Between January and September 2024, healthcare organizations in the United States saw 491 large-scale data breaches, resulting in the loss of over 500 records. This figure has increased significantly in the last decade. To date, the highest number of large-scale data breaches in the U.S. healthcare sector was recorded in 2023, with a reported 745 cases.

In 2023, the most significant healthcare data breach incident in the United States was the HCA Healthcare breach. The Nashville-based company is the largest health system in the United States. During the July 2023 breach, more than 180 U.S. hospitals and 2,300 healthcare sites reported about unauthorized access. The incident impacted 11.27 million individuals in the United States. Second-ranked PJ&A data breach impacted nearly nine million individuals.

Healthcare data breaches in the United States are a constantly increasing risk with the potential for significant damage to affected parties. The largest recorded U.S. data breach in the healthcare sector as of November 2024, was recorded in July 2024, at Change Healthcare, Inc., a health insurance provider in the United States, when criminal hackers stole personal data affecting 100 million individuals.

In the first half of 2024, the share of health-related U.S. data breaches caused by hacking was 78 percent, which marked a two percent increase from 2023, reaching its highest rate since 2014.

Between January and November 2024, the healthcare sector in the United States saw 520 resolved data breach cases. These are the incidents that are past the investigation phase. In 2023, the number of resolved data breach incidents in the United States was 313, a slight decrease from the year prior.

In 2022, most healthcare data breaches in the United States happened as a result of hacking or IT-related incidents. The number of such cases was 555 in the examined year. The next-most common cause for data breaches was unauthorized access or disclosure, detected in 113 cases. Loss and theft of data were less common causes of data breaches in the U.S. healthcare system in 2022. Overall, in 2022, there were 707 data breaches of over 500 records in the U.S. healthcare industry.

In the first half of 2024, healthcare providers reported 252 data breaches in the U.S. healthcare sector, becoming the entity with the highest number of reported breach incidents. As of the time of the reporting, business associates ranked second with the number of reported data breaches.

The HIPAA compliance software market, valued at $6043.5 million in 2025, is experiencing robust growth driven by increasing regulatory scrutiny, rising cyber threats targeting sensitive patient data, and the expanding adoption of cloud-based healthcare solutions. The market's growth is fueled by the escalating need for robust security measures within healthcare organizations of all sizes, from small physician practices to large hospital systems and research institutions. The shift towards cloud-based solutions is accelerating this growth as organizations seek scalable and cost-effective ways to maintain compliance. Key market segments include cloud-based and on-premises software deployments, catering to diverse organizational needs and technological infrastructure. Hospitals and research institutions represent significant market verticals due to their substantial data volumes and heightened vulnerability to breaches. Competition is fierce, with established players like Ostendio, Congruity 360, and LifeOmic alongside emerging innovators constantly refining their offerings to meet evolving regulatory requirements and technological advancements. The market's sustained growth is anticipated to continue throughout the forecast period (2025-2033), driven by factors like increasing data breaches and fines, stricter enforcement of HIPAA regulations, and the ongoing digital transformation within the healthcare sector. The competitive landscape is dynamic, with a mix of large established vendors and smaller specialized providers. The market's segmentation by deployment type (cloud-based vs. on-premises) and application (hospital vs. research institute) reflects the diverse needs of the healthcare industry. Geographic expansion, particularly in developing economies with growing healthcare IT infrastructure, presents significant opportunities. However, challenges remain, including the complexity of HIPAA regulations, the high cost of implementation and maintenance, and the ongoing evolution of cyber threats. Successful players will need to demonstrate a strong understanding of HIPAA compliance, offer robust security features, and provide comprehensive support to their clients. Factors like integration capabilities with existing healthcare IT systems, user-friendliness, and proactive compliance monitoring will be crucial in determining market leadership.

During this research a Bayesian Network model was created to determine the probability of a data breach caused by insiders of a health care sector. In addition to this, a data breach assessment tool has been created which can be used to obtain observations for the model. To gather information on the impact of the variables a focus group session with assignments was arranged. To explain the research and the assignments to the participants a presentation was given. The model was validated by sensitivity analyses and performing a data breach assessment in three hospitals.

