Key Findings
$7.42M
average cost of a healthcare data breach, the highest of any industry
IBM Security, 2025
289M
patient records breached in the US in 2024
HIPAA Journal, 2026
9 in 10
hospitals use APIs to give patients app access to their EHR data
ASTP/ONC, 2026
4 in 5
hospitals used APIs for apps to read and write EHR data
ASTP/ONC, 2026
7 in 10
hospitals use standards-based FHIR APIs for patient access
ASTP/ONC, 2026
$1.25B
global healthcare API market in 2024, growing at 5.4% CAGR to 2030
Grand View Research, 2025
Healthcare: The key to Economic Strength & Growth
The healthcare industry is transforming with technological advancements and a push for patient-centric care. The US alone spent $5.3 trillion on healthcare in 2024, up 7.2% year-over-year , while the global digital health market stood at $379.44 billion in 2025, projected to reach $1.3 trillion by 2035 at a CAGR of 13.1% . As healthcare systems interconnect, reliable and uniform APIs are vital for seamless data exchange, safeguarding patient information, and regulatory compliance. Fragmented APIs can cause costly errors and inefficiencies, potentially costing billions annually. Investing in a unified API platform ensures secure, high-quality services, mitigating risks and unlocking growth opportunities.
Recent Trends in Healthcare
Healthcare's digital transformation has accelerated rapidly, with global digital health funding reaching $28.8 billion in 2025, up 9% year-over-year with AI-focused companies capturing 54% of total investment, emphasizing telehealth and mental health. This surge, driven by tech companies and startups, highlighted the critical need for secure and reliable APIs for accurate data exchange and predictive disease modeling.
APIs are the Backbone of Modern Healthcare
The global healthcare API market was valued at $1.25 billion in 2024 and is projected to reach $1.72 billion by 2030 at a CAGR of 5.4%, driven by cloud adoption and the digitalization of medical records
Adoption and Usage of APIs in Hospitals
Digital healthcare relies heavily on APIs. These APIs enable communication between internal and external systems, often involving Electronic Health Record (EHR) data. Many healthcare innovations, such as telehealth, remote monitoring, and wearable technology, depend on APIs to function effectively.
9 in 10 Hospitals
Use APIs to enable apps to grant patient access to EHR data
7 in 10 Hospitals
Use standards-based FHIR APIs to enable patient access in 2024
Over 2 in 3 Hospitals
Enable patients to electronically submit health data (blood glucose, weight etc.) to their EHR through apps
4 in 5 Hospitals
Used APIs for apps to write and read EHRs, and half used APIs for reading non-EHR data
Healthcare APIs are at Risk
Surprisingly, knowledge of how to use APIs is also named as a key challenge by more healthcare tech companies than other respondents. Providers find security to be the biggest barrier, while payers find technical infrastructure a challenge. Healthcare tech companies report security, technical infrastructure, and knowledge of how to create or use APIs as leading barriers.
of organizations experienced an API security incident in 2025
Akamai, 2026
of tested mHealth apps vulnerable to API Attacks
HIPAA Journal, 2021
The average healthcare data breach cost $7.42 million per incident in 2025, making healthcare the most expensive sector for the 14th consecutive year . In 2024, a record 289 million healthcare records were breached, largely driven by the Change Healthcare ransomware attack alone affecting 192.7 million individuals
The reason healthcare is such a prime target is clear: a stolen credit card goes for just a few dollars on the dark web, but a complete healthcare record fetches around $250, and fake birth certificates based on compromised PHI go for at least $500. Unlike a credit card, healthcare data cannot be cancelled or changed. If it's valid now, it's valid years down the line
Sources
- CMS, 2026: US national health expenditure grew 7.2% to $5.3 trillion in 2024
- Towards Healthcare, 2026: Global digital health market of $379.44B in 2025, projected $1.3T by 2035
- Galen Growth, 2026: Global digital health funding reached $28.8B, up 9% from 2024
- Grand View Research, 2025: Healthcare API market of $1.25B in 2024, projected $1.72B by 2030 at 5.4% CAGR
- ASTP/ONC Data Brief No. 81, February 2026: Hospital Use of APIs to Enable Data Sharing Between EHRs and Apps
- IBM Security, 2025: Cost of a Data Breach Report: $7.42M average healthcare breach cost
- HIPAA Journal, 2026: 289 million healthcare records breached in 2024
- Akamai, 2026: API Security Impact Study: 87% of organizations across industries reported API security incidents
- HIPAA Journal, 2021: Mobile health app API security analysis: 100% of tested mHealth apps vulnerable to API attacks
- Ponemon/Proofpoint, 2025: Cyber Insecurity in Healthcare
- Vention Teams, 2025: GenAI adoption in healthcare
- DemandSage, 2026: ROI of AI in healthcare
- McKinsey, 2026: Generative AI in healthcare survey
- Kiteworks, 2025: AI data security and compliance risk report
- KPMG, 2025: AI adoption in healthcare