Ireland is a global medtech leader, but SMEs need more support to embrace AI and digital transformation. A new Ibec report calls for targeted policies to maintain competitiveness and foster inclusive innovation across the sector.
With 450 companies, over 48,000 employees, and exports valued at €16.5 billion, Ireland has quietly become one of the top five medtech hubs in the world. While much of the spotlight goes to the multinationals, it is Ireland’s agile network of SMEs that makes the sector particularly dynamic—and also particularly vulnerable.
A new report from Irish Medtech, part of Ibec, reveals that while AI adoption in medtech is accelerating faster than the national average, smaller firms still face significant barriers to digital transformation.
As France and other European countries scale up their ambitions in digital health, understanding Ireland’s medtech model can open up new avenues for cross-border collaboration—and offer valuable lessons in both success and caution.
Ireland is not just another player in the global medtech landscape—it’s a key manufacturing hub. The numbers speak for themselves:
This output is delivered by a highly connected ecosystem combining the presence of 9 of the world’s top 10 medtech companies with a vibrant base of indigenous SMEs. The workforce is forecast to grow from 48,000 to 56,000 by 2028, making Ireland the highest per-capita employer of medtech professionals in Europe.
The report highlights that 54% of Irish medtech manufacturers already see AI as a priority, and two-thirds are planning AI projects in the next two years. That’s significantly above global averages.
However, many SMEs lack the resources to scale digital, automated, or AI-powered manufacturing—a gap that could put Ireland’s competitiveness at risk if not addressed.
According to Jackie Murphy, Chair of Irish Medtech:
“The EU’s €200 billion InvestAI fund—including €20 billion for AI gigafactories—is a historic opportunity. Ireland must position itself as a frontrunner in smart manufacturing.”
Despite strong fundamentals, the mood among business leaders has become more cautious. The report notes polarised expectations for the coming months, with concerns around:
In this climate, profitability is the #1 business priority for 2025, followed by expansion and international market development.
Irish Medtech is calling for a new national health technology and life sciences strategy, built on four pillars:
Mike Farrell, Chair of Ibec’s Advanced Manufacturing Group, puts it clearly:
“Ireland’s medtech sector is at a turning point. If we don’t support SMEs in their digital journey, we risk losing our edge.”
France is investing heavily in e-health, innovation clusters, and deep tech. Ireland offers a real-world case study of how to scale medtech manufacturing at national level—but also a warning that without tailored support, digital transitions can leave SMEs behind.
This opens the door for Franco-Irish cooperation in areas such as:
As Europe redefines its industrial sovereignty, Ireland’s medtech experience is a valuable reference—and a potential partner—for those ready to act at the intersection of health, innovation and competitiveness.