Medical Device Security Market – By Component, Type, Device Type, Deployment Mode, End Use & Forecast, 2024 – 2032

Medical Device Security Market Size

The global medical device security market size was valued at USD 8.2 billion in 2023 and is expected to exhibit growth at a CAGR of 8.9% from 2024 – 2032 period. Key aids include the growing acceptance of IoMT-connected medical devices as well as the greater internet of medical things (IoMT) ecosystem that has led to the development of robust interconnected devices that are vulnerable to cyber threats.
 

A growing concern is the increasing number of ransomware, data breaches and malware targeting healthcare, which together have made the requirement for security measures that cater for their needs more pressing. Since safeguarding and requisites of compliance will come at a cost, organizations will focus on the security provision within patient information, this will further increase the presence and selling of medical device security tools.
 

Another critical driver is the increasing pressure from the government and other healthcare authorities globally. There are various regulatory bodies such as FDA (U.S.) and Medical Device Regulation (MDR) within the Europe which have set in place strict guidelines which interpret that retrospective device security has to be given by manufacturers and health care providers during the life cycle of the device. Medical device companies and healthcare professionals, for their part, have enhanced the investment channeled toward security solutions and services.
 

The surge in the adoption of cloud computing in the health sector is the driving force behind the rise in popularity of cloud-based security systems. These systems tend to be cheaper, more flexible and easily scalable, which makes them a great option for enterprises looking for the latest in security technology without the complexities of on-site hardware management being a burden.
 

In addition, one of the latest trends in medicine and cybersecurity is the introduction of artificial intelligence and machine learning respectively. The AI and ML are being embedded into security systems for the purpose of identifying and neutralizing threats as they arise which increases the efficiency of security systems. Consequently, there is an increasing trend regarding the effectiveness of security solutions that are AI based.
 

Medical devices security involves protecting a network of interconnected devices against cyber-attacks, hacking, information theft and malware. It also involves protecting the confidentiality, integrity and availability of healthcare data. Some examples of security measures are data encryption, IDS and adherence to set requirements in order to protect the healthcare system and patients from any form of disruption or injury during operations.
 

Medical Device Security Market Trends

The increase in ransomware aimed at healthcare facilities and medical devices is quite serious and it explains in part, the current trend in the market for medical devices security. The combination of a very sensitive information and the criticality of service provides the cybercrooks the motivation to attack the healthcare industry.
 

• Personal medical equipment, especially those that communicate through the IoMT, are more susceptible to attacks that take advantage of security weaknesses present in older devices or devices which have not been properly designed. The risks associated with cyberattacks on such medical devices include obstruction of patient caregiving, theft of confidential data, and interference with the operational scope of the medical device, which might potentially injure or kill the patient.
   
• One major case worth mentioning is the ransomware attack that targeted University of Vermont Health Network in 2020 that affected 6 hospitals and interfered with the services offered to patients for a time period of one month. In the same time span, a cyberattack that erupted in Ireland’s Health Service Executive (HSE) disrupted a large portion of the Health system, this subsequently hurt both the care of patients and the administrative running of the Health care system.
   
• These incidents make it clear that the security of medical devices is just as important as the security of the hospital networks. According to a study done by Ponemon Institute, 65% of the sampled healthcare institutions have had at least one case of security breach involving medical devices within the last year.
   
• Additionally, they note the increase of healthcare system ransomware, which has been directed at the healthcare institutions and hospitals. Once more, critical medical systems are hacked and turned off until a ransom is paid, the effects of such attacks could cost millions and even lives.
   
• This means that the medical institutions, aid and equipment manufacturers are investing heavily into cybersecurity solutions such as IAM, IPS, RTOS, etc. Cybersecurity is no longer an option, it is a necessity, hence the spike in growth of the global market in response to growing interconnectivity of the healthcare systems.
   

Medical Device Security Market Analysis

Based on component, the market is bifurcated into solutions and services. The solutions segment generated the highest revenue of USD 5.6 billion in 2023.
 

• Encryption and identity management solutions together with intrusion detection systems play an important role in ensuring patient information confidentiality and device security. Regulatory drivers are also important, as in the case of U.S. Food and Drug Administration, where the agency develops requirements for security measures during the entire lifecycle of a device.
   
• For instance, in connection with a recent alert from the FDA regarding certain vulnerabilities of insulin pumps, the FDA recommended some measures to reduce the likelihood of an attempt to hack these devices. The increasing use of remote healthcare has also triggered the need for sophisticated encryption and monitoring tools to protect remote data transfer and storage in the cloud. Digital changes in healthcare are now profound, always encouraging the expansion of the solutions part as hospitals and manufacturers try to shield their system and data from emerging cyber threats.
   

Based on type, the medical device security market is categorized into endpoint security, network security, cloud security, application security, and other security types. The endpoint security segment generated the highest revenue of USD 2.7 billion in 2023.
 

