As healthcare stocks continue to outperform other sectors, we narrow in on one field that has seen growing interest from funds – medtech. In this report, we draw attention to the evolving data landscape for tracking medical device utilisation by revisiting key vendors, evaluating data collection methodologies and highlighting alternative data from emerging markets.

Movements in medtech

As the demand for sophisticated technology rises, investing in medtech presents an exciting opportunity for significant returns. With innovative technologies and data-driven solutions revolutionising healthcare, the potential for growth across the medical technology landscape offers exciting investment opportunities - analysts predict a 34% increase in healthcare investments in 2024, totalling almost $900 bn. Below, we highlight two developments in the wider healthcare space that underscore the importance of monitoring the medical device market.

A boost from artificial intelligence

Despite an inconsistent flow of approvals for novel medical technologies (specifically as part of the FDA’s De Novo Pathway, rather than an overall figure for newly licensed devices), the number of approvals aided by artificial intelligence and machine learning has seen considerable year-on-year growth (see figure below). In particular, specialist manufacturers within imaging and diagnostics (including Siemens Healthineers, Philips Healthcare and GE Healthcare) are expected to benefit the most by incorporating AI/ML-assisted technologies. One example is the use of AI to facilitate the detection of abnormal tissue growth in patient samples. Therefore, we can expect to see a shift in market dynamics between key players based on the readiness and relevance of AI adoption.