Navigating the Future: Key Trends Shaping the Medical Devices Industry (Part 1/2)

This is the first part of a two-part series. Authors - Jay Kumar and Mauri Rosenthal, Co-Leads, Medical Device and Diagnostics Life Sciences Sector at Harvard Business School Alumni Angels of Greater New York. Are you an entrepreneur seeking angel funding? Learn more about how to apply to pitch to the HBS Alumni Angels of Greater New York.

The global medical devices industry is undergoing a dynamic transformation, driven by a combination of demographic shifts, technological innovations, and evolving healthcare delivery models. Valued at approximately USD 640 billion in 2024, the industry is projected to reach USD 1.1 trillion by 2034, growing at a steady CAGR of 6%. With the United States accounting for 40% of the global market, and Asia-Pacific emerging as a major growth driver, the sector presents both vast opportunities and significant challenges.

Growth Drivers

One of the most influential tailwinds is the aging global population and the corresponding rise in chronic diseases, such as diabetes, cardiovascular conditions, and neurodegenerative disorders. This has led to increased demand for advanced diagnostics, minimally invasive procedures, and long-term care solutions. Improved access to outpatient healthcare services—particularly in the U.S.—is also reshaping care delivery and device usage patterns.

In emerging markets, economic development and a growing middle class are expanding healthcare access, further fueling demand for affordable, scalable, and innovative medical solutions. Meanwhile, regulatory pathways, including continued FDA approvals and clearances, have maintained a relatively supportive environment for innovation. The creation of new reimbursement codes also facilitates the adoption of emerging technologies.

Headwinds and Challenges

Despite robust growth, the industry faces several headwinds. Hospitals and payors are increasingly focused on value-based care, leading to price pressure on manufacturers. Additionally, the growing popularity of GLP-1 weight-loss drugs may reduce demand for some device categories related to obesity, diabetes, and cardiovascular treatment.

European regulatory challenges, rising input costs, decreasing government research grants, and the commoditization of some device segments are also concerns. These factors are accelerating industry consolidation as companies strive to maintain profitability and scale.

Technology and Innovation Trends

Technological advancement remains the cornerstone of progress in the sector. Robotic surgery is seeing rapid adoption, offering greater precision and automation in operating rooms. Similarly, miniaturization and flexible systems are enabling less invasive procedures, while neurotechnology is revolutionizing treatments for conditions like Parkinson’s disease, epilepsy, and depression.  Continued innovation for imaging modalities enable more complex and safer diagnosis and surgical or interventional procedures. 

Neuromodulation technologies—such as deep brain stimulation (DBS), transcranial magnetic stimulation (TMS), and neurofeedback—are providing more personalized and adaptive treatment options. Brain-computer interfaces are also gaining traction in restoring motor function and developing assistive devices.

The rise of wearables and home monitoring tools (e.g., smart toilets, blood pressure monitors, ophthalmic sensors) is enabling more efficient telehealth and remote diagnostics. Not only is the locus of care shifting, but continuous/ more frequent monitoring offer potential benefits for identifying conditions and managing therapeutic interventions in a manner that should drive superior patient outcomes.  In parallel, 3D printing is transforming how prosthetics and implants are customized, offering personalized and cost-effective care.  3D printing and expansion of contract design and manufacturing also reduce the cycle time for device innovation, adding to the potential impact of startups as they leverage new product development dynamics.

Materials science also continues to move forward, with better biocompatibility, superior resorption profiles when relevant, and surgical tools and implants which enable complex minimally invasive procedures.

Finally, the integration of AI and machine learning in medical technologies—such as in radiology and diagnostics—is significantly improving accuracy and speed. While many innovations are incremental, particularly in cardiology, orthopedics, and imaging, their collective impact is reshaping patient care across the board.

Conclusion

The medical devices industry stands at a pivotal moment, where technological innovation, regulatory evolution, and market demands are reshaping its landscape. Companies that can adapt to emerging challenges while leveraging these transformative trends are well-positioned for long-term success in this high-growth, high-impact sector.

Are you an entrepreneur seeking angel funding? Learn more about how to apply to pitch to the HBS Alumni Angels of Greater New York.

About the authors:

Jay Kumar co-leads the Medical Devices sector at HBS Alumni Angels of NY along with Mauri Rosenthal. Currently he oversees an investment firm. Previously, he was a Principal in the healthcare practice of a strategy consulting firm, and was involved in his family's manufacturing businesses overseas. Jay holds an MBA from Harvard Business School and BS Mechanical Engineering from MIT. 

Mauri Rosenthal - Mauri Rosenthal is an early stage investor with 4 decades of experience evaluating and developing new medical technologies. His 30+ year career at Pfizer was split between specialty Medical Devices and Pharmaceuticals, with high impact on building leading product positions in a wide range of therapeutic areas. Mauri holds an MBA from Harvard Business School and a BS in Life Sciences from MIT.