Medtech in 2024

How the Industry Regains Momentum

And how Sonicu grows to serve more clients thanks to positive trends impacting many of its key vertical markets 

Beware the Ides of March.

Or, in the case of the medical technology (medtech) world, beware glucagon-like-peptide (GLP-1) drugs.

There was much to hail about 2023 for the medtech industry, including improved revenue growth, a refocusing on core competencies and a record-setting spate of novel-product approvals, there were challenges as well.

However, the headline-grabbing rise of GLP-1 drugs such as Ozempic and Mounjaro lured investors away from companies that sell obesity-related devices–and left medtech as a whole gasping for a share of voice.

Beyond that, profitability failed to satisfy investors during a period where margins have become inextricably linked to valuations. 

Medtech was once again dominated by U.S.-based companies, with the rest of the world largely flagging. 

Sonicu, a leader in both regulated and non-regulated monitoring, enjoyed a record-breaking year of growth as customers from healthcare, life science and education industries adopted cloud-based, wireless temperature and environmental monitoring solutions.

The rise in glucagon-like-peptide (GLP-1) drugs and their role in increasing the value of pharmacy cold storage played a significant role in Sonicu’s continued growth serving the pharmacy industry at large. 

With diverse customers in pharmaceutical distribution, hospital-based pharmacies and retail consumer-faced pharmacies, Sonicu’s technology continues to prove durable and applicable across a wide range of pharmacy applications, driving growth to support the rapid expansion of GLP-1 drugs as well in hospital settings where drug protection is paramount due to rising costs and widespread scarcity. 

Following the seven-year medtech gold rush of 2012-19, 2023 was the fourth successive sideways year for the industry. 

A reversal in value creation despite noteworthy advances is challenging companies to take even bolder steps to rewrite the narrative and, along with it, their course in the face of Wall Street ambivalence and other macroeconomic challenges.

The medtech industry has experienced a surge in growth since the onset of the COVID-19 pandemic, leading to heightened expectations for medtech companies. Sonicu was part of the COVID-19 healthcare growth wave, benefitting from the government mandates for temperature monitoring to protect the record-setting rollout of the vaccines. 

Although the increase in patient volumes attributed to the pandemic subsided in 2023, several underlying factors continue to drive patient demand. 

Demographic changes, including aging populations, coupled with the availability of innovative technologies addressing unmet medical needs in areas such as diabetes, stroke and heart failure, contribute to sustained growth. In almost all of these areas, especially private lab biotech research, Sonicu stands to benefit from the rise in FDA regulated labs needed both temperature and environmental monitoring solutions. 

Moreover, the expansion of care delivery to new and non-traditional settings, such as alternative surgery centers, medical offices and outpatient facilities, further fuels industry growth.

In 2024, the medtech industry is poised for significant developments.

Let’s explore the expectations for industry growth:

1. Stabilized Growth and Segments:
   • Overall medtech revenue growth is projected to stabilize at 100 to 150 basis points above pre-pandemic rates.
   • Cardiovascular health, digital healthcare, and robotics are expected to be among the fastest-growing segments.
2. Profitable Growth Focus:
   • While sales growth remains crucial, profitability and cash flow are gaining prominence.

1. Global Expansion and Consistency:
   • Medtech companies face challenges in performing consistently across geographies, especially outside the United States. Sonicu has a growing international customer base, ranging from Canada to the Caribbean. 
   • The race to serve alternative care settings, medical offices, and outpatient facilities is intensifying. Sonicu's simplicity in deployment and ongoing supports makes it the ideal solution to support remote and satellite locations. 
2. Technological Advancements:
   • In 2023, the US Food and Drug Administration (FDA) approved more novel medical technologies than in any single year previously.
   • Advanced imaging, miniaturization, microelectronics and new treatment modalities, such as renal denervation, are sparking innovation in heretofore underserved diseases. 
   • Innovations in AI, virtual care, and other areas will continue to shape the industry.
   • Sonicu expanded its offerings with additional monitoring solutions, including a wide range of facility monitoring products including open/close door monitoring, leak detection and occupancy monitoring solutions. 
3. Regulatory Landscape Shifts:
   • Regulatory bodies will adapt to technological advancements. 
   • Digital health regulations will streamline approvals for digital health apps, AI algorithms, and wearables.
   • Efforts to harmonize international regulations will facilitate market access for medtech companies.
   • Increased USP 797 and USP 800 regulations present Sonicu with more regulatory tailwinds as customers will be searching for technology solutions to meet these stringent new requirements.
   • Sonicu continues to benefit from a post-pandemic regulatory focus on safety at labs an healthcare facilities, increasing the needs for sensor-and-software driven automation that can lessen the administrative burden on already stressed workforce. 
4. Sustainability and Circular Economy:
   • Medtech companies will focus on environmental responsibility.
   • Eco-friendly materials, biodegradable implants, and sustainable practices will gain prominence

As we move deeper into 2024, the landscape of medtech continues to evolve at an unprecedented pace.

From groundbreaking innovations to regulatory shifts, the medtech industry is poised for significant changes.

Here, we explore the key trends, challenges, and opportunities that await:

1. The Rise of Personalized Medicine

Advancements in genomics, proteomics, and data analytics are ushering in an era of personalized medicine.

