2025 Forecast: Emerging Trends in Medical Device Markets
By Guillaume Corpart
It’s often said that “the only constant in life is change,” which is certainly true for the Latin American healthcare landscape heading into 2025 and beyond. Emerging markets are undergoing a profound transformation, driven by a combination of technological innovation, demographic shifts, economic development, and policy reforms.
As we look toward 2025, several key trends are shaping the future of healthcare in these regions, offering both challenges and opportunities for medical device manufacturers and other stakeholders across the industry. Understanding these trends is crucial for anyone involved in the global healthcare ecosystem.
In this forecast, we’ll review some of the developing trends in the healthcare market, followed by global economic shifts that will have a significant impact on the macro healthcare context. Finally, we’ll analyze all the impact of these trends, so you’ll know how to plan your business strategy for success in 2025 and beyond. First, let’s look at how healthcare is changing.
DEVELOPING TRENDS IN HEALTHCARE
Device manufacturers know that healthcare is constantly in flux due to changes in population health, emerging technologies, and shifting regulations. As healthcare settles into the post-COVID normal, 2025 is no different regarding these changes. We’ve identified a few trends to keep an eye on for this year and beyond.
1. Expansion of Digital Health Solutions
One of the most significant trends in emerging markets is the rapid adoption of digital health technologies. Telemedicine, electronic health records (EHR), mobile health apps, and wearable devices are increasingly becoming part of the healthcare infrastructure. The growing availability of mobile phones, combined with improving internet access, is enabling patients in remote areas to connect with healthcare providers, access medical information, and manage their health more effectively.
By 2025, we predict that telemedicine will become more mainstream, particularly for non-emergency consultations, diagnostics, and follow-up care. In regions with limited healthcare infrastructure, telemedicine bridges the gap by providing specialized care that would otherwise be unavailable. Policy reforms that drive healthcare efficiency through technology adoption (such as EHR) will become more prevalent, opening a gateway to broader technology penetration in the years to come, particularly as it pertains to the public sector. Additionally, mobile health applications are helping individuals monitor chronic conditions like diabetes, hypertension, and cardiovascular diseases, while wearable devices are aiding in real-time health tracking.
The adoption of these digital health solutions also creates new opportunities for medical device manufacturers to innovate. From diagnostic tools that integrate with mobile phones to AI-powered devices that enable remote monitoring, the potential for growth in digital health is enormous. Moreover, the use of artificial intelligence (AI) and machine learning in diagnostics is poised to further enhance the accessibility and accuracy of healthcare in emerging markets.
2. Increased Focus on Preventive Healthcare
Emerging markets are shifting from reactive to proactive healthcare models, emphasizing disease prevention and health promotion over the treatment of illness. This paradigm shift is partly driven by the rising burden of chronic diseases such as diabetes, heart disease, and respiratory conditions. As lifestyles become more sedentary and dietary habits change, these diseases are becoming more prevalent, placing significant pressure on healthcare systems that are often ill-equipped to handle the long-term care these conditions require.
Governments and private healthcare providers are recognizing the need to invest in preventive care initiatives, including screenings, vaccinations, and health education. Medical device manufacturers are playing a pivotal role in this transformation by developing more accessible diagnostic tools for early disease detection and monitoring. Portable diagnostic devices, such as handheld ultrasound machines and portable ECG monitors, are increasingly being used in both urban and rural areas to detect health issues before they become critical.
Additionally, wearable devices that track physical activity, nutrition, sleep patterns, and vital signs are becoming an essential part of the preventive healthcare toolkit. These devices enable individuals to take ownership of their health while providing healthcare providers with valuable data to monitor patients’ well-being over time.
3. The Need for Solutions to Treat the Aging Population
The demographic profile of emerging markets is undergoing a dramatic shift, with many countries experiencing rapid urbanization and an aging population. By 2025, the number of people aged 60 and above is expected to grow significantly, with the United Nations projecting that the elderly population in developing nations will double by 2050.
This aging demographic is contributing to a rise in chronic diseases such as arthritis, dementia, and age-related cardiovascular conditions. As these conditions often require long-term management, there is an increased demand for medical devices that can provide ongoing care, including home care devices, diagnostic tools, and rehabilitation technologies.
Additionally, the need for assisted living devices, such as mobility aids, hearing aids, and fall-detection systems, will rise as older adults seek to maintain independence while managing their health. Medical device manufacturers will need to adapt their offerings to meet the specific needs of older populations, creating products that are intuitive, user-friendly, and capable of improving quality of life.
4. Rise of Public-Private Partnerships
Governments in emerging markets are increasingly looking to public-private partnerships (PPPs) as a means to improve healthcare delivery. With limited public-sector funding and an expanding healthcare demand, countries in emerging markets are leveraging the expertise and innovation of private companies to enhance healthcare infrastructure, including medical devices and technologies.
