Where Does Growth Really Come From? - Life Sciences, Diagnostics, and Devices in 2025

philip bowler
Jul 18, 2025
4 min read

Executive Summary:

So many companies believe that growth comes from selling more of existing products and services to new prospects, but that’s only part of the story.

In this article we’ll look at where growth comes from and put them into 5 distinct buckets.

Organic Market Growth:
Driven by demographic trends, disease prevalence, and geographic expansion.
New Product Introductions:
Innovation cycles are accelerating, with digital and AI-powered products leading the charge.
Market Share Increases:
Achieved through operational excellence, digital transformation, and customer-centric strategies.
Mergers & Acquisitions:
Remain a major lever, especially as companies seek to fill portfolio gaps and respond to patent cliffs.
Other:
Includes digital transformation, value-based care, and new business models.

Growth Buckets: Insights from the Consulting Industry

1. Organic Market Growth

Demographic and Epidemiological Trends: Aging populations and rising chronic disease rates are expanding addressable markets, especially in diagnostics and devices1 2.
Geographic Expansion: Emerging markets (Asia-Pacific, Latin America) are outpacing mature markets in growth rates 3 4.
Underlying Market Growth: The global life sciences sector is projected to grow at a CAGR of 9–10% through 2030, with medical devices alone expected to reach $1.3 trillion by 2029 5 6 7.

2. New Product Introductions (within 4 years of launch)

Innovation Pipeline: New products, especially those leveraging AI, digital health, and next-gen diagnostics, are a key growth engine. 1 8.
R&D Focus: Companies are prioritizing high-potential candidates, with 32% of biopharma respondents focusing on cell and gene therapies, and 30% of medtech on new modalities1.
Speed to Market: Digital twins and AI are shortening development cycles, making new launches more impactful within the first four years. 1.

3. Market Share Increases

Operational Excellence: Companies are investing in digital transformation and analytics to improve efficiency and capture share from competitors. 1 9.
Customer Engagement: Personalization and direct-to-consumer models are helping firms win over both providers and patients 1.
Competitive Dynamics: Patent cliffs and biosimilar competition are forcing companies to defend and grow share in core markets 1.

4. Mergers & Acquisitions

Portfolio Gaps and Patent Cliffs: M&A is a strategic response to looming patent expirations and the need for innovation. 1 10.
Deal Volume: In 2024, 77% of surveyed executives expected M&A activity to increase, with deal value concentrated in the Americas and driven by biotech and pharma. 10.
Integration Challenges: Not all deals deliver expected value—success depends on strategic fit and integration capabilities.1 10.

5. Other Growth Drivers

Digital Transformation: AI and automation are delivering cost savings (up to 12% of revenue in medtech) and new business models 1.
Value-Based Care: Shifting from volume to value is creating new revenue streams, especially in diagnostics and devices 6.
Regulatory and Policy Changes: New regulations (e.g., EU MDR, US Inflation Reduction Act) are reshaping market access and pricing strategies 1 6.

Growth Breakdown Table

Growth Bucket	Key Drivers & Trends	% of Growth Contribution to Growth	Industry Examples/Notes	REF
Organic Market Growth	Demographics, disease prevalence, emerging markets	30 - 35%	Diagnostics, devices, pharma; fastest growth in Asia-Pacific	1 3 5 4 2
New Product Introductions	AI, digital health, cell/gene therapies, rapid R&D	30 - 35%	32% of biopharma focus is on advanced therapies; digital twins for faster launches	1 8
Market Share Increases	Digital transformation, customer engagement, operational excellence	10 - 15%	Direct-to-consumer, personalized medicine, analytics-driven sales	1 9
Mergers & Acquisitions	Patent cliffs, portfolio gaps, innovation access	15 - 20%	77% expect more M&A; large deals (e.g., Pfizer/Seagen, Medtronic/Mazor Robotics)	1 10
Other	Digital transformation, value-based care, regulatory shifts	5-10%	AI-driven cost savings, new business models, regulatory-driven market changes	1 6 9

Conclusion

Growth in the life sciences, diagnostics, and medical devices sectors is multi-faceted. Organic market expansion and new product launches remain foundational, but market share battles and M&A are increasingly critical as companies race to fill innovation gaps and respond to competitive threats. Digital transformation and regulatory shifts are reshaping the landscape, creating both challenges and new opportunities.

For senior executives looking to future-proof their growth strategy, now is the time to reassess your portfolio, double down on digital, and keep a close eye on both organic and inorganic opportunities. For tailored advice and actionable strategies, visit CommEx Consulting.