The wider medtech industry saw only 2% growth in 2015, and medtechs in established markets face continued low growth for the next three to five years. The medtech M&A bonanza continued into 2015 and there is no end in sight in 2016 as manufacturers seek to augment and fine-tune portfolios to meet the new demands of payers and providers; longer term, there are signs of a change in the top global medtech rankings.

The M&A bonanza for companies in the medtech sector continued into 2015 and there is no end in sight in 2016 as manufacturers seek to augment and fine-tune portfolios to meet the new demands of payers and providers. Longer term, there are signs of a change in the top global medtech rankings.

The global medtech industry may be facing slow growth, rising regulatory demands and not exactly free-flowing venture capital investment. But EY finds reasons for optimism and sees opportunities for companies able to cope with the changes and move with alacrity.

For the first time in five years, large cap, mid cap and financial buyers are all showing a willingness to acquire medical device companies thanks to improving credit markets and strong cash reserves.