EY report says MedTech growth driven by commercial leaders, AI and expanding into new care settings

The latest EY Pulse of the MedTech Industry report looks at the period from 2025 through the first half of 2026. It finds that innovation has spurred more dealmaking and R&D spending, while artificial intelligence is shaping how value is created. The sector is also extending its reach into alternative care settings.

Revenue reached roughly $650 billion in 2025, reflecting an 11% increase year over year. In the first half of 2026 the market generated $325 billion, a 7.1% rise compared with the same period a year earlier.

Therapeutic devices were the primary source of growth, followed by non‑imaging diagnostics, imaging equipment, and laboratory tools. The report warns that this growth is heavily concentrated among a few commercial leaders, widening the performance gap across the industry.

Despite a tough operating environment marked by lingering investor skepticism and global trade and supply‑chain uncertainties, the medtech sector has achieved a revenue high point and continued to expand.