By 2025, PPPs are expected to become even more widespread in healthcare. These collaborations allow for the pooling of resources, expertise, and technologies to deliver better healthcare services at a lower cost. For example, public hospitals may partner with medical device manufacturers to bring advanced diagnostic tools into local facilities, while private companies may contribute expertise in training healthcare workers and implementing digital health solutions.
This trend is particularly evident in the rollout of advanced medical devices in low-resource settings. Through PPPs, medical device companies can offer innovative solutions while ensuring affordability and accessibility. Additionally, governments are increasingly creating favorable regulatory environments to encourage foreign investment in local healthcare markets.
5. Expansion of Health Insurance and Financing Models
As economies in emerging markets continue to grow, we are seeing a related increase in demand for more robust healthcare financing models. In many emerging markets, access to quality healthcare has historically been limited by the ability to pay out of pocket. However, with growing middle-class populations and expanding health insurance coverage, more individuals are gaining access to medical services.
By 2025, it is expected that health insurance penetration will increase significantly, with governments and private insurers offering more affordable and inclusive coverage options. This shift will improve access to healthcare services and create a larger market for medical devices, as more people will be able to afford advanced diagnostic tools, surgeries, and treatments.
Furthermore, new financing models such as microinsurance and pay-as-you-go plans are gaining traction, providing more flexible payment options for individuals in lower-income brackets. These models will make healthcare more accessible and encourage the adoption of advanced medical technologies that were previously out of reach for large portions of the population.
THE GLOBAL ECONOMY’S IMPACT ON HEALTHCARE
Just as more specific changes to healthcare technologies, regulations, and medical conditions are driving the emerging trends in the industry, so are larger global economic patterns. For example, worldwide issues related to the supply chain, currency strength, and foreign competitors will play a pivotal role in how device manufacturers will want to strategize for serving emerging markets in the years ahead.
1. Supply Chain Disruptions
The COVID-19 pandemic demonstrated how integrated supply chains are and how reliant the healthcare ecosystem is on a global network of suppliers. With increasingly protective policies from the world’s largest economies now in place, a lack of leadership for global harmonization and trade facilitation has been the unfortunate result.
While campaigning for re-election and promoting the “America First” vision, one of the central proposals in President Trump’s 2024 campaign was the prospect of increasing tariffs on imported goods. While Trump’s tariffs will deal a blow to Chinese exports — which Americans will ultimately pay for through higher prices — the impact will be felt on a much broader scale, causing disruptions within the global supply chain.
A rewiring of trade flows (which is already being discussed) will increase costs for businesses and consumers worldwide.
2. The Continuing Strength of the Dollar
The American economy will continue to be fueled by consumption for the foreseeable future. The combination of higher deficits, inflationary pressures, and a smaller workforce will further strengthen the dollar. U.S. tariffs, higher interest rates, and a rising dollar will stint a global economy already suffering from lackluster growth.
With over 80% of medical devices sold in emerging markets coming from imports, a strong dollar will make local sales (in domestic currency) more challenging. Margins throughout the distribution chain will be squeezed to move products. Market size will grow in local currency, decrease in U.S. dollar terms, and remain stable (at best) in volume. Market share will look much different in value than in volume.
Most leading global medical device manufacturers are from North America and Europe and report their global performance in U.S. dollars or Euros. For companies reporting in U.S. dollars, attaining sales goals will become more difficult. Pressure will increase to reach targets across all markets.
Emerging markets will face headwinds due to the continued strong dollar, and developed economies will feel the impact of rising costs due to supply chain disruptions and tariffs. Meanwhile, Asian manufacturers will take advantage of the disruption to further increase their foothold in Latin America, Asia, and Africa with competitively priced products.
3. The Growing Role of China
In the years ahead, emerging markets will face significant challenges. Among these are the challenges arising from China’s economic troubles, the ongoing U.S.-China trade tensions, and the broader global economic fragmentation.
China’s overproduction in key industries like electric vehicles, solar panels, and electronics, combined with its deepening property crisis, has created an oversupply of cheap goods. As the U.S. under President Donald Trump imposes tariffs to address what it perceives as unfair practices, many developing countries face the dual threat of Chinese overcapacity flooding their markets and being caught in retaliatory trade wars. Nations like Mexico, Brazil, Indonesia, and South Africa are particularly vulnerable, as they balance the need to protect domestic industries while managing the repercussions of higher consumer prices and slower economic growth.
