Healthcare Cybersecurity Market by Offering (Solutions, Services), Security Type (Network Security, Cloud Security), Deployment Mode, End User (Hospitals and Healthcare Facilities, Telehealth and Digital Health Providers) - Global Forecast to 2031

Healthcare Cybersecurity Market Size & Forecast

The Healthcare Cybersecurity Market expected to reach $58.9 billion by 2031 at a CAGR of 17.4% during 2024–2031. The growth of the healthcare cybersecurity market is driven by the growing demand for advanced cybersecurity solutions, rising privacy concerns, increasing cyber-attacks and data breaches, and the growing adoption of IoT and connected devices. However, the lack of a cyber security policy framework in healthcare organizations restrains the growth of the healthcare cybersecurity market. Furthermore, the rising adoption of cloud-based security solutions in the healthcare industry and rising government initiatives aimed at encouraging the adoption of cybersecurity solutions are expected to create growth opportunities for the stakeholders in this market. However, the lack of awareness and misconceptions regarding healthcare cybersecurity solutions is a major challenge impacting market growth.

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Growing Demand for Advanced Cybersecurity Solutions Drives the Growth of the Healthcare Cybersecurity Market

Over the years, the healthcare sector has undergone significant technological transformations. The digitization of medical records has resulted in a paradigm shift in the healthcare sector during the last decade. Advancements in technology have enabled the healthcare sector to use interconnected IoT, OT, IT, and medical devices to improve patient care and outcomes. Hence, cyber-attacks and internet threats continue to rise in the healthcare sector due to the growing use of connected medical devices and remote patient mobile technology, making security and compliance a daunting task across distributed healthcare organizations. According to Check Point Software Technologies Ltd. (Israel), in 2022, healthcare organizations in the U.S. suffered an average of 1410 weekly cyberattacks per organization, which was 86% higher than in 2021.As a result, healthcare organizations have started implementing advanced cybersecurity solutions for the safety of patients’ data and financial and operational success.

Healthcare organizations and institutions use cybersecurity solutions to improve operational efficiency and safety, ensure comprehensive vulnerability coverage, and secure connected devices. Industry regulations, such as HIPPA and HITECH, provide guidelines for healthcare data privacy and security, and the need for safe transmission of electronic health data also encourages the incorporation of cybersecurity solutions.

Key Findings in the Healthcare Cybersecurity Market Study:

Based on Component, in 2024, the Solutions Segment is Expected to Dominate the Healthcare Cybersecurity Market

Based on component, in 2024, the solutions segment is expected to account for the larger share of the healthcare cybersecurity market. The segment’s large market share is attributed to the rising demand for advanced cybersecurity solutions, the growing number of data security & privacy concerns, and increasing R&D investments to improve cybersecurity solutions. In addition, factors such as rising sophistication levels of cyberattacks, rising awareness about electronic health records (EHRs), and growing regulatory enforcement and protection concerns are also expected to contribute to the growth of the solutions segment in the healthcare cybersecurity market.

The Cloud Security Segment Expected to Register the Highest Growth During the Forecast Period

Based on security type, the cloud security segment is projected to register the highest CAGR during the forecast period. The rising need to secure workload on the cloud, the increasing demand for advanced threat detection solutions, and the growing sophistication of cybercrimes are expected to support the growth of this segment.

The Cloud-based Deployment Segment to Register the Highest Growth During the Forecast Period

Based on deployment mode, the cloud-based deployment segment is expected to register the highest CAGR during the forecast period. The rapid evolution of new avenues for cloud-based deployments, the superior flexibility offered by cloud-based deployments, and the increasing incorporation of cloud-based solutions are expected to support the growth of this segment.

The Telehealth And Digital Health Providers Segment to Register the Highest Growth During the Forecast Period

Based on end user, the telehealth and digital health providers segment is expected to register the highest CAGR during the forecast period. The rising adoption of telemedicine devices and remote healthcare services, the rising number of cyberattacks, and the increasing need for securing connected medical devices and effective cloud security measures are expected to support the growth of this segment.

Asia-Pacific Expected to be the Fastest-growing Regional Market

Based on geography, the healthcare cybersecurity market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, North America is expected to account for the largest share of the healthcare cybersecurity market, followed by Europe, Asia-Pacific, Latin America, and the Middle East & Africa. However, Asia-Pacific is projected to register the highest CAGR during the forecast period. The rapid growth of this region is mainly driven by factors such as surging demand for cybersecurity solutions due to the increasing number of connected devices in the region, the growing need to deploy advanced cybersecurity solutions to ensure data, network, and device security, and government initiatives to ensure the highest level of cybersecurity for the region’s healthcare infrastructure. Furthermore, increasing ransomware attacks on connected devices and market players’ efforts to launch advanced cybersecurity solutions are also supporting the growth of this regional market.

Healthcare Cybersecurity Market: Competitive Analysis

The report includes a competitive landscape based on an extensive assessment of the key growth strategies adopted by leading market participants in the last 3–4 years. The key players operating in the healthcare cybersecurity market are Palo Alto Networks, Inc. (U.S.), Fortinet, Inc. (U.S.), Cisco Systems, Inc. (U.S.), IBM Corporation (U.S.), Check Point Software Technologies Ltd. (Israel), Imperva, Inc. (U.S.), Crowdstrike Holdings, Inc. (U.S.), LogRhythm Inc. (U.S.), Sophos Ltd. (U.K.), Trend Micro Incorporated. (Japan), McAfee, LLC. (U.S.), Radware Ltd. (Israel), F5, Inc. (U.S.), Claroty Ltd. (U.S.), and Proofpoint, Inc. (U.S.).

Healthcare Cybersecurity Market Report Summary: 

Key questions answered in the report: