Healthcare Cyber Security Market Size, Share & Trends Analysis Report By Type Of Solution, By Type Of Threat, By End Use, By Type of Security, By Deployment, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global healthcare cyber security market size was valued at USD 14.7 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 18.4% from 2023 to 2030. Some of the factors driving the market are increasing cyber-attacks rising privacy and security concerns and higher adoption of advanced cyber security solutions. Moreover, the growing adoption of cloud-based solutions in the healthcare sector, rise in adoption of connected devices and smartphones, and adoption of 5G technology are factors estimated to further contribute to the growth of the market over the forecast period.

The use of Internet of Medical Things devices for better patient care raises potential threats in the healthcare sector, driving up demand for advanced healthcare cyber security solutions. Healthcare cyber security firms provide healthcare institutions with cyber security services and solutions to secure their hospitals and patient information from data breaches and cyber-attacks. The practice of preserving the confidentiality, integrity, and availability of data is known as cyber security or information security. Cyber security is a risk management method, software, and technology aimed at preventing digital attacks, data theft, and unauthorized access to networks, devices, healthcare data, and programs. The market has a large number of advanced healthcare cyber security solutions.

Furthermore, the increasing data breach in the industry adds fuel to the market for healthcare cyber security. For instance, according to the Cost of a Data Breach Report published by IBM in 2021, the average cost of a data breach in the healthcare sector was USD 9.23 million in 2021. Also, the Secretary of U.S. Department of Health and Human Services (HHS) Breach of Unsecured Protected Health Information listed approximately 592 breaches of unsecured protected patient data that affected more than 500 individuals from the past two years that are under investigation by the Office for Civil Rights.

Healthcare is an attractive target for cybercriminals as medical data is between ten and twenty times more lucrative than credit card or banking details. Also, the digital transformation of healthcare over recent years has increased the incidence of cyber-attacks. For instance, the recent cyber attacks on Ireland's Department of Health and Health Service Executive (HSE) were impacted by a human-operated ‘Conti’ ransomware attack which severely disabled many HSE systems and necessitated the shutdown of the majority of its other systems. These above-mentioned factors are accelerating the growth of the healthcare cyber security market.

COVID-19 Impact

COVID-19 had a positive impact on the market for healthcare cyber security. As a result of the COVID-19 outbreak, cyber-attacks on clinical testing databases, digital healthcare platforms and apps, medical diagnostic systems, and advanced healthcare devices have increased. But as technology is becoming more rooted in the healthcare industry, cyber security threat has also increased. As the healthcare industry adopts remote modes, users using personal equipment and home internet connections without cyber security may be subject to hostile attacks. Furthermore, the growing number of incidents of data breaching has raised concerns about the relevance of cyber security. Moreover, the COVID-19 phishing exploded, which contributed to the demand for cyber security in the healthcare industry.

The market for healthcare cyber security increased by 15.6 % from 2020 to 2021. The spread of the COVID-19 pandemic increased the adoption of cyber security services and solutions as a result of increased threats of a data breach as well as the rising incidence of cyber-attacks in the healthcare system. The phishing incidences in the healthcare industry exploded during the pandemic thereby increasing the demand for cyber security. In 2022, the market witnessed an increase of 17.1% from 2021. Increasing penetration of the internet and adoption of digital platforms by the healthcare industry is increasing the need for cyber security. Also, the adoption of advanced cyber security solutions will add fuel to the market. Increasing investments in healthcare cyber security by various healthcare organizations and government initiatives is estimated to upsurge the market.

Type of Solutions Insights

Antivirus and Antimalware segment dominated the market with 25.6% share in 2022. Various solutions have been developed to tackle the different threats. Some of the key solutions include identity and access management, risk and compliance management, Security Information and Event Management (SIEM), Intrusion Detection System (IDS)/Intrusion Prevention System (IPS), and data encryption software, firewalls, antivirus, antimalware software, and others. Antivirus and Antimalware segment is anticipated to grow at a fastest CAGR of 19.3% due to the increase in the usage of such solutions. It is attributed to a surge in the number of malware attacks in the healthcare industry, which is shutting down the networks and affecting patient care.

Type of Threat Insights

Malware segment dominated the market with 25.4% share in 2022. The healthcare industry has multiple cyber security-related issues. It includes malware that compromises system integrity and patient privacy, Distributed Denial of Service (DDoS) attacks that disrupt providers' ability to provide effective patient care. The ransomware attack is the extensively used malware type due to the awareness and preferences of the hackers for ransomware.

