Juni 25, 2025
New Quarterly Results

Medtech Remains Steady Despite Challenges – Domestic Market Under Pressure

The German medical technology industry entered 2025 with a slight upward trend. According to current figures from the Federal Statistical Office, the industry's revenue rose nominally by 3.4 percent in the first quarter compared to the same period last year. This means that the industry is holding its own in an economically challenging environment after a rather subdued previous year.

 

In 2024, the more than 1,500 medical technology companies in Germany generated total revenue of €41.4 billion – a nominal increase of 2.5 percent compared to 2023. Producer prices rose by 2.7 percent during the same period. Domestic revenue amounted to €13.2 billion (+1.7%), while foreign sales again played a key role at €28.2 billion (+2.9%). The export ratio thus remained stable at 68 percent. The number of employees in the industry grew by 2.8 percent to around 166,000.

 

Dr. Martin Leonhard, Chairman of the Medical Technology Division at the German Industry Association SPECTARIS, views the current development with mixed feelings: "After years of significantly stronger growth rates, we are now seeing the consequences of an increasing investment backlog in the German healthcare system. Medical technology, the growth engine, is stalling, especially domestically. At the same time, high costs and massive bureaucratic burdens are weighing on the profitability of many companies. The announced reduction in bureaucracy is not yet visible in the medical technology sector."

 

A major problem is the strained financial situation of many hospitals and care facilities. Investments in modern medical technology that would directly benefit patient care are often postponed. Leonhard also criticizes the administrative burden caused by the European Medical Device Regulation and the planned blanket restriction on PFAS-based high-performance materials. The latter could lead to numerous established medical devices disappearing from the market due to supply chain problems, even if medical technology were exempt from the ban.

 

International Markets as a Bearer of Hope

Despite all the challenges, the industry remains confident – ​​especially with regard to international sales markets. Exports to other EU countries increased by four percent in 2024, and business with the US – the most important export market – also increased slightly. In contrast, trade with China recorded a decline of 14 percent.

 

"We are observing the geopolitical situation, especially the trade policy between the US and China, with concern," says Leonhard.

 

However, he also emphasizes the continued growth opportunities: "Demographic change, technological progress – for example through AI and robotics – as well as the digitalization and automation of healthcare remain key drivers for our industry. However, in order for companies to exploit their innovation potential, we urgently need a more innovation-friendly framework."

 

Innovation remains strong

German medical technology remains one of the most innovative sectors in Europe. With 1,487 patent applications filed with the European Patent Office, Germany ranked second in 2024, behind the USA (5,995 applications) and ahead of Switzerland (1,045). Leonhard therefore expressly welcomes the recognition of medical technology as a leading industry in the new German government's coalition agreement: "This is an important signal – concrete political measures must now follow swiftly."

 

Source: Spectaris e.V. / Machine translation