Medical technology companies in the United States and Europe generated about $650 billion in revenue in 2025, EY said, while growth concentrated among commercial leaders widened the industry's performance gap.
Revenue rose 11% from 2024, according to EY's 20th Pulse of the MedTech Industry report. It reached $325 billion in the first half of 2026, up 7.1% from a year earlier. EY said therapeutic devices led that growth.
The divide matters for companies with less room to fund new products or acquisitions. EY said half of the companies outside the leading group had cash reserves lasting two years or less. EY Global MedTech Leader John Babitt said companies across the broader industry need financial discipline to turn innovation into profitable growth.
Deal activity also favored companies able to pursue large transactions. EY recorded roughly $130 billion in disclosed medtech mergers and acquisitions during the 12 months ended June 30, 2026. Five deals were worth more than $10 billion each. Average deal size reached $2.1 billion in the first half of 2026, compared with $900 million in the same period a year earlier.
Companies raised $63 billion in financing over the 12 months ended June 30, EY said. Initial public offerings and debt supplied about 80% of the total. EY's published summaries give conflicting annual growth rates for that financing figure.
PwC's June 17 midyear outlook estimated U.S. medtech deal value for the first half of 2026 at $36.5 billion and said disclosed value was concentrated in relatively few transactions. Its figure covers a different market and period from EY's 12-month measure. PwC linked lower equity valuations to opportunities for take-private deals. Separately, it said buyers were moving into higher-growth categories, including cardiovascular devices, neurostimulation and connected care.
EY identified AI-enabled diagnostics, robotics, structural heart technologies, diabetes care and minimally invasive therapies as investment areas. The U.S. Food and Drug Administration (FDA) said it had authorized more than 1,600 AI-enabled medical devices for U.S. marketing as of September 2026. The agency says its public device list is incomplete.