In 2024, we can expect to witness:

• Genetic Diagnostics: Companies such as 23andMe and Color Genomics are democratizing genetic testing. Consumers will have access to comprehensive health insights based on their DNA, enabling early disease detection and tailored treatment plans.
• Precision Therapies: Targeted therapies for cancer, autoimmune disorders, and rare diseases will become more commonplace. CRISPR-based gene editing will continue to mature, offering hope for genetic corrections.’
• Sonicu is poised to profit from these opportunities as the research, manufacturing, distribution and administration of these new therapies will likely require robust temperature monitoring. 

2. AI and Machine Learning Revolution

Artificial intelligence (AI) and machine learning (ML) are reshaping medtech in profound ways:

• Diagnostic Algorithms: AI algorithms will enhance diagnostic accuracy across various specialties. Radiology, pathology, and cardiology will benefit from automated image analysis, leading to faster and more precise diagnoses.
• Drug Discovery: ML models will accelerate drug discovery by predicting drug interactions, identifying potential candidates, and optimizing clinical trial designs.
• Sonicu will piggyback this growing opportunity with increased addressable market translating into more opportunities for logo acquisition converting into sustainable customer relationships. 

3. Telemedicine and Remote Monitoring

The pandemic accelerated the adoption of telemedicine, and its impact will persist:

• Virtual Consultations: Telehealth visits will become routine, bridging geographical gaps and improving patient access to specialists.
• Wearable Devices: Smart wearables will monitor vital signs, detect anomalies, and transmit real-time data to healthcare providers. Expect innovations in smartwatches, biosensors, and implantable devices.

4. Cybersecurity Imperatives

As medtech becomes increasingly interconnected, cybersecurity becomes paramount:

• Medical Device Security: Manufacturers must prioritize security by design. Vulnerabilities in connected devices can compromise patient safety and privacy.
• Health Data Protection: Stricter regulations (such as GDPR and CCPA) will govern health data. Companies must safeguard patient information and ensure compliance.

5. Robotics and Minimally-Invasive Surgery

Robotic-assisted surgery will redefine surgical precision:

• Surgical Robots: Companies like Intuitive Surgical and Medtronic will introduce next-gen robots. Surgeons will perform complex procedures with enhanced dexterity and minimal invasiveness.
• Nanobots: Microscopic robots will navigate blood vessels, deliver drugs, and perform targeted interventions.

6. Regulatory Landscape Shifts

Regulatory bodies will adapt to technological advancements:

• Digital Health Regulations: The FDA and other agencies will streamline approvals for digital health apps, AI algorithms, and wearables.
• Global Harmonization: Efforts to harmonize international regulations will facilitate market access for medtech companies.
• Sonicu is poised to capture increased market share as the FDA steps up enforcement of its 21 CFR Part 11 slate of regulations. SoniCloud has deployed a rich feature set focused on helping researchers comply digitally. 

7. Sustainability and Circular Economy

Medtech companies will focus on environmental responsibility:

• Eco-Friendly Materials: Biodegradable implants, recyclable packaging, and sustainable manufacturing practices will gain prominence.
• Extended Product Life Cycles: Companies will explore ways to extend the lifespan of medical devices, reducing waste.

8. Market Growth for Environmental and Temperature Monitoring

In 2024, the outlook for temperature and environmental monitoring products is shaped by various factors.

Let’s explore:

• Global Environmental Monitoring Market:
  • The global demand for environmental monitoring is expected to rise significantly.
    • From $22.71 billion in 2023, it is projected to reach $39.39 billion by 2032, growing at a CAGR of 6.30% between 2024 and 2032.
  • This growth is driven by increasing awareness about environmental issues, regulatory requirements, and technological advancements.
• Temperature Monitoring Devices:
  • The temperature monitoring devices market is also on the rise. It is expected to develop at a CAGR of 6.4% during the forecast period.
    • The market value is projected to increase from $10.7 billion in 2024 to $17.68 billion by 2034.
  • Sonicu delivers best-in-class solutions to serve the healthcare, food safety, and industrial markets

The Sonicu temperature and environmental monitoring system, for example, comprises state-of-the-art technology offering a range of benefits, saving employees time and organizations money by reducing manual processes.

You can learn more about how Sonicu customers trust our monitoring solutions to automate compliance, safeguard essential assets and reduce manual processes: 

MiraVista Diagnostics: Laboratory Monitoring  

https://www.sonicu.com/miravista-case-study-temperature-monitoring

SUNY Downstate: Vaccine monitoring at a physician's clinic

https://www.sonicu.com/suny-downstate-pediatrics-vfc-temperature-monitoring-case-study

UHS South Texas: Environmental Monitoring 

https://www.sonicu.com/uhs-south-texas-adopts-sonicu-environmental-monitoring

The medtech landscape in 2024 promises innovation, challenges, and transformative breakthroughs. As stakeholders, we must embrace change, collaborate across disciplines, and prioritize patient-centric solutions.

Whether it’s personalized medicine, AI-driven diagnostics, or surgical robotics, the future of medtech is bright, and it’s our collective responsibility to shape it for the better.