US Export Plan - Sector Report - HealthTech & Digital Health

Key subsectors of focus for the US market

Scotland’s MedTech and regulated medical device sector is a fast‑growing part of its life sciences industry, spanning diagnostics, medical devices, imaging, and surgical technologies. Activity leans on Scotland’s strengths in innovation, advanced manufacturing, and digital health with a strong regulatory framework aligned to UK and EU standards, and supported by strong academic research and NHS collaboration^[14]. The quality demands in this subsector also helps support a higher cost base. There are many organisations within Scotland that contribute this agenda, such as the Medical Device Manufacturing Centre at Heriot-Watt University which is a world-leading centre for the advancement of medical devices, and experts can provide SMEs with advice on manufacturing, business development, regulatory issues and funding sources, as well as giving access to state-of-the art equipment.^[15]

The US market is the top target export market for MedTech.^[16] The US medical devices market was valued at approximately $188.7 billion in 2024 and is forecast to climb to over $315 billion by 2032, growing at around 7% CAGR.^[17] The market is experiencing robust growth driven by technological advancements, demographic shifts with the US’ ageing population and rising healthcare expenditure. The US MedTech industry is highly competitive. With over $250 billion in annual output, it supplies roughly 70% of the domestic market and supports nearly three million American jobs through 16,000 facilities across the country.^[18] There are strong domestic clusters in California, Massachusetts, Minnesota, and Texas among others, hosting thousands of established MedTech firms and innovation hubs. However, given the scale of the overall market there is space for international firms with a strong competitive advantage, especially in high-growth segments like AI-enabled devices, and remote monitoring.

AI diagnostics is another key subsector within HealthTech and digital health, given its vast applications. North America dominates the global market in this subsector, accounting for approximately 54-58% of global revenue share. Demand is particularly high in software-driven diagnostic tools. The leading application areas include radiology, neurology, cardiology, oncology, and pathology, with radiology often capturing 75-80% of regulatory-approved AI tools. Adoption is picking up. In 2022, only around 19% of US hospitals had adopted any AI tools, with only 4% being “high adopters”. Around 86% of healthcare organisations now report some AI use, mainly in administrative roles whilst more advanced clinical uses are still emerging. For example, the California-based healthcare consortium Kaiser Permanente implemented AI to deploy a predictive early-warning system that reduces hospital mortality, as well as an AI scribe for large-scale documentation. This is reported to have saved 15,000 physician hours annually and improved patient-doctor interaction.^[19] AI tools that can support efficiency and accuracy are in increasing demand. Even marginal gains will have a significant impact in a healthcare sector that is worth over $4 trillion per year, and new products are being adopted with the ability to analyse complex datasets, including imaging scans, EHRs, and genetic data, to support early disease detection and reduce interpretation errors. They also support where there are shortages in specialists and key roles in the healthcare sector. Despite this, there have been quality concerns on the accuracy of AI-powered diagnostics, so exporters will need a strong evidence base both for regulatory approval and to convince buyers of the value of innovative products. Success in this subsector hinges on developing clear clinical value, navigating regulatory pathways early and taking advantage of accelerating FDA approvals, and demonstrating rigorous validation to gain adoption in hospitals and diagnostic labs.

Telehealth refers to the delivery of healthcare services and clinical information through digital communication technologies, enabling remote care without requiring in-person visits. Telemedicine is a subset of telehealth, f006Fcused specifically on clinical services provided remotely by licensed healthcare professionals, such as remote diagnosis and treatment, and specialist consultations. Telehealth improves access to care, especially for rural or underserved populations, reduces costs, and supports continuity of care by leveraging secure platforms that comply with healthcare regulations like HIPAA in the US. Scotland has a range of telehealth offerings, and Public Health Scotland reports that, in the 2022-23 fiscal year, over 130,000 individuals received local authority funded Technology Enabled Care (TEC).^[20]

Telemedicine has become a mainstream mode of delivering healthcare in the US, with Medicare beneficiaries experiencing a 63-fold increase in telehealth visits during the COVID-19 pandemic and around 25% of Medicare beneficiaries using telehealth services in 2024.^[21] The US telehealth market was valued at $42.5 billion in 2024 and is forecast to grow at a 23.8% CAGR to 2030.^[22] Telemedicine expansion in the country is facilitating improved and efficient remote patient monitoring and consultations, significantly impacting healthcare delivery. Additionally, advancements in digital health technology and supportive regulatory policies are driving widespread adoption.^[23] Practices have been implemented in multiple states, for example, the California Telehealth Network has provided broadband infrastructure to community and rural clinics in the state. In August 2025, the TexLa Telehealth Resource Center also received a $1.3 m HRSA grant to support rural telehealth in Texas and Louisiana, including RPM and AI deployment. It will support the centre’s work to develop, maintain and enhance telehealth programmes that improve health care access, quality and outcomes for rural and underserved communities.^[24]