Global healthcare cyber security market size was valued at nearly USD 5.5 billion in 2014 and is expected to witness lucrative growth over the forecast period. Key factors attributing to its rapid growth include increasing the threat of cyber attacks, regulatory and security compliance related issues, and data leaks from within the organization triggered by external or internal factors. Furthermore, increasing instances of patent infringement, theft of intellectual property, business secrets, medical identity fraud, loss of electronic patient health records (E-PHI), social security records are also expected to boost the usage of products in the field of healthcare over the forecast period.
According to data published by the SANS institute and internal estimates, during September 2012 and October 2013, over 380 healthcare organizations witnessed devices and networks related security threats in the U.S.
Furthermore, according to estimates published by the Ponemon Institute, the average cost of data breach in a hospital was more than USD two million, with costs increasing with the size of the healthcare organization. The lack of adequate IT spending by healthcare organizations and lack of awareness about cyber crime are key reasons attributing to the increasing attacks on healthcare organizations. The overall impact of these attacks on hospitals and healthcare systems is estimated to be nearly six billion annually in terms of revenue. Patient medical and insurance records are the key factors triggering such attacks.
U.S. Healthcare Cyber Security Market by End Use, 2012-2022, (USD Million)
End Use Insights
The trend of cyber attacks on medical device manufacturers, pharmaceuticals, and insurance companies is on the rise across the globe, but the highest impact has been witnessed by the U.S. based companies. In 2013, Medtronic, Boston Scientific, and St. Jude Medical reported incidents of attacks and data loss. In 2015, a massive attack was launched on Anthem, resulting in loss of nearly 80 million customer records.
In 2014 the FBI has issued a private industry notification (PIN) to the healthcare sector in the U.S. This notification highlights the threat of virtual warfare against healthcare organization and is expected to propel implementation of higher security standards to tackle new age cyber warfare.
In 2014, pharmaceuticals & chemicals segment held the majority of the market share of over 20%. Furthermore, hospitals are expected to be the fastest growing end-use segment growing at a CAGR of over 9% in the next seven years. The healthcare end users are very vulnerable to cyber warfare, due to bureaucratic hierarchy structure, lack of comprehensive network security policy, low investments in IT, employee engagement and education on cyber crime issues.
Cyber attacks are increasing at a rapid pace across the globe. The type of threat, frequency of attack and impact of each attack varies across different organizations based on their internal security controls. Earlier these attacks were focused more on stealing credit card details, billing information, bank account numbers using spam mails, phishing, or by using stolen devices with un-encrypted data. The time taken to identify security breaches can be very long if adequate internal systems, firewalls are not used and it can create a huge impact to the company’s credibility and accountability.
Furthermore, using advanced malware, DDoS, SQl injections, advanced persistent threats (APT), zero-day attacks, rootkits, clickjacking and others, the cyber criminals have been able to easily bypass the protocols, resulting in loss of intellectual property, patient records, and other valuable information. The threat from internal sources is also very high owing to company policies such as bring your own device (BYOD), use of cloud services.
Lack of internal identification and systems, use of insecure networks, employee negligence, loss of devices with un-encrypted files or data theft by the employee are also some of the key aspects contributing to the increasing crimes. In 2014, malware held the largest market share and is expected to continue its strong growth over the forecast period.
To tackle the various threats, cyber companies have been developing multiple products which can be used individually or can be used as a suite of products providing layer-wise solutions. Some of the key solutions used for protection are identity and access management, risk and compliance management, security information and event management (SIEM), and intrusion detection system (IDS)/intrusion prevention system (IPS), data encryption software, firewalls, antivirus, antimalware software, and others.
Ideally, organizations implement more than 2 layer or 3 layer security frameworks to better identify the threats and control the flow of data, information and monitor the various other transactions performed by each user.
In 2014, identity and access management held the maximum market share of nearly 14%. However, risk and compliance management is expected to be the most lucrative solution type growing at a CAGR of over 9% over the forecast period.
Rising trend of security lapses, data breaches, is expected boost the overall; IT spending by healthcare organizations and especially in the field. Furthermore, technological advancements, increasing criminal attacks and the challenges of the digital world are expected to significantly boost the usage rates of these solutions over the next seven years.
The market is segmented on the basis of the region as North America, Europe, Asia Pacific, MEA and Latin America. North America held the largest market share of over 40.00% in 2014. Key factors attributing to its large share include a high number of attacks targeting the organizations in that region, the presence of various fortune 500 healthcare organizations, and high spending on research and development.
Furthermore presence of digital patient records, high uses of networked devices are also contributing to the regional growth. The vibrant economic growth and technological advancements in that region provide ample opportunities for criminals to hack into the networks and steal valuable data.
Asia Pacific is expected to be the most lucrative regional market growing at a CAGR of over 8.50% over the next seven years. Rapid growth in this region can be attributed to the presence of many MNC headquarters, global R&D centers of pharmaceutical and medical device industry. These organizations are vulnerable to attacks very easily from state and nonstate agents, external hackers, and malicious insiders. Various government initiatives to strengthen the security networks and proactive measures taken by healthcare organizations to protect their data and customer records are expected to significantly boost usage rates of the cyber security products over the next seven years.
Competitive Market Share Insights
Key players operating in the industry are Symantec, Trend Micro, Cisco, IBM, Paulo Alto Networks, Lockheed Martin, MacAfee, FireEye, Northrop Grumman, Kaspersky, and others. Increasing threat of cyber terrorism due to technological advancements, entry of new players are expected to significantly alter the market dynamics over the forecast period.
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