Medtech Sector Manufacturing Report
As the global economy faces increasing uncertainty, Ireland’s medtech sector - one of the most innovative and globally connected in the world - must prioritise digitisation to maintain its competitive edge.
With 293,000 people employed in Ireland’s manufacturing sector (Eurostat, February 2025), manufacturing remains a cornerstone of the Irish economy. However, despite its success, small and medium-sized enterprises (SMEs) in medtech require additional support to fully embrace digital transformation and AI-driven efficiencies.
Key findings from the Medtech Industry Survey
- Business sentiment remains polarised, with weaker global growth forecast and trade uncertainties driving companies to focus on expansion (33%) and new markets (17%) in 2025.
- Labour costs (72%), housing (67%), and workforce retention (63%) remain the most pressing challenges, highlighting the need for policies that support skills development.
- AI adoption in manufacturing (54%) is higher than the national average (39%), but further incentives are needed to ensure SMEs can scale digital solutions.
- Two thirds of respondents are planning to introduce or enhance AI initiatives in the next 1-2 years. For the most part, these will be new initiatives and driven by a desire for improved efficiencies.
- Skills shortages remain a major barrier, with 80% of companies citing access to talent as a core policy concern.
With Ireland exporting over €16 billion in medtech products and a leader in global stent (80%) and orthopaedic knee (75%) production, there is a clear economic case for investing in advanced manufacturing. However, the ability of smaller firms to adopt AI, automation, and digitization remains a business imperative.
Irish Medtech is calling on the Government to:
- Expand funding for SME-led digital transformation initiatives.
- Prioritise AI and automation in the National Life Sciences Strategy.
- Create tailored supports for workforce reskilling and apprenticeships.
- Enhance Ireland’s infrastructure to support AI-driven manufacturing.
Read the full report findings below:
