As highlighted in our roundup of the political and economic trends set to influence 2025, modernisation of the NHS has been identified as a top priority by the Labour government. Media briefings in recent weeks suggest that AI-powered healthtech innovations are seen as one of the ways this might be achieved.

Doubts remain over whether the technology is yet mature enough to handle the complexity of real-world healthcare systems, with cautionary tales like the IBM Watson Health investment still a recent memory. Critics of government policy have also argued that the health service lacks funding and resources to properly implement digital transformation at the scale the situation demands.

Nevertheless, the medtech and healthtech sectors are positioned to lead transformative changes in global healthcare in 2025. From technological innovations that enhance diagnostic precision to insurance trends reshaping employer health plans, these shifts offer both opportunities and challenges for businesses.

What’s on the Horizon in MedTech and HealthTech?

Global leaders like Philips, Medtronic, and Siemens Healthineers are driving advancements in connected devices, imaging, and remote monitoring technologies. Philips has highlighted the rise of healthcare decentralisation, where care delivery moves from centralised hospitals to more personalised, remote setups that use telemedicine, home-based monitoring and mobile healthcare units.

At the same time, startups like Babylon Health and Qure.ai are creating affordable solutions to bridge gaps in underserved markets, leveraging AI to address local healthcare challenges. Telehealth platforms are increasingly using augmented reality and AI for advanced consultations, reducing barriers to access while enhancing the quality of virtual patient care.

AI tools are also showing promise for accelerating the diagnostic process. DeepMind’s applications in retinal disease detection and Philips’ predictive analytics for imaging underscore how AI is reshaping early disease identification and treatment precision. Philips’ IntelliSpace platform, which also integrates predictive analytics for tailored treatment plans, hints at one potential future for patient referral.

Insuring Holistic Health and Wellbeing

The idea of private medical insurance is evolving as companies increasingly recognise the value of incorporating preventive care into their employee health plans. As noted by Engage Health Group, trends include hybrid virtual care platforms and wellness-focused insurance packages, with employers prioritising comprehensive, flexible coverage to attract talent.

As employers adopt these broader health insurance packages, mental health services are also becoming standard inclusions. Virtual therapy sessions and AI chatbots are a growing industry seeking to offer scalable mental health solutions to meet demand.

The growth of employer-led health plans also creates openings for SMEs providing wellness-focused tech solutions, partnering with insurers and leveraging mental health integration trends, these firms can offer scalable, innovative products.

Healthcare isn’t one-size-fits-all, and many insurers are tailoring their offerings to meet the needs of diverse workforces. More and more policies are incorporating gender-specific needs like maternity support, menopause care and prostate health, as well as recognising that some services such as dedicated GPs, heart health or mental health care are more likely to be accessed by specific populations.

As awareness of neurodiversity grows, so does the demand for services to support people with conditions like ADHD and autism. Insurers are starting to recognise this and may expand their policies to meet the need.

Personalised Medicine

Advances in genomics and big data analytics are enabling tailored treatments based on individual genetic and health profiles. Personalisation can extend to precision drug therapies, improving outcomes and minimising side effects.

Wearable health devices such as smartwatches – as well as tools for specific conditions like continuous glucose monitors – are another set of tools that are helping to make treatment more precise and personalised, empowering individuals to monitor and manage chronic conditions. These devices also feed valuable data into broader healthcare systems, improving preventive care strategies.

What Does the Future Hold for SMEs in HealthTech?

While the healthtech sector promises immense potential, challenges like regulatory complexities, data security and high R&D costs persist. The integration of big data and AI into healthcare raises ethical concerns around data usage and patient privacy. Moreover, global economic pressures may limit healthcare funding in certain markets.

Conversely, opportunities abound. The decentralisation of healthcare enables businesses to enter rural markets, while AI-driven diagnostics reduce healthcare costs, making quality care more accessible. Startups focusing on wearable technology and telemedicine are attracting significant venture capital, reflecting confidence in their scalability and impact.

If you’re an innovator working at the frontier of healthcare and medicine, we’d love to hear from you. Get in touch to find out more about how Sussex Innovation can support you on your journey.

Read our overview of the political and economic landscape of 2025 and its impact on the business world here.