A minimum of 92 healthcare organizations in the U.S. suffered ransomware attacks in 2020, which resulted in an average ransom demand of USD 169,446 and netting criminals approximately USD 15.6 million in ransoms demanded from the healthcare industry in the U.S. Also, according to Emsisoft, 560 healthcare facilities fell victim to ransomware attacks by the malware variant in 2020. Moreover, the advanced persistence threat segment is witnessing lucrative growth and is anticipated to witness a higher CAGR over the forecast period.

End-use Insights

As of 2022, the hospital segment held the largest revenue share of around 62.9%. Hospitals are extremely vulnerable to cyber-attack as it stores an incredible amount of patient data. In addition, these attacks are spiked during the pandemic threatening private data and patient care. It will be increasing the use of cyber security. For instance, a security breach at Blackbaud, a cloud computing company, resulted in the exposure of patient data from more than 46 health systems and hospitals.

According to a report published in 2018 in the American Journal of Managed Care, annual spending on advertising increased by 64.0% for the next two years after a security breach in hospitals. This additional expense allows hospitals to rebuild their age and retain their patients against their competitors in the market. Such costs to the healthcare system can be avoided by implementing a better data security system, which is estimated to drive cyber security spending in hospitals.

Regional Insights

As of 2021, North America dominated the market for healthcare cyber security and accounted for the largest revenue share of around 41%. The key attributing factors for the market growth are the presence of key players and the increased application of cyber security in healthcare organizations. The increasing investment in cyber security and technological advancement is adding fuel to the market. Furthermore, the advanced healthcare infrastructure is attributed to market growth. Also, the launch of innovative products to safeguard the data in the healthcare industry is contributing to market growth. For instance, in 2018, Cisco released the latest version of the “Cisco Umbrella”. It was deployed at the University of Kansas Hospital to protect medical devices and financial information from ransomware.

In Asia Pacific, the market for healthcare cyber security is anticipated to witness a lucrative CAGR of 20.1% over the forecast period due to the increased adoption and penetration of the internet in the healthcare industry. Moreover, the increase in digitalization and adoption of Electronic Health Records (EHRs), wireless medical devices, and telemedicine is fueling the market growth. Also, the increasing cyber-attacks in the region would propel market growth over the forecast period. In February 2021, Trend Micro a Japanese multinational cyber security software company launched its Trend Micro Vision One extended detection and response platform.

Key Companies & Market Share Insights

Key market players are continuously investing in the development of products with advanced technologies to gain a competitive edge over others in the market, which is expected to drive the growth of the market for healthcare cyber security. For instance, in November 2021 IBM announced it would extend its cyber security and response capabilities by acquiring ReaQta, a Dutch cyber security threat detection and response company. Some of the prominent players in the healthcare cyber security market include:

• Cisco

• IBM

• FireEye

• Symantec

• Trend Micro

• MacAfee

• Intel

• Kaspersky

• Lockheed Martin

• Northrop Grumman

• Imperva Inc

• Fortinet Inc

• Medigate Ltd

Healthcare Cyber Security Market Report Scope

Global Healthcare Cyber Security Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research, Inc. has segmented the global healthcare cyber security market report on the basis of type of solution, type of threat, end use, type of security, deployment, and region:

• Type of Solution Outlook (Revenue, USD Million, 2017 - 2030)

  • 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

• Type of Threat Outlook (Revenue, USD Million, 2017 - 2030)

  • Malware

  • DDoS

  • Advanced Persistent Threat

  • Spyware

  • Lost or Stolen Devices

  • Others

• End-Use Outlook (Revenue, USD Million, 2017 - 2030)

  • Pharma & Chemicals

  • Medical Devices

  • Health Insurance

  • Hospitals

  • Others

• Type of Security Outlook (Revenue, USD Million, 2017 - 2030)

  • Network Security

  • Endpoint Security

  • Application Security

  • Content Security

• Deployment Outlook (Revenue, USD Million, 2017 - 2030)

  • On-premises

  • Cloud-based

• Regional Outlook (Revenue, USD Million, 2017 – 2030)

  • North America

  • U.S.

  • Canada

  • Europe

  • Germany

  • U.K.

  • Italy

  • Spain

  • France

  • Denmark

  • Sweden

  • Norway

  • Asia Pacific

  • Japan

  • China

  • India

  • South Korea

  • Australia

  • Thailand

  • Latin America

  • Brazil

  • Mexico

  • Argentina

  • MEA

  • South Africa

  • Israel

  • Saudi Arabia

  • UAE

  • Kuwait