tariff and trade uncertainty. The report highlights robust fundamentals, including a 16% surge in venture capital investment and rising average M&A deal sizes, signaling continued confidence and innovation in the sector. 

High-performing companies in areas such as pulse field ablation, structural heart, robotics, and diabetes are driving market expansion, supported by digital and AI-enabled capabilities. EY noted that while total M&A spending fell below historical averages, deal values grew, indicating a strategic shift toward fewer but larger transactions.

“Encouraging fundamentals, along with strong balance sheets, are creating new opportunities for MedTech to continue to thrive,” said Arda Ural, EY Americas Life Sciences Sector Leader. John Babitt, EY Global Medical Technology Leader, added, “The sector is proving to be a safe harbor within the relatively underperforming broader health care industry.” The report outlines five strategic priorities for future success, including capital allocation, trade strategy, business model innovation, and AI adoption. EY emphasized that organizations combining innovation with advanced data tools are best positioned to deliver sustained growth and better patient outcomes worldwide.

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