Medical technology companies are facing pressure to move away from traditional linear product lifecycles due to shifting regulation, procurement standards, and end-of-life responsibility. According to a Kearney report, three market shifts are driving this change.
Care is moving closer to patients, with the global home healthcare market projected to exceed $1.5 trillion by 2035. Remote patient monitoring is expected to reach $137 billion by 2033. This trend towards decentralized care is driven by the need for more personalized and convenient healthcare services, which in turn is fueled by advancements in digital technologies and the increasing prevalence of chronic diseases.
Market Shifts and Their Impact
In the United States, about 71 million people used remote patient monitoring as of 2025. This decentralization is straining waste management systems built around large hospitals. The existing infrastructure is not equipped to handle the increased volume of waste generated by decentralized care, highlighting the need for more efficient and sustainable waste management practices.
Healthcare plastic waste already exceeds 2 million tonnes annually across major markets, and demand for disposables has more than doubled in the past 15 years. The environmental impact of this waste is significant, with plastic waste contributing to pollution, climate change, and other ecological problems. Moreover, the economic burden of waste management is substantial, with costs expected to rise as the volume of waste increases.
Medtech firms are shifting from one-time hardware sales to as-a-service and outcome-based models, which shift financing, utilization, and life-cycle cost risk onto manufacturers. This shift requires manufacturers to take a more proactive approach to managing the entire product lifecycle, from design to disposal, and to prioritize sustainability and efficiency in their operations.
Circularity as a Solution
According to the report, circularity—reuse, refurbishment, repair, and modular design—can offset these pressures whilst creating new revenue streams, rather than functioning purely as a sustainability initiative. By adopting circular models, medtech companies can reduce waste, lower costs, and improve patient outcomes. Circularity can also enable the creation of new business models, such as product-as-a-service, where manufacturers retain ownership of products and provide services to customers.
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Cited models include consumer-goods strategies such as razor handle or blade systems, where durable components stay in use whilst replaceable parts drive recurring purchases. These models can be applied to medical devices, where components can be designed for reuse, refurbishment, or recycling, reducing electronic waste and minimizing the environmental impact of device disposal.
Kearney recommends four actions for MedTech leaders, including quantifying the financial case for circularity before the sustainability case. This involves conducting thorough cost-benefit analyses to determine the economic viability of circular models and identifying opportunities for cost savings and revenue growth. Designing products and packaging for modularity, disassembly, and upgradeability is also recommended, as well as building reverse-logistics and remanufacturing supply chains.
Piloting circular models on select product lines before scaling is the final recommended action. This approach allows companies to test and refine their circular strategies, identify potential challenges and opportunities, and develop effective implementation plans. By piloting circular models, medtech companies can minimize risks, optimize outcomes, and create a roadmap for successful scale-up.
Competitive Differentiator
The report frames circularity as a competitive differentiator rather than a compliance exercise, positioning early movers to better serve cost-constrained health systems. By adopting circular models, medtech companies can differentiate themselves from competitors, demonstrate their commitment to sustainability, and attract customers who prioritize environmental responsibility.
This shift can support distributed care and retain greater control over assets, materials, and customer relationships as the industry shifts away from one-time capital sales toward service-led, data-driven business models. Circularity can also enable medtech companies to develop more personalized and patient-centric services, improving health outcomes and enhancing the overall quality of care.
By adopting circular models, medtech companies can create new revenue streams and stay ahead of the competition in a rapidly changing market. The transition to circularity requires a fundamental transformation of business models, operations, and culture, but the potential benefits are substantial, including improved sustainability, increased efficiency, and enhanced competitiveness.