Five Medtech Trends and What They Mean for the Global South's Healthcare Transformation

Executive Summary

The global medical technology (medtech) sector is entering a period of accelerated change. Structural forces across pricing, care delivery, supply chains, clinical pathways, and enabling technologies are reshaping how companies compete and where growth will occur. For emerging economies, these shifts present both opportunities and challenges. This analysis examines five key medtech trends highlighted in Clarivate's Medtech Trends to Watch 2026 and assesses their implications for the Global South – from industrial upgrading to improving healthcare access and fostering innovation ecosystems.

Introduction

The medtech landscape is no longer defined solely by the developed world. As procurement reforms, trade pressures, and digital technologies transform global markets, countries across Africa, Latin America, South Asia, and Southeast Asia are becoming active participants in the sector's evolution. While much of the industry's attention focuses on advanced economies, the forces reshaping device markets have profound consequences for emerging regions. Understanding these trends is essential for policymakers, development institutions, and investors seeking to align health priorities with long-term economic transformation.

Background & Context

Clarivate's report "Medtech Trends to Watch 2026" identifies five critical dynamics: China's volume-based procurement (VBP) expansion, the migration of procedures to outpatient and ambulatory settings, global supply chain pressures, the rise of GLP-1 therapies, and platform-based competition driven by enabling technologies. These trends collectively signal a move toward more value-conscious, resilient, and technology-driven medical care. Each trend carries distinct implications for emerging economies, which often face different health burdens, infrastructure constraints, and industrial capacities than high-income countries.

Main Analysis

1. China's VBP Expansion: A Model for Affordable Access?

Mainland China's national volume-based procurement program has evolved into a powerful market-structuring mechanism, using anchor-price logic and deep price compression to expand patient access while supporting domestic manufacturers. For Global South countries grappling with high medical device costs, China's approach offers a potential yardstick. State-led purchasing can lower prices and incentivize local production, but it also risks deterring multinational investment if intellectual property and profit margins are overly squeezed. Emerging economies can study China's balance of market access and industrial policy, adapting its lessons to their own procurement regimes and regulatory frameworks.

2. Shift to Outpatient Settings: Opportunities for Regional Health Systems

The U.S. Centers for Medicare & Medicaid Services (CMS) has expanded the list of procedures eligible for ambulatory surgical centers (ASCs), encouraging a broader migration of care away from hospitals. This trend reflects a global move toward value-based, lower-cost care. In many Global South countries, overstretched hospital systems and limited infrastructure make outpatient and community-based care increasingly attractive. Policy initiatives that support ambulatory surgery, primary health care, and integrated delivery models could reduce costs and improve access, especially in rural areas. Moreover, local medtech manufacturers can respond by developing devices designed specifically for outpatient use, creating new export opportunities within regional markets.

3. Supply Chain Pressures: A Catalyst for Local Manufacturing

Tariff exposure, geopolitical factors, and fluctuating material costs have made supply chain resilience a strategic imperative. Companies are diversifying sourcing and building multi-region manufacturing footprints. This shift opens a window for Global South countries to attract foreign direct investment in medical device production. Governments can capitalize on this momentum by improving logistics, skill training, and regulatory standards. Regional integration, such as the African Continental Free Trade Area (AfCFTA), can create economies of scale, while targeted industrial policies can nurture local suppliers and reduce dependence on imported devices.

4. GLP-1 Therapies: Addressing Metabolic Disease and Ripple Effects

The rapid adoption of glucagon-like peptide-1 (GLP-1) receptor agonists is altering treatment pathways for obesity, diabetes, and related comorbidities. In the Global South, where non-communicable diseases are rising alongside infectious diseases, these therapies could become crucial health tools. However, high costs and supply limitations pose significant barriers. Device markets are also affected – bariatric surgery volumes may shift, and demand for glucose monitoring and cardiovascular diagnostics will likely increase. Governments and regional health bodies should plan for integrated metabolic care, including prevention, affordable access, and strengthening health system capacity to manage both pharmacological and surgical options.

5. Platform-Based Competition: Building Innovation Ecosystems

Enabling technologies – robotics, imaging, navigation, and digital workflow software – are fostering platform-centric competition in medtech. These integrated systems are becoming central to surgical planning, execution, and aftercare. For the Global South, investing in digital infrastructure and health data ecosystems is critical. Local companies can participate by developing niche applications, interoperability standards, and regionally adapted platforms. However, without proactive policy, dependence on foreign technology could widen digital divides. South-South cooperation and knowledge transfer can help build domestic innovation ecosystems that leverage emerging technologies for inclusive growth.

Development Impact

The five medtech trends have tangible implications across several development dimensions:

• Economic development and industrialization: Local production of devices and supplies can create jobs and boost export earnings, while procurement reforms can free fiscal space for other health priorities.
• Technology adoption: Digital platforms and enabling technologies can accelerate the diffusion of advanced surgical and diagnostic tools, though requiring investments in electricity, internet, and skill development.
• Infrastructure: Shifting care to outpatient settings demands strengthened ambulatory facilities, transport links, and telemedicine networks.
• Trade and investment: Supply chain diversification offers openings for emerging economies to integrate into global value chains.
• Health equity: Affordable procurement and expanded care settings can improve access to essential medical technologies for underserved populations.

Global South Perspective

The impact of these trends will vary across regions. Africa, with its young population and growing digital connectivity, may leapfrog in digital health and outpatient care. Latin America, with established private health sectors, could see diffusion of ASC models. South Asia's manufacturing capabilities offer opportunities for producing low-cost devices, while Southeast Asia's developing tech hubs can support platform innovation. BRICS countries, already active in health diplomacy, can lead South-South cooperation on procurement, regulation, and technology transfer. Regional development banks and international partners should align finance with these structural shifts to maximize benefits.

Future Outlook

Over the next five to ten years, the Global South's role in the medtech sector is likely to expand. Several developments are anticipated:

• Increased local production of medical devices, driven by supply chain diversification and industrial policies.
• Adoption of value-based procurement models based on lessons from China and other large emerging markets.
• Growth of ambulatory care networks, supported by digital health and telemedicine.
• Integration of GLP-1 and metabolic therapies into public health programs, with negotiations for affordable pricing.
• Emergence of regional technology hubs focused on digital health platforms and diagnostics.

To realize these outcomes, sustained investment in human capital, regulatory harmonization, and regional infrastructure is essential. Multilateral partnerships and knowledge exchange within the Global South can help navigate challenges and leverage shared experiences.

Key Takeaways

• China's VBP illustrates how procurement policies can restructure markets and support domestic innovation – a lesson for other emerging economies.
• The migration to outpatient and ambulatory care aligns with Global South priorities for primary care and cost efficiency.
• Supply chain pressures create a strategic opening for local medtech manufacturing and regional integration.
• GLP-1 therapies will require careful public health planning to manage costs and maximize benefits amid rising metabolic disease burdens.
• Platform-based competition demands investments in digital infrastructure and local innovation to avoid dependency.
• Policy coherence, regional cooperation, and development finance will be critical to translating these trends into inclusive, sustainable growth.

Sources

• Clarivate. "5 Medtech Trends to Watch in 2026." https://clarivate.com/life-sciences-healthcare/blog/5-medtech-trends-to-watch-in-2026