As the year draws to a close, major analytics firms traditionally share their view on where the medtech industry is heading and what to expect in the near future. We have gone through these reports and distilled the essentials: from the explosive growth of AI in medical devices and the portable tech market to regional regulatory specifics and shifting investment priorities. This article brings together the key figures, insights, and directions that will shape medtech over the coming years.
In short, the global medical technology market is entering a phase of qualitative change: traditional devices are being augmented by digital services, artificial intelligence, and remote monitoring tools. Rising demand in Asia, the expansion of home-based care models, the adoption of digital twins, and the rapid development of portable solutions are turning the sector from merely high-tech into a truly transformative force for healthcare as a whole.
In a recent report on the state of the global medtech market, the research company TowardsHealthcare estimates the global medical device market at USD 586.2 billion in 2025, with a forecast of USD 1.08 trillion by 2035 (CAGR ~6.3%). Extrapolating this growth rate suggests a market size on the order of USD 620 billion in 2026.
At the same time, North America accounted for the largest share of the market in 2024. Analysts expect the fastest growth over the coming years to come from the Asia–Pacific region. The diabetes care services segment is projected to show the highest average annual growth rates in the near term.
TowardsHealthcare also separately highlights the impact of AI on the medical devices market: “The global AI in medical devices market size is calculated at US$ 22.29 billion in 2024, grew to US$ 32.21 billion in 2025, and is projected to reach around US$ 886.39 billion by 2034. The market is expanding at a CAGR of 44.53% between 2025 and 2034.”
One of the key challenges they point to is the lack of a regulatory framework that reflects current realities in some developing countries. Many African states, for instance, lack the expertise and resources to regulate medical devices and often rely on approvals from European or US regulators. “This affects local manufacturers, as compliance costs can be prohibitively high, and device use does not always align with local needs and priorities,” TowardsHealthcare notes.
Researchers at US-based Future Market Insights Inc analyse the portable medical devices segment and note that it is set to grow from USD 72.5 billion in 2025 to USD 191.1 billion by 2035 (CAGR ~10.4%) – almost twice as fast as the medical device market as a whole.
The firm’s experts point out: “Key market growth factors include the development of smaller and AI-enabled medical devices, increasing healthcare expenditure, and initiatives taken by the government to promote remote patient monitoring. The surge in telehealth services and digital healthcare platforms is also driving demand for portable medical diagnostic and therapeutic devices in hospitals, clinics, and home-care settings.”
The market for portable ultrasound systems is expanding rapidly. These devices provide real-time, bedside imaging and are used in intensive care, emergency medicine, sports medicine, obstetrics, and gynaecology. They help detect pathology earlier, support more precise treatment control, and reduce costly hospital admissions, although they still face constraints related to imaging depth, operator dependence, and price – particularly in low-income countries.
There is also visible growth in portable oxygen concentrators, which have become a staple tool for chronic respiratory diseases (COPD, asthma, pulmonary fibrosis) and home-based therapy. Unlike traditional cylinders, they extract oxygen from ambient air and do not require refilling, while modern models come with Bluetooth-enabled monitoring, remote flow adjustment, and AI-based optimisation of oxygen delivery. Persistent challenges include noise levels, battery life, and cost.
In terms of use, the largest application segments are cardiology and respiratory care. Wearable and portable ECG monitors, Holter systems, blood pressure monitors, and AI-enabled devices make it possible to track heart rhythm continuously and remotely, detect arrhythmias, and manage heart failure, lowering the risk of stroke and acute events. In respiratory medicine, portable spirometers, peak flow meters, and capnographs help patients and clinicians monitor lung function, spot deterioration earlier, and respond more quickly in emergencies. The main challenges here involve calibration accuracy, patient adherence, data protection, and meeting regulatory requirements.
Ernst & Young (EY), in its report Pulse of the MedTech 2025, projects that by the end of this decade, up to half of the revenue of major medtech players may come not from “hardware”, but from software, data, and subscription-based services.
Looking at the 2025–2026 horizon, EY expects a surge in AI-enabled imaging and diagnostics, growth in home monitoring and “hospital-at-home” models, active deployment of robotic surgery and navigation, and the first commercial use cases of digital twins for treatment planning.
The firm’s experts emphasise that capital is flowing into the industry unevenly: funding is concentrating around high-promise assets – in particular robotics and cardiovascular devices, which account for most of the top 10 venture deals in the US and a significant share in Europe.
At the same time, EY stresses that companies combining product innovation with advanced data/AI tools, flexible operating models, and a patient-centred approach are better positioned to weather crises and market swings. Their revenue and profits tend to grow more steadily, and their technologies deliver a tangible impact for patients – earlier diagnosis, fewer complications and readmissions, and better quality of life.
A few words on the Chinese market. A recent report by Fortune Business Insights on China’s medical device market values it at USD 40.31 billion in 2024 and forecasts USD 43.67 billion in 2025 and USD 82.02 billion by 2032 — a CAGR of 9.4%, i.e. almost one and a half times faster than the global medical device market. At this pace, the market size in 2026 would be in the range of USD 47–48 billion.
Despite government efforts to streamline approvals, complex regulation in China still creates barriers for both domestic and foreign medical device manufacturers. The China National Medical Products Administration (NMPA) requires multi-stage clinical studies and technical tests, which often delay market entry, especially for Class II and Class III devices.
In terms of market structure, the largest share of the Chinese medical device market in 2024 belonged to the in vitro diagnostics (IVD) segment – tests and assays performed on blood, urine, tissue and other samples outside the patient’s body. This is driven by the growing prevalence of infectious diseases in the country, such as HIV, hepatitis and others. Diabetes care also remained an important segment in 2024, with growth fuelled by rising demand for home monitoring devices such as glucometers.
As noted above, demand for medical devices is currently highest in the Asia–Pacific region. A separate GlobalInsight report on the laboratory testing market in this region values it at USD 25.5 billion in 2023, with a forecast of USD 51.9 billion by 2033 (CAGR ~7.4%).In a March 2025 report on AI in medtech in Asia–Pacific, consulting giant KPMG describes the region as a testing ground: competition between healthcare systems is intense, while regulation around pilot projects is less stringent than in Europe. Expectations for 2025–2026 include pilots and scaling of AI in radiology, robotic surgery, remote monitoring systems for cardiovascular and oncology patients, as well as the integration of such solutions into insurance products.
