The MedTech industry has demonstrated resilience and growth throughout 2024 despite enduring persistent challenges such as supply chain disruptions, regulatory hurdles, and the need to adapt to rapidly advancing technologies. Notably, the Dow Jones U.S. Select Medical Equipment Index grew 10% during 2024, reflecting the sector's ability to adapt and innovate.
Factors Likely to Drive Growth for the MedTech Space in 2025
In 2025, the MedTech industry is likely to experience growth driven by technological advancements and increased demand for personalized healthcare. The integration of artificial intelligence (AI) and machine learning (ML) in diagnostics, medical imaging, and robotic surgery is likely to enhance precision and outcomes, making treatments more effective and efficient.
AI-powered tools are also likely to aid in managing chronic diseases by providing continuous monitoring and early detection, leading to more proactive healthcare delivery. The rise of telemedicine and remote patient monitoring technologies is likely to further expand access to healthcare, especially in underserved areas, fostering growth in the MedTech sector. Per a report by Grand View Research, the global AI in healthcare market size was estimated at $19.27 billion in 2023 and is expected to witness a CAGR of 38.5% from 2024 to 2030.
Another key growth driver will be the increasing focus on minimally invasive procedures and advanced surgical devices. The demand for less invasive surgeries that offer quicker recovery times, reduced complications, and lower healthcare costs will continue to rise. MedTech companies are expected to innovate in robotic surgery, wearable medical devices, and implants that can enhance patient recovery and outcomes. Per a MarketsandMarket’s report, the size of global minimally invasive surgery market in terms of revenue was estimated to be worth $79.3 billion in 2024 and is poised to reach $173.9 billion by 2029, witnessing a CAGR of 17% from 2024 to 2029.
5 MedTech Stocks to Watch Out for in 2025
Per a report by FMI report, the MedTech market was valued at $503.2 billion in 2023 and is likely to witness an estimated CAGR of 4.4% through 2033. Against this backdrop, stocks like Abbott Laboratories ABT, Boston Scientific BSX, Align Technology ALGN, Intuitive Surgical ISRG and Stryker Corporation SYK are expected to beat the market in 2025.
Abbott Laboratories, a global healthcare leader, specializes in developing and commercializing innovative medical devices, diagnostics, nutritional products, and branded generic medicines. Headquartered in Abbott Park, IL, Abbott’s products are used in hospitals, clinics, and homes worldwide, serving a diverse range of patient needs.
Abbott’s Established Pharmaceuticals Division is strategically advancing in biosimilars, leveraging its strong presence in emerging markets to scale a capital-efficient licensing model that brings life-changing medicines to these populations. The company plans to commercialize biosimilars in oncology and women’s health, with the first launches on track for 2025, targeting the fastest-growing segment in the branded generic market. Additionally, Abbott’s Diabetes Care business continues to thrive, driven by the global leadership of its FreeStyle Libre sensor-based continuous glucose monitoring system, which has become a preferred choice for managing both Type 1 and Type 2 diabetes.
With its continued innovation, expansion into emerging markets, and commitment to addressing unmet healthcare needs, Abbott is well-positioned for sustained growth and leadership in the MedTech sector through 2025 and beyond.
ABT’s earnings growth rate for 2025 is pegged at 10.1%. The Zacks Consensus Estimate for the company’s 2025 revenues indicates a year-over-year rise of 7.1%. ABT currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Boston Scientific Corporation is a global leader in medical technology, focused on designing and delivering cutting-edge solutions to address complex healthcare needs. Based in Natick, MA, the company offers a diverse portfolio of products across key areas such as interventional cardiology, endoscopy, urology, and peripheral interventions. Boston Scientific’s innovations are widely utilized in hospitals, clinics, and specialized care centers around the world, improving patient outcomes and enhancing the quality of care.
Boston Scientific continues to expand its global presence, with 41% of 2023 revenues coming from international markets. The company focuses on emerging markets, leveraging strong economic conditions and healthcare growth potential, achieving 16.8% operational sales growth in the third quarter of 2024 despite geopolitical challenges. In the EMEA region, Boston Scientific saw a 14.3% operational sales increase, driven by strong demand for its diverse portfolio and new launches. Notably, the company expanded its leadership in Electrophysiology with Pulsed Field Ablation, complex PCI, and structural heart solutions, including the CE-marked ACURATE Prime Valve for TAVI.
