Cyber Security in Healthcare Market - Global Industry Research Analysis

According to Market Research Store, the global cyber security in healthcare market size was valued at around USD 18.36 billion in 2023 and is estimated to reach USD 83.34 billion by 2032, to register a CAGR of approximately 18.30% in terms of revenue during the forecast period 2024-2032.

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The cyber security in healthcare report provides a comprehensive analysis of the market, including its size, share, growth trends, revenue details, and other crucial information regarding the target market. It also covers the drivers, restraints, opportunities, and challenges till 2032.

Global Cyber Security in Healthcare Market: Overview

Cybersecurity in healthcare involves protecting sensitive patient data, medical devices, and healthcare systems from digital threats, such as data breaches, ransomware, and hacking. The healthcare sector handles vast amounts of confidential data, including electronic health records (EHRs), personal details, and financial information, making it a prime target for cyberattacks. Effective cybersecurity measures are essential to safeguarding patient privacy, maintaining regulatory compliance, and ensuring the smooth operation of healthcare services.

Key Highlights

• The cyber security in healthcare market is anticipated to grow at a CAGR of 18.30% during the forecast period.
• The global cyber security in healthcare market was estimated to be worth approximately USD 18.36 billion in 2023 and is projected to reach a value of USD 83.34 billion by 2032.
• The growth of the cyber security in healthcare market is being driven by the increasing adoption of digital technologies, such as telemedicine, IoT-enabled medical devices, and cloud-based EHR systems.
• Based on the type, the solutions segment is growing at a high rate and is projected to dominate the market.
• On the basis of type of threat, the ransomware segment is projected to swipe the largest market share.
• In terms of security measures, the network security segment is expected to dominate the market.
• Based on the deployment, the cloud-based segment is expected to dominate the market.
• By region, North America is expected to dominate the global market during the forecast period.

Cyber Security in Healthcare Market: Dynamics

Key Growth Drivers

• Increased Cyberattacks: Healthcare organizations are prime targets for cyberattacks due to the sensitive nature of patient data. This has led to a surge in demand for robust cybersecurity solutions.
• Rising Privacy and Security Concerns: Stricter regulations like HIPAA and GDPR have increased the need for stringent security measures to protect patient data.
• Adoption of IoT and Connected Devices: The increasing use of IoT devices in healthcare settings introduces new vulnerabilities that require advanced cybersecurity solutions.
• Cloud-Based Healthcare Solutions: The migration of healthcare data to the cloud offers scalability and cost-effectiveness but also presents new security challenges.

Restraints

• Complex IT Infrastructure: Healthcare organizations often have complex IT infrastructures, making it difficult to implement and manage effective cybersecurity solutions.
• Budget Constraints: Limited budgets can hinder the adoption of advanced cybersecurity technologies and services.
• Skill Shortages: A shortage of skilled cybersecurity professionals can impact the ability of healthcare organizations to respond effectively to cyber threats.

Opportunities

• Emerging Technologies: Advancements in AI, machine learning, and blockchain offer innovative solutions for detecting and preventing cyberattacks.
• Managed Security Services: Outsourcing cybersecurity functions to specialized providers can reduce costs and improve security posture.
• Cybersecurity Awareness Training: Educating healthcare staff about cybersecurity best practices can significantly reduce the risk of human error.

Challenges

• Evolving Threat Landscape: Cybercriminals are constantly evolving their tactics, making it challenging to stay ahead of the latest threats.
• Data Privacy Regulations: Complying with complex data privacy regulations can be burdensome and costly.
• Integration with Legacy Systems: Integrating new cybersecurity solutions with legacy systems can be complex and time-consuming.

Cyber Security in Healthcare Market: Segmentation Insights

The global cyber security in healthcare market is divided by type, type of threat, security, deployment, and region.

Segmentation Insights by Type

Based on type, the global cyber security in healthcare market is divided into solutions and services.

In the cybersecurity healthcare market, solutions lead as the most dominant segment. These include a range of technologies designed to protect patient data and secure healthcare networks, devices, and systems against cyber threats. Within solutions, prominent subcategories include network security, endpoint protection, data encryption, and cloud security.