Cyber Security in Healthcare Market Outlook

The global market size for cyber security in healthcare is projected to grow from USD 14.7 billion in 2023 to an estimated USD 38.1 billion by 2032, exhibiting a robust CAGR of 11.2% during the forecast period. This significant growth is primarily driven by the escalating frequency and sophistication of cyber-attacks on healthcare institutions, coupled with the stringent regulatory requirements for data protection and privacy. The increasing adoption of digital health solutions, such as electronic health records (EHRs) and telemedicine, further underscores the need for advanced cyber security measures to safeguard sensitive patient data from malicious threats.

One of the critical growth factors for the cyber security in healthcare market is the rapid digitalization of healthcare systems globally. The transition from paper-based records to digital platforms has exponentially increased the volume of sensitive data being generated and stored, making healthcare institutions prime targets for cybercriminals. Moreover, with the growing integration of Internet of Things (IoT) devices in healthcare, there are more entry points for potential cyber-attacks, necessitating robust security solutions to protect network integrity and patient confidentiality.

Another driving force is the regulatory landscape mandating stringent compliance with data protection laws. Regulations such as the Health Insurance Portability and Accountability Act (HIPAA) in the United States, the General Data Protection Regulation (GDPR) in the European Union, and similar frameworks in other regions require healthcare providers to implement comprehensive cyber security measures. Non-compliance with these regulations can result in hefty fines and legal ramifications, thereby compelling healthcare institutions to invest in advanced cyber security solutions.

The rising awareness among healthcare institutions about the potential financial and reputational damage caused by data breaches is also propelling market growth. High-profile cyber-attacks on renowned healthcare organizations have highlighted the severe consequences of inadequate cyber security measures, leading to increased investments in robust security infrastructures. Additionally, the growing trend of value-based care models, which emphasize data-driven decision-making, further amplifies the need for secure and reliable data management systems.

From a regional perspective, North America dominates the cyber security in healthcare market, driven by the presence of a well-established healthcare infrastructure, high adoption rates of advanced technologies, and stringent regulatory requirements. Europe follows closely, with significant investments in cyber security driven by GDPR compliance. The Asia Pacific region is expected to exhibit the highest growth rate during the forecast period, owing to the rapid digital transformation of healthcare systems, increasing awareness about data security, and rising incidences of cyber-attacks in countries like China and India.

Component Analysis

The cyber security in healthcare market can be broadly segmented into solutions and services. Solutions encompass a wide range of security products designed to protect healthcare data, including firewalls, intrusion detection systems (IDS), encryption tools, and security information and event management (SIEM) systems. These solutions are critical in defending against unauthorized access, data breaches, and other cyber threats. The increasing sophistication of cyber-attacks has driven the demand for advanced solutions that offer real-time threat detection and response capabilities.

Among the solutions, network security holds a significant share, given the need to protect the vast amounts of data transmitted across healthcare networks. Network security solutions include firewalls, virtual private networks (VPNs), and network access control (NAC) systems, which help in securing the communication channels and preventing unauthorized access. Endpoint security is another crucial segment, focusing on safeguarding individual devices like computers, tablets, and mobile phones that access the healthcare network. With the rise of remote work and telehealth services, endpoint security has become increasingly vital in ensuring that all devices connected to the network are secure.

Application security solutions are designed to protect software applications used in healthcare from cyber-attacks. These include secure coding practices, vulnerability assessments, and application firewalls. As healthcare

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Medical Device Security Solutions Market Size 2024-2028

The medical device security solutions market size is forecast to increase by USD 2.62 billion at a CAGR of 11.96% between 2023 and 2028. In the dynamic landscape of medical technology, the security of medical device solutions has emerged as a critical concern. The integration of advanced technologies such as Proteomics and Genomics in healthcare has led to the proliferation of Connected Medical Devices (CMDs) and Internet of Medical Things (IoMT) devices. While these innovations offer numerous benefits, they also introduce new vulnerabilities, making cybersecurity a priority. Data breach incidents have become increasingly common, with cybercriminals exploiting weaknesses in software and outdated platforms. Ransomware attacks on healthcare organizations have become a significant threat, putting sensitive patient information at risk. To mitigate these challenges, a strong cybersecurity strategy is essential. Market trends indicate a growing focus on securing medical devices, with an increasing number of organizations adopting advanced security solutions. Despite these efforts, the use of outdated platforms in the healthcare industry persists, leaving many devices vulnerable to cyber threats. To stay ahead, stakeholders must remain vigilant and invest in the latest cybersecurity technologies and best practices.

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Medical devices, including pacemakers, insulin pumps, and other implanted and wearable gadgets, have become increasingly integrated with the internet and hospital networks. While these advancements bring numerous benefits, they also expose sensitive data and medical equipment to cyber-attacks. Cyber threats to medical devices can lead to illegal access control, compromising patient privacy and potentially endangering lives. Sensitive data transmitted wirelessly between medical facilities, IoT technologies, and computing power can be intercepted, leading to data breaches and unauthorized access. The internet and cell phone connectivity in healthcare settings further expand the attack surface.

Similarly, cybercriminals can exploit vulnerabilities in these devices and networks, causing disruptions, data theft, and even manipulating medical device functionality. To counteract these threats, new technologies and cyber-secure measures are being adopted to protect medical devices and the data they generate. These advancements include Iot technologies, data analytics techniques, and big data solutions. Data analytics techniques and big data can help medical facilities identify and respond to cyber threats in real-time. By analyzing patterns and anomalies in medical device data, healthcare providers can detect and mitigate potential attacks before they cause harm. Proteomics and genomics data, which are increasingly being used in personalized medicine, also require strong security measures.

Moreover, ensuring the cyber security of these data types is crucial for maintaining patient privacy and confidentiality. Incorporating cyber security into medical device design is essential. This includes implementing secure access control mechanisms, encrypting data transmission, and regularly updating software and firmware to address vulnerabilities. Wireless technologies used in medical devices must also be secured to prevent unauthorized access and data interception. Encryption, authentication, and secure communication protocols are essential for maintaining the security of wireless medical devices. As medical devices become more interconnected and data-driven, the importance of cyber security in healthcare settings will only continue to grow. By implementing advanced security solutions, healthcare providers can protect patient data, ensure the integrity of medical devices, and maintain the trust of their patients.

Market Segmentation

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Device

  Wearable and external medical devices
  Hospital medical devices
  Internally embedded medical devices


End-user

  Healthcare providers
  Medical devices manufacturers
  Healthcare payers


Geography

  North America

    US


  Europe

    Germany
    UK


  APAC

    China
    Japan


  Middle East and Africa



  South America

By Device Insights

The wearable and external medical devices segment is estimated to witness significant growth during the forecast period. In recent years, the healthcare industry has experienced significant transformation, integrating the Internet of Things (IoT) and advanced medical devices into the system. This shift towards decentralized care, from hospitals to homes, has led to the centralization of patient data in cloud-based hospital system

Objective: The rapid adoption of health information technology (IT) coupled with growing reports of ransomware, and hacking has made cybersecurity a priority in health care. This study leverages federal data in order to better understand current cybersecurity threats in the context of health IT.

Materials and Methods: Retrospective observational study of all available reported data breaches in the United States from 2013 to 2017, downloaded from a publicly available federal regulatory database.

Results: There were 1512 data breaches affecting 154 415 257 patient records from a heterogeneous distribution of covered entities (P < .001). There were 128 electronic medical record-related breaches of 4 867 920 patient records, while 363 hacking incidents affected 130 702 378 records.

Discussion and Conclusion: Despite making up less than 25% of all breaches, hacking was responsible for nearly 85% of all affected patient records. As medicine becomes increasingly interconnected and informatics-driven, significant improvements to cybersecurity must be made so our health IT infrastructure is simultaneously effective, safe, and secure.

Medical Cyber Security Market Outlook

The global medical cyber security market size was valued at approximately USD 9.5 billion in 2023 and is projected to grow to USD 20.7 billion by 2032, exhibiting a compound annual growth rate (CAGR) of around 9.0%. This growth can be attributed to the increasing adoption of digital technologies in the healthcare sector, coupled with the rising incidence of cyber threats and data breaches targeting medical institutions.

One of the primary growth factors driving the medical cyber security market is the escalating frequency and sophistication of cyber-attacks on healthcare institutions. The healthcare sector has become a prime target for cybercriminals due to the high value of medical data, which can be exploited for identity theft, financial fraud, and other malicious activities. Consequently, there is a growing need for robust cyber security measures to protect sensitive patient information and ensure the integrity of healthcare systems. Moreover, the increasing adoption of Internet of Medical Things (IoMT) devices and telehealth services has expanded the attack surface, necessitating advanced security solutions to safeguard these interconnected systems.

Another significant growth driver is the stringent regulatory landscape governing data privacy and security in the healthcare sector. Governments across the globe have implemented stringent regulations such as the Health Insurance Portability and Accountability Act (HIPAA) in the United States and the General Data Protection Regulation (GDPR) in the European Union to ensure the protection of patient data. These regulations mandate healthcare organizations to adopt comprehensive cyber security measures to comply with data protection requirements, thereby fueling the demand for medical cyber security solutions and services.

Furthermore, the growing awareness among healthcare providers regarding the potential financial and reputational damage caused by data breaches is contributing to market growth. Healthcare organizations are increasingly recognizing the need to invest in advanced cyber security solutions to mitigate the risks associated with cyber threats. The adoption of risk management frameworks, continuous monitoring, and incident response strategies is becoming more prevalent, driving the demand for cyber security services and solutions in the medical sector.

From a regional perspective, North America is expected to dominate the medical cyber security market, owing to the high adoption of advanced technologies, well-established healthcare infrastructure, and stringent regulatory frameworks. Europe is also anticipated to witness significant growth, driven by the increasing digital transformation of healthcare systems and the implementation of GDPR. The Asia Pacific region is projected to experience the highest growth rate, driven by the rapid adoption of digital health technologies and increasing awareness regarding cyber security in emerging economies. Latin America and the Middle East & Africa regions are also expected to contribute to market growth, albeit at a relatively slower pace due to varying levels of technological adoption and regulatory maturity.

The rise of Connected Medical Devices Security is becoming increasingly important as healthcare institutions integrate more IoMT devices into their operations. These devices, which include everything from wearable health monitors to sophisticated diagnostic machines, are interconnected and communicate over networks, making them vulnerable to cyber threats. Ensuring the security of these devices is crucial not only to protect sensitive patient data but also to maintain the functionality and reliability of healthcare services. As more devices become connected, the complexity of securing them increases, requiring advanced security protocols and continuous monitoring to prevent unauthorized access and data breaches. The focus on connected medical devices security is driving innovation in the development of specialized security solutions tailored to the unique needs of these devices.

Component Analysis

The medical cyber security market can be segmented by component into solutions and services. The solutions segment encompasses various types of software and hardware designed to prevent, detect, and mitigate cyber threats. This includes firewalls, intrusion detection systems, antivirus software, encryption tools, and more. The services segment, on the other hand, includes consulting, manage

According to Cognitive Market Research, the global healthcare cybersecurity market size is USD 18.2 billion in 2024 and will expand at a compound annual growth rate (CAGR) of 14.2% from 2024 to 2031. Market Dynamics of Healthcare Cybersecurity Market

Key Drivers for Healthcare Cybersecurity Market

Rise in cybercrime- The growing number of cyber threats is a major factor propelling the healthcare cybersecurity industry forward. Cyberattacks like data breaches, phishing, and ransomware are becoming more common and sophisticated, which is a major concern for healthcare businesses. Serious financial losses and harm to reputation can come from these attacks, which can also jeopardize private patient data and interrupt essential healthcare services. Additionally, healthcare cybersecurity measures are essential for healthcare businesses to safeguard their digital assets in the face of increasingly sophisticated attackers. Continuous monitoring systems, multi-factor authentication, and improved encryption are all part of this. Moreover, the comprehensive healthcare cybersecurity market is in high demand in the healthcare business due to the vital necessity to protect patient data and guarantee the availability and integrity of healthcare services.
Technology is advancing in healthcare at a rapid pace, which is another factor driving global healthcare cybersecurity.

Key Restraints for Healthcare Cybersecurity Market

The healthcare cybersecurity market is hindered by increasing concerns about cyberattacks and data safety risks.
The scarcity of qualified cybersecurity experts also hampering the market growth.

Introduction of the Healthcare Cybersecurity Market

Healthcare cybersecurity is the process and collection of tools used to prevent unauthorized access to protected health data, electronic health records (EHRs), and other digital assets. By protecting sensitive patient information from prying eyes, hackers, and other malicious actors, healthcare cybersecurity strives to maintain the data’s privacy, authenticity, and accessibility. A number of factors are propelling the industry forward, including rising cyberattacks, worries regarding privacy and security, the proliferation of the Internet of Things and linked devices, and the popularity of healthcare solutions hosted in the cloud. The importance of Internet of Things security in healthcare cybersecurity and the increasing use of healthcare information technology solutions in outpatient care facilities are some factors that will propel market demand. The rising number of data breaches in the health sector is driving the need for healthcare cybersecurity. Additionally, the healthcare industry and government programs are anticipated to enhance their investments in healthcare cybersecurity, which is predicted to contribute to the expanding market.

The global Healthcare Cybersecurity Market, valued at $29.53 billion in 2025, is projected to experience robust growth, driven by the increasing digitization of healthcare data and the rising incidence of cyberattacks targeting sensitive patient information. The market's Compound Annual Growth Rate (CAGR) of 15.32% from 2025 to 2033 reflects a significant expansion, fueled by several key factors. The increasing adoption of cloud-based solutions, the Internet of Medical Things (IoMT) devices, and telehealth services expands the attack surface, necessitating robust cybersecurity measures. Regulatory compliance mandates, such as HIPAA in the US and GDPR in Europe, further incentivize healthcare providers to invest in advanced cybersecurity solutions. Market segmentation reveals a strong demand across various threat types, including malware, DDoS attacks, and APTs, with solutions focusing on identity and access management, risk and compliance, and advanced threat detection proving particularly vital. Growth is geographically diverse, with North America and Europe currently dominating due to higher levels of technological adoption and stringent regulatory frameworks. However, the Asia-Pacific region is expected to witness significant growth in the coming years driven by increasing healthcare IT spending and rising awareness of cybersecurity threats. The competitive landscape is dynamic, featuring both established players like Cisco and IBM and specialized healthcare cybersecurity firms like Medigate, highlighting the market's ongoing innovation and consolidation. The market's growth trajectory is, however, subject to certain restraints. The high cost of implementing and maintaining sophisticated cybersecurity infrastructure can be a barrier for smaller healthcare providers. Moreover, the shortage of skilled cybersecurity professionals poses a significant challenge. Addressing these challenges requires a multi-pronged approach encompassing investment in cybersecurity training, the development of more cost-effective solutions, and fostering collaboration between healthcare providers and cybersecurity vendors. The ongoing evolution of cyber threats necessitates continuous adaptation and innovation in cybersecurity technologies to ensure the long-term security of patient data and the integrity of healthcare systems. Therefore, the market's future growth hinges on a combination of technological advancements, regulatory changes, and successful mitigation of existing challenges. Recent developments include: March 2024 - Claroty launched Advanced Anomaly Threat Detection Module for Medigate Platform to enhance cybersecurity for healthcare organizations. The module provides clinically-aware threat detection capabilities to identify and prioritize threats to connected medical devices, IoT, and building management systems in healthcare environments., June 2023 - Medigate by Claroty and Siemens Healthineers announced a collaboration to protect healthcare enterprises from cyberattacks. Siemens Healthineers' ActSafe Cybersecurity Solution will incorporate Medigate by Claroty software to provide healthcare organizations with cybersecurity insights and device management capabilities.". Key drivers for this market are: Escalating Cyber Threats Drive Healthcare Security Market, Increasing Demand for Cloud Services; Low Penetration of Information Security Systems in the Healthcare Sector; Cloud Adoption Accelerates Cybersecurity Demand:. Potential restraints include: Escalating Cyber Threats Drive Healthcare Security Market, Increasing Demand for Cloud Services; Low Penetration of Information Security Systems in the Healthcare Sector; Cloud Adoption Accelerates Cybersecurity Demand:. Notable trends are: Risk and Compliance Management Largest Solution Segment.

The Healthcare Cyber Security Market Report is Segmented by Type of Threat (Malware, Distributed Denial of Service (DDoS), Advanced Persistent Threats (APT), and Spyware), Type of Solution (Identity and Access Management, Risk and Compliance Management, Antivirus and Antimalware, Security Information and Event Management, Intrusion Detection System (IDS)/Intrusion Prevention System (IPS)), End User (Pharmaceuticals and Biotechnology, Health Insurance, and Hospitals), and Geography (North America, Europe, Asia Pacific, Latin America, Middle East and Africa )). The Market Sizes and Forecasts are Provided in Terms of Value in USD for all the Above Segments.

The size of the Healthcare Cyber Security Market market was valued at USD 20.4 billion in 2023 and is projected to reach USD 66.94 billion by 2032, with an expected CAGR of 18.5 % during the forecast period. The Healthcare Cyber Security Market is aimed at protecting the healthcare organizations from the cyber risks such as data piracy, ransomware, cyber threats etc. It is also especially important when health care organizations expand the use of digital tools, including EHRs, telehealth, and connected devices. This market holds solutions such as encryption, identity management, risk analysis, and intrusion detection to guard the patient data that is often sensitive. Some of these include, increasing in cyber threats, demand for compliance requirements such as HIPAA and the increasing demand for digital healthcare technology infrastructure. These trends include use of artificial intelligence in threat detection, cloud security, and application of blockchain for securing patient’s data. Recent developments include: In December 2023, Cisco Systems, Inc. Cisco, introduced the Cisco AI Assistant for Security, a pivotal advancement in embedding AI across the Security Cloud. This innovative tool signifies Cisco's commitment to empowering customers by providing them with informed decision-making support, enhancing their tool functionalities, and streamlining intricate tasks through automation , In December 2023, IBM and Palo Alto Networks announced an expansion of their strategic partnership aimed at empowering clients to enhance their overall security defenses and effectively address emerging cyber threats. This collaboration aims to offer clients comprehensive solutions to bolster their security posture and navigate the evolving landscape of cybersecurity challenges .

In 2023, over 1.1 thousand healthcare data breaches were reported in the United States. The number of reported breaches in the U.S. healthcare system has gradually increased since 2016.

The global healthcare industry is increasingly embracing digital technologies, such as cloud, Big Data, Internet of Things (IoT), remote monitoring, and more, to deliver the best patient care. However, as more digital technologies are utilized, the greater potential there is for cyberattack. Healthcare data is particularly sensitive to cyberattack, since healthcare cyber breaches often involve loss of sensitive personal information and medical records. Digitally-connected medical devices are also susceptible to cyberattack, and interference with how these devices operate could potentially lead to patient harm or even death. Health system data breaches have occurred in the past and continue to occur. In 2019, there were 510 healthcare breaches of 500 records or more (up from 371 in 2018) reported to the US Department of Health and Human Services (HHS), which in total affected over 41 million patient records. Read More