Porsche Consulting: Medtech CEOs Must Act Now to Outperform the Market
Dr. Roman Hipp, Senior Partner and Global Head of Life Sciences at Porsche Consulting, has released a new analysis of the global medtech sector. The study examines the financial performance of the world’s 100 largest medtech companies and offers strategic recommendations for CEOs aiming to achieve market outperformance.
“CEOs who seek to outperform the market need to act now.”
Key findings reveal that while the medtech sector has experienced an average revenue growth of 3.7% since 2021, cost-side economies of scale have not been realized. This has led to declining margins, signaling a need for strategic action.
Market Dynamics
The study highlights the dominance of U.S.-based companies in the medtech market, with European competitors often struggling to match their financial performance. The experts at Porsche Consulting attribute strong sector growth to demographic shifts and rising prosperity in key regions, along with the impact of the COVID-19 pandemic. However, they also point out to the significant pressure created by rising costs and a combination of geopolitical and regulatory dynamics.
Four Crucial Fields of Action for Medtech CEOs in 2025:
The report identifies four critical areas for medtech CEOs to focus on:
- Innovation: Speed as a Competitive Edge The acceleration of product development is paramount. Medtech companies must reduce their product development timelines, which currently can extend to a decade. The study recommends a system-oriented approach, virtualization of prototype creation, and emphasis on software to improve interoperability.
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Production and Supply Chains: Lowering Costs, Raising Profit Margins The study emphasizes the need to optimize production costs through measures like balancing personnel expenses, strategic sourcing, and a focus on efficient production networks. CEOs need robust and flexible supply chains to handle geopolitical and regulatory demands. A clear focus on optimizing global footprints, particularly within the Asia-Pacific region, is also recommended.
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Digital Transformation: Prioritize Execution and Scaling Most medtech companies still need to capitalize on the potential of digitalization. Porsche Consulting advises systematic investments in AI, viewing software as a medical device (SaMD) as its own business field, and building partnerships and ecosystems to meet the rising technological demands.
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People: The Key to Achieving Ambitious Goals The sector faces a growing need for skilled workers, particularly those with digital expertise. The report stresses the importance of enhancing employer attractiveness to recruit and retain top talent.
APAC Market Strategy
The report highlights the potential of the Asia-Pacific (APAC) region as a growth market. While the APAC market as a whole may not outperform the U.S. or Europe in the near future, the experts recommend focused regional production strategies for the key markets of China, Japan, South Korea, and India.
Quality and Digitalization
Quality control and digital revenue streams are also of utmost importance. The study underscores the need for companies to create and maintain high-quality products, especially in the face of increasingly stringent regulatory oversight by bodies such as the FDA. Furthermore, the report notes that the implementation of AI in the MedTech sector can lead to significant cost reductions across functional areas.
By focusing on these four areas, medtech CEOs can position their companies for success, improve market capitalization, and capitalize on the opportunities that lie ahead.