Network security and endpoint protection are particularly vital in hospitals and clinics, which manage a high volume of sensitive data and rely on secure, interconnected systems. These solutions mitigate risks from potential breaches, unauthorized access, and cyberattacks by creating robust layers of protection around healthcare data, essential in compliance with strict industry regulations like HIPAA in the United States. As healthcare organizations increasingly adopt telemedicine, electronic health records (EHRs), and Internet of Medical Things (IoMT) devices, cybersecurity solutions continue to see substantial growth.

The services segment, while second, is also crucial in supporting the cybersecurity landscape within healthcare. This segment includes consulting, training, risk assessment, implementation, and managed security services. Managed security services are especially valuable, offering 24/7 monitoring and response, essential for healthcare providers that lack in-house cybersecurity expertise.

Consulting services help healthcare facilities assess and improve their security postures, while training services focus on educating staff about cybersecurity best practices, reducing human error as a vulnerability. With the rapid pace of technological advancements and regulatory changes, demand for cybersecurity services is expected to grow as healthcare providers strive to maintain compliance and strengthen their defenses against evolving cyber threats.

Segmentation Insights by Type of Threat

On the basis of type of threat, the global cyber security in healthcare market is bifurcated into ransomware, malware and spyware, distributed denial of services [DDoS], phishing and spear-phishing.

In the healthcare cybersecurity market, ransomware is the leading threat type due to its severe impact on healthcare facilities and patient safety. Ransomware attacks lock healthcare providers out of essential systems or encrypt critical data, demanding a ransom to regain access.

Given the urgent nature of healthcare operations, providers may be more likely to pay to restore functionality quickly, making them prime targets for these attacks. As healthcare facilities adopt digital records and interconnected devices, they become increasingly vulnerable to ransomware, prompting robust defenses and heightened focus on ransomware protection strategies.

Malware and spyware are also significant threats in healthcare. Malware refers to malicious software designed to infiltrate systems, causing disruption, stealing sensitive data, or enabling unauthorized access. Spyware, a type of malware, covertly monitors user activities and can compromise patient data confidentiality.

These threats often enter healthcare systems through unsecure devices or networks, exploiting vulnerabilities in outdated software or insufficiently protected connections. Malware and spyware attacks can be costly for healthcare organizations, leading to breaches of protected health information (PHI) and risking legal consequences.

Distributed Denial of Service (DDoS) attacks disrupt healthcare operations by overwhelming servers or networks with traffic, rendering systems inaccessible to legitimate users. These attacks can cause significant delays in medical services, affecting patient care, particularly in emergency settings where system accessibility is critical. Healthcare facilities are increasingly incorporating DDoS protection measures to mitigate these disruptions and maintain service continuity.

Phishing and spear-phishing attacks are particularly problematic in healthcare due to the volume of emails exchanged daily. Phishing involves fraudulent messages that trick employees into clicking malicious links or sharing sensitive information, often leading to broader system infiltration.

Spear-phishing, a targeted form of phishing, tailors messages to specific individuals within healthcare organizations, such as administrators or executives, increasing the likelihood of success. Both phishing and spear-phishing pose significant risks as they exploit human error, often bypassing technical security measures. Consequently, healthcare organizations are investing in training programs and secure email solutions to defend against these threats.

Segmentation Insights by Security

In terms of security, the global cyber security in healthcare market is categorized into application security, network security, and device security.

In the cybersecurity healthcare market, network security is the most dominant security measure due to the critical role that secure and reliable networks play in healthcare operations. Networks in healthcare settings are interconnected with various systems, including electronic health records (EHRs), medical devices, and administrative software. Ensuring the security of these networks is essential to prevent unauthorized access, data breaches, and cyberattacks like ransomware and DDoS.

Network security encompasses the use of firewalls, intrusion detection systems (IDS), encryption protocols, and secure communication channels to protect sensitive data as it is transmitted across networks. Given the rise in connected medical devices and telehealth services, network security remains at the forefront of healthcare cybersecurity strategies.

