Blockchain in Healthcare Market

Blockchain in Healthcare Market Size (2023 to 2028)

The size of the global blockchain in the healthcare market is predicted to grow at a remarkable CAGR of 72.98% from 2023 to 2028. The market size is predicted to be valued at USD 8.92 billion by 2028 from USD 570 million in 2023. North America will be followed by Europe had the largest share of the worldwide market in 2022.

Blockchain in Healthcare Market Share Insights:

• Based on application, the SCM segment held the major share of the global market in 2022.
• Based on end-user, the pharmaceutical companies had the leading share of the worldwide market in 2022.
• Based on region, Europe dominate the market in 2022.

MARKET DRIVERS:

The growing need for data security in the healthcare industry and rising awareness among governmental organizations and healthcare facilities regarding the importance of data security majorly drive the blockchain in healthcare market. The volume of patient data has been growing significantly worldwide and this data is shared across various healthcare systems for treatment and analysis purposes. Ensuring the security and privacy of the data of patients has become one of the top priorities for healthcare organizations. Traditional healthcare databases are more likely to experience cyber-attacks and data breaches and can expose the sensitive data of the patients. To avoid such risks, healthcare organizations have used blockchain technology to protect patient data. The technology of blockchain offers a highly secure and decentralized way to manage and share data and uses cryptographic algorithms to encrypt and protect data at every step.

The interoperability capabilities of blockchain technology are another key attribute boosting the market growth. Interoperability is one of the major challenges to the healthcare industry as different providers and systems use different formats to share patient data across healthcare providers. Blockchain technology can ease this problem in the healthcare industry by providing a decentralized and secure platform for healthcare data exchange. Blockchain technology uses a common and standardized data format and a shared ledger that is accessible to all authorized users and enables seamless data exchange between different healthcare systems and devices, which aids in improved efficiency and accuracy of patient care.

Cost savings associated with blockchain technology is further accelerating the usage of blockchain in healthcare industry and contributing to market growth. Healthcare organizations can save costs can be significantly saved by reducing administrative costs and eliminating the need for intermediaries, such as insurance companies using blockchain. Blockchain technology also assists in delivering improved patient outcomes by facilitating the collection and sharing of patient data, which further leads to more accurate diagnoses and personalized treatment plans. Regulatory compliance that blockchain technology provides healthcare organizations to achieve regulatory requirements such as HIPPA is driving the adoption of blockchain technology in the healthcare industry and propelling market growth. The benefits that blockchain technology offers such as greater transparency to the health data of the patients, improved efficiency and transparency of clinical trials and tracking the medical supplies and equipment to ensure that they are authentic and not counterfeit further resulted in the increased adoption of this technology in the healthcare industry and this trend is anticipated to continue in the coming years and boost the market growth.

MARKET RESTRAINTS:

No industry-wide standard for blockchain implementation in healthcare is one of the key factors hampering market growth. The regulatory uncertainty for blockchain in healthcare further hinders market growth. Poor awareness and understanding of blockchain applications in the healthcare industry among healthcare organizations and healthcare professionals and the high initial investment required to implement a blockchain solution in healthcare impede market growth. The scarcity of skilled professional that have the required technical expertise to handle the operations of blockchain technology in some countries, resistance to adopting new technologies and approaches by healthcare organizations and issues of scalability inhibits the market’s growth rate.

Impact of COVID-19 on the global blockchain in healthcare market: 

The COVID-19 pandemic has shown a mixed impact on the global blockchain in healthcare market. On one side, the usage and adoption of blockchain in the healthcare industry have increased significantly. During the COVID-19 pandemic, several healthcare organizations worldwide have realized the importance of the need for secure and efficient data sharing among healthcare providers and used blockchain technology to facilitate this through its decentralized and immutable nature. In addition, the adoption of telemedicine has rapidly grown and resulted in the increased usage of blockchain technology for identity verification and payment processing. Likewise, the blockchain in healthcare market has experienced a favorable impact from the COVID-19 pandemic. On the other side, the disruptions and economic uncertainty caused by the COVID-19 pandemic have resulted in reduced investments for blockchain start-ups and projects and given an unfavorable impact on the global market. Likewise, the COVID-19 pandemic has presented opportunities and challenges for using blockchain technology in the healthcare market.

REPORT COVERAGE:

This research report on the global blockchain in healthcare market has been segmented and sub-segmented based on the application, end-user, and region.

Blockchain in Healthcare Market - By Application:

• Supply Chain Management
• Clinical Data Exchange & Interoperability
• Claims Adjudication and Billing

Based on the application, the supply chain management segment accounted for the leading share of the worldwide market in 2022 and is expected to grow at a healthy CAGR during the forecast period. Factors such as increasing focus on transparency and traceability in the pharmaceutical and medical device supply chains, a growing number of cases of counterfeit drugs and medical devices and the rising need for secure and efficient management of supply chain data primarily drive the segmental growth.

The clinical data exchange and interoperability segment had the second-largest share of the global market in 2022 and is expected to grow at a promising CAGR during the forecast period. The growing need for secure and efficient sharing of patient health data across different healthcare providers and systems majorly drives segmental growth. The growing focus on patient-centric healthcare and value-based care models and the increasing need for interoperability between different healthcare IT systems further boost the growth rate of the segment.

