2025 Watchlist: The Five Fastest-Growing Medtech Markets
It's been a busy week.
2025 strategic planning may not have the same appeal as that holiday prime rib, but it's crucial. Many of the corporate executives, startup CEOs, investors, and consulting firms that we serve are asking a similar question to guide their future investment...
Which markets are growing the fastest?
This week, lets explore the driving forces and numbers behind the five markets that stand out as "ones to watch" in 2025 and beyond:
Looking for deeper data on the markets covered? Get in touch with our team for a free exploratory call.
Pulsed Field Ablation (PFA) Devices
Pulsed Field Ablation (PFA) devices have revolutionized atrial fibrillation (AFib) treatment, a condition impacting over 60 million people worldwide. Using precisely controlled electrical pulses, PFA selectively ablates heart tissue while sparing nearby structures, offering a safer and more effective alternative to traditional thermal methods.
The rapid adoption of PFA is driven by its reduced complication rates, enhanced efficacy, and promising evidence of long-term durability. In 2024, the first two PFA systems in the U.S. became available — Pulseselect from 美敦力 , and Farapulse from 波科 .
Analysts saw Boston Scientific's Advent pivotal trial as a proverbial needle mover for the industry, by demonstrating efficacy and potential safety advantages compared to radiofrequency ablation (RFA) and cryoablation.
雅培 and Johnson & Johnson MedTech are leaning in here as well, developing their own PFA devices for the U.S. market.
As AFib prevalence rises and healthcare systems prioritize safer treatments, the PFA market is projected to grow at an impressive CAGR of 80.7% from 2023 to 2028, according to LSI 's Market Intelligence team.
Beyond cardiovascular applications, PFA technology is being explored for treating cancer, diabetes, and respiratory diseases, demonstrating its broad potential across multiple indications.
Comparing those figures to the projected 7.0% CAGR of the ~$196 million cryoablation devices market, which prior to PFA had been the technology of choice for ~15% of AFib ablation cases (with the other ~85% treated via radiofrequency) our analysts are bullish on the market opportunity and transformative potential of PFA.
Stand out deal: In June 2024, Vancouver-based Kardium Inc. raised $104M to support its mapping and PFA system for AFib. The company is aiming to complete its PULSAR clinical study on the road to regulatory approvals.
Intravascular Lithotripsy (IVL) and Revascularization Devices
Intravascular lithotripsy (IVL) adapts the principles of kidney stone treatment to tackle heavily calcified vascular lesions, a significant challenge in coronary and peripheral artery disease. Using sound waves to fracture calcified plaques, IVL enables safer and more effective stent placement.
This innovative technique is gaining traction as cardiovascular diseases become increasingly prevalent in aging populations. Its ability to improve procedural success rates and reduce complications is fueling rapid growth in the broader revascularization device market.
The potential for IVL is vast, with 6.6 million percutaneous coronary interventions and an additional 1.5 million eligible peripheral angioplasties annually. Similar to how PFA is disrupting radiofrequency and cryoablation for AFib, IVL is expected to significantly impact the adoption of traditional atherectomy devices.
LSI projects the IVL market to grow at a CAGR of 23.6% from 2023 to 2028.
Stand out deal: 强生公司 acquired Shockwave Medical for ~$13 billion, strengthening its position in one of the highest-growth, cardiovascular segments
At LSI Europe '24 in Sintra, Portugal, we featured Fireside Chats with Antoine Papiernik , Chairman & Managing Partner at Sofinnova Partners who joined the Shockwave Board of Directors in early 2014, at the time of its $12.5 million series A financing, and Todd Brinton, MD , now Chief Scientific Officer and Corporate Vice President at Edwards Lifesciences and previous Co-Founder of Shockwave. Both discussions, moderated by Josh Makower , feature unique insights and perspectives on the Shockwave story.
Dr. Brinton discussed the early days of the company, recalling the founding team asking "Well, how do you treat calcium today?" to which, they all responded "Lithotripsy." That became the basis for trying to put lithotripsy inside of a balloon, and that became the fundamental discovery and invention for Shockwave.
Dr. Brinton also recalls that "This was the recovery of 2008, no one was interested in doing new investments in a big long project. We ultimately convinced [the original investors] to spin out the IP and give it to us."
