McKinsey – What to expect from medtech in 2024

In 2023, the medical technology (medtech) industry experienced positive outcomes such as exceeding revenue growth expectations, record product approvals, and companies focusing on their core capabilities through divestitures. However, the popularity of glucagon-like peptide-1 (GLP-1) drugs for weight loss caused investors to shift away from obesity-related device stocks. Additionally, profitability did not meet investor expectations, with a growing emphasis on margins for valuations. International performance remained challenging for companies, particularly outside of the United States. This marked the fourth consecutive challenging year for the medtech industry after a prosperous period from 2012 to 2019. Following the publication of the comprehensive report "Medtech Pulse: Thriving in the next decade" in September 2023, McKinsey has spoken to more than 200 medtech executives. Drawing from these conversations, McKinsey proposes seven predictions about the evolving industry landscape in the coming year. The first prediction is that industry growth will stabilize at a higher level than the pre-pandemic average. The COVID-19 pandemic accelerated growth in the medtech industry, and although patient volumes dampened in 2023, factors such as demographic shifts and innovative technologies addressing unmet needs are expected to drive continued growth. Patients accessing new technologies also contribute to this growth.