For the third year in a row the challenges facing the UK’s HealthTech industry have continued to grow, the latest sector-wide study has revealed. It shows that whilst the sector continues to provide critical life-enhancing technologies and significant employment across the country, it faces persistent regulatory challenges and NHS barriers that hinder innovation.
The 2024 Pulse of the Sector survey, conducted by ABHI and CPI, paints a picture of a UK HealthTech industry at a pivotal moment. The survey findings highlight:
- Regulatory uncertainties and impractical NHS tender requirements have led half of the companies surveyed to delay bringing new innovations to the UK
- 30% of businesses have chosen not to bid on NHS tenders due to unworkable conditions
- Rising costs in regulation, sustainability compliance, freight services, and labour have compounded these issues, creating significant pressure on the sector.
Despite these obstacles, the UK HealthTech industry remains optimistic about its potential for growth.
Over 30% of surveyed companies plan to expand their research, development, and manufacturing investments in the UK. The industry's strong support for the MHRA’s proposed framework for international recognition and reliance, with four times as many companies favouring it over other government initiatives, further highlights the sector's confidence in the UK’s role as a global leader in healthcare innovation.
ABHI and CPI continue to advocate for urgent action to remove these barriers, enabling HealthTech companies to thrive in a globally competitive market. This will allow the industry to reach its full potential, benefiting the NHS, the patients it serves and the economy.
Peter Ellingworth, Chief Executive of ABHI, commented: "UK HealthTech is at a crossroads. Regulatory uncertainties and NHS challenges are repeated hurdles that are driving companies, and consequently their technologies, to more receptive markets abroad. There is immense potential if we navigate these challenges wisely, and it is in the interest of the NHS and the patients that our industry serves to correct these trends. Immediate and prompt action is needed. The Government's renewed focus is promising, and with strategic investments and clear policies, we can cement the UK's position as a global hub for HealthTech."
The survey captures data from HealthTech businesses operating in the UK. The full survey report can be accessed here.