Medical Security Device Market Size, Share & Trends Analysis Report By Component (Solution, Service), By Deployment Mode (On-premise, Cloud), By Type (Network Security, Endpoint Security, Application Security, Cloud Security, Others), By Device Type (Stationery Medical Devices, Wearable and External Medical Devices, Internally Embedded Medical Devices), By End-user (Healthcare Providers, Medical Device Manufacturers, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Market Overview

The global medical security device market size was valued at USD 8,006million in 2021. It is anticipated to generate USD 26,658 million by 2030, growing at a CAGR of 14.3% during the forecast period (2022–2030).

The concept of medical device security can be thought of as a type of security system that prevents hackers and other unauthorized users from gaining access to critical medical devices and the data that these devices generate. In addition, various hospitals and other healthcare facilities are beginning to use linked medical devices to assist medical staff in monitoring and treating patients more efficiently.

Consequently, businesses are beginning to implement medical device security systems to safeguard this equipment against various ransomware and cyber attacks. This trend is having a positive effect on the expansion of the market. In addition, security systems for medical devices provide multiple benefits, such as individualized protection for every device, a security system incorporated into every device, and a safe communication path between any two devices.

Market Dynamics

Market Drivers

• Increased Cyber Attacks and Healthcare Threats

A rise in medical device cyber-attacks and the loss of patients' data are two significant reasons for the healthcare industry implementing medical device security solutions. Healthcare professionals are developing medical devices with rudimentary testing and inspection, resulting in a spike in data security breaches. Therefore, healthcare organizations are adopting security solutions, propelling the market forward.

Additionally, an increase in the utilization of healthcare endpoint security products to safeguard medical devices from unauthorized tampering and prevent the deployment of harmful software also drives the market. The increased use of medical devices by healthcare organizations, device makers, and hospitals to enhance network security benefits market growth. Also, doctors, nurses, and dentists have embraced cloud-based infrastructure to track high-risk patient data and share patients, boosting the medical device security market.

• Demand for Connected Medical Devices

Connected devices are being used by healthcare institutions worldwide for various reasons, including monitoring patient health, tracking patients, personnel, and items, and automatically collecting and archiving data. Different connected devices include sensitive information that requires enhanced security. Hence, healthcare organizations embrace medical device security solutions, promoting the market growth.

The market is also driven by the increased use of connected devices to improve patient care, minimize operational mistakes, and lower overall hospital costs. Many impoverished countries around the world have restricted access to healthcare. Patients in these areas must travel a long distance to a healthcare center for periodic screenings or disease diagnoses. Consequently, increased use of Telemedicine or connected medical equipment in such countries will allow patients to contact homes, favorably boosting the market.

• Strict Government Regulations

The government has placed several rules and regulations on healthcare companies to execute medical device security management, driving the market. Security solutions assist the government and the healthcare industry in evaluating, identifying, analyzing, and weighing opportunities and risks to protect patient details like name, date of birth, insurance, and other essential information.

The expansion of the medical device security market is also fueled by rules and regulations implemented by governments in various nations. For example, the Food and Drug Administration in the United States produced a draught of guidelines in 2018 concerning the importance of medical system manufacturers undertaking continual actions on cyber security threats to keep patients safe and provide improved public health protection. As a result of these government-imposed standards in various nations, the medical security device market has grown in recent years.

Market Restraint

• Healthcare Budget Constraints

The fact that many developing countries worldwide have inadequate financial resources to allocate to their healthcare systems is the primary issue that is slowing the expansion of the industry. In addition, the healthcare sector across LAMEA is investing their budgets in updating their medical devices—but because of a budget shortage, they are not concerned about the safety of these medical devices, which has a negative impact on the market. In addition, most healthcare organizations are hesitating to invest in security devices because of low-profit margins and the high cost of maintenance, storage, and operation of medical devices, restraining the market expansion.

Furthermore, most digital devices used in hospitals have not been brought up to date; instead, they typically function on obsolete operating systems, offering a shallow safety level. Due to the ever-increasing costs associated with updating medical technology, numerous hospitals worldwide have refrained from modernizing their antiquated medical equipment. In addition, the high product and service costs associated with medical device security and the rise of hardware-related expenses act as barriers to market expansion.

Market Opportunities

• Increased Use of IoMT in Healthcare

The Internet of Medical Things (IOMT) is a computer network connecting healthcare practitioners through computer applications and medical devices. IOMT in medical devices helps various healthcare applications provide rapid medical responses, reduce healthcare costs, and improve the quality of medical care. Internet of Things-based medical gadgets is revolutionizing the healthcare market by delivering targeted and personalized therapies and enabling uninterrupted transmission of medical data.

Furthermore, some institutions in the United States and Canada are utilizing IoMT medical devices to improve healthcare quality while reducing the time and expense associated with treating patients, representing a significant market opportunity. For example, GE Healthcare, Siemens AG, and Philips use the IoMT to maintain, diagnose, and improve the efficiency of their imaging devices. The expansion of the medical device security market is likely to be aided by a spike in the volume of such IOMT applications in the healthcare industry.

