CFC recently released its 2025 Digital Healthcare Report, providing insight into the industry’s rapid growth and emerging risks. The report highlights the increasing demand for digital health services across various regions, including the United States, Europe, and Australia. Despite this growth, the report also emphasizes rising cybersecurity threats and the challenges posed by evolving regulations.
According to the report, the U.S. market for digital health grew by 40% between 2022 and 2024. This growth was driven by technological advancements, increased investments, and rising demand for chronic disease management and personalized care. Meanwhile, Australia saw an impressive 92% rise in new business activity in the same period. Although the U.S. and UK remain CFC’s largest markets, countries like Ireland and Denmark are emerging as key players. These markets are experiencing growth rates that sometimes exceed 200%.
Artificial intelligence (AI) continues to shape the digital healthcare landscape. AI’s role now extends beyond diagnostics and is becoming deeply integrated into patient-facing tools and administrative systems. This integration helps improve operational efficiency and reduce clinician workload. Despite a decline in private equity investment in digital health during 2023, CFC notes sustained interest in AI technologies, which remain a key driver of the sector’s transformation.
The report also discusses the increasing risks associated with cybercrime in the healthcare sector. In 2024, the number of major data breaches surged, with over 677 breaches reported, affecting more than 182 million individuals. Furthermore, ransomware attacks targeting healthcare organizations increased by 278% between 2018 and 2023. The financial impact of these breaches is significant, with the average cost of a healthcare data breach reaching $10.93 million—nearly double that of breaches in the financial sector.
Several factors make the healthcare sector particularly vulnerable to cybercrime. Electronic health records (EHRs) are highly valuable on the dark web, selling for up to $1,000 each. Additionally, healthcare organizations often have outdated systems and unpatched software, which further increases their vulnerability. The essential nature of healthcare services also makes organizations more likely to pay ransoms quickly to restore operations.
CFC’s report underscores the urgent need for robust cybersecurity measures in digital healthcare. As the sector grows, addressing these risks will be critical for sustaining its future success. The integration of advanced technologies and improved cybersecurity strategies will be key to ensuring the continued evolution of digital healthcare.
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