Overview
The UK medical technology sector generates an annual turnover of approximately $35.8 billion. The UK medical technology industry includes over 138,000 jobs, 31% of life sciences turnover, and over 4,000 UK businesses. Over 85% of the industry is comprised of small and medium-sized companies across the country, with clusters of activity in areas such as the Southeast of England and the Midlands. Medtech is a fast-growing industry with the quantity of active companies expanding by over 200% over the last decade. Investment in UK the medical technology sector increased by approximately $519 million since 2019. However, the COVID-19 pandemic increased investment in medical technology by an estimated 96% between 2020 and 2022.
Many multi-national companies, including several leading U.S. medical technology manufacturers, have head offices or subsidiaries in the UK. Examples of major U.S. medical technology companies operating in the UK include Medtronic, Boston Scientific, and Abbott Laboratories. As a significant percentage of domestically produced products are exported, the country has a large import market, making it very receptive to new and innovative international technology.
The largest purchaser of medical technology, the publicly funded National Health Service (NHS), accounts for approximately 85% of the country’s healthcare provision. It receives funding from the central government but is essentially managed as four separate segments: NHS Wales, NHS Scotland, HSC Northern Ireland, and NHS England, each one delivering strategy and services both centrally and locally through regional local authorities and other public or private organizations. Within NHS England most medical technology procurement is carried out by acute hospital trusts, which spend an average of $6.6 billion on clinical supplies, including medical technology, each year. They have the option of purchasing goods through centralized procurement bodies or hubs, procuring products individually, or by joining with other trusts to form consortia for procurement decisions. NHS spending on medical technology areas focuses, in order, on implants and prosthesis, surgical equipment, laboratory equipment, sterile procedure packs, IV equipment, cardiovascular technology, anesthetic, dressings, radiology, and patient monitoring.
The private (independent) healthcare sector is considerably smaller and funded through health insurance, self-pay patients, or NHS-funded referrals. Its strengths lie in the provision of secondary and tertiary care, fields not traditionally offered by the NHS (cosmetic surgery) or where public sector service is limited (dental care). The acute hospital sector is dominated by a handful of major hospital groups: HCA Healthcare, Circle Health, BMI Healthcare, Nuffield Health, and Ramsey Healthcare. Several U.S. providers – Mayo Clinic Healthcare and Cleveland Clinic London – have recently entered the market. Publicly funded adult social care services (home care, nursing, or care homes, etc.) are commissioned by regional government councils but typically provided by private for-profit or voluntary organizations.
The Health and Care Act, which became law in April 2022, legislates reforms relating to the structure and delivery of health and care services in England. As it undergoes radical change, the NHS is also tackling the vast backlog of non-urgent elective surgeries and out-patient appointments that were postponed during the pandemic. It is likely that approved private providers will be able to assist with reducing the backlog by offering some NHS-funded elective care services. In 2023, the Conservative UK government announced an NHS mandate, releasing $18.5 billion (£14.1 billion) for health and social care with the aim of reducing NHS waiting times.
Companies are advised to monitor the market for changes following the UK’s departure from the European Union. Medical devices were expected to require the new UKCA mark in order to be sold in Great Britain (England, Wales, and Scotland). General medical devices compliant with the EU medical devices directive (EU MDD) or EU active implantable medical devices directive (EU AIMDD) with a valid declaration and CE marking can be placed on the Great Britain market up until the sooner of expiry of certificate or June 30, 2028. Rules differ for Northern Ireland, which currently remains aligned with EU law. New procurement regulations and rules are set to be implemented in England. These are outlined in the NHS Provider Selection Regime.
In September 2024, surgeon and former health minister Professor Lord Darzi released the Independent Investigation of the National Health Service in England, commissioned by the government to assess the performance of the NHS. Lord Darzi’s investigation concluded that the NHS is in ‘critical condition’ as a result of long waiting times and poor national health outcomes. The report focused on four main limitations in current performance: austerity and constrained funding, the impact of the pandemic, a lack of patient voice and staff engagement, and management structures and systems. The investigation is expected to inform the new Labour government’s 10-year plan to improve NHS performance. In March 2025, the Labour government announced that NHS England, which previously negotiated between the government and NHS operations, is being disbanded to reduce bureaucracy and save ‘hundreds of millions of pounds a year.’ When NHS England was created in 2012, it was known as the NHS Commissioning Board and was planned to be an independent body that could execute government policies. Now, NHS England will be brough back under the Department of Health and Social Care in an effort to reduce bureaucracy. The disbanding of NHS England follows an announcement that its workforce would be reduced by half, in addition to the resignation of three key board members. A reduction in costs and bureaucracy is expected to be an element of the Labour government’s anticipated 10-year plan to reform the NHS.
Leading Sub-sectors
Biotechnology
Biotechnology (biotech) seeks to make use of engineering and biological sciences to revolutionize everything from the way we do medicine to what we eat. The UK is Europe’s leading biotech hub, supported by a network of universities and companies, particularly in the “golden triangle” of Oxford, Cambridge, and London.
