EY Pulse of the MedTech Industry Report 2025: MedTech vital signs are robust, reigniting growth and expanding markets in a disrupted healthcare landscape

• Steady industry growth continues despite macro uncertainty and trade headwinds: Amid tariff uncertainty, the MedTech industry recorded its seventh successive year of top-line growth in 2025 — reaching US$584 billion — with commercial leaders forecast to be on track to record 6% to 7% revenue growth again.
• A shift towards fewer but bigger deals: While overall mergers and acquisitions (M&A) spending (US$38.8 billion) remained below historical averages, the average deal size of US$497 million was up 11% from 2024 and 72% higher than the average over the previous decade.
• Strong fundamentals and innovation fuel funding momentum: Venture capital investment surged 16%, and average financing rounds and M&A deal sizes remained well above the five-year average, highlighting the sector's resilience and ongoing innovation.
• High-growth leaders emerge: MedTech companies focused on the key therapeutic areas — pulse field ablation, structural heart, robotics and diabetes — are outpacing peers through differentiated innovation and expansion in higher-growth markets.

NEW YORK, Sept. 29, 2025 /PRNewswire/ -- In a turbulent macroeconomic and global trade environment, the global medical technology (MedTech) industry continues to perform well as described by the 19th annual Pulse of the MedTech Industry 2025 report produced by Ernst & Young LLP (EY US). Surging revenues, robust investment activity, and advances in AI and digital health signal an industry not only weathering headwinds but building momentum for the future.

"Encouraging fundamentals, along with strong balance sheets, are creating new opportunities for MedTech to continue to thrive. Organizations who prioritize differentiated innovation, strategic M&A and advanced operating models will be best positioned to deliver long-term growth and shareholder value," says EY Americas Life Sciences Sector Leader Arda Ural, PhD.

The Pulse of the MedTech Industry report captures the current state of the sector, covering financial performance, spending trends, M&A, research and development, and other key performance indicators. In addition to guest perspectives, the report highlights five areas that EY US has observed as characteristics of MedTech leaders who are expected to continue to drive the industry's transformation and position their organization for future success:

1. Proving the right to grow: effective capital allocation
2. Integrating high-growth acquisitions
3. Structuring for competitive advantage: business model innovation
4. Reinventing trade strategy amid tariff pressures: task forces
5. Harnessing artificial intelligence (AI) to transform: building a resilient supply chain

"MedTech continues to deliver steady growth, and performance is being driven by innovation and market expansion in high-growth areas such as pulse field ablation, structural heart, robotics, and diabetes as orthopedics," says John Babitt, EY Global Medical Technology Leader. "The sector is proving to be a safe harbor within the relatively underperforming broader health care industry, generating stronger results and building confidence for the quarters ahead."

The report highlights that the MedTech industry continued to perform strongly in the first half of 2025 amid ongoing global trade uncertainty and broader economic pressures. While companies have remained selective with acquisitions, the focus was on high-growth opportunities and later-stage investments.

Venture capital activity was also particularly robust, with average financing rounds reaching US$36 million — a 122% increase over 2024 — and M&A deal sizes remaining well above the five-year average, reflecting strong investor confidence in the sector.

Other key findings include:

• There were 36 deals, valued at US$20.5 billion, in the first half, putting 2025 on track to meet or exceed 2024, given deal values are higher while the historical average volume of deals is about the same. MedTech leaders, many with a more optimistic outlook for the second half of 2025 after a temporary reprieve from the Trump administration's high tariff rates, are leveraging strong balance sheets to find growth and increase capacity.
• Venture capital (VC) funding flowing into the industry was characterized by concentration in specific financing rounds, with companies targeting high-growth assets. The value of robotics and cardiovascular therapeutic devices is evident, with companies in the latter space capturing six of the top 10 US rounds and two of the top 10 European rounds.

The report finds that while macroeconomic uncertainty and challenges persist, MedTech must look ahead by "proving its right" to grow, and companies that combine innovation with advanced data and AI tools are well positioned to do so. By prioritizing agility, patient-centric solutions and optimized operations, industry leaders appear set to deliver stronger results and improved health outcomes worldwide.

To read the EY 2025 Pulse of the MedTech Industry report, visit Pulse of the MedTech Industry Report 2025 | EY - US

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