MedTech Industry Sees Record Growth and Increased M&A Activity

NEW YORK, Oct. 19, 2026 /CourierPR/ -- The global medical technology (MedTech) industry is experiencing a resurgence, with key figures indicating robust growth and significant investments. According to the 20th edition of the Ernst & Young LLP (EY US) Pulse of the MedTech Industry report, the broader MedTech sector is at a turning point, seeking to optimize its portfolios, differentiate its technology, and enhance research and development (R&D) efforts.

In the first half of 2026, MedTech saw a significant increase in deal size, with merger and acquisition (M&A) value up by 160% compared to the same period in 2025. This surge reflects investments in next-generation technologies, including AI-enabled diagnostics, robotics, structural heart, diabetes care, and minimally invasive therapies. The report highlights that the industry is increasingly moving beyond traditional care settings, capturing growth in alternative care markets, particularly the rapidly expanding ambulatory surgery center (ASC) market and direct to consumer/patient segments.

The MedTech industry reached a revenue high point in 2025, with a total of approximately US$650 billion, representing a growth of 11% from the previous year. In the first half of 2026, the sector generated $325 billion in revenue, marking a 7.1% increase compared with the same time period in 2025. Therapeutic devices led the industry growth, followed by non-imaging diagnostics, imaging, and lab equipment and tools. However, growth was highly concentrated among commercial leaders, highlighting a widening performance gap across the industry.

MedTech financing reached a record US$63 billion for the year ended June 30, 2026, up 87% year over year, the highest seen in the last decade. Initial public offerings and debt accounted for around 80% of total capital raised, indicating that the recovery has been driven primarily by public-market reopening and strategic balance sheet financing rather than broad-based funding strength.

MedTech M&A reached its highest level in more than a decade, with total disclosed deal value surging to roughly US$130 billion. However, this recovery was driven by a limited number of blockbuster transactions. Innovation remains at the core of MedTech's heartbeat, with growth largely driven by a breakout group of high-performing, high-differentiation, high-innovation strategic leaders. Companies that delivered both high R&D productivity and EBIT margin expansion generated an average total shareholder return of approximately 13.8%.

AI is reshaping the future of value creation in MedTech, unlocking new business opportunities and scalable value creation alongside a record and growing number of FDA-authorized AI-enabled devices. The industry is increasingly integrating AI into devices and the care pathways around them, with hardware design, clinical evidence, and manufacturing quality being complemented by the quality of the algorithms, data, and digital services surrounding the product.

The report suggests that MedTech is entering a new era of growth, with challenges serving as catalysts for industry transformations. Companies are navigating margin pressure, supply chain risk, and global trade uncertainties, with the leaders of the next decade expected to embrace AI, make more deliberate portfolio choices, and build productive, resilient operating models that turn innovation into sustained growth and value.