Healthcare cybersecurity market size to reach $35.5 billion by 2027
The healthcare cybersecurity market size is anticipated to record a valuation of $35.5 billion by 2027, according to the most recent study by Global Market Insights. Increasing adoption for cloud services in developed as well as developing countries will boost the demand for healthcare cybersecurity.
Increasing healthcare cybersecurity and regulatory compliance-related issues in developed regions is one of the major factors that will spur the market expansion. Several cybersecurity issues threaten the healthcare industry. Security breaches in healthcare companies in the U.S. are becoming more common, costing the healthcare system billions of dollars and increasing the personal cost to individuals whose private and identifiable information is not secured.
Furthermore, the health insurance portability and accountability act (HIPAA) of 1996, created to regulate and protect individuals’ medical records and other personal health information. Despite legislative constraints, the healthcare industry continues to have difficulty adhering to current standards. As a result, they must adopt a high-quality off-the-shelf solution and train their workers in best practices to ensure compliance.
The DDoS segment in the healthcare cybersecurity market
Distributed Denial of Services (DDoS) segment in the healthcare cybersecurity market accounted for around $1.8 billion in 2020 owing to the increasing incidence of DDoS attacks globally coupled with the rising demand for DDoS protection solutions.
During the COVID-19 outbreak, pharmaceutical companies, healthcare organizations and governments focused on protecting clinical data and providing effective treatment while DDoS groups ramped up their cyberattacks on these institutions. This scenario significantly increased the demand for healthcare cybersecurity, thereby propelling the industry growth. In healthcare sector DDoS may disrupt access to essential services like data exchange, bed capacity services and appointment scheduling.
The device security segment
The device security segment captured 21.5% of the healthcare cybersecurity market share in 2020 led by the wide availability of advanced device security solutions in the market depending upon the threat type coupled with rising government initiatives to protect the healthcare sector from cyberthreats. For instance, in October 2020, the U.S. Department of Homeland Security (DHS) and the U.S. Food and Drug Administration announced a memorandum of agreement to implement a new framework for addressing threats and strengthen cybersecurity in medical devices.
Moreover, to obtain access to valuable clinical data, cybercriminals have introduced advanced strategies and tools. Medical devices have recently been hacked during the COVID-19 pandemic in order to obtain real-time data from patients, resulting in a rising need for healthcare cybersecurity software to protect medical devices.
The cloud-based segment
The cloud-based segment in the healthcare cybersecurity market valued at around $8.9 billion in 2020 impelled by the cloud-based software being widely used since it enhances scalability and reduces data management expenses. Additionally, increasing launch of cloud-based security services increases the demand and leads to the segment growth.
The healthcare payers segment held more than 22.4% of revenue share in 2020. This is attributed to healthcare industry experiencing massive losses as a result of increasing in healthcare cyberattacks. In addition, increasing adoption of secure cloud infrastructure and the expanding use of updated applications and software to satisfy emerging and current needs of the healthcare payer services will augment the overall market progression.
Furthermore, rising private investment in the healthcare payer segment coupled with presence of health insurance acts such as HIPAA, ACA, and ICD-10 are some of the major factors that are strengthening the segment expansion.
Asia Pacific healthcare cybersecurity market size was over $2.3 billion in 2020 due to the rising healthcare cyberattack in this region and growing need to minimize these cyberattacks. Every year, countries like India, Brazil, China generate massive amounts of patient data, that increases the risk of cyberthreat that requires advanced healthcare cybersecurity to protect patient data.