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US Healthcare Cyber Security Market

ID: MRFR/MED/48085-HCR
200 Pages
Garvit Vyas
February 2026

US Healthcare Cyber Security Market Research Report: Size, Share, Trend Analysis By Solution Type (Anti-virus Software, Intrusion Detection System, Identity and Access Management, Data Loss Prevention, Encryption), By End Users (Hospitals, Pharmaceutical Companies, Health Insurance Providers, Clinical Laboratories, Research Institutions), By Deployment Mode (On-Premises, Cloud-Based, Hybrid) andBy Security Type (Network Security, Application Security, Endpoint Security, Cloud Security, IoT Security) - Growth Outlook & Industry Forecast 2025 To 2035

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US Healthcare Cyber Security Market Summary

As per Market Research Future analysis, the US healthcare cyber-security market size was estimated at 5.61 USD Billion in 2024.. The US healthcare cyber-security market is projected to grow from 6.22 USD Billion in 2025 to 17.36 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 10.8% during the forecast period 2025 - 2035

Key Market Trends & Highlights

The US healthcare cyber-security market is experiencing robust growth driven by increasing investments and regulatory demands.

  • Investment in cybersecurity solutions is on the rise as healthcare organizations prioritize data protection.
  • Regulatory compliance and standards are becoming more stringent, compelling healthcare providers to enhance their cybersecurity measures.
  • Collaboration with cybersecurity firms is gaining traction, enabling healthcare entities to leverage specialized expertise.
  • Rising cyber threats and increased regulatory scrutiny are key drivers propelling the market forward.

Market Size & Forecast

2024 Market Size 5.61 (USD Billion)
2035 Market Size 17.36 (USD Billion)
CAGR (2025 - 2035) 10.81%

Major Players

Palo Alto Networks (US), McAfee (US), Fortinet (US), CrowdStrike (US), Check Point Software Technologies (IL), IBM (US), Cisco Systems (US), Symantec (US), Trend Micro (JP)

Our Impact
Enabled $4.3B Revenue Impact for Fortune 500 and Leading Multinationals
Partnering with 2000+ Global Organizations Each Year
30K+ Citations by Top-Tier Firms in the Industry

US Healthcare Cyber Security Market Trends

The healthcare cyber-security market is currently experiencing a transformative phase, driven by the increasing reliance on digital technologies within the healthcare sector. As healthcare organizations adopt electronic health records and telemedicine solutions, the potential for cyber threats escalates. This environment necessitates robust security measures to protect sensitive patient data and maintain compliance with regulations. The rising frequency of cyber-attacks, including ransomware incidents, has prompted healthcare providers to prioritize investments in advanced security solutions. Consequently, the market is witnessing a surge in demand for innovative technologies that can effectively mitigate risks and enhance overall security posture. Moreover, the regulatory landscape is evolving, with government agencies emphasizing the importance of cybersecurity in healthcare. Initiatives aimed at improving security standards and frameworks are being implemented, which further drives the need for specialized solutions. Healthcare organizations are increasingly seeking partnerships with cybersecurity firms to bolster their defenses. This trend indicates a shift towards a more collaborative approach in addressing cyber threats. As the healthcare cyber-security market continues to grow, it is likely to see advancements in artificial intelligence and machine learning technologies, which may enhance threat detection and response capabilities.

Increased Investment in Cybersecurity Solutions

Healthcare organizations are allocating more resources towards cybersecurity measures. This trend reflects a growing recognition of the importance of safeguarding sensitive patient information. Investments are being directed towards advanced technologies and services that can effectively counteract emerging threats.

Regulatory Compliance and Standards

The evolving regulatory environment is compelling healthcare entities to adopt stringent cybersecurity practices. Compliance with regulations is becoming a priority, leading to the implementation of comprehensive security frameworks. This trend underscores the necessity for organizations to stay abreast of changing requirements.

Collaboration with Cybersecurity Firms

Healthcare providers are increasingly partnering with specialized cybersecurity firms to enhance their security infrastructure. This collaboration allows organizations to leverage expert knowledge and advanced technologies, thereby improving their ability to respond to cyber threats.