BSX’s earnings growth rate for 2025 is pegged at 12.6%. The Zacks Consensus Estimate for the company’s 2025 revenues indicates a year-over-year rise of 12.9%. BSX currently carries a Zacks Rank #2.
Boston Scientific Corporation Price
Boston Scientific Corporation price | Boston Scientific Corporation Quote
Align Technology is a global leader in medical technology, specializing in innovative solutions for orthodontics and restorative dentistry. Based in California, Align Technology is best known for its flagship Invisalign system, a cutting-edge clear aligner therapy that has transformed traditional orthodontic treatment. Align Technology offers advanced digital scanning technologies through its iTero platform, enabling precise and efficient dental workflows.
Align Technology continues to expand the commercialization of its Invisalign Palatal Expander System, with its launch in Singapore in October 2024. It plans to further extend its availability across the Asia Pacific region. The company also benefits from the strong adoption of Vivera retainers through the DSP platform, clinical training and eCommerce accessories. Additionally, Align Technology has made progress with Invisalign DSP touchup cases, driving growth in the third quarter of 2024. Align Technology’s focus on continuous innovation, coupled with its commitment to advancing digital dentistry, positions it as a leader in enhancing patient care and shaping the future of orthodontic treatment.
ALGN’s earnings growth rate for 2025 is pegged at 9.4%. The Zacks Consensus Estimate for the company’s 2025 revenues indicates a year-over-year rise of 5.9%. ALGN currently carries a Zacks Rank #3 (Hold).
Intuitive Surgical is a global leader in robotic-assisted surgery, specializing in developing and commercializing innovative surgical systems that enhance precision and patient outcomes. Headquartered in Sunnyvale, CA, ISRG’s flagship product, the da Vinci Surgical System, is widely used across hospitals and surgical centers worldwide. The company has consistently demonstrated strong growth, driven by its robust product portfolio, expanding applications, and strategic initiatives.
During the third quarter, ISRG’s da Vinci system placement was higher year over year, which should continue to boost procedure volume growth. Meanwhile, the launch of da Vinci 5 systems brings additional system placement. ISRG received approval for da Vinci 5 in Korea in October. During the third quarter, the company received FDA clearance for an 8-millimeter SureForm 30 stapler. These developments should continue to drive the top line in the future.
ISRG’s earnings growth rate for 2025 is pegged at 14.1%. The Zacks Consensus Estimate for the company’s 2025 revenues indicates a year-over-year rise of 16.9%. ISRG currently carries a Zacks Rank #3.
Stryker Corporation is a leading global medical technology company specializing in developing and commercializing innovative products in the orthopedic, medical and surgical, neurotechnology and spine sectors. Headquartered in Kalamazoo, MI, Stryker’s products are used in hospitals, outpatient centers, and other healthcare settings worldwide. The company has consistently demonstrated strong growth, driven by its robust portfolio of products and strategic acquisitions.
Stryker’s focus on expanding Mako in new patient populations will likely enable the robotic platform’s growth momentum to continue in 2025. Moreover, continued software upgrades like the Q Guidance platform and the addition of technologies to work, along with the platform, should boost adoption. Stryker has also pursued an acquisition-driven growth strategy in 2024, acquiring several companies to enhance its offerings. In August, Stryker acquired care.ai to integrate AI-assisted virtual care workflows, smart room technology, and ambient intelligence solutions, while Vertos Medical expanded its minimally invasive pain management portfolio. With continued innovation, global expansion, and strategic acquisitions, Stryker is poised for sustained growth and strong performance in the coming years.
SYK’s earnings growth rate for 2025 is pegged at 12.1%. The Zacks Consensus Estimate for the company’s 2025 revenues indicates a year-over-year rise of 8.4%. SYK currently carries a Zacks Rank #3.
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Abbott Laboratories (ABT): Free Stock Analysis Report
Boston Scientific Corporation (BSX): Free Stock Analysis Report
Stryker Corporation (SYK): Free Stock Analysis Report
Intuitive Surgical, Inc. (ISRG): Free Stock Analysis Report
Align Technology, Inc. (ALGN): Free Stock Analysis Report
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