Medical technology companies face pressure to move away from traditional linear product lifecycles as regulation, procurement standards, and end-of-life responsibility shift toward manufacturers. This shift is driven by three market changes, according to a report. The first change is care moving closer to patients, with the global home healthcare market projected to exceed $1.5 trillion by 2035, and remote patient monitoring expected to reach $137 billion by 2033.
In the United States, about 71 million people used remote patient monitoring as of 2025. This decentralization is straining waste management systems built around large hospitals. Healthcare plastic waste already exceeds 2 million tonnes annually across major markets, and demand for disposables has more than doubled in the past 15 years.
Medtech firms are shifting from one-time hardware sales to as-a-service and outcome-based models, which shift financing, utilization, and life-cycle cost risk onto manufacturers. They noted that idle or poorly serviceable assets erode margins under these models.
The rise of software-defined, artificial intelligence-enabled devices is shortening replacement cycles when hardware cannot support new software demands, risking stranded assets and higher costs for customers. This change drives the need for medtech companies to adopt more circular business models.
Circularity—reuse, refurbishment, repair, and modular design—can offset these pressures while creating new revenue streams, rather than functioning purely as a sustainability initiative. Consumer-goods strategies such as razor handle or blade systems, where durable components stay in use whilst replaceable parts drive recurring purchases, are cited as models for the medtech industry.
The report recommends four actions for MedTech leaders, including quantifying the financial case for circularity before the sustainability case; designing products and packaging for modularity, disassembly, and upgradeability; building reverse-logistics and remanufacturing supply chains; and piloting circular models on select product lines before scaling.
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By adopting circular business models, medtech companies can position themselves as competitive differentiators, better serving cost-constrained health systems, supporting distributed care, and retaining greater control over assets, materials, and customer relationships as the industry shifts away from one-time capital sales toward service-led, data-driven business models.
Early movers in the medtech industry can benefit from adopting circular business models, as it allows them to differentiate themselves from competitors and establish strong relationships with customers.
This shift is not just about reducing waste, but also about creating new revenue streams and improving the overall efficiency of the industry.
As the medtech industry continues to evolve, companies that adopt circular business models will be better positioned for success in the long term. The circular economy is becoming increasingly important in the medtech industry, and companies that adopt this model will drive growth and innovation.
The report frames circularity as a competitive differentiator rather than a compliance exercise, and it’s clear that medtech companies are taking notice.
They will play an increasingly important role in driving growth and innovation as the industry shifts away from one-time capital sales toward service-led, data-driven business models.
Medtech companies can learn from the heart failure market and its expected growth.