Rising Budgets and a Shift to Cost-Effective Automation: How Medical Device Security Budgets are Changing in 2025

In the face of escalating cybersecurity threats, medical device manufacturers (MDMs) continue to increase their security budgets, underscoring the industry’s commitment to safeguarding connected devices. However, while budgets are still on the rise, the growth in spending has become more conservative. 

The latest 2024 Medical Device Security Survey reveals that companies are transitioning from the early days of building product security programs—when large budget increases were essential to establish foundational capabilities—into a “cruising” phase. In this phase, budget increases continue but are more targeted and impact-focused, reflecting a shift toward optimizing established systems. This blog explores how security budgets are evolving, highlights regional and organizational trends, and offers guidance on maximizing spending efficiency.

The survey data shows that in 2024, 70% of companies are increasing their security budgets —a sign that cybersecurity remains a priority even in uncertain economic times. However, the average budget increase has slowed, dropping from 17% in 2023 to a more conservative 10.8% this year. 

This cautious increase reflects not only a growing focus on efficiency but also the maturation of product security programs. As many organizations have already established their foundational capabilities, budget increases are now aimed at expanding and refining these programs rather than building them from the ground up—an approach that inherently requires less funding.

For many organizations, pressure to optimize their budgets and make strategic decisions that balance security needs with cost constraints means investing in areas that can drive the highest returns, such as automation, vulnerability management, and streamlined workflows. By focusing on these critical areas, companies aim to reinforce their cybersecurity posture while managing their resources more effectively.

It’s safe to assume that this shift toward more conservative spending is driven in part by economic pressures. With rising costs affecting all areas of operations, companies are choosing to allocate budget increases selectively, directing funds to initiatives that deliver clear value. This approach allows organizations to stay agile and responsive in a challenging environment, strengthening their defenses without overextending resources.

The survey findings also reveal significant regional and organizational variations in budget allocation. U.S.-based companies, for example, are leading the way in budget increases, prioritizing security to keep pace with evolving regulatory standards and competitive pressures. In contrast, German companies report more static or even declining budgets. Facing economic constraints, many German organizations are adopting a conservative approach, carefully balancing security investments with operational costs.

In the United States, stringent regulatory requirements and high consumer expectations drive the need for robust cybersecurity measures. For MDMs operating in this market, maintaining compliance with the FDA’s cybersecurity guidelines is essential, especially as these standards continue to evolve. To meet these demands, U.S. companies are channeling resources into advanced security initiatives that enable them to comply with regulations and protect their devices from emerging threats.

In Germany, economic challenges and cautious spending trends have led to more restrained budget increases. Many German companies report that they are maintaining or even reducing their security budgets, focusing on cost-effective solutions to achieve compliance without overspending. This conservative approach reflects a broader trend in the region, where organizations are seeking ways to maintain their cybersecurity posture while minimizing costs.

The survey also highlights how budget allocation strategies differ based on an organization’s level of security maturity. Companies with more mature security frameworks—characterized by established protocols, automation, and streamlined workflows—tend to allocate their budgets differently compared to less mature organizations. These mature companies prioritize efficiency, directing funds toward fine-tuning existing processes and enhancing specific areas, such as asset management and continuous monitoring.

In contrast, organizations with lower security maturity are focusing on building foundational capabilities. For these companies, resources are allocated toward establishing basic security measures, such as SBOM management and vulnerability scanning. This investment in foundational tools allows less mature companies to strengthen their baseline security posture, setting the stage for more advanced security practices in the future.

With budget growth slowing, MDMs must find ways to optimize their spending to maintain a strong security posture. Here are some strategies companies can adopt to make the most of their security budgets in 2024.

• Automate routine tasks: Automation can significantly reduce the time and resources needed for routine security tasks. By automating vulnerability assessments, compliance checks, and SBOM management, companies can free up their teams to focus on more strategic initiatives. Automation also helps ensure consistency in security practices, reducing the likelihood of human error.
• Prioritize risk-based vulnerability management: Instead of allocating resources equally across all areas, MDMs can implement risk-based vulnerability management to focus on the most critical threats. This approach involves identifying high-risk areas that could have the greatest impact on device security and dedicating budget to address these vulnerabilities first. This targeted approach enables organizations to mitigate potential threats more effectively, even with limited resources.
• Invest in workforce training: Ensuring that employees are well-versed in cybersecurity best practices is essential for maintaining a resilient security posture. By investing in workforce training, companies can strengthen their human defenses, equipping teams with the skills to identify and respond to potential threats. Continuous training also keeps employees updated on the latest security practices, enhancing the overall effectiveness of security programs.
• Adopt centralized security platforms: Consolidating security processes within a centralized platform can streamline workflows and improve efficiency. By bringing together asset management, compliance checks, and incident response into a single system, MDMs can reduce duplication of efforts and eliminate data silos. This approach not only saves resources but also enhances visibility across security operations, enabling faster response times and more informed decision-making.
• Leverage third-party partnerships: For companies facing budget constraints, collaborating with third-party cybersecurity providers can be a cost-effective solution. These providers offer specialized expertise and resources that allow MDMs to strengthen their security posture without the need for extensive in-house capabilities. By outsourcing certain security functions, companies can focus their internal resources on core activities while benefiting from the expertise of external partners.

The medical device security landscape is evolving, and with it, the way manufacturers approach budget allocation. In 2024, companies face the dual challenge of keeping up with emerging threats while managing costs in an economic climate that demands efficiency. To navigate this landscape successfully, MDMs must look beyond mere budget increases and focus on innovative, impact-driven spending strategies that strengthen their resilience.

To uncover more strategies and gain deeper insights into how industry leaders are adjusting their security investments, download the 2024 Medical Device Security Report.