Healthcare Cybersecurity Market

Global Healthcare Cybersecurity Market Size (2024 to 2029)

As per our report, the global healthcare cybersecurity market is estimated to be worth USD 34.09 billion by 2029 and USD 15.03 billion by 2024, growing at a CAGR of 17.80% during the forecast period.

MARKET DRIVERS

The growing healthcare data worldwide and the increasing number of cyberattacks in the healthcare industry propel the global healthcare cybersecurity market growth. The healthcare industry is responsible for 30% of the data being generated worldwide across all industries on a daily basis and this industry has also been experiencing numerous cyber-attacks and data theft incidents every year, which has fuelled the need for healthcare cybersecurity solutions. According to the data published by the U.S. Department of Health and Human Services report, 45 million in 2021, 34 million in 2020 and 14 million in 2018 were impacted by healthcare cyber-attacks. According to the Data Breach Barometer report, there were 31,611,235 healthcare records exposed in 2019; it is double compared to 2018. Due to such incidents, the healthcare industry has been facing severe financial damage and considering the same, several healthcare organizations have been using cybersecurity solutions to protect PII, PHI, and other essential data adhering to primary security criteria and HIPAA compliance guidelines for the improvement of best practices to be followed with security audits. These include secure communication, data protection, authentication, and authorization, and staff security training. To prevent unauthorized data access and modification, communication across devices and services is secured, called secure communication. Data Protection involves storing data encryption to prevent data breach attacks. Restricted Network Access and its control are installed by appropriate organizational authorities to protect system services, Network access, and applications. Authentication and Authorization are implementing a firm password policy for a robust and secure authentication process that helps restrict access without proper authentication. Staff Security Training involves updating systems and services for fixed vulnerabilities and training and education for Cybersecurity for all staff responsible for protecting patient data.

The growing number of cybercrime cases in the healthcare sector, such as data stealing, mining, and thefts are further promoting the growth of the healthcare cybersecurity market. An estimated 847,376 cybercrime cases were registered in 2021, which is 7% up from 2020, according to the FBI's Internet Crime Report 2021. Government initiatives to help cybersecurity systems and tighten them play an essential role in promoting the market's growth rate. Ransomware and malware are frequently heard in medical data thefts and hacking. Basic security controls like event response systems, data loss prevention, antivirus, mobile device management, data recovery, backup, email gateway, security awareness, same encryption, firewall, etc., help improve Cybersecurity in healthcare. Advanced security controls such as network fragmentation, business continuity, anti-theft devices, disaster recovery programs, connection testing, digital forensics, and others are much more advanced in helping the healthcare sector improve Cybersecurity. Hence, healthcare professionals have adopted upgraded cybersecurity systems, which augments market growth. In addition, the newly introduced telemedicine consulting and other online platforms for treating chronic disease patients are propelling the growth of the healthcare cybersecurity market.

In addition, stringent regulations for healthcare organizations for the protection of patient data, rising adoption of cloud computing in healthcare, and growing awareness among healthcare organizations regarding the importance of cyber security and the potential risks of cyber-attacks fuel the market’s growth rate. Furthermore, the rising adoption of electronic health records (EHRs) and telemedicine technologies, the growing volume of sensitive patient data and personal health information (PHI) stored electronically, the high cost of data breaches and reputational damage for healthcare organizations, the emergence of new threats such as ransomware, phishing, and social engineering attacks and the growing number of healthcare devices and Internet of Things (IoT) technologies support the growth rate of the healthcare cybersecurity market.

MARKET RESTRAINTS

Poor awareness among healthcare organizations regarding the potential benefits of healthcare cybersecurity in undeveloped and developing countries, the scarcity of skilled IT professionals, and the high costs associated with healthcare cybersecurity software majorly hamper the market's growth rate. In addition, poor support from government authorities in some countries, limited IT budgets and resources for cybersecurity in healthcare organizations, resistance to change and reluctance to adopt new cybersecurity technologies and solutions hinder market growth. Difficulty in keeping up with rapidly evolving cybersecurity threats and technologies and challenges in integrating cybersecurity with clinical workflows and processes further inhibit the growth rate of the healthcare cybersecurity market.

Impact of COVID-19 on the Healthcare Cybersecurity Market

The COVID-19 pandemic has fuelled the growth of the healthcare cybersecurity market. During the COVID-19 pandemic, the adoption of telemedicine and digital health technologies has increased tremendously due to government measures such as social distancing and lockdowns. At the same time, the number of cyber-attacks targeting healthcare organizations has also increased, further resulting in the growing demand for healthcare cybersecurity solutions. Furthermore, many healthcare workers have shifted to working remotely during the COVID-19 pandemic due to the restrictions imposed, such as social distancing and travel bans and this has resulted in an increasing number of cybersecurity challenges as healthcare workers have accessed sensitive data from unsecured networks and devices and shown a favorable impact on the healthcare cybersecurity market growth. In addition, the adoption of digital transformation in the healthcare industry, the demand for identity and access management solutions, and awareness of cybersecurity risks among healthcare organizations have grown significantly, leading to the increased demand for cybersecurity solutions. Likewise, the COVID-19 pandemic has favored the healthcare cybersecurity market.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Healthcare Cybersecurity Market By Type

Based on the type, the ransomware segment had the largest share of the worldwide market in 2023 and is expected to grow at a substantial CAGR during the forecast period. The segmental growth is majorly driven by the increasing number of data breaches and increasing awareness and preference of hackers for ransomware. The growing number of ransomware attacks and the impact of the COVID-19 pandemic further fuel the growth rate of the segment.

The malware and spyware segment is another promising segment among all and is predicted to witness a notable CAGR during the forecast period. The growing adoption of EHR and the increasing use of mobile devices in healthcare settings boost the growth of the segment.

Global Healthcare Cybersecurity Market By Security Type

Based on the security type, the application security segment captured the largest share of the global healthcare security market in 2023 and is estimated to grow at a healthy CAGR during the forecast period. The segmental growth is majorly driven by the rising usage of software applications in healthcare organizations and growing investments by healthcare organizations in application security to safeguard their software applications from cyber-attacks.

On the other hand, the network security segment is expected to grow at a notable CAGR during the forecast period owing to the increasing threat of cyber-attacks targeting healthcare networks such as DDos and malware.

The cloud security segment is anticipated to witness a healthy growth rate during the forecast period. Factors such as the increasing adoption of cloud computing in healthcare organizations, the rising adoption of cloud computing in the healthcare industry and the increasing need among healthcare organizations to ensure that their cloud environments are secure in order to protect sensitive data are propelling the segmental growth.

Global Healthcare Cybersecurity Market By End Users

Based on the end-users, the hospital segment held the leading share of the healthcare cybersecurity market in 2023 and is expected to grow rapidly during the forecast period. Hospitals collect and store sensitive data of their patients and due to this, hospitals have become a lucrative target to cybercriminals. The growing threat of cyber-attacks targeting healthcare organizations is one of the key factors propelling market growth.

REGIONAL ANALYSIS

Geographically, the North American healthcare cybersecurity market held the largest share of the worldwide market in 2023 and is expected to grow promisingly during the forecast period. The growth of the North American market is majorly driven by the rapid adoption of digital transformation in the healthcare industry and the growing number of data breach cases. According to US data breaches and exposed records, there were 1473 data breaches, with over 164.68 million sensitive records exposed in 2019. The presence of key market participants in North America is further fuelling the growth rate of the North American market. Strict regulatory framework for data protection and privacy, such as HIPAA and HITECH Acts in the U.S. is another key factor boosting the North American market growth. The U.S. held the major share of the North American market, followed by Canada in 2023 and the same trend is anticipated to continue during the forecast period. Technological developments, the presence of sophisticated healthcare infrastructure, the growing number of initiatives by the North American governments in favor of healthcare cybersecurity, the rising usage of mHealth and the growing geriatric population worldwide support the growth rate of the North American market.