Application security follows closely in importance as a critical security measure to safeguard healthcare applications. These applications range from patient management systems to specialized medical software used for diagnostics, imaging, and treatment.

Application security ensures that vulnerabilities within these software programs are identified and mitigated through techniques such as code reviews, penetration testing, and vulnerability scanning. With the increasing reliance on digital tools in healthcare, including cloud-based solutions, ensuring the security of applications has become a key focus. Securing applications is particularly important to protect patient data and to ensure compliance with regulatory standards like HIPAA in the United States.

Device security is another vital security measure in healthcare, as the proliferation of Internet of Medical Things (IoMT) devices, wearables, and connected medical equipment introduces new entry points for cyber threats. Device security focuses on protecting these physical devices from being compromised or manipulated. This includes ensuring that devices have strong authentication protocols, are regularly updated with the latest software patches, and are encrypted to protect sensitive health information.

Device security is essential to prevent attacks that could disrupt medical operations or endanger patient safety, such as unauthorized access to a pacemaker or infusion pump. As healthcare increasingly adopts IoMT technologies, securing these devices becomes increasingly critical to overall cybersecurity efforts.

Segmentation Insights by Deployment

In terms of deployment, the global cyber security in healthcare market is categorized into on-premises and cloud-based.

In the healthcare cybersecurity market, cloud-based deployment has emerged as the dominant choice due to its flexibility, scalability, and cost-efficiency. With healthcare organizations increasingly moving to cloud platforms to store patient data, medical records, and other critical information, cloud-based security solutions are essential for protecting these systems.

Cloud-based cybersecurity services offer the ability to scale quickly in response to growing data demands and evolving cyber threats, making it easier for healthcare providers to manage security across multiple locations and devices. These solutions often include features such as data encryption, secure access controls, and automated updates to ensure that security measures are consistently up to date.

Cloud-based solutions also provide remote access to security management, which is increasingly important as more healthcare workers utilize telemedicine and remote monitoring tools. However, while cloud-based deployment offers many advantages, it also presents challenges, including concerns over data privacy, compliance with regulations, and the potential risks associated with shared infrastructure.

On-premises deployment remains a key option for healthcare organizations that prefer to have direct control over their cybersecurity infrastructure. In this deployment model, security measures are implemented and managed within the organization’s own physical premises, using in-house servers and data centers.

This provides healthcare providers with a higher level of control over their security policies, data storage, and access protocols. On-premises solutions are often favored by organizations with stringent data privacy requirements, such as hospitals that deal with highly sensitive patient data and require compliance with specific regulatory frameworks.

Additionally, some healthcare organizations may prefer on-premises deployment for legacy systems or applications that are not yet compatible with cloud environments. However, maintaining on-premises security solutions can be resource-intensive, requiring dedicated IT staff, ongoing infrastructure maintenance, and higher upfront costs. Despite these challenges, on-premises deployment remains essential for certain healthcare organizations seeking to maintain a high level of control over their security and data management.

Cyber Security in Healthcare Market: Report Scope

Cyber Security in Healthcare Market: Regional Insights

• North America is expected to dominates the global market

North America leads the cybersecurity in healthcare market, driven by stringent regulatory requirements, the presence of well-established healthcare systems, and high digital adoption in patient care and data management. Key players in the cybersecurity domain, particularly in the United States, emphasize innovative cybersecurity solutions to counter advanced threats. The U.S. government also actively supports cyber-defense initiatives, reinforcing demand across healthcare institutions. Healthcare providers here invest heavily in securing electronic health records (EHRs), protecting patient privacy, and mitigating risks associated with digital health technologies, all of which solidify North America’s dominance in this market.

Europe follows closely, bolstered by its strong regulatory framework and the implementation of the General Data Protection Regulation (GDPR), which mandates high standards for data protection across industries, including healthcare. Countries like Germany, the U.K., and France are prominent due to their extensive digital healthcare initiatives and compliance with cybersecurity policies. The region has seen a rapid rise in cybersecurity adoption in hospitals and clinics, with substantial investments in technologies to combat ransomware and phishing attacks targeting healthcare data. European healthcare providers prioritize cybersecurity to maintain patient trust, protect data integrity, and ensure compliance with GDPR.