One particularly proud moment he shared is "[his] dad wrote the first check, $50,000"
You can view the full recordings of these sessions on our website.
Transcatheter Mitral Valve Devices
Transcatheter mitral valve repair (TMVr) and replacement (TMVR) devices offer a minimally invasive alternative to open-heart surgery for treating mitral regurgitation, significantly reducing procedural risks and recovery times. These innovations are making life-changing interventions accessible to a broader patient population.
The market's rapid growth is driven by an enormous unmet need. Globally, approximately 24 million people suffer from mitral valve disease, compared to 9–13 million with aortic valve disease. Significant, why? There's a significantly larger patient population with historically limited treatment options.
Expanding indications and increasing adoption of these devices are reshaping care for one of the most prevalent valvular heart diseases. The transcatheter mitral valves market is projected to grow at a CAGR of 23.3%, marking its transformative impact on structural heart care.
Stand out deal: After it's previous investment, Edwards Lifesciences es exercised its option to acquire Innovalve for $300M.
At LSI USA '24, Bernard Zovighian , CEO of Edwards Lifesciences , delivered a Keynote and recounted the early days of their Mitral Valve Replacement efforts.
领英推荐
He recalled "The beginning was not easy. We started a mitral replacement program 15 years ago. Complete failure. We went to gen two, didn't make it happen. We saw technology out there, and it looked great, let's buy the company. But the company didn't make it. If you look at the story of the last two years, you say you are amazing. If you look at the full 15 years, you say innovation is complex."
You can view the full recording of this session on our website:
Renal Denervation (RDN) Devices
RDN devices gained prominence last year with FDA approvals for ReCor Medical and Medtronic’s technologies, offering a promising solution for managing drug-resistant hypertension. These devices use targeted energy to disrupt renal nerve activity, resulting in sustained blood pressure reductions.
Years of skepticism have been replaced by confidence, thanks to new clinical data demonstrating RDN’s effectiveness. With over 1.3 billion people worldwide affected by hypertension, the demand for non-pharmaceutical solutions is rapidly growing, fueling this market’s resurgence.
The RDN devices market is forecasted to grow at a CAGR of 22.0% from 2023 to 2028.
While additional long-term data is essential, this technology represents a new way to manage hypertension with fewer medications and less hassle for patients.
We explored the RDN market in a previous edition of The Numbers, and, at LSI USA '24, we featured a panel with Christopher Cleary, Howard Levin, and David Hochman which reflected on the "agony" in the early days of RDN more than 17 years ago.
You can watch the full session recording here.
Transcatheter Pulmonary Valves
Transcatheter pulmonary valves (TPVs) offer a groundbreaking solution for congenital heart disease (CHD), allowing for valve replacement without open-heart surgery. This approach reduces risks and recovery times compared to traditional methods.
With advancements in pediatric cardiology improving survival rates for CHD patients, the need for repeat interventions is growing. TPVs address this demand, becoming essential in long-term CHD management.
The TPV market is expected to grow at approximately 21.9% CAGR from 2023 to 2028, slightly outpacing the growth in procedure volumes. Despite fewer than 10,000 annual pulmonary valve replacement and repair procedures, market expansion continues.
However, competition is limited, as Edwards and Medtronic, the dominant players for over a decade, are likely to maintain their stronghold due to the market’s high barriers to entry and niche patient population.
What's Next?
These markets share a common trait: addressing significant unmet clinical needs with minimally invasive technologies. Notably, we identified 10 markets for this initial analysis. 70% of these markets fall within the broader Cardiovascular Devices sector, which we project to grow at a 5.9% CAGR.
As 2025 approaches, we’re excited to resume our market dive series on the medtech industry. If you’ve enjoyed this week’s and last week’s insights in The Numbers, join us for an in-depth exploration of these topics in our Medtech Market Outlook for 2025 webinar.
More From LSI Market Intelligence
Until next week,
All data in this article is sourced from LSI's Market Intelligence Team
Great insights.
Founder/CEO of LSI
2 个月Another great Saturday read. Well done Henry Peck, Nicholas Talamantes, and everyone on the team that supported.