Medtech outlook 2024

The argument of energy security favoured renewables and oil and gas alike. Credit: Jeremy Poland via Getty Images 

2023 has been a pivotal year in medtech, with artificial intelligence (AI) technologies continuing to boom and attract attention. With 2024 just around the corner, GlobalData dives into the trends expected to make the biggest impact this year.

Dealmaking activity continued to be quiet in 2023 despite analyst predictions of a resurgence this year. Due to an unstable economy, many companies are still looking for ways to trim down business and tighten operating costs. Global regulatory authorities are also flexing their muscles on high-profile deals due to stricter antitrust regulations, leaving many companies more cautious with their M&A strategies. 

A downturn in medtech investment could have a different outlook across the world. In the UK, healthcare staff shortages and strikes remain an issue, so investment will be redirected from technology to stabilise the service. However, US investors are relatively optimistic that the markets are simply recovering from pandemic slowdowns and will be on the rise again. 

The dip in investment could lead to an innovation slowdown, which could pose a challenge for smaller startups. While the industry is concerned, the consensus among most analysts is that conditions will begin improving. With market conditions not stable enough to sustain a healthy dealmaking environment in 2023, analysts are optimistic for change in 2024. 

Generative artificial intelligence (GenAI) is already taking the healthcare industry by storm and the momentum is expected to continue in 2024. In the medtech space, GenAI is predicted to improve efficiency and lessen pressure on healthcare professionals and improve patient outcomes.  

There will also be a major impact on product manufacturing in medtech. It can aid with automated development tools that can come up with new ways to design treatments, as well as accelerate time to market for physical products.  

According to an expert call in our platform, genAI is a long-term tailwind for medtech. Though we are still in the early stages of its full impact and implementation, proper utilization of generative AI in the medtech space will enable healthcare providers to spend more time on higher-value tasks, reduce cost and time drain in hospitals, and improve patient outcomes. AI is also not expected to harm the medtech space in any way—in fact, resistance to AI adoption is what is most likely to negatively affect companies.  

The Covid-19 pandemic accelerated the uptake of telemedicine, and the digital therapeutics market is also booming. Both sectors are highly lucrative markets and new devices are hitting the marketing at an accelerated pace. This will continue in 2024 and there are many opportunities for companies to innovate, while easing pressure on hospitals and healthcare facilities.

Overall, the outlook for the medtech industry in 2024 is positive. Company valuations now exceed pre-pandemic levels, and analysts forecast continuous growth and margin improvement in the coming years. Additionally, macro trends—such as an aging population, increasing access to healthcare, and technological advances—are setting the stage for even more innovation and investment in this space.  

Following the pandemic, hospitals are also returning to normalcy and there is a renewed focus on creating the smart hospitals of the future. Diagnostics firms are also expected to have a comeback after revenues declined following the pandemic boom.  

The positive sentiment in medtech means there are many opportunities for companies to continue innovating. With new technologies disrupting the space, the time is now for industry to build a lasting strategy around growth and resilience.