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Environmental Social Governance The future of health care: Medtech’s innovation hotspots

Belinda Gan Lily Ghebrai

December 10, 2025

Chronic disease is on the rise and populations are aging.

Innovative medical technology (medtech) that helps address some of the resulting challenges to health and well-being offers significant growth potential.

KEY TAKEAWAYS

  • Chronic diseases are among the leading causes of death worldwide, and their rising prevalence is driving massive spending in health care. Breakthroughs in medical technology are creating compelling long-term investment opportunities.
  • Diabetes is one of the chronic diseases on the rise. Medical devices to help monitor and manage the disease represent sizable growth potential.
  • Radiology and cardiovascular devices are at the forefront of AI adoption, and cancer detection is poised for a technological revolution.
  • Novel consumer-facing medtech products, such as next-generation hearing aids, are a fast-changing area where we see new entrants driving disruption.

Taking the pulse on investment opportunities in medtech

Explore some of our investment team’s latest thinking on the products, and the health care and consumer firms to watch.

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Explore the latest research and insights in our ESG perspectives library

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Belinda Gan is an ESG investment director with 20 years of industry experience (as of 12/31/2024). She holds a bachelor's degree in commerce and a bachelor's degree in business systems from Monash University, Australia. She also holds the Chartered Financial Analyst® designation.

Lily Ghebrai is an ESG analyst at Capital Group covering biopharma, health care services and medtech. She has 10 years of investment industry experience and has been with Capital Group for one year (as of 12/31/2024). She holds a master's degree in public administration from The School of International and Public Affairs at Columbia University and a bachelor's degree from Middlebury College.

Your gateway to all things ESG at Capital Group

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