Industry Webinar Recap
The MedTech industry stands at a historic inflection point. Economic volatility, rising regulatory demands, and transformative technology advances are challenging traditional business models. But for those willing to adapt, the path forward is filled with opportunity.
In a recent industry webinar, Sandra K. Rodriguez, Senior Industry Analyst at Axendia, and Dave Hadfield, MedTech Director at Kalypso, shared a vision for how future-ready MedTech organizations can thrive.
The State of MedTech 2025
The future of MedTech includes connected ecosystems, digital health platforms, and intelligent devices that create value across the entire lifecycle. The industry finds itself in an outrageously explosive period of opportunity. “The base MedTech industry is growing, but digital health is growing even faster. When you combine the two, we’re talking about a $3–4 trillion market opportunity by 2035,” explained Hadfield.
Digital health, which includes AI-powered diagnostics, connected devices, remote monitoring, and real-world data generation, is outpacing traditional device growth with a projected CAGR of 20–25%. This segment alone could soon rival or even surpass the pharmaceutical industry in size.
Innovation vs. Complexity
While the growth potential is undeniable, regulatory complexity isn’t slowing down, it’s accelerating. With global divergence across the U.S., EU, and Asia, MedTech companies must navigate a patchwork of evolving frameworks, all while trying to accelerate innovation.
Yet even as companies innovate, the reality is that digital transformation initiatives must overcome legacy systems, cultural silos, and outdated manufacturing infrastructure. Companies aren’t just trying to modernize, they’re trying to leap into the future while managing increasing cybersecurity threats and supply chain reshoring.
One of the webinar’s central messages was that transformation isn’t just about new technology—it’s about aligning people, strategy, and execution. “Successful companies don’t treat transformation as an IT initiative,” emphasized Rodriguez. “They approach it as a business and organizational strategy and tech comes last, not first.”
The Strategic Power of the Digital Thread
The webinar’s second half dove into the concept of the digital thread, a seamless flow of data that connects R&D, manufacturing, quality, and post-market surveillance.
A true digital thread creates continuity, context, and control. It enables real-time decision-making, predictive analytics, and ultimately, better patient outcomes. Rockwell Automation and Kalypso help clients implement digital thread strategies across the MedTech value chain. Hadfield emphasized that successful transformation depends on more than IT integration, “It’s about aligning people, processes, and platforms. We help clients prioritize what matters most – starting with business strategy, not tech selection.”
When asked about leading companies, both experts highlighted standout performers:
“Abbott Labs, Fresenius Medical Care, and Johnson & Johnson are all excelling in digital transformation,” said Hadfield. “They treat the maturity of their digital thread as a direct enabler of digital health value.” These companies understand that being future-ready means integrating data from R&D, manufacturing, and patient use.
Agentic AI, Digital Twins and Shifting Reimbursement Models
A key area of discussion centered around the explosion of medical knowledge and how AI is changing the playing field. “We’ve gone from spending $3 billion to sequence the first genome in 2003, to doing it for under $1,000 today and soon $100s,” explained Hadfield. “Combine that with billions of clinical records, terabytes of images, and protein structure databases like AlphaFold, and it’s clear no human can keep up.”
That’s where AI comes in. Hadfield forecasted the rise of “Agentic AI”. These are AI systems that operate autonomously on behalf of the patient or provider. “We’ll soon have personal medical agents that know your DNA, medical history, and health behaviors. They’ll offer diagnostic support and connect to your devices, always on, always aware.” This is already impacting MedTech…from smarter diagnostics to precision surgical tools. But it also introduces new challenges in compliance, safety, and patient trust.
Another trend reshaping the industry is the move toward value-based care. Rising healthcare costs are unsustainable under legacy models. That’s why we’re seeing a shift toward outcome-based reimbursement and digital health is a huge enabler. Real World Data/Real World Evidence that digital health technologies enable are key to making this successful.
In the EU, leasing and outcome-based purchasing models are also taking hold. Hospitals are encouraged to adopt bundled contracts with software upgrades and remote monitoring, especially if they align with ESG and innovation goals. This isn’t just a cost issue. It’s about keeping technology current and delivering better care.
Final Thoughts
The webinar closed with three pieces of advice for MedTech executives:
- Codify and communicate your business strategy.
- Consider the $3-4T digital health market in your growth plans.
- Build a pragmatic digital thread roadmap alongside digital health, don’t just deploy isolated tech.
MedTech companies that act now and embrace digital health, align transformation to business outcomes, and build a digital thread will be poised to lead. The future of MedTech isn’t just about innovation, it’s about intention, integration, and impact.
Watch the replay of the webinar on-demand here.
Engage with Axendia
Engage with Axendia to gain the tools and knowledge your organization needs to thrive in the Age of Continuous Disruption.
Stay at the forefront of innovation and technology in life sciences, healthcare, and space-enabled research by connecting with Axendia.
- Follow us on LinkedIn: Join our professional network and stay updated on the latest insights, trends, and case studies. Connect with Axendia on LinkedIn
- Subscribe to Our Updates: Get exclusive insights and thought leadership articles delivered straight to your inbox. Sign up for our newsletter
- Share Your Thoughts: We’d love to hear from you! Contact us to discuss your ideas, challenges, or opportunities. Email Axendia
Let’s drive innovation together!
To discuss how this initiative impacts your organization. Click on this link to schedule an Analyst Inquiry on this topic.
The opinions and analysis expressed in this post reflect the judgment of Axendia at the time of publication and are subject to change without notice. Information contained in this post is current as of publication date. Information cited is not warranted by Axendia but has been obtained through a valid research methodology. This post is not intended to endorse any company or product and should not be attributed as such.