Incident Cost by Industry: Which Sectors Pay the Most
Incident cost varies dramatically by industry. Healthcare remains the costliest sector at $6.64M per breach (IBM CODB 2026), about a third above the $4.99M global average, even after a 10.5% year-over-year decline. Finance is second at $6.29M, with industrial and technology tied at $5.50M. Manufacturing's downtime cost per hour exceeds most other sectors because physical production stops when IT systems fail. Every sector figure below is from Figure 4 of IBM CODB 2026, which reports 17 industries. Public sector is the lowest at $3.50M.
Industry Comparison Master Table
| Industry | Avg Breach Cost | Ransomware Risk | Downtime Cost | Primary Regulatory Exposure | Primary Threat |
|---|---|---|---|---|---|
| Healthcare | $6.64M | High | Not published per hour | HIPAA | Ransomware + data theft |
| Finance | $6.29M | Very High | Not published per hour | GLBA/SEC/FFIEC | BEC + ransomware |
| Industrial / Manufacturing | $5.50M | Very High | Up to $2.3M/hr (auto assembly, Siemens) | Export control | OT ransomware |
| Technology | $5.50M | High | Model from revenue | Reputational | Supply chain + insider |
| Pharmaceuticals | $5.25M | Moderate | R&D disruption | FDA / IP exposure | IP theft + ransomware |
| Energy / Utilities | $5.24M | High | Critical infrastructure | CISA/NERC CIP | OT/ICS targeting |
| Education | $4.15M | Moderate | Moderate | FERPA | Student PII theft + ransomware |
| Retail | $3.80M | Moderate | Model from peak revenue | PCI DSS | Card data theft + ransomware |
| Public Sector | $3.50M | Moderate | Operational | FedRAMP/FISMA | Nation-state + ransomware |
Source: IBM Cost of a Data Breach Report 2026, Figure 4 (breach figures, all sectors); Siemens True Cost of Downtime 2024 (automotive downtime). Ransomware-risk ratings are this site's qualitative judgement, not a published score. Updated October 2026.
Healthcare: $6.64M Average Breach Cost
Healthcare has been the most expensive sector for data breach cost for well over a decade per IBM, and it held that position in the 2026 report even as its average fell 10.5% to $6.64M. The figure reflects the convergence of several cost multipliers unique to healthcare: HIPAA Tier 4 notification requirements (strict timelines and individual notifications for each affected patient), the high per-record value of health data, the patient safety dimension that justifies faster ransom payment to restore clinical systems, and the operational impact of taking EHR systems offline during remediation.
The Change Healthcare ransomware attack of February 2024 is the largest healthcare cyber incident in US history. UnitedHealth Group's 2024 annual report (10-K) records $2.2B of direct response costs for the year, including the cost of interest-free loans to care providers, plus an estimated $867M of business disruption at Optum Insight, reported separately as lost revenue. The incident disrupted prescription processing across the US for weeks and forced pharmacies to fall back on manual workarounds.
Finance: $6.29M and the Fastest-Growing Regulatory Exposure
Financial services is the most regulated and most targeted sector. The $6.29M average breach cost (IBM CODB 2026) is the second-highest of any industry, behind only healthcare. Finance faces mandatory reporting to multiple regulators (SEC, FFIEC, state banking departments, Federal Reserve) with strict timelines. Business email compromise (BEC) is the top financial threat by volume, though ransomware is highest by cost.
The SEC's 2023 cybersecurity disclosure rules now require material incident disclosure within 4 business days, creating rapid market reaction pressure that amplifies reputational cost.
Manufacturing: Downtime Over Breach
The industrial sector's breach cost ($5.50M, IBM CODB 2026) is above the $4.99M global average, but the more distinctive cost is downtime. Siemens' True Cost of Downtime 2024 puts a lost hour at $36,000 in fast-moving consumer goods at the bottom end and $2.3M in a large automotive plant at the top. OT/ICS incidents that stop production lines create a pressure to restore fast that office-IT breaches do not. Clorox's August 2023 cyberattack is the clearest public example: net sales for the quarter fell 20%, from $1,740M to $1,386M, a decline the company attributed largely to the attack, and its 10-Q records $49M of attack-related costs in the six months to December 2023.
Retail: PCI Exposure and Seasonal Risk
Retail breach costs averaged $3.80M in IBM CODB 2026, up from $3.54M in the 2025 edition and still among the lowest of the 17 sectors. PCI DSS creates the primary regulatory exposure: a card data breach during non-compliance can trigger card-brand assessments and a mandatory forensic investigation. Retail revenue is concentrated in peak trading periods, so an outage costs most when it lands on those days; model it from your own peak-day revenue rather than an annual average.