For medical device manufacturers in emerging markets, this dynamic poses several risks. As Chinese manufacturers flood markets with subsidized products, local companies could struggle to compete, particularly in sectors where China has an established production base. Moreover, the rising trade barriers and tariff-induced price hikes could increase the cost of imported materials and components for medical device manufacturers, raising production costs and potentially stalling innovation.
The heightened policy uncertainty, coupled with a stronger U.S. dollar and higher interest rates, would further constrain the ability of emerging market countries to invest in their healthcare systems and manufacturing capabilities. Companies may face challenges in maintaining supply chains, as tariffs and trade disputes disrupt access to vital raw materials and finished goods.
On the other hand, some emerging markets may find opportunities as global supply chains shift away from China due to trade tensions. Nations like Vietnam and India could see increased foreign investment in their manufacturing sectors, including medical devices, as companies seek alternatives to Chinese production. However, the risks of economic fragmentation, higher costs, and a weakened global investment climate remain significant.
Medical device manufacturers in these regions may need to adapt to changing market conditions by diversifying supply chains, investing in local production capabilities, and navigating new trade barriers. Ultimately, the global economy’s fragmentation, driven by U.S.-China tensions, will create long-term challenges for medical device manufacturers in emerging markets, limiting their growth potential and increasing operational costs.
4. Tensions South of the Border
Growing tensions will continue for U.S.-Mexico relations, particularly as President Trump threatens significant tariffs on Mexican imports in response to issues like migration and fentanyl trafficking. These threats are expected to escalate in 2025, with potential 25% tariffs on all Mexican goods and a 100% tariff on cars due to the high Chinese involvement in Mexican vehicles. The U.S.-Mexico-Canada Agreement (USMCA) will also become a focal point of contention, with Mexico facing a more challenging negotiation environment under Trump’s administration, especially as Canada may seek to negotiate separately.
Additionally, Mexico’s internal political instability, driven by sweeping constitutional changes and a weakened judiciary, will complicate its ability to respond to these external pressures effectively.
For medical device manufacturers in Mexico, this geopolitical and economic turbulence poses significant risks. The potential tariffs on Mexican goods could affect the cost structure and competitiveness of medical devices made in Mexico, particularly if supply chains are disrupted. Rising tariffs and trade barriers would increase production costs and could make Mexican-made medical devices less competitive in global markets, including the United States, which is a key trading partner.
Moreover, the growing investor uncertainty driven by political changes in Mexico, such as the weakening of judicial independence and challenges to the business environment, could deter foreign investment in the country’s healthcare sector, potentially limiting the development and expansion of medical device manufacturing.
Despite these challenges, Mexico remains well-positioned for long-term success, benefiting from favorable demographics and a low-cost labor force, which could make it an attractive location for nearshoring manufacturing. Medical device manufacturers may find opportunities to shift production to Mexico as companies look to relocate supply chains closer to the U.S. due to rising costs in China and tensions between the world’s two largest economies.
However, the short-term instability caused by political reforms, fiscal deficits, and a more adversarial trade environment with the U.S. could create significant hurdles. Manufacturers may need to navigate these uncertainties carefully, balancing the benefits of Mexico’s manufacturing advantages with the risks posed by political, economic, and trade tensions in 2025.
How Manufacturers Can Respond to These Trends
As we enter 2025 and beyond, emerging markets will continue to be at the forefront of healthcare adaptation. The trends outlined above are not just reshaping healthcare systems; they are opening exciting opportunities for medical device manufacturers to provide solutions that address the unique challenges of these regions. From digital health solutions to the rising demand for preventive care and chronic disease management, the future of healthcare in emerging markets is bright — and the companies that can adapt to these trends will play a crucial role in shaping that future.
Of course, with these opportunities come great challenges from shifting currents in the global economy. The continued prominence of China and other Asian companies in the market, the economic hurdles of the new U.S. administration, and the lingering supply chain issues will have an impact on sales throughout Latin America and other emerging markets.
The companies that are best positioned for success are those who are aware of these potential risks and have contingency plans in place to turn them into business advantages rather than liabilities. For example, China may face some challenges in the years ahead due to potential tariffs or trade disputes that could offer advantages to manufacturers in other regions. Manufacturers will need to be agile to navigate the choppy waters ahead, but there’s no question that great opportunities exist as healthcare needs and access explode across the region in the coming years.
The next decade promises to be a period of remarkable change, one where emerging markets take significant steps toward improving health outcomes for millions of people. For those in the medical device industry, it is an opportunity to be part of this transformation, driving innovation and making healthcare more accessible, affordable, and effective for populations in need.
Next Steps
Contact GHI to learn more about healthcare trends and their potential impact on the medical device and equipment industry in Latin America. Our team of researchers can provide the strategic analysis you need to gain valuable insights to support strategic decision-making in your industry.