The Asia-Pacific region exhibits substantial growth potential in healthcare cybersecurity, fueled by the rapid digitization of healthcare systems in countries like China, Japan, India, and South Korea. While digital adoption accelerates, healthcare organizations here often face challenges due to varying levels of cybersecurity readiness. Growing awareness and the increasing frequency of cyber-attacks on healthcare data are encouraging regional governments and healthcare providers to adopt robust cybersecurity measures. The adoption of telehealth services and EHRs post-pandemic has increased the focus on securing patient data, driving demand for cybersecurity solutions in the healthcare sector.

In Latin America, the cybersecurity market in healthcare is gaining momentum as digital transformation progresses across the region’s healthcare systems. Brazil, Mexico, and Argentina are the key markets, focusing on addressing vulnerabilities related to the digital health infrastructure. Though still in nascent stages compared to North America and Europe, investments are gradually rising, with healthcare providers in the region recognizing the need to protect patient data and comply with international standards. Government initiatives to enhance cybersecurity infrastructure, coupled with a growing awareness of healthcare-specific threats, are contributing to steady market growth.

The Middle East & Africa region shows moderate growth, with countries like the UAE, Saudi Arabia, and South Africa investing in healthcare cybersecurity. These countries have initiated digital healthcare reforms, emphasizing the importance of data security amid rising cyber threats. While healthcare cybersecurity awareness is increasing, budget constraints and infrastructure challenges often limit extensive investments. However, as cyber-attacks on healthcare systems become more frequent, regional governments are expected to continue prioritizing cybersecurity measures, particularly in high-profile hospitals and healthcare institutions.

Recent Developments:

• In December 2023, Cisco launched the Cisco AI Assistant for Security, integrating AI into its Security Cloud to enhance decision-making, automate tasks, and improve security tool functionality. This innovation aims to boost operational efficiency and strengthen security for users.
• In December 2023, IBM and Palo Alto Networks expanded their strategic partnership to enhance security defenses against emerging cyber threats. The collaboration aims to provide comprehensive solutions that improve clients' security posture, helping them navigate complex cybersecurity challenges and effectively combat evolving risks.

Cyber Security in Healthcare Market: Competitive Landscape

The report provides an in-depth analysis of companies operating in the cyber security in healthcare market, including their geographic presence, business strategies, product offerings, market share, and recent developments. This analysis helps to understand market competition.

Some of the major players in the global cyber security in healthcare market include:

• WhiteHat Security
• Axway
• Biscom Incorporated
• Booz Allen Hamilton
• CISCO
• Computer Sciences Corporation
• CORL Technologies
• FireEye
• Flexera
• ForgeRock
• General Electric
• IBM
• Lockheed Martin Corporation
• McAfee
• Northrop Grumman Corporation
• Palo Alto Networks
• SENSATO
• Symantec Corporation
• Trend Micro Incorporated
• CLOUDWAVE
• Check Point Software Technologies Ltd.
• CyberArk Software Ltd.
• F5 Inc.
• Forcepoint
• Fortinet Inc.
• Amazon Web Services
• Oracle
• Imperva
• Qualys Inc.
• Accenture
• HCL Technologies Limited
• Capgemini
• Cognizant
• Tata Consultancy Services Limited
• Wipro

The global cyber security in healthcare market is segmented as follows:

By Type

• Solutions
  • Identity and Access Management
  • Risk and Compliance Management
  • Antivirus and Antimalware
  • DDoS Mitigation
  • Security Information and Event Management
  • Intrusion Detection System/ Intrusion Prevention System
  • Others
• Services
  • Professional Services
  • Managed Services

By Type of Threat

• Ransomware
• Malware and Spyware
• Distributed Denial of Services [DDoS]
• Phishing, and Spear-Phishing

By Security Measures

• Application Security
• Network Security
• Device Security

By Deployment

• On-Premises
• Cloud-Based

By Region

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • France
  • Germany
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Rest of Latin America
• The Middle East and Africa
  • GCC Countries
  • South Africa
  • Rest of Middle East Africa

Frequently Asked Questions