US Healthcare Cyber Security Market Drivers

Rising Cyber Threats

The healthcare cyber-security market is experiencing heightened demand due to the increasing frequency and sophistication of cyber threats. Healthcare organizations are prime targets for cybercriminals, as they hold sensitive patient data and critical operational information. In 2025, it is estimated that cyberattacks on healthcare entities could rise by over 30%, prompting a significant investment in cyber-security measures. This trend indicates that healthcare providers are prioritizing the protection of their digital assets, leading to a surge in the adoption of advanced security technologies. As a result, the healthcare cyber-security market is likely to expand rapidly, with organizations seeking comprehensive solutions to mitigate risks and safeguard patient information.

Technological Advancements

The healthcare cyber-security market is being driven by rapid technological advancements that enhance security measures. Innovations such as artificial intelligence (AI) and machine learning (ML) are increasingly integrated into cyber-security solutions, enabling healthcare organizations to detect and respond to threats more effectively. In 2025, the market for AI-driven cyber-security solutions is projected to grow by approximately 25%, reflecting the industry's shift towards more proactive security strategies. These technologies not only improve threat detection but also streamline compliance with regulatory requirements, making them essential for healthcare providers. Consequently, the healthcare cyber-security market is evolving to incorporate these cutting-edge technologies, ensuring robust protection against emerging threats.

Shift to Telehealth Services

The healthcare cyber-security market is experiencing a transformation due to the shift towards telehealth services. As more healthcare providers adopt telemedicine solutions, the need for robust cyber-security measures becomes paramount. In 2025, it is anticipated that telehealth services will account for over 40% of patient consultations, creating new vulnerabilities that cybercriminals may exploit. This shift necessitates the implementation of secure communication channels and data protection protocols, driving demand for specialized cyber-security solutions. Consequently, the healthcare cyber-security market is poised for growth as organizations seek to protect patient data and maintain trust in telehealth services.

Increased Regulatory Scrutiny

The healthcare cyber-security market is significantly influenced by the growing regulatory scrutiny surrounding data protection and privacy. Regulatory bodies are imposing stricter guidelines to ensure that healthcare organizations implement adequate security measures to protect patient information. In 2025, compliance costs for healthcare providers are expected to rise by 15%, as organizations invest in necessary technologies and training to meet these regulations. This increased focus on compliance not only drives demand for cyber-security solutions but also encourages healthcare entities to adopt a culture of security awareness. As a result, the healthcare cyber-security market is likely to see sustained growth as organizations strive to adhere to evolving regulatory standards.

Growing Awareness of Cyber Risks

The healthcare cyber-security market is benefiting from a growing awareness of cyber risks among healthcare professionals and administrators. As incidents of data breaches and ransomware attacks become more prevalent, organizations are increasingly recognizing the importance of investing in cyber-security measures. In 2025, surveys indicate that over 70% of healthcare executives consider cyber-security a top priority, reflecting a cultural shift towards proactive risk management. This heightened awareness is likely to drive increased spending on cyber-security solutions, as organizations seek to protect their assets and ensure compliance with regulatory requirements. Thus, the healthcare cyber-security market is expected to expand as awareness of cyber threats continues to rise.

Market Segment Insights

By Type: Identity and Access Management (Largest) vs. Encryption (Fastest-Growing)

In the US healthcare cyber-security market, Identity and Access Management (IAM) is recognized as the largest segment, dominating the market due to the increasing need for secure patient data access. It provides critical authentication and authorization controls, essential for safeguarding sensitive health information in a digital environment. In contrast, Encryption holds a growing position, driven by the rise of data breaches and regulatory pressures emphasizing data confidentiality and integrity. The growth trends in this segment are influenced by heightened awareness of cyber threats and the evolving regulatory landscape. As healthcare organizations increasingly adopt digital health solutions, the demand for robust security measures like IAM and Encryption continues to surge. Technological advancements in cloud-based security solutions are also propelling the adoption rates, enabling organizations to enhance their cybersecurity posture efficiently.

Identity and Access Management (Dominant) vs. Encryption (Emerging)

Identity and Access Management is pivotal in the US healthcare cyber-security market, providing comprehensive solutions for managing user access to sensitive health systems. Its dominance stems from the critical need for verifying user identities and ensuring only authorized individuals can access crucial patient data. IAM systems facilitate compliance with stringent regulations, making them indispensable for healthcare providers. On the other hand, Encryption is emerging rapidly due to the rising frequency of cyber threats aimed at stealing patient data. As the healthcare industry increasingly embraces digital solutions, Encryption technologies are being adopted to ensure data privacy and prevent unauthorized access. These two segments complement each other, with IAM providing the framework for secure access while Encryption ensures data is protected during transmission and storage.

