Global Healthcare Cybersecurity Market, By Threat (Ransomware, Malware & Spyware, Distributed Denial-of-Service (DDoS), Advanced Persistent Threat (APT) and Phishing & Spear Phishing), By Deployment Mode (On-Premises, and Cloud-Based), By Component (Solutions, and Services), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

The Global Healthcare Cybersecurity Market size is expected to be worth around USD 93.6 Billion by 2033, from USD 19.1 Billion in 2023, growing at a CAGR of 17.7% during the forecast period from 2024 to 2033.

The healthcare cybersecurity market refers to the sector that provides cybersecurity solutions to protect the sensitive information and data of the healthcare industry from cyber threats. This market is growing rapidly due to the increasing number of cyber-attacks on healthcare organizations and the growing adoption of digital healthcare technologies.

The report cites factors such as the increasing frequency of healthcare data breaches, the rising adoption of healthcare IT solutions, and the growing demand for cloud-based security solutions as key drivers of the market’s growth. The healthcare cybersecurity market includes various solutions such as network security, endpoint security, application security, and cloud security.

These solutions are offered by a range of vendors, including established cybersecurity companies, healthcare IT providers, and specialized healthcare cybersecurity firms. Overall, the healthcare cybersecurity market is expected to continue its strong growth trajectory as healthcare organizations increasingly prioritize cybersecurity in their IT investments and as the threat landscape continues to evolve.

Key Takeaways

• Market Size and Growth: In 2022, the global healthcare cybersecurity market was valued at USD 19.1 Bn, with an estimated CAGR of 17.7% from 2023 to 2032.
• Dominant Threat: Malware and spyware, especially ransomware, hold a prominent position, affecting at least 92 healthcare institutions in the US.
• Deployment Mode: Cloud-based deployment leads with a current share due to scalability benefits, accounting for over 41% of the market’s revenue in North America.
• Key Component: The solutions sector, including IDS/IPS and antivirus, holds the greatest market share, driven by rising demand for advanced security operations.
• Fastest-Growing Security Segment: Cloud security exhibits the fastest CAGR, propelled by increased Internet of Things device usage in healthcare.
• Major End-User: Healthcare payers claim the largest market share in revenue, driven by rising awareness of electronic health records and government efforts to secure patient information.
• Driver for Market Growth: The rise in cybercrime and healthcare spending fuels a growing demand for cybersecurity solutions, expecting market value to reach USD 93.6 Bn by 2032.
• Market Restraint: Lack of awareness among healthcare workers hampers growth, emphasizing the need for an increased understanding of cybersecurity’s significance in the industry.
• Opportunity from Phishing Incidents: The market benefits from a surge in phishing incidents in the healthcare industry, driven by increased internet and digital platform usage.
• Geographical Dominance: North America dominates the market with a revenue share of over 41%, attributed to major companies and increased cybersecurity adoption in healthcare.

Threat Analysis

The malware & Spyware segment dominated the market. There are numerous difficulties with cyber security in the healthcare sector. It consists of malware that patient privacy and system integrity as well as Distributed Denial of Service (DDoS) assaults that impair healthcare professionals’ capacity to deliver high-quality patient care.

Because of hackers’ awareness of and affinity for ransomware, ransomware attacks are the most common form of malware. At least 92 healthcare institutions in the US experienced ransomware attacks. As a result, criminals sought a minimum of 169,446 USD in ransoms from the country’s healthcare sector, earning them about USD 15.6 million.

Deployment Mode Analysis

The deployment mode that is currently dominating the healthcare cybersecurity market is cloud-based deployment. Cloud-based deployment involves hosting the cybersecurity solution on a third-party cloud platform, such as Amazon Web Services (AWS) or Microsoft Azure. This option allows healthcare organizations to scale their security solutions more easily and often comes with lower upfront costs, but may raise concerns about data privacy and security.

