
Intuitive Surgical is the dominant player in the space with over 80% market share, and in March 2024, received FDA clearance for its da Vinci 5 surgical system that can be used in most surgical specialties, with the exception of cardiac and pediatric indications. This system, which has been in a limited launch since the first half of 2024, is expected to enter full market launch in 2025, bringing new capabilities of visualization, precision, and efficiency to operating rooms.
The Asia-Pacific region (China, Japan, and South Korea) is experiencing the fastest growth in the surgical robotics market, driven by improvements in medical infrastructure and high technology adoption.
As technology advances and as the global population continues to age, the surgical robot market will grow in tandem. In 2025, we will likely see greater penetration of surgical robots, enhanced technological capabilities, and as a result, improved patient outcomes.
Regulatory and Policy Shifts
In Europe, the medical device market is expected to be highly influenced by the evolving regulatory landscape. The implementation of the EU Medical Devices Regulation (MDR) will force companies to comply with new safety and performance requirements, which could slow down market growth in 2025.
Due to Brexit, this regulation will not apply in the UK, and it remains to be seen whether the UK will make any changes to its current regulatory framework.
Additionally, the European Medicines Agency (EMA) is set to advance its five-year AI workplan in 2025, focusing on implementing the EU AI Act and developing AI-driven regulatory tools, which could impact innovation in the medical device sector.
Meanwhile, in the United States, President Trump has signed several executive orders in early 2025 that may impact the U.S. Food and Drug Administration (FDA) and its regulatory oversight for medical devices. However, the impact of these orders remains to be seen, as they have not yet been implemented. Additionally, medical device companies are concerned about the impact of Trump’s tariffs on China, Canada, and Mexico. AdvaMed, the Medtech Association, recently released a statement imploring the administration to consider exempting tariffs on medical technology to avoid negative consequences on the U.S. medtech industry, such as supply chain disruptions and stunted innovation.
Stay on Top of the Evolving Medical Device Landscape with AlphaSense
Staying ahead in the medical device industry requires sharp research efforts and confidence in decision-making. AlphaSense is a leading provider of market intelligence, including 10,000+ high-quality content sources from more than 1,500 leading research providers—all in a single platform.
Analysts, researchers, and decision-makers in the medical device sector can access exclusive research reports only found elsewhere in disparate locations and often behind expensive paywalls. With AlphaSense, companies can conduct comprehensive research that gives them a competitive edge with smarter, more confident decision-making.
Specific types of content you’ll find on the AlphaSense platform include:
- Healthcare news, industry reports, company reports, 510(k) filings, and regulatory content from sources such as PubMed, World Health Organization (WHO), MedlinePlus, and FDA
- Over 1,500 research providers including Wall Street Insights®, a premier and exclusive equity research collection for corporate teams (healthcare included)
- Expert call transcript library that gives access to thousands of insightful interviews with healthcare professionals, customers, competitors, and industry experts
Check out our infosheet on the four most crucial market intelligence sources for healthcare.
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