Asia-Pacific’s Medtech AI Journey: Navigating Funding Shifts and Building a Global Innovation Hub

While overall digital health venture funding in the region declined by 19% to $2 billion across 244 deals—largely due to a steep drop in China’s investments—APAC simultaneously emerged as a promising hub for artificial intelligence (AI) innovation in medtech. Despite funding headwinds, the region’s shift toward strategic collaborations, AI-driven solutions, and talent development signals a broader transformation aimed at long-term growth and resilience.

Key trends reveal a targeted investment approach within the region. Oncology, geriatrics, and neurology were the top-funded therapeutic areas, with oncology alone receiving $434 million in 2024. While countries like India led with $795.5 million in funding, others such as Singapore saw a drop, indicating a concentration of capital in a few key markets. However, this consolidation appears to be aligning with a more deliberate push toward impactful healthcare technologies—particularly those powered by AI.

AI has increasingly become the cornerstone of innovation across the medtech value chain. A joint study by APACMed and Bain & Company highlighted the APAC region’s potential to be a medtech AI capability hub. AI-driven products are already transforming diagnostics, operational efficiencies, and patient engagement. From AI-enabled imaging tools to predictive maintenance in field services, the technology is revolutionizing how care is delivered and managed.

Countries across APAC bring distinct strengths to this transformation. India and China offer vast technical talent pools, while Singapore and Australia lead in healthcare data infrastructure and R&D capabilities. Japan and South Korea are notable for their high adoption of medtech equipment, making them ideal markets for AI-powered solutions. Singapore, in particular, stands out as a regional accelerator due to its government-backed data exchange platforms like TRUST, strong medtech ecosystem, and growing AI talent base.

A key enabler of this transformation is the development of “bilingual” talent—professionals skilled in both healthcare and AI/ML. Currently, only a small fraction of medtech professionals in the region possess this dual expertise, representing a bottleneck in AI innovation. Initiatives like AI Singapore’s apprenticeship programs, government incentives in South Korea, and strategic partnerships with global medtech leaders are designed to address this gap.

The decline in venture funding in 2024 has encouraged companies to pivot toward strategic partnerships to sustain innovation. Healthcare providers, startups, tech firms, and academic institutions are increasingly joining forces, with APAC’s share of global healthcare partnerships rising from 15% in Q1 2022 to 27% in Q4 2024. This surge underscores a collective recognition: collaboration is critical for scaling AI solutions that meet the region’s complex healthcare needs.

In summary, while funding challenges persist, the Asia-Pacific region is building the foundations of a globally competitive medtech AI ecosystem. With a focus on localized innovation, cross-sector collaboration, and talent development, APAC is well-positioned to lead the next wave of healthcare transformation.