• In tandem with the proliferation of IoMT devices, there is a growing need of wearable devices, patient monitors, and imaging devices so that patient data and operational control are not compromised. Legacy devices, in particular, are great channels for cyberattacks and, thus, are of high concern for hackers.
   
• The surge in ransomware and malware attacks on healthcare institutions have further accentuated the necessity for proper endpoint security solutions. Healthcare facilities are incorporating complicated measures designed to keep access to their systems, information, and enable disruption at bay.
   
• Moreover, machine learning (ML) and artificial intelligence (AI) integrated endpoint security solutions enable real-time detection and response to cyberthreats that can help invest in endpoint security in a more proactive manner. the increasing focus on regulatory compliance measures such as those developed by the FDA and such as the EU Medical Devices Regulation (MDR) are also driving organizations to purchase the required endpoint security that the organization seeks out for compliance which advances the growth of the segment.  
   

Based on device type, the medical device security market is categorized into hospital medical devices, internally embedded medical devices, and wearable and external medical devices. The hospital medical devices segment generated the highest revenue of USD 3.6 billion in 2023.
 

• Cyber-attacks on healthcare institutions are becoming more prevalent especially medical devices that are attached to the hospital networks. Such threats endanger patient privacy, safety and data integrity. Hence, to make sure that all the connected medical devices are safe from cyber-attacks, healthcare institutions are investing heavily in robust defense technologies.
   
• In the U.S., these service providers are bound to the Health Insurance Portability and Accountability Act in the healthcare industry and in Europe they have to adhere to the General Data Protection Regulation and other international standards which guarantee patient privacy and data protection. Security solutions for medical devices ensure that healthcare practitioners comply with such legislation and do not incur penalties while simultaneously ensuring patient confidence.
   

Based on deployment mode, the medical device security market is categorized into cloud-based and on-premises. The cloud-based segment generated the highest revenue of USD 4.5 billion in 2023.
 

• The proliferation of cloud computing technology in the healthcare sector which is more dynamic, flexible and cost effective than the legacy on premise model is one of the most significant factors. Cloud solutions on security enable healthcare institutions to control and protect an increasing number of interconnected medical devices more efficiently especially in a wide territorial dispersed area.
   
• Likewise, the increase in telemedicine and remote healthcare services has also led to the growing need for cloud setups securing patient data and device level security against a host of cyber concerns. With cloud based platforms, real-time monitoring and threat detection can also be done so that faster response times can be ensured, when potential risks are identified.
   
• In addition, the continuous evolution of the healthcare sector aided by government mandates on stricter cybersecurity has also increased the need for cloud security solutions, making it the largest revenue contributing segment in the year 2023.
   

Based on end-use, the medical device security market is segmented into healthcare providers, medical device manufacturers, and healthcare payers. The healthcare providers segment dominated the market in 2023 and is anticipated to reach USD 8.1 billion by the end of forecast period.
 

• The global expansion in the use of interrelated IoMT medical gadgets has increased the requirement for protective solutions against altering of devices and stealing of patient information. Also, the growing frequency of cyber attacks on healthcare facilities that can disable their operations and still information has raised vigilance to cybersecurity problems.
   
• The policies of the U.S. Food and Drug Administration and the guidelines set by the Health Insurance Portability and Accountability Act (HIPAA) place demands on security that compel providers to purchase appropriate security measures. All of these will integrate contribute to the growth of this segment.
   

North America medical device security market accounted for USD 3.1 billion market revenue in 2023 and is anticipated to grow at a CAGR of 8% between 2024 – 2032 period.
 

• This expansion is spearheaded by a number of key trends. The growing use of connected medical devices such as smart implants and health monitors has increased the need for some adequate security solutions that will protect patient information and device workings. Also, the rise of cyberattacks against medical facilities has forced those facilities to address cybersecurity issues.
   
• Cybersecurity ventures predicts that costs of cybercrime globally will decide to continue growing annually at a rate of around 15% over the next five years and will reach the historically vertiginous mark of 10.5 trillion U.S. dollars in 2025. It is a huge rise from 2015, when it amounted to 3 trillion dollars. In addition, some regulatory steps undertaken by the U.S. Food and Drug Administration cannot but assist in further growth of the market as they require manufacturers or providers to apply stronger cybersecurity measures.
   

U.S. medical device security market accounted for USD 2.9 billion market revenue in 2023 and is estimated to hold substantial share between 2024 – 2032 period.
 

• The increased penetration of connected medical devices into the healthcare system is one of the most notable trends, with over 60% of healthcare organizations utilizing IoMT solutions by 2025. And as more devices are connected to the Internet, the associated cyber threats will increase, so this requires more secure devices to be built.
   