In the premises deployment mode, the cybersecurity solution is installed and run on the healthcare organization’s servers or hardware. This gives the organization complete control over the security of its data and systems but also requires a significant investment in hardware and maintenance.

Component Analysis

Based on Component, it is predicted that the solutions sector would hold the greatest market share for healthcare cybersecurity. The significant market share of this sector is primarily attributable to factors like the rising demand for advanced security operations solutions, the rise in data security and privacy concerns, and the rising need for reliable and affordable security solutions to boost cybersecurity infrastructure.

Also, the market for healthcare cybersecurity is anticipated to rise due to factors like the increasing sophistication of cyberattacks, increased awareness of electronic health records (EHRs), and rising regulatory enforcement and protection concerns.

Security Analysis

Based on security, the cloud security segment is growing at the fastest CAGR. The expansion of this market is primarily driven by the increase in Internet of Things device usage and the volume of sensitive data in the healthcare industry.

Additionally, it is anticipated that the growing usage of cloud storage services and the adoption of cloud-based security technologies and services will support the expansion of the cloud security market.

End-User Analysis

The healthcare payers segment accounted for the greatest market share in terms of revenue among end users.  The development of this market is anticipated to be supported by rising awareness of electronic health records, an increase in data security concerns, a variety of government assistance efforts, and rules and regulations for e-health solutions. Governments are taking action to protect patient information from cyber threats.

Key Market Segments

Based on Threat

• Ransomware
• Malware & Spyware
• Distributed Denial-of-Service (DDoS)
• Advanced Persistent Threat (APT)
• Phishing & Spear Phishing

Based on Deployment Mode

• On-Premises
• Cloud-Based

Based on Component

• Solutions
  • Identity and Access Management
  • Intrusion Detection System (IDS)/ Intrusion Prevention System (IPS)
  • Antivirus and Antimalware
  • Risk and Compliance Management
  • Distributed Denial of Service (DDoS) Mitigation
  • Security Information and Event Management (SIEM)
  • Firewall
  • Unified Threat Management
• Services
  • Managed Security Services
  • Deployment & Integration
  • Support & Maintenance

Based on Security

• Network Security
• Endpoint Security
• Cloud Security
• Application Security

Based on End-User

• Hospital
• Pharmaceutical and Biotechnology Industries
• Healthcare payers
• Other End-Users

Drivers

Growing demand for cyber security in the healthcare industry

Cyberattacks and data breaches in the healthcare industry have changed the market for cyber security. Due to basic factors such as rising cybercrime, rising healthcare spending, and the growing importance of cybersecurity in the healthcare industry, it is predicted that the market for healthcare cybersecurity would grow over the course of the forecast period.

The various international government measures to protect personal information will greatly accelerate the market growth for healthcare cyber security. Healthcare organizations, such as hospitals, clinics, and pharmaceutical companies, must prioritize safety. The rise in internet and device usage in the industry is a key element driving the healthcare cybersecurity market. Remote access devices were used more frequently as a result of the COVID-19 pandemic.

Restraints

Lack of awareness

The healthcare cybersecurity market is expected to grow over the course of the forecast period, but some limitations will certainly slow growth. Healthcare workers and others lack awareness of the significance of cyber security, especially in relation to security software.

For healthcare companies, medical records continue to be both a risk and a useful resource. The black market makes use of several pieces of personal information, such as social security numbers and bank account details. It is essential to keep up with these risks and adapt to technological developments.

Opportunity

Rising phishing incidents in the healthcare industry

The pandemic has led to an increase in phishing incidents in the industry, and the market has grown. As more industries, including the healthcare industry, use the internet and numerous digital platforms, the demand for cybersecurity is increasing. The availability of cutting-edge cybersecurity solutions is also projected to support the market’s growth.

Healthcare cybersecurity systems are the subject of increasing investments and activities from governments and a variety of healthcare organizations. Healthcare cybersecurity is a growing sector as a result of the increase in data breaches.

