Insight

Scotland has a long history of pioneering medical breakthroughs, from the discovery of penicillin to advances in imaging and data science, and is, once again, demonstrating leadership in the next transformation in healthcare, namely digital health and medical technology (MedTech).

These sectors are no longer at the fringes of healthcare innovation but are, increasingly becoming its driving force. Digital Health encompasses the use of digital tools, from telehealth and wearables to artificial intelligence and data analytics, to improve how care is delivered and experienced. MedTech, meanwhile, spans the design and manufacture of devices that diagnose, monitor, and treat illness, ranging from diagnostic imaging tools to software as a medical device (SaMD). Together, they are reshaping the global health landscape, and Scotland is well placed to lead.

A Flourishing Ecosystem Rooted in Collaboration

Recent research that Optimat carried out into Scotland’s Digital Health and MedTech sectors highlights a vibrant and fast-growing ecosystem. More than 260 companies operate across the two sectors, contributing significantly to the national economy. Digital Health firms employ nearly 13,000 people and generate £1.25 billion in turnover annually, while MedTech companies employ over 14,000, and generate £8.9 billion in turnover.

Read our case study… Industry Deep-Dive Research: Digital Health & Medical Technology

This strength is not just about numbers, it is also about collaboration. The integration of academia, government, and industry has been central to the country’s success. World-class universities such as Edinburgh, Glasgow, and Strathclyde anchor a network of innovation centres including the Digital Health and Care Innovation Centre (DHI), Medical Devices Manufacturing Centre (MDMC) and the Digital Health Validation Lab (DHVL). Together, they provide the research infrastructure, regulatory support, and real-world testing environments that help new ideas to flourish.

Global Markets, Local Strengths

Globally, Digital Health and MedTech are rapidly growing markets. Digital Health is projected to exceed $940 billion by 2032, growing at an annual rate of 15 %, while MedTech is expected to reach $887 billion in the same period.

The boundaries between these two markets are, however, becoming more blurred as AI-powered diagnostic tools, smart wearables, and connected devices bridge the divide between care delivery and technology.

Scotland’s companies are already carving out niches in the development of such hybrid technologies including, for example, AI-driven diagnostics, remote monitoring, and personalised health platforms. Many are scaling internationally, leveraging Scotland’s reputation for quality research and ethical innovation to enter markets in the USA, Europe, Scandinavia, and the Middle East.

Unlocking the Next Wave of Growth

Scotland’s opportunities lie not only in research excellence but also in the ability of its companies to commercialise and scale innovation. Addressing key challenges, such as fragmented digital infrastructure, complex NHS procurement processes, and access to mid-stage growth funding, will be critical to realising the sector’s full potential.

Targeted collaboration can make the difference. Initiatives that bring together companies, clinicians, and regulators in focused innovation challenges, whether these are focused on tackling chronic conditions or improving regulatory readiness, can accelerate progress. Greater visibility of the different types of support that is available, and simplified access to funding, will also be important in helping companies, especially SMEs, to progress from initial concept to commercial success.

Workforce development will be another enabler. As demand for AI, data science, and regulatory expertise grows, aligning training provision with industry needs can ensure Scotland remains a magnet for talent. Programmes like Skills Development Scotland’s Digital Health Framework are a step in the right direction, but more coordinated national action could deliver further benefits.

A Call to Action!

Scotland has the research, skills, and entrepreneurial drive to lead in Digital Health and MedTech. What’s needed now is continued collaboration across academia, healthcare, government, and industry to turn potential into performance.

By focusing on international growth, investing in skills, and simplifying access to the support that companies need to innovate, Scotland can build on its strong foundations to become a recognised leader on the world stage. The global health challenges of ageing populations, chronic disease, and sustainability will require bold, connected solutions. Scotland is uniquely positioned to deliver them.