The claims adjudication and billing segment is expected to grow steadily during the forecast period. Factors such as the rising need for reducing administrative costs and improving the efficiency of claims processing, the rising adoption of value-based care models and alternative payment models and the growing prevalence of healthcare fraud and billing errors drive the segmental growth.

Blockchain in Healthcare Market - By End User:

• Pharmaceutical Companies
• Healthcare Payers
• Providers

Based on the end-user, the pharmaceutical companies segment accounted for the major share of the worldwide market in 2022 and is estimated to grow at a promising CAGR during the forecast period. The rising for improved supply chain management and data security in drug development and distribution, the growing prevalence of counterfeit drugs and supply chain fraud and the increasing adoption of blockchain-based solutions by pharmaceutical companies majorly propel the segmental growth.

The healthcare payer segment is expected to register the fastest CAGR during the forecast period. Factors such as the growing for reducing administrative costs and improving the efficiency of claims processing and payment management, increasing adoption of value-based care models and alternative payment models and rising prevalence of healthcare fraud and billing errors boost the growth rate of the segment.

The healthcare providers segment captured a considerable share of the worldwide market in 2022 and is anticipated to grow at a healthy CAGR during the forecast period. The rising adoption of blockchain technology by hospitals, clinics, and other healthcare providers for secure and efficient data management and sharing drives segmental growth.

Blockchain in Healthcare Market - By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• The Middle East and Africa

Geographically, Europe held the largest share of the global market in 2022. The European market is anticipated to grow at a promising CAGR during the forecast period due to the presence of well-established healthcare infrastructure in Europe, rising emphasis on interoperability and data sharing among different healthcare providers and systems and growing adoption of blockchain technology by pharmaceutical companies and supply chain management companies. In addition, favorable government initiatives and funding for healthcare IT and blockchain-based solutions, the rising prevalence of healthcare data breaches and cyber-attacks and increasing demand for improved healthcare data security and privacy drive the European market growth. The United Kingdom, Germany, France, and Switzerland are predicted to account for the major share of the European market during the forecast period.

The North American market had the second biggest share of the global market in 2022. The domination of the North American market is estimated to continue during the forecast period owing to factors such as the rising adoption of healthcare IT systems and EHRs, the presence of several healthcare IT companies and start-ups and rising demand for secure and efficient healthcare data management and sharing. The rising focus on patient-centric healthcare and value-based care models, favorable government initiatives and funding for healthcare IT and blockchain-based solutions and growing awareness and acceptance of blockchain technology in the healthcare industry further boosts the propel the regional market growth. The U.S. captured the largest share of the North American market in 2022, followed by Canada and this pattern is expected to continue throughout the forecast period.

APAC captured a substantial share of the global market in 2022. The growth of the APAC market is primarily driven by the increasing adoption of healthcare IT systems and EHRs across the Asia-Pacific region, growing demand for secure and efficient healthcare data management and sharing and rising emphasis on international market participants to capture the potential of the APAC market. The increasing number of initiatives from the governments of China, Japan and South Korea to promote the adoption of blockchain technology in healthcare industry is one of the key factors propelling the regional market growth. The growing demand for secure and transparent data exchange platforms and rising emphasis on patient-centric healthcare contribute to segmental growth. Rapid shift towards digitalization of healthcare, increasing demand for efficient and secure healthcare solutions, growing population of chronic diseases and increasing investments by private organizations for the development of healthcare technologies drive the regional market growth. China, India, Japan and Australia are expected to occupy the largest share of the APAC market during the forecast period.

Latin America occupied a considerable share of the global market in 2022. The Latin American market is estimated to witness a healthy CAGR during the forecast period. The rapid adoption of digital technologies including blockchain in the healthcare sector of Latin America, the increasing need for improving healthcare outcomes and reducing healthcare costs, rising concern for data privacy and security in the healthcare sector, an increasing number of initiatives by the Latin American governments to improve healthcare infrastructure and promote the adoption of advanced technologies such as blockchain in the healthcare sector drive the Latin American market growth. Brazil, Mexico and Argentina are estimated to control the major share of the Latin American market during the forecast period.

MEA had a moderate share of the global market in 2022 and is expected to grow at a sluggish CAGR during the forecast period. Saudi Arabia, the United Arab Emirates and South Africa are predicted to occupy the major share of the MEA market during the forecast period.

KEY MARKET PLAYERS:

Some of the key companies like Guardtime (Estonia), PokitDok (United States of America), IBM (United States of America), Microsoft (United States of America), Gem (United States of America), Chronicled (United States of America), iSolve (United States of America), Hashed Health (United States of America), Patientory (United States of America), Proof. Work (UK), SimplyVital Health (United States of America), FarmaTrust (UK), Blockpharma (France), Medical chain (UK), & Factom (United States of America) are playing a leading role in the Global Blockchain in Healthcare Market.

RECENT HAPPENINGS IN THIS MARKET:

• In 2018, a partnership agreement was made between Chronicled and Qtum Foundation to integrate smart devices with secure distributions due to ledger back end due to the combