The medical technology industry is poised for another year of significant change in 2025. From the growing dominance of Intuitive in robotic surgery to the potential impact of a new administration, these five predictions highlight the critical trends that will shape the landscape.
Companies that can navigate these trends effectively will be well-positioned for success. The industry is dynamic, innovative, and ripe for growth, creating an exciting environment for both businesses and healthcare professionals. One thing is certain: 2025 will be a year to watch closely as these predictions unfold.
However, the road ahead isn’t without its bumps. Medical device companies are facing a unique blend of opportunities and challenges, from navigating economic uncertainties to dealing with a new political landscape.
Analysts are cautiously optimistic. While there are unknowns, the core fundamentals are strong: procedure demand is healthy, consumer sentiment is positive, and unemployment is low. But what key trends should we be watching this year? Let’s dive into five major predictions that could shape the MedTech landscape in 2025:
- The robotic surgery arena: intuitive vs the field – can anyone catch up?
US firm Intuitive Surgical, with its flagship da Vinci robotic system, has reigned supreme in the soft tissue surgical space for nearly two decades. The launch of the da Vinci 5 in 2024 was a resounding success, outperforming even the most optimistic predictions. But the question looms: can anyone truly challenge Intuitive’s dominance?
While intuitive still holds a significant lead, the field of robotic surgery is expanding, with more than 50 different robot systems in the US alone while in the UK, there is a growing number of players, including CMR Surgical, Automata, Moley Robotics, and Touch Surgery.
The path to challenging the dominance of Intuitive is a long one. Even the largest players like Johnson & Johnson and Medtronic do not have their major systems on the US market. This sets the stage for another year of Intuitive Surgical’s dominance, where the performance of the da Vinci 5 will be watched closely, particularly as the full launch is anticipated later in 2025.
- Dealmaking momentum: M&A spending remains strong
The medical device industry witnessed a surge in mergers and acquisitions (M&A) activity in 2024, rebounding from a couple of slow years. This trend seems set to continue in 2025. Major players like Stryker, with their nearly $5 billion acquisition of Inari Medical, and Boston Scientific, who continues to expand its portfolio, are leading the charge.
Several factors are contributing to this M&A resurgence: declining valuations make acquisitions more attractive, and lower interest rates ease the cost of borrowing. As companies look to expand their market reach and technological capabilities, expect to see more deals taking place.
Experts predict that large players like Stryker, Boston Scientific, Simmer, and Medtronic will be the most active spenders. The robotics space, with its high growth potential, could also see a flurry of acquisitions, as well as structural heart and PFA segments. We can expect not only large deals, but also portfolio trimming as companies look to focus on core strengths.
The arrival of the Trump administration could further fuel the M&A fire. The previous administration was seen to be more open to acquisitions than the Biden administration, whose lengthy regulatory review timelines may have deterred some companies. A shift in administration, therefore, could remove the shackles on dealmaking for some MedTech companies.
- Trade wars and geopolitical storms: navigating the Trump administration
The “America First” policy of the previous Trump administration prioritized domestic businesses, leading to the imposition of tariffs on imports from various nations, including allies. This approach significantly deviated from established trade norms.
For UK MedTech startups exporting to the US, a resurgence of tariffs would fundamentally alter their cost structures, potentially impacting profit margins, pricing strategies, and overall competitive standing within the American market. Specifically, sectors like technology, healthcare, and manufacturing exports from the UK could encounter higher barriers to entry due to both increased tariffs and potentially more complex regulatory hurdles.
However, President Trump has also expressed a favourable view toward the UK post-Brexit, suggesting the possibility of a bilateral US-UK trade agreement. Such an agreement could provide UK startups and small businesses with distinct advantages in the US market, facilitating increased cross-border sales and fostering growth.
A potential Trump administration could bring changes to US technology policies, which would be a critical consideration for UK MedTech startups. Trump’s past positions on digital taxation, tech industry regulation, and data privacy laws could impact UK MedTech companies that engage with U.S. customers, clients, or partners.
More restrictive policies regarding intellectual property (IP) rights and cross-border data flows could create operational challenges for businesses reliant on US-based data servers, technology platforms, or software solutions. Conversely, a renewed emphasis on US innovation and digital transformation could also generate opportunities for international collaborations and partnerships, potentially benefiting UK MedTech startups seeking to expand into the US market.
- PFA: The success story continues
Pulsed field ablation (PFA) was undoubtedly the star of the show in 2024, and its momentum is poised to continue in 2025. This innovative technology is revolutionising the treatment of atrial fibrillation by using nonthermal electrical energy to target heart tissue, offering a potentially safer and more effective alternative to traditional methods.
Companies like Medtronic, Boston Scientific, and Johnson & Johnson have all launched or received approvals for their PFA products, with many showing strong uptake from physicians. The technology is proving popular, and a recent study suggests that PFA volumes will soon overtake traditional radiofrequency ablation (RFA) procedures in 2025.
Analysts are optimistic that this isn’t just a share shift, where one company benefits at another’s expense. They believe this is a highly under-penetrated market, where all companies are currently poised to win. The field is expanding rapidly and companies will look to consolidate their positions with additional product launches and new data.
- Renal denervation: A potential market transformation?
While PFA is currently grabbing headlines, renal denervation is a rising star in the MedTech sector. This procedure, which targets renal nerves in the kidneys to lower blood pressure, has the potential to transform the treatment of hypertension, especially for patients who do not respond to traditional medications.
Medtronic and Recor Medical are the only companies with FDA-approved devices currently on the market. While there were initial questions about insurance coverage, transitional pass-through payment coverage granted by Medicare is opening the door for wider adoption.
Experts believe this could become a $1billion market and could be “MedTech’s GLP-1 moment” by addressing a large patient population with a solution which could be considered “curative”.
While it might not be another PFA year in 2025, the longer-term opportunity is massive. Once reimbursement is established, this market has the potential to be significantly larger than PFA in the long run.
