HEALTHCARE CYBER SECURITY MARKET ANALYSIS

Healthcare cybersecurity refers to adoption of cybersecurity solutions and services by healthcare organizations, in order to protect hospital and patient information from cyber-attacks and data breaches. There different segments involved in healthcare cybersecurity including consulting, risk assessment, design and integration, and training. Rising incidents of hacking and other types of cybercrimes have led to increased adoption of cybersecurity in the healthcare sector. The global healthcare cyber security market focuses on seven regions namely North America, Latin America, Europe, Asia Pacific, and Middle East & Africa.

The global healthcare cyber security market is estimated to be valued at US$ 9,258.5 million in 2021 and is expected to exhibit a CAGR of 14.2% over the forecast period (2021-2028).

Recent Developments:

• On September 13, 2021, Booz Allen Hamilton announced that it has completed the acquisition of Tracepoint, an industry-leading digital forensics and incident response (DFIR) company serving public and private sector clients. Tracepoint is a recognized leader in DFIR, remediation, and cyber risk and resilience management.
• In January 2021, The Thumbay Group, a leading UAE healthcare provider, has completely overhauled its security infrastructure, with Trend Micro Incorporated, the global leader in cloud security, to deliver world-class healthcare services. Thumbay Group converted its legacy anti-virus platform with Trend Micro’s industry-leading solutions. The Thumbay Group has greatly improved its security posture across 46 pharmacies, eight hospitals, and one university hospital, along with medical research, diagnostics, health communication, wellness, laboratories, and nutrition.
• In June 2021, The General Services Administration, U.S., has awarded Booz Allen Hamilton a five-year contract to continue support a central data analytics platform at the Department of Defense (DOD).

North America held dominant position in the global healthcare cyber security market in 2020, accounting for 42.1% share in terms of value, followed by Europe and Asia Pacific, respectively.

Figure 1. Global Healthcare Cyber Security Market Value (US$ Mn), by Region, 2020

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Global Healthcare Cyber Security Market- Drivers

Increasing per capita healthcare expenditure is expected to drive growth of the global healthcare cyber security market during the forecast period. Various government and healthcare organizations such as a clinic, hospitals, and pharmaceutical companies are focused on investing in information technology infrastructure. This is typically due to rising per capita expenditure in developed countries. As a result of this, the demand for cyber security services and solutions is expected to increase in the near future. According to Coherent Market Insights’ analysis, per capita, health expenditure in the U.S increased from US$ 8,845 in 2013 to US$ 9,146 in 2014. According to the same source, per capital expenditure in Germany reached US$ 4,717 in 2013 and to US$ 5,006 in 2014.

Growing adoption of mobile devices is expected to propel the global healthcare cyber security market growth over the forecast period. The adoption of mobile devices such as smartphones and tablets across various sectors is increasing including the healthcare sector. This, in turn, is expected to boost the demand for cybersecurity solutions and services for these devices. For instance, in 2015, Welltok, a health optimization company, IBM’s Watson, and Denver-based Centura Health introduced an app for computers and mobile devices that would provide heart health advice as well as exercise and nutrition information to users.

Global Healthcare Cyber Security Market: Opportunities

Major companies in the market are focused on merger and acquisition activities, in order to enhance the market presence and gain a competitive edge in the market. For instance, in 2013, CSC Corporation acquired ServiceMesh, an enterprise cloud management company, to help CSC clients migrate their applications into the cloud as well as to provide security across cloud applications and environments. In 2014, Booz Allen Hamilton Inc. acquired the healthcare division of Genova Technologies to secure more federal technology contracts around healthcare and the Affordable Care Act. In 2014, Lockheed Martin acquired Industrial Defender, a leading provider of cyber security solutions for control systems in the oil and gas, utility, and chemical industries.

The demand for implementing robust network security infrastructure is increasing rapidly since cyber threats are getting increasingly complex and sophisticated across the globe. For instance, in 2013, Manipal Hospitals, a leading quality healthcare provider in India, renovated network security infrastructure to further enhance protective measures with regard to cyber threats.

Market Trends

In the recent past, the U.S. Government has made certain changes to its cybersecurity regulations and proposals, in order to safeguard against cyber-attacks. For instance, in 2015, the U.S. government amended its “2011 Cyber Security Legislative Proposal”, majorly concentrating on three essential objectives such as improved communication between private and government sectors, the establishment of national data breach notification statute, and boosting law enforcement department’s ability to fight cybercrime. Moreover, increasing number of cyber-attacks, especially in the U.S., has resulted in increased awareness among healthcare organizations regarding enhancement of cybersecurity measures.

Cloud data security solutions are gaining popularity in Latin America at a rapid pace. This is owing to increased digitization initiatives across hospitals and pharmacies. For instance, in 2015, Paraguayan Ministry of Health announced plans to invest US$ 100,000 in digitization of the healthcare sector across the nation.

Figure 2. Global Healthcare Cyber Security Market Share, By Type, 2020

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Key Takeaways of the Graph:

• The solution segment held dominant position in the market and accounted for 64.4% share in the global healthcare cyber security market in 2020. The segment is expected to reach US$ 15,357.8 million in 2028. This is owing to the rising demand of advanced solutions for security operations and growing number of data security & privacy concerns.

Global Healthcare Cyber Security Market- Restraint

Stringent government regulations are expected to hinder the global healthcare cyber security market growth over the forecast period. Government of various countries has started implementing certain cybersecurity laws and regulations. Some of these regulations are healthcare sector-specific, in order to protect public information. Failure to comply could attract a hefty fine and punishment. For instance, in 2014, the Government of the U.K. made it mandatory for suppliers to follow new cybersecurity standards.    

Constantly changing consumer needs are expected to hamper the global healthcare cyber security market growth during the forecast period. Cyber security services and solutions providers face a major challenge of developing a security solution that meets all requirements of a customer. Moreover, integration of cyber security solutions in a timely manner is another major challenge for security service providers.

Competitive Section

Key players operating in the global healthcare cyber security market are IBM Corporation, Lockheed Martin Corporation, Cisco Systems, Inc., Northrop Grumman Corporation, Intel Security Group (McAfee), CA, Inc., Booz Allen Hamilton Inc., Computer Sciences Corporation, Symantec Corporation, and Trend Micro Inc.

Key Developments

1. Key players in the market are focused product launches, in order to gain competitive edge in the market. For instance, in November 2019, IBM Corporation launched Cloud Pak for security, a new platform to tackle cyber security threats across multi-cloud and hybrid environments.
2. Major market players are involved in collaboration and partnership activities, in order to strengthen the market position. For instance, in May 2017, Cisco Systems, Inc. partnered with IBM Corporation to combat pervasive threat of cybercrime.