The MedTech imperative: winning the next decade

The 20th edition of the EY Pulse of the MedTech Industry Report captures the medical devices sector at both a high point and a turning point.

US$650b in revenues in the last calendar year
MedTech financing reached a record US$63b in the 12 months ending June 30, up 85% YoY
119% uptick in the number of venture capital financing rounds
Dealmaking reached US$130b, more than triple the previous year
Five mega-deals of over US$10b in value
Average deal size increased from US$0.9b in H1 2025 to US$2.1b in H1 2026
Innovation is thriving: premarket approvals surged 28%

MedTech industry growth reaches record levels:

MedTech is a transformed industry. Having weathered financial upheavals, pandemics and geopolitical turmoil over the last two decades, the MedTech industry in the US and Europe still generated US$650b in revenues in the last calendar year — up 11% — with the first six months of 2026 witnessing a further 7% surge in the year-on-year (YoY) topline. Moreover, between July 2025 and June 2026, both financing and M&A investment reached the highest 12-month totals recorded in the history of this report.

The growing divide in MedTech performance:

The current, blockbuster investment levels signal the turning point MedTech is experiencing. Recent years have seen the emergence of a two-tier MedTech industry, as a breakout group of high-performing, high-differentiation, high-innovation strategic leaders pull away from the larger group of companies which constitute the broader sector. For companies outside this outperforming cohort, there are more concerning signs. Fifty percent of these companies are still operating with two years or less of cash reserves available.

How MedTech companies can sustain long-term growth:

As this report has always highlighted, innovation remains the sector’s heartbeat. In today’s complex operating environment, MedTech companies need to follow the leading practices modeled by industry leaders. The biggest strategic challenge is remaining at the forefront of innovation, while also building capabilities, capital allocation and communication strategies to convert innovation into ongoing profitable growth. Those who meet this challenge today can keep setting the pace of the industry for another 20 years to come.

Download the report now to learn more about the multiple areas where these strategic moves have become critical to industry value:

Making the right portfolio decisions to secure inorganic growth and investment into core growth areas, while ensuring that divested businesses find the right owners.
Investing effectively in R&D to achieve productivity that genuinely translates into profitability, and improved total shareholder returns (TSR).
Helping companies capture the opportunities from emerging high-growth channels, in particular the booming ambulatory surgical center (ASC) market.
Investing to embed AI into MedTech architecture in ways that can unlock new sources of value rather than just experimenting at the edges of the business model.

Learn more about multiple areas where key strategic moves have become critical to industry value:

Making the right portfolio decisions to secure inorganic growth and investment into core growth areas, while ensuring that divested businesses find the right owners.

Investing effectively in R&D to achieve productivity that genuinely translates into profitability, and improved total shareholder returns (TSR).

Helping companies capture the opportunities from emerging high-growth channels, in particular the booming ambulatory surgical center (ASC) market.

Investing to embed AI into MedTech architecture in ways that can unlock new sources of value rather than just experimenting at the edges of the business model.

For more information

Photographic portrait of john babitt

John Babitt
EY Global MedTech Leader, Partner

Photographic portrait of Diana hoff

Diana Hoff
EY Americas Life Sciences Sector Leader, Partner

Pulse of the MedTech Industry Report 2026 Press Release

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