By End User: Hospitals (Largest) vs. Pharmaceutical Companies (Fastest-Growing)

In the US healthcare cyber-security market, hospitals represent the largest end user segment, accounting for a significant portion of market share. This dominance is driven by the critical need for robust security measures to protect sensitive patient data and comply with regulations. Following hospitals, pharmaceutical companies are emerging as vital players in the cyber-security landscape, increasingly recognizing the importance of safeguarding their research, development, and distribution processes against cyber threats. Growth trends in this segment are primarily influenced by the rising incidents of cyber-attacks targeting healthcare organizations, which have prompted enhanced regulatory requirements and increased investments in security solutions. Additionally, the adoption of digital health technologies, such as telemedicine and electronic health records, is further fueling demand for advanced cyber-security measures. As organizations adapt to these challenges, collaboration between healthcare providers and cyber-security firms is expected to expand, fostering innovation and resilience in the market.

Hospitals (Dominant) vs. Pharmaceutical Companies (Emerging)

Hospitals are the dominant force in the US healthcare cyber-security market, characterized by their extensive data networks and high compliance responsibilities. These institutions hold vast amounts of sensitive patient information, necessitating comprehensive security protocols to mitigate risks of data breaches. In contrast, pharmaceutical companies are emerging as an increasingly relevant segment, driven by their need to protect proprietary research data and ensure the integrity of their supply chains. As they acknowledge their vulnerability to cyber threats, pharma firms are investing in advanced security frameworks. The growing interconnectivity among healthcare entities calls for collaborative strategies, where hospitals' established practices can guide emerging players in crafting effective security solutions tailored to their unique challenges.

By Deployment Mode: Cloud-Based (Largest) vs. On-Premises (Fastest-Growing)

The US healthcare cyber-security market shows a clear preference for Cloud-Based solutions, commanding a significant share due to their scalability, flexibility, and cost-effectiveness. On-Premises solutions, while traditionally dominant, are experiencing a steady decline as organizations move towards more adaptive cloud solutions that meet the modern demands of healthcare services. Hybrid models are also gaining traction as they offer a balance between on-site control and cloud-based flexibility. Growth trends indicate that the deployment mode segment is heavily influenced by the increasing need for accessible and secure data storage solutions. With the surge in telehealth services and remote patient monitoring, Cloud-Based solutions are positioned for significant growth. However, On-Premises solutions are witnessing a resurgence in specific sectors that require stringent regulatory compliance, making it the fastest-growing segment. This dynamic is expected to reshape the healthcare landscape, balancing innovation with safety considerations.

Cloud-Based (Dominant) vs. On-Premises (Emerging)

Cloud-Based healthcare cyber-security solutions are characterized by their ability to provide robust security features while allowing organizations to swiftly respond to evolving cyber threats. These systems are generally more cost-effective and provide easier access to data, making them a preferred choice in today’s digital landscape. On the other hand, On-Premises solutions, while historically favored for their perceived security and control, are now emerging as a viable alternative in scenarios where specific compliance and privacy regulations dictate the need for on-site data management. Organizations are increasingly opting for Hybrid models that combine the strengths of both approaches, enabling flexibility and enhanced security. This shift underscores the complex dynamics of the US healthcare cyber-security market as organizations seek to balance accessibility and compliance.

By Security Type: Network Security (Largest) vs. IoT Security (Fastest-Growing)

In the US healthcare cyber-security market, Network Security stands out as the leading security type, capturing the largest share due to its pivotal role in safeguarding data infrastructures. This segment has become increasingly critical as healthcare providers prioritize protecting sensitive patient information from evolving cyber threats. Conversely, IoT Security is gaining traction, driven by the proliferation of connected medical devices that require robust security measures to mitigate vulnerabilities associated with Internet-of-Things technologies. The growth trends within the security type segment are largely influenced by regulatory requirements and the increasing frequency of cyberattacks targeting healthcare organizations. As cyber threats evolve, entities are compelled to adopt comprehensive security strategies. IoT Security is emerging as a vital focus area, driven by the rapid adoption of connected devices, while Network Security remains fundamental for established infrastructures, illustrating the diverse landscape of security requirements that healthcare providers must navigate.

Network Security (Dominant) vs. IoT Security (Emerging)

Network Security holds a dominant position in the market owing to its foundational role in protecting healthcare organizations from data breaches and cyber threats. It encompasses various protective measures, including firewalls, intrusion detection systems, and secure communication protocols, ensuring that critical patient data remains safe. As healthcare entities increasingly digitize their operations, the importance of this segment is magnified, establishing it as a cornerstone of cyber-security strategies. On the other hand, IoT Security is positioned as an emerging segment reflecting the rapid integration of connected devices in healthcare settings. This segment addresses the unique challenges presented by medical devices that connect to networks. The focus on IoT Security is expected to intensify as healthcare providers continue to leverage technology for improving patient care while managing potential security risks.

Get more detailed insights about US Healthcare Cyber Security Market

Key Players and Competitive Insights

The healthcare cyber-security market is currently characterized by intense competition and rapid evolution, driven by increasing cyber threats and regulatory pressures. Major players such as Palo Alto Networks (US), IBM (US), and CrowdStrike (US) are strategically positioning themselves through innovation and partnerships. Palo Alto Networks (US) focuses on advanced threat detection and response capabilities, while IBM (US) emphasizes its AI-driven security solutions. CrowdStrike (US) leverages its cloud-native platform to enhance real-time threat intelligence, collectively shaping a competitive environment that prioritizes technological advancement and customer-centric solutions.Key business tactics within this market include localized service offerings and supply chain optimization, which are essential for addressing the unique needs of healthcare organizations. The competitive structure appears moderately fragmented, with a mix of established players and emerging startups. This fragmentation allows for diverse solutions but also intensifies competition among key players, who are increasingly vying for market share through innovative offerings and strategic collaborations.

In October Palo Alto Networks (US) announced a partnership with a leading healthcare provider to enhance its cyber defense capabilities. This collaboration aims to integrate advanced AI tools into the provider's existing infrastructure, thereby improving threat detection and response times. The strategic importance of this partnership lies in its potential to set a benchmark for future collaborations within the healthcare sector, emphasizing the need for tailored solutions that address specific vulnerabilities.

In September IBM (US) launched a new suite of security services designed specifically for healthcare organizations, focusing on compliance and risk management. This initiative reflects IBM's commitment to addressing the regulatory landscape while providing robust security measures. The launch is significant as it positions IBM as a leader in compliance-driven security solutions, catering to the growing demand for regulatory adherence in the healthcare industry.

In August CrowdStrike (US) expanded its threat intelligence capabilities by acquiring a cybersecurity firm specializing in healthcare data protection. This acquisition is likely to enhance CrowdStrike's offerings, allowing it to provide more comprehensive solutions tailored to the healthcare sector's unique challenges. The strategic move underscores the importance of integrating specialized knowledge into broader security frameworks, thereby enhancing overall service delivery.

As of November current trends in the healthcare cyber-security market include a strong emphasis on digitalization, AI integration, and sustainability. Strategic alliances are increasingly shaping the competitive landscape, as companies recognize the value of collaborative innovation. Looking ahead, competitive differentiation is expected to evolve, with a shift from price-based competition to a focus on technological innovation and supply chain reliability. This transition may redefine how companies approach market entry and customer engagement, ultimately fostering a more resilient and adaptive healthcare cyber-security ecosystem.

Key Companies in the US Healthcare Cyber Security Market include

Industry Developments

Recent developments in the US Healthcare Cyber Security Market reflect an increasing focus on the protection of sensitive patient data amid rising cyber threats. For instance, in September 2023, Trellix announced enhancements to its cybersecurity offerings aimed at healthcare organizations, capitalizing on advanced machine learning capabilities to combat evolving threats. McAfee and IBM have also been collaborating to develop integrated solutions that address regulatory compliance challenges faced by healthcare providers.

Growth in market valuation for companies such as CrowdStrike and Fortinet is evident, with CrowdStrike reporting a growth of approximately 30% in revenue year-over-year, which underscores the escalating demand for robust cybersecurity solutions.

