From mobility aids to health trackers, robotics, gene editing and AI, the medical technology industry (MedTech) is overflowing with opportunity. Several macro trends point in its favour – an ageing population, rapid adoption of new technologies, and growing access to healthcare worldwide.
One thing remains consistent for growth in this sector: the power of a strong reputation, credibility, and clarity of purpose. This crucial trifecta is critical to win over customers, investors, and patients alike.
The later pandemic years were hard on the biotechnology industry. As inflation rose and costs spiraled, investors shied away, M&A activity tumbled, jobs were cut, and projects shelved. But in the last 12 months, biotech’s outlook has improved considerably.
Rapid technological advancements and groundbreaking innovations – from artificial intelligence to RNA technologies, genetic engineering, and bioprinting – are transforming the sector. This robust innovation pipeline paints a bright picture of the industry’s long-term future, and that’s attracting positive attention.
The top three challenges faced by MedTech firms:
1
Building credibility in the market
MedTech is a highly specialized market already dominated by legacy players. To compete, startups must establish legitimacy with a robust corporate brand, underpinned by a clear and tangible purpose.
2
Fending off the competition
Large MedTech companies have their own problems – they have been struggling with growth, a challenging M&A market, and stagnant valuations. Established players must exploit their reputation and scale to keep the growing competition at bay, while optimizing synergies within their portfolios.
3
The talent crisis
Big or small, MedTech firms are grappling with a shortage of specialized talent. To attract, engage and retain staff, businesses must motivate and unite their workforce with a sense of meaning and direction.
Ready to drive your business forward?
Contact Ludo Duursma, Managing Partner, Health, to identify how you can leverage new opportunities in the MedTech sector for business growth.