• Deployment of Cloud-based Medical Device Security

The healthcare industry uses cloud computing services worldwide to retain electronic records, patient data, and other hospital data on a private cloud. Furthermore, cloud computing allows the healthcare sector to scale up or down its data storage capacity, which that's why many healthcare providers are moving away from traditional storage systems and toward cloud-based systems. Various healthcare service providers are using cloud-based medical device storage systems to provide better security features to the preservation system and guarantee a safe and secure transmission method to cloud storage, pushing the market expansion.

Furthermore, medical device security systems in healthcare organizations allow hospitals to securely communicate data with all key healthcare stakeholders, including doctors, nurses, and caregivers, in real time. Furthermore, large healthcare organizations deal with hundreds of connected devices, which are more vulnerable to cyber-attacks and data security challenges, creating a potential market opportunity.

Regional Analysis

Preeminence of North America Over Others

By region, the global medical security device market is segmented into North America, Europe, Asia-Pacific, and LAMEA.

Asia-Pacific commands the leading market position and is estimated to grow at a CAGR of 16.5% over the forecast period. The market is expected to rise due to increased patient awareness of self-health management and increased demand for high-quality healthcare from end-users. China is the most significant contributor to the market compared to other countries. Japan and Australia are gradually growing their market.

Europe acquires the second-largest market share and is anticipated to account for USD 7,152 million by 2030, growing at a CAGR of 13.7%. The market in this sector is expected to grow as more hospitals, pharmaceutical companies, and healthcare laboratories adopt medical device security solutions because of their numerous benefits, such as improving the organization's infrastructure, providing enhanced security to all connected devices, and curtailing access to unauthorized users. Germany and the UK have more market revenue compared to Italy and France.

North America is anticipated to grow significantly over the forecast period. Some primary reasons driving the growth of the medical device security market across the region are an increase in cyber security awareness among healthcare professionals and a greater reliance on connected medical devices.

Segmental Analysis

The global medical security device market is categorized by component, deployment model, security type, device type, and end-user.

By Component Analysis

By component, the global medical security device market is segmented into Solutions and Services.

The Solution segment is the highest shareholder in the market and is estimated to grow at a CAGR of 13.6% over the forecast period. The adoption of medical device security solutions is boosted by a significant increase in technical innovation in the healthcare industry and an increase in understanding of the benefits of security solutions among organizations to protect themselves from cyber security assaults.

By Deployment Model Analysis

By deployment model, the global medical security device market is segmented into On-premise and Cloud.

The On-premise segment is the highest shareholder in the market and is estimated to grow at a CAGR of 13.6% over the forecast period. On-premise medical device security software offers better data protection than cloud-based alternatives. Multi-tenant models are often employed in cloud-based adoption, posing a threat of data breach, abuse, or manipulation, leading to the increasing adoption of on-premise models.

By Security Type Analysis

By security type, the global medical security device market is segmented into Endpoint Security, Network Security, Application Security, and Cloud Security.

The Endpoint Security segment is the highest shareholder in the market and is estimated to grow at a CAGR of 12.8% over the forecast period. Healthcare firms are implementing endpoint security solutions to safeguard multiple devices and improve network security, boosting market growth. The rising concerns among medical device manufacturers, healthcare providers, and the government about the safety of patients’ information due to the use of connected devices propels this segment forward.

By Device Type Analysis

By device type, the global medical security device market is segmented into Stationery, Wearable & External, and Internally Embedded Medical Devices.

The Stationery Medical Device segment holds a significant market share and is expected to grow at a CAGR of 13.2% over the forecast period. Increased investment in global healthcare, particularly hospital medical equipment and related procedures, is predicted to drive the medical device security industry due to expanding medical awareness, economic prosperity, and aging populations.

By End-User Analysis

By end-user, the global medical security device market is segmented into Healthcare Institutions and Medical Device Manufacturers.

Healthcare Institution is the primary shareholder in the market and is estimated to grow at a CAGR of 12.2% over the forecast period. Medical device security has many uses, such as reviewing security policy and practice and managing medical device vendor risk, motivating healthcare providers to embrace it. Increased hospital use of linked medical devices and demand for connected devices to improve patient care fuels market expansion.

Recent Developments

• June 2022- Fortinet FortiGate-VM earned the highest possible rating of AAA in all five test categories by Cyber Ratings. This independent, nonprofit member organization provides transparency and expert guidance on cyber security risks via research and testing programs.
• May 2022- IBM and MBZUAI joined forces to advance AI research with the New Center of Excellence.
• May 2022- Check Point Software Technologies achieved new standard criteria certification to meet government security requirements worldwide.
• February 2022- DXC Technology was named a Leader in two technology industry analyst reports published by Everest Group, “Cloud Services PEAK Matrix® Assessment 2022 – North America” and “Cloud Services PEAK Matrix® Assessment 2022 – Europe.”