Additionally, October 2023 saw Cisco finalize its acquisition of a healthcare-oriented cybersecurity startup, enhancing its service portfolio in securing healthcare infrastructures. The market has been tightened significantly by a rise in incidents of data breaches, compelling organizations to invest in stronger defenses. The focus on managed security services, particularly by companies like Rapid7 and Check Point Software, has gained momentum as healthcare entities prioritize resilience against attacks, reflecting the urgency of modern threats. In recent years, the landscape has drastically evolved, demonstrating the critical need for ongoing innovation in cybersecurity practices within the sector.

Future Outlook

US Healthcare Cyber Security Market Future Outlook

The Healthcare Cyber Security Market is projected to grow at a 10.81% CAGR from 2025 to 2035, driven by increasing cyber threats, regulatory compliance, and technological advancements.

New opportunities lie in:

  • Development of AI-driven threat detection systems
  • Expansion of telehealth security solutions
  • Implementation of blockchain for patient data protection

By 2035, the market is expected to be robust, reflecting substantial growth and innovation.

Market Segmentation

US Healthcare Cyber Security Market Type Outlook

  • Anti-virus Software
  • Intrusion Detection System
  • Identity and Access Management
  • Data Loss Prevention
  • Encryption

US Healthcare Cyber Security Market End User Outlook

  • Hospitals
  • Pharmaceutical Companies
  • Health Insurance Providers
  • Clinical Laboratories
  • Research Institutions

US Healthcare Cyber Security Market Security Type Outlook

  • Network Security
  • Application Security
  • Endpoint Security
  • Cloud Security
  • IoT Security

US Healthcare Cyber Security Market Deployment Mode Outlook

  • On-Premises
  • Cloud-Based
  • Hybrid

Report Scope

MARKET SIZE 2024 5.61(USD Billion)
MARKET SIZE 2025 6.22(USD Billion)
MARKET SIZE 2035 17.36(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR) 10.81% (2025 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
Market Forecast Period 2025 - 2035
Historical Data 2019 - 2024
Market Forecast Units USD Billion
Key Companies Profiled Palo Alto Networks (US), McAfee (US), Fortinet (US), CrowdStrike (US), Check Point Software Technologies (IL), IBM (US), Cisco Systems (US), Symantec (US), Trend Micro (JP)
Segments Covered Type, End User, Deployment Mode, Security Type
Key Market Opportunities Integration of artificial intelligence for proactive threat detection in the healthcare cyber-security market.
Key Market Dynamics Rising regulatory scrutiny drives innovation and investment in healthcare cyber-security solutions across the market.
Countries Covered US
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FAQs

What is the expected market size of the US Healthcare Cyber Security Market in 2024?

The US Healthcare Cyber Security Market is expected to be valued at 4.0 USD Billion in 2024.

What is the projected market value for the US Healthcare Cyber Security Market by 2035?

The market is projected to reach a value of 13.0 USD Billion by 2035.

What is the expected compound annual growth rate (CAGR) for the US Healthcare Cyber Security Market from 2025 to 2035?

The expected CAGR for the US Healthcare Cyber Security Market is 11.31% from 2025 to 2035.

Which segment within the US Healthcare Cyber Security Market holds the largest market value in 2024?

Identity and Access Management is the largest segment, valued at 1.0 USD Billion in 2024.

What value is anticipated for the Anti-virus Software segment by 2035?

The Anti-virus Software segment is anticipated to be valued at 2.6 USD Billion by 2035.

Who are the key players in the US Healthcare Cyber Security Market?

Key players include Trellix, McAfee, Fortinet, Cisco, IBM, and several others.

What is the projected market size for the Data Loss Prevention segment in 2024?

The Data Loss Prevention segment is projected to be valued at 0.9 USD Billion in 2024.

How does the market growth rate differ among various segments?

Each segment, including Encryption and Intrusion Detection Systems, is expected to grow, contributing to the overall market's CAGR.

What is the expected market value for the Encryption segment in 2035?

The Encryption segment is expected to reach a market value of 2.3 USD Billion by 2035.

What are the key growth drivers for the US Healthcare Cyber Security Market?

Increased digitization of healthcare data and rising cyber threats are significant growth drivers for the market.

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