• The increasing ire towards regulatory compliance emphasizes the trends identified by the FDA and HIPAA, which collectively further accentuate the dire need for medical device security in the care settings of the U.S.
   

UK medical device security market is projected to grow remarkably in the coming years.
 

• The rise of cyberattacks, most notably in conjunction with a 45% rise in ransomware attacks against healthcare organizations in the years 2020 or later, prompted changes to secure networks and medical equipment.
   
• As the UK Medicines and Healthcare products Regulatory Agency (MHRA) enforces strict compliance, manufacturers along with healthcare providers are forced to protect their assets. The shift in attention towards medical devices security furthered because of the Pandemic’s impact, not only on remote monitoring but also telehealth services and evaluating the market for security have built the features to the medical device market. All of these factors suggest that the UK medical device security industry will expand rapidly, enabling healthcare to develop a more thorough security strategy.
   

Japan holds a dominant position in the Asia Pacific medical device security market.
 

• As the country continues to invest in health technology and embark on digital transformations, the proliferation of connected medical devices calls for improved security. Also, escalating cyber threats enforced healthcare organizations to consider paying more attention to cybersecurity.
   
• Japanese authorities are also advancing cyber security in healthcare, while working on measures enhancing the resiliency of the healthcare infrastructure. Consequently, healthcare providers are turning to the use of even more complex security technologies such as encryption, intrusion detection systems, and solutions powered by AI to protect medical devices. Such a tendency is likely to cause substantial growth in market in Japan.
   

Medical Device Security Market Share

The medical device security solution market is quite intense in its competition since several firms have considerable market shares. The area is greatly occupied by prominent firms’ such as IBM, McAfee, CyberArk and Palo Alto Networks as they provide complete security solutions which specifically address the challenges faced by medical devices and healthcare networks. These businesses also use modern inventions such as machines and artificial intelligence to increase detection and response effectiveness. Since there are greater regulatory requirements and more cyber threats, medical device manufacturers and healthcare organizations are more willing to enhance their cyber security services, which enables these companies to have a significant market share. All in all, the changes in competitive situation of the market for medical devices security solutions largely reflects the collective intention to advance existing technologies and maintain the integrity of devices and the confidentiality of patient’s information.
 

Medical Device Security Market Companies

Prominent players operating in the medical device security industry include:

• Check Point Software
• Cisco Systems, Inc.
• ClearDATA
• CrowdStrike Holdings
• CyberArk Software Ltd.
• FireEye, Inc.
• Forescout Technologies
• Fortinet, Inc.
• IBM Corporation
• Imperva, Inc.
• McAfee, LLC
• Palo Alto Networks
• Qualys, Inc.
• Rapid7, Inc.
• Sophos Group
• Trend Micro, Inc.
• Zscaler, Inc.
   
• IBM Corporation provides AI-driven cybersecurity solutions tailored for healthcare, ensuring real-time threat detection and compliance with regulatory standards.
   
• Palo Alto Networks offers advanced network security and zero-trust architecture to protect connected medical devices from cyber threats.
   
• McAfee delivers endpoint security solutions with robust encryption and threat intelligence to safeguard medical devices from cyberattacks.
   

Medical Device Security Industry News:

• In December 2023, Cisco, has introduced the Cisco AI Assistant for Security. This development represents a significant advancement in integrating artificial intelligence (AI) within the Security Cloud, Cisco's comprehensive, AI-enhanced security platform that spans multiple domains. The AI Assistant is designed to assist customers in making informed decisions, enhance the functionality of their tools, and automate intricate tasks.
   
• In July 2023, Cynerio and Check Point Software Technologies have formed a partnership to provide healthcare organizations with robust security solutions for their medical IoT devices. Cynerio's 360 platform will deliver essential features for safeguarding healthcare IoT devices, such as device discovery, patch management guidance, micro-segmentation, and attack detection capabilities.
   

The medical device security market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million from 2021 – 2032 for the following segments:

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Market, By Component

• Solutions             
  • Encryption
  • Identity & access management (IAM)
  • Antivirus/Antimalware
  • Risk & compliance management
  • Intrusion detection system/Intrusion prevention system (IDS/IPS)
  • Data loss prevention (DLP)
  • Disaster recovery
  • Distributed denial of service (DDoS)
  • Other solutions
• Services
  • Managed security services
  • Support & maintenance
  • Consulting
  • Design & integration
  • Professional services
  • Training and education services

Market, By Type

• Endpoint security
• Network security
• Cloud security
• Application security
• Other security types

Market, By Device Type

• Hospital medical devices
• Internally embedded medical devices
• Wearable and external medical devices

Market, By Deployment Mode

• Cloud-based
• On-premises

Market, By End-use

• Healthcare providers
• Medical device manufacturers
• Healthcare payers

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East and Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of Middle East and Africa