In the UK, biotech remains a multi-billion-dollar industry. Investment in biotech remains the highest in Europe having drawn $4.65 bn in investment in 2024 alone (a 94% increase on the previous year). In March of this year the UK announced regulatory reform aimed at supporting further growth and innovation in the sector by simplifying regulations and reducing the time it takes to complete clinical trials. In May the UK government unveiled a joint partnership with the German biotech firm BioNTech expected to result in up to 1bn GBP of investment in the UK spread over 10 years.
On September 18, 2025, following President Trump’s state visit to the UK, the UK and United States agreed to a Tech Prosperity Deal which aims to make mutually beneficial advances in the emerging technologies sector, of which biotech is a priority, through US investment in the UK and research collaboration.
Yet for all the evidence of a burgeoning UK biotech sector, recent cuts in government investment in the sector and disputes around drug pricing are increasingly challenging the competitiveness of the UK’s biotech ecosystem. In September 2025, partly as a result of these revelations, Eli Lilly paused work on its biotech incubator ‘Gateway Labs’ and froze any further investment in the UK. Also in September, Sanofi followed suit, joining the latest in a list comprising, among others, of Merck & Co and UK-based firm AstraZeneca.
Digital Technology
The size, structure, and complexity of the NHS have created the need for a vast, efficient digital health infrastructure. While successive governments have regarded digitalization as an essential component in tackling the social and economic challenges facing the NHS, the road to full digital maturity has not always been easy. However, the UK government’s 10 Year Health Plan for the NHS in England outlines digitization of the NHS as a key priority, especially data, AI, genomics, wearables, and robotics as means for improving efficiency and accessibility of care. These initiatives demonstrate a strong commitment to making the NHS a fully digitalized organization, one capable of maximizing the latest innovation in technology. NHS adoption and integration of digital technology increased significantly during the pandemic. Despite delays in modernizing the NHS digital health infrastructure, more stakeholders see digital technology as a valuable tool as the system adapts to the need for safer working practices and advanced models of care.
While it is difficult to place an exact value on digital health in the UK, this is already a very well developed and competitive market that plays host to numerous leading technology companies such as Cerner, IBM, Oracle, EMIS and BT. The market also offers opportunities for smaller companies and developers. Potential suppliers are advised to begin by gaining an in-depth understanding of their specific industry segment and building contacts to establish what is required within the market to determine the best method of entry. It will be necessary to adhere to relevant NHS requirements as well as broader national compliance rules or regulations that remain in flux.
Opportunities
Despite recent disputes around drug pricing and falling life sciences FDI flows into the UK, the UK remains the leading hub for biotech by investment with the Golden Triangle of university cities (London, Cambridge and Oxford) continuing to churn out promising biotech startups.
The shift to an integrated model of care and eliminating the elective care backlog in England will drive demand for related devices and technology. There is also a need for early disease detection devices and technology that can tackle chronic diseases. Within the digital segment there is demand for clinical efficiency tools, innovative apps and wearables, health analytics tools, remote consultation tools, and monitoring devices that can improve clinical outcomes and patient experience across all areas of the healthcare system. Although the private segment is smaller, opportunities exist for companies to supply private hospital, residential or nursing facilities with technology or equipment. The U.S. is a leading supplier of diagnostic, dental, and orthopedic equipment, and high-quality wound care products to the UK.
In England, it is currently mandatory for public sector organizations to advertise procurement opportunities over $13,134 (£10,000) on Contracts Finder. Firms can register on the Supplying to the NHS procurement portal to receive updates on business opportunities. Opportunities can also be identified within NHS Scotland, NHS Wales, and HSC Northern Ireland by approaching or visiting relevant agencies or online portals.
NHS Agencies, such as SBRI Healthcare, frequently host competitions in which companies are invited to bid for funding to develop innovative solutions to address particular health needs. The NHS is a large and competitive organization that has a constant need for all types of new products and services. As it can be challenging to sell directly to the NHS from overseas, many U.S. exporters find it easier to form partnerships with well-established local companies. This enables new entrants to take advantage of their partners’ market expertise as well as their access to buyers and other decision makers. Potential suppliers also have the option of approaching private sector healthcare providers through their procurement teams.
Resources
Industry Events
- BIO Investment and Growth Summit, March 2 - 3 2026, Miami, Florida
- Health and Wellbeing at Work 2026 , March 10–11, 2026, NEC Birmingham
- NAIDEX, Dementia, Care and Nursing Home Expo, and Neuro Convention, March 25-26, 2026, NEC Birmingham
- Medtech Innovation Expo, June 3-4, 2026, Birmingham
Government Departments
Dept. of Health and Social Care & NHS England
NHS Scotland & Digital Health & Care Scotland
NHS Wales & Digital Health and Care Wales
Health and Social Care, Northern Ireland
Trade Associations
Association of British HealthTech Industries
ECHAlliance
British Healthcare Trades Association
Scottish Life Sciences Association
For further information, please contact:
Stephen Brown, U.S. Commercial Service, Tel: 011 44 20 7891 3451