Beyond Innovation: What EY’s 2024 MedTech Report Reveals About Marketing in a $587B Industry

The 2024 EY Pulse of the MedTech Industry Report reveals a sector at a crossroads, facing both unprecedented challenges and remarkable opportunities. While the industry reached US$587 billion in 2023, growth has slowed to 3.8% – its lowest rate since 2017. For marketers serving this complex industry, understanding these shifts is crucial for developing effective strategies in 2025 and beyond.

Shifting Commercial Landscape

The report highlights a significant divide between industry leaders and emerging players. The top 80 companies command 64% of industry revenues, while smaller firms struggle with limited cash reserves and declining valuations. This split requires marketers to develop multiple strategies: supporting larger firms in maintaining market leadership while helping emerging companies achieve visibility with limited resources.

As Deloitte and other industry observers have noted, the traditional B2B marketing playbook for MedTech needs revision. The sector increasingly demands sophisticated omnichannel approaches that can reach multiple stakeholders across various touchpoints.

Key Growth Drivers & Marketing Implications

Several crucial trends are reshaping the industry:

1. AI Integration
   1. The FDA approved a record number of AI-enabled devices in 2023, with applications expanding beyond radiology into numerous therapeutic areas. Marketers must help companies articulate their AI capabilities while carefully navigating regulatory requirements and building trust with healthcare providers and patients.
2. Consumer Health Evolution
   1. The report indicates a growing shift toward direct-to-consumer (DTC) medical devices. Marketing teams need to develop dual expertise in clinical validation and consumer engagement—a challenging balance that requires deep industry knowledge and creative storytelling skills.
3. Value-Based Commercial Models
   1. With input costs rising and margins under pressure, marketing messages must increasingly focus on demonstrating clear economic value alongside clinical benefits. This requires sophisticated content strategies that can effectively communicate complex value propositions to various stakeholders.

Overcoming Marketing Challenges

The report identifies several obstacles that marketers must help their clients navigate:

1. Market Access With China implementing volume-based procurement and other markets tightening access requirements, marketing strategies must be increasingly localized and sensitive to regional dynamics.
2. Stakeholder Complexity Modern MedTech marketing requires simultaneous engagement with clinicians, hospital administrators, payers, and, increasingly, patients. This demands sophisticated audience segmentation and tailored messaging approaches.
3. Digital Transformation Companies need help transitioning to digital-first commercial models while maintaining compliance and professional standards. This includes leveraging data analytics for better targeting and engagement measurement.

Strategic Marketing Priorities for 2025

Based on the report’s findings, MedTech marketers should focus on:

• Developing integrated digital and physical engagement strategies
• Creating compelling value narratives that address both clinical and economic benefits
• Building sophisticated content marketing programs that can serve multiple stakeholders
• Supporting emerging companies with efficient, scalable marketing solutions
• Helping established players maintain market leadership through innovative storytelling

The report also underscores the importance of marketing agility. With market conditions changing rapidly, companies need marketing partners who can quickly adapt strategies and messages while maintaining regulatory compliance.

The Path Forward

The EY report clarifies that MedTech companies face a complex marketing environment that requires sophisticated, multi-channel approaches and deep industry expertise. Success will depend on working with marketing partners who understand both the technical complexities of medical devices and the nuanced requirements of healthcare communication.

Ready to develop a marketing strategy that addresses these industry challenges while positioning your MedTech company for growth? Red Branch Media brings deep industry expertise and creative excellence to help you navigate this complex landscape. Book a consultation today to discuss how we can support your 2025 marketing objectives.

Eric Foutch

Managing Partner at Red Branch Media.

Eric Foutch is a Managing Partner at Red Branch Media, a leading digital marketing agency specializing in SaaS and technology clients. With 12+ years of experience and a track record of driving results, Eric is committed to helping SaaS companies navigate the complex world of digital marketing and achieve sustainable growth.