Trends

The healthcare industry has become increasingly reliant on technology in recent years, with the adoption of electronic health records, connected medical devices, and telehealth services. While these advancements have brought significant benefits to patients and healthcare providers, they have also created new cybersecurity risks and challenges. Here are some of the key trends in the healthcare cybersecurity market

Increasing frequency and sophistication of cyber-attacks

Cyber-attacks on healthcare organizations have been on the rise in recent years, with hackers targeting sensitive patient data and disrupting critical healthcare services. These attacks are becoming more sophisticated, with attackers using advanced techniques like ransomware to extort money from healthcare providers.

Growing demand for cybersecurity solutions

As healthcare organizations become more aware of the cybersecurity risks, they face, there is a growing demand for cybersecurity solutions that can help protect patient data and critical infrastructure. This has led to the emergence of a wide range of cybersecurity products and services tailored specifically to the healthcare industry.

Regulatory compliance requirements

Healthcare organizations are subject to strict regulations and standards around data privacy and security, such as HIPAA and GDPR. Failure to comply with these regulations can result in significant fines and reputational damage. As a result, healthcare organizations are investing in cybersecurity solutions to help them meet these compliance requirements.

Focus on securing medical devices

The increasing use of connected medical devices, such as insulin pumps and pacemakers, has created new cybersecurity risks. Hackers can exploit vulnerabilities in these devices to gain access to sensitive patient data or even control the devices themselves. As a result, healthcare providers are increasingly focused on securing these devices and ensuring they are not vulnerable to cyber-attacks.

Regional Analysis

With a revenue share of over 41%, North America dominated the market for healthcare cyber security. The existence of major companies and the rising use of cyber security by healthcare organizations are the main contributing factors to market growth. The industry is being driven by the rising investment in technology advancement and cyber security. The development of the healthcare industry’s infrastructure is another factor.

Also, the introduction of ground-breaking products to protect patient data in the healthcare sector is fueling market expansion. For instance, Cisco unveiled the most recent iteration of the “Cisco Umbrella” in 2018. It was implemented at the University of Kansas Hospital to defend against ransomware and safeguard medical equipment and financial data.

Key Regions

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Key Players Analysis

The market for healthcare cyber security is expected to increase as a result of major market players’ ongoing investments in the creation of goods with cutting-edge technologies to acquire a competitive advantage over rivals. As an illustration, IBM stated in November 2021 that it will expand its cyber security and response capabilities by purchasing Reaqta, a Dutch cyber security threat detection and response company.

Market Key Players

• IBM
• Symantec
• Macafee
• Kaspersky
• Northrop Grumman
• Fortinet Inc
• Cisco
• Trend Micro
• Imperva Inc
• Lockheed Martin
• Medigate Ltd
• Fire eye
• Intel
• LLC
• Atos SE
• Palo Alto Networks, Inc.
• Booz Allen Hamilton, Inc.
• Other Key Players

Recent Developments

• August 2024: IBM launched a new generative AI-powered cybersecurity assistant as part of its Threat Detection and Response Services. This assistant, built on IBM’s watsonx platform, aims to accelerate and improve the identification and response to security threats. Notably, it has reduced alert investigation times by 48% for clients and can automatically handle up to 85% of security alerts, significantly enhancing the efficiency of cybersecurity operations.
• In November 2023: McAfee was acquired by an investor group led by Advent International and Permira for approximately $14 billion. This acquisition highlights McAfee’s strategic shift towards enhancing its consumer cybersecurity offerings, including healthcare cybersecurity. The deal is expected to bolster McAfee’s ability to provide advanced cybersecurity solutions tailored for the healthcare sector, particularly in protecting patient data and connected medical devices​.
• In March 2023: Symantec identified a resurgence of the Emotet malware, particularly targeting the healthcare sector. Emotet’s advanced techniques, including phishing emails and binary padding, led to a significant rise in healthcare cyber threats. Symantec’s report highlighted that these attacks compromised over 70% of healthcare organizations using cloud services, emphasizing the need for stronger cloud security measures.

Report Scope