The Asia Pacific healthcare cybersecurity market is expected to showcase the highest CAGR in the worldwide market during the forecast period. Factors such as a large population base and increasing healthcare expenditure in countries like China and India and rising adoption of digital healthcare systems and mobile health (mHealth) solutions majorly boost the regional market growth. In addition, rapidly evolving healthcare infrastructure and technological advancements, growing awareness about cybersecurity threats among healthcare organizations, and an increasing number of government initiatives for the digitalization of healthcare systems further fuel the growth rate of the APAC market during the forecast period. China held the largest share of the APAC market in 2023 and is expected to rise at a notable CAGR during the forecast period owing to the large patient population and increasing adoption of digital healthcare systems. On the other hand, India and Japan are predicted to grow at a healthy CAGR during the forecast period.

The European healthcare cybersecurity market held a substantial share of the global market in 2023 and is expected to grow at a prominent CAGR during the forecast period. The growth of the European market is driven by the stringent regulatory standards for data protection and privacy, such as the General Data Protection Regulation (GDPR), the rising adoption of electronic health records (EHRs) and digital healthcare systems, and an increasing number of cyber-attacks on healthcare systems and increasing awareness about cybersecurity among healthcare organizations. Factors such as the presence of major market players offering advanced cybersecurity solutions and growing investment in healthcare IT infrastructure by government and private entities further promote the growth rate of the European market. The UK captured the major share of the European healthcare cybersecurity market, followed by Germany and France in 2023.

The healthcare cybersecurity market in Latin America is anticipated to project a steady CAGR during the forecast period. The rising demand for advanced healthcare services and adoption of digital healthcare systems, the growing number of cyber-attacks on healthcare systems and increasing healthcare expenditure and government initiatives for healthcare modernization majorly drive the Latin American market growth. Brazil had the leading share of the Latin American market in 2023.

The MEA healthcare cybersecurity market had a moderate share of the worldwide market in 2023 and is expected to grow steadily during the forecast period owing to the rising adoption of digital healthcare systems and telemedicine solutions, growing healthcare expenditure and increasing number of government initiatives for healthcare modernization.

KEY MARKET PLAYERS

Some of the notable companies operating in the global healthcare cybersecurity market profiled in this report are McAfee, LLC, FireEye, Atos SE, Palo Alto Networks, Inc., Cisco Systems, Inc., Fortified Health Security, Lockheed Martin Corporation, Palo Alto Networks, Inc., Booz Allen Hamilton, Inc., and IBM Corporation.

RECENT MARKET DEVELOPMENTS

• In November 2022, the CEO of MedCrypt, Mike Kijewski, and a San Diego-based medical device cybersecurity software maker, launched MedCrypt, which is a Y Combinator graduate providing software for insulin pumps and heart rate monitors to radiology tools based on AI and autonomous robots, all the products for whom the FDA would consider as a medical device.
• In November 2022, the global leader in automated Cybersecurity, Forescout Technologies, Inc., Forescout Assist for OT/ICS, and Forescout Assist for Healthcare to enable IT security teams access to new threat detection. Organizations can gain seamless remote access to Forescout security experts with Forescout Assist, including data scientists, investigators, engineers, researchers, and threat hunters, to identify, prioritize and mitigate cyber threats.
• In 2020, GE Healthcare developed a new cybersecurity solution (skeye) to detect, analyze, and respond to cybersecurity threats in private and government hospitals. Also, this company offers 360-degree threat visibility and resolution to defend against vulnerabilities.
• In 2019, Atos launched its first comprehensive cybersecurity solution to manage security services, cloud security, and identity management in the healthcare sector. It offers almost 300 healthcare organizations across the US to adopt these strategies against cyber-attacks.
• In 2019, Mediate announced the expansion of clinical IoT and general IoT medical devices that enable accurate and comprehensive medical device management to protect from the risk of cyber-attacks.

DETAILED SEGMENTATION OF THE GLOBAL HEALTHCARE CYBERSECURITY MARKET INCLUDED IN THIS REPORT

This research report on the global healthcare cybersecurity market has been segmented and sub-segmented based on type, security, end-users, and region.

By Type

• Ransomware
• Malware and spyware
• Distributed Denial of Services (DDoS)
• Phishing and spear-phishing

By Security Type

• Application Security
• Cloud Security
• Content Security
• Endpoint Security
• Network Security
• Wireless Security
• Other

By End Users

• Pharmaceutical Industries
• Biotechnology Industries
• Hospitals
• Medical Devices Companies
• Health Insurance Companies
• Other

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa