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.

In 2023, the number of data compromises in the United States stood at 3,205 cases. Meanwhile, over 353 million individuals were affected in the same year by data compromises, including data breaches, leakage, and exposure. While these are three different events, they have one thing in common. As a result of all three incidents, the sensitive data is accessed by an unauthorized threat actor. Industries most vulnerable to data breaches Some industry sectors usually see more significant cases of private data violations than others. This is determined by the type and volume of the personal information organizations of these sectors store. In 2022, healthcare, financial services, and manufacturing were the three industry sectors that recorded most data breaches. The number of healthcare data breaches in the United States has gradually increased within the past few years. In the financial sector, data compromises increased almost twice between 2020 and 2022, while manufacturing saw an increase of more than three times in data compromise incidents. Largest data exposures worldwide In 2020, an adult streaming website, CAM4, experienced a leakage of nearly 11 billion records. This, by far, is the most extensive reported data leakage. This case, though, is unique because cyber security researchers found the vulnerability before the cyber criminals. The second-largest data breach is the Yahoo data breach, dating back to 2013. The company first reported about one billion exposed records, then later, in 2017, came up with an updated number of leaked records, which was three billion. In March 2018, the third biggest data breach happened, involving India’s national identification database Aadhaar. As a result of this incident, over 1.1 billion records were exposed.

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.

BackgroundHealthcare is facing a growing threat of cyberattacks. Myriad data sources illustrate the same trends that healthcare is one of the industries with the highest risk of cyber infiltration and is seeing a surge in security incidents within just a few years. The circumstances thus begged the question: are US hospitals prepared for the risks that accompany clinical medicine in cyberspace?ObjectiveThe study aimed to identify the major topics and concerns present in today's hospital cybersecurity field, intended for non-cyber professionals working in hospital settings.MethodsVia structured literature searches of the National Institutes of Health's PubMed and Tel Aviv University's DaTa databases, 35 journal articles were identified to form the core of the study. Databases were chosen for accessibility and academic rigor. Eighty-seven additional sources were examined to supplement the findings.ResultsThe review revealed a basic landscape of hospital cybersecurity, including primary reasons hospitals are frequent targets, top attack methods, and consequences hospitals face following attacks. Cyber technologies common in healthcare and their risks were examined, including medical devices, telemedicine software, and electronic data. By infiltrating any of these components of clinical care, attackers can access mounds of information and manipulate, steal, ransom, or otherwise compromise the records, or can use the access to catapult themselves to deeper parts of a hospital's network. Issues that can increase healthcare cyber risks, like interoperability and constant accessibility, were also identified. Finally, strategies that hospitals tend to employ to combat these risks, including technical, financial, and regulatory, were explored and found to be weak. There exist serious vulnerabilities within hospitals' technologies that many hospitals presently fail to address. The COVID-19 pandemic was used to further illustrate this issue.ConclusionsComparison of the risks, strategies, and gaps revealed that many US hospitals are unprepared for cyberattacks. Efforts are largely misdirected, with external—often governmental—efforts negligible. Policy changes, e.g., training employees in cyber protocols, adding advanced technical protections, and collaborating with several experts, are necessary. Overall, hospitals must recognize that, in cyber incidents, the real victims are the patients. They are at risk physically and digitally when medical devices or treatments are compromised.

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.

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.

View Data Breach Notification Reports, which include how many breaches are reported each year and the number of affected residents.

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.

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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 inform...

In the first half of 2024, the number of breached healthcare data records in the United States was over 43 million. The highest reported number of breached data records in the U.S. healthcare sector was registered in 2015, totaling 112.4 million. This figure has fluctuated dramatically since then.

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

During the third quarter of 2024, data breaches exposed more than 422 million records worldwide. Since the first quarter of 2020, the highest number of data records were exposed in the first quarter of 202, more than 818 million data sets. Data breaches remain among the biggest concerns of company leaders worldwide. The most common causes of sensitive information loss were operating system vulnerabilities on endpoint devices. Which industries see the most data breaches? Meanwhile, certain conditions make some industry sectors more prone to data breaches than others. According to the latest observations, the public administration experienced the highest number of data breaches between 2021 and 2022. The industry saw 495 reported data breach incidents with confirmed data loss. The second were financial institutions, with 421 data breach cases, followed by healthcare providers. Data breach cost Data breach incidents have various consequences, the most common impact being financial losses and business disruptions. As of 2023, the average data breach cost across businesses worldwide was 4.45 million U.S. dollars. Meanwhile, a leaked data record cost about 165 U.S. dollars. The United States saw the highest average breach cost globally, at 9.48 million U.S. dollars.

According to Cognitive Market Research, the Global Information Security Consulting Market is expected to have a market size of XX million in 2024 with a growing CAGR of XX% during the forecast period.

The Asia-Pacific region has the largest market share with an expected market size of XX million in 2024 with a growing CAGR of XX% during the forecast period.
North America is the fastest growing with an expected market size of XX million in 2024 with a growing CAGR of XX% during the forecast period.
Cloud Security has the largest market share with an expected market size of XX million in 2024 with a growing CAGR of XX% during the forecast period.
The cloud segment has the largest market share with an expected market size of XX million in 2024 with a growing CAGR of XX% during the forecast period.
Large Enterprise has the largest market share with an expected market size of XX million in 2024 with a growing CAGR of XX% during the forecast period.
The BFSI segment has the largest market share with an expected market size of XX million in 2024 with a growing CAGR of XX% during the forecast period.

Market Dynamics

Key drivers

The increasing number of cyber-attacks globally is favoring market growth

Strong security solutions are in more demand as a result of the growing anxiety that cyber assaults are causing among both individuals and enterprises. Any hostile action directed towards computer networks, infrastructures, personal computers, smartphones, or computer information systems is called a cyberattack. Because of this and the need for more stringent security and regulatory compliance, the information security consulting industry is growing quickly. For instance, according to McKinsey and company, cyberattacks are on track to cause $10.5 trillion a year in damage by 2025. That’s a 300 percent increase from 2015 levels. To protect against the onslaught, organizations around the world spent around $150 billion on cybersecurity in 2021, and this sum is growing by 12.4 percent a year. In all industries combined, the average cost of a single data breach as of 2022 was approximately 4.35 million US dollars. The healthcare industry was shown to be the most expensive for this, with each leak estimated to have cost the impacted party a whopping 10.1 million dollars. The segment on finances was closely followed. The Cam4 data breach in March 2020, which revealed over 10 billion data records, was the largest known data leak as of January 2024. The Yahoo data breach, which happened in 2013, is currently the second-largest data breach in history. To compact these increasing data breaches and cybercrimes, many company solutions have been in development and adopted. Cloud migration will remain a key component of many organizations' technological agendas. For this reason, cloud providers must be able to safeguard both standard and customized cloud configurations. Furthermore, there is a sharp rise in the demand for cyber security in the fields of healthcare, banking and financial services, aviation, and automobiles. Some of the main factors driving the demand for technologically advanced information security solutions among businesses are the emergence of IoT and connected technologies, the quick adoption of smartphones for digital payments, and the use of unsecured networks for accessing organizational servers. Therefore, the market is expected to grow significantly in the coming years.

(Source-http://https://www.statista.com/statistics/290525/cyber-crime-biggest-online-data-breachesworldwide/#:~:text=The%20largest%20reported%20data%20leakage,data%20breach%2C%20occurred%20in%202013.)

The rise in the number of regulations and developments has favoured the market growth

As cyber risks continue to grow, information security has become a key concern for both individuals and enterprises. The laws and regulatory requirements that are propelling the information security market's expansion are intended to strengthen cybersecurity defenses and shield private information from nefarious individuals. For instance, The United States government enacted two cybersecurity laws into law in June 2022. The first bill, the State and Local Government Cybersecurity Act of 2022, aims to improve cooperation between state, territorial, local, and tribal governments as well as the Cybersecurity and Infrastructure Security Agency (CISA). It is anticipated that these important actions will boost the i...

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.

In 2023, manufacturing saw the highest share of cyberattacks among the leading industries worldwide. During the examined year, manufacturing companies encountered nearly a quarter of the total cyberattacks. Finance and insurance organizations followed, with around 18 percent. Professional, business, and consumer services ranked third, with 15.4 percent of reported cyberattacks. Healthcare industry and cyberattacks
The healthcare industry is considered one of the most vulnerable sectors to cybercrime. Between October 2021 and September 2022, healthcare organizations worldwide saw various cyberattacks, mostly network and application, as well as malware. Additionally, this sector had the highest average data breach cost throughout recent years, amounting to nearly 11 million U.S. dollars. IT perspective and prevention
With recent technology developments, cybersecurity is crucial to an organization’s success. Realizing this, companies have been gradually increasing cybersecurity investments. Thus, in 2024, the cybersecurity budget worldwide was forecast to increase to nearly 283 billion U.S. dollars. Roughly nine in ten board directors of companies worldwide in professional services and media and entertainment industries say they expect an increase in the cybersecurity budget.

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 global Healthcare IT Consulting market is experiencing robust growth, projected to reach $90.44 billion in 2025. While the precise CAGR is not provided, considering the significant investments in digital healthcare transformation and the increasing complexity of healthcare IT systems, a conservative estimate of the CAGR for the forecast period (2025-2033) would be between 7% and 10%. This growth is driven by several key factors. Firstly, the rising adoption of electronic health records (EHRs), the increasing need for data analytics to improve patient care and operational efficiency, and the growing demand for robust cybersecurity solutions within the healthcare sector are all significant contributors. Secondly, the increasing prevalence of chronic diseases and the aging global population necessitate more sophisticated healthcare IT systems, further fueling demand for consulting services. Finally, government initiatives promoting interoperability and data sharing across healthcare systems are creating opportunities for consultants to help navigate the complexities of regulatory compliance and technology integration. The market segmentation reveals significant opportunities across various application areas. Healthcare system security set-up and risk assessment are witnessing high demand, as data breaches and cyberattacks become more prevalent. Similarly, healthcare enterprise reporting and data analytics are critical for driving better decision-making and improving patient outcomes. The major players in this market, including IBM, GE, Siemens Healthineers, and Cerner, are investing heavily in research and development to offer innovative solutions and expand their market share. Geographical distribution shows that North America and Europe currently dominate the market, driven by high technology adoption rates and robust healthcare infrastructure. However, Asia Pacific is expected to witness substantial growth in the coming years due to increasing healthcare spending and rapid technological advancements in the region. This makes the Healthcare IT Consulting market an attractive investment opportunity with significant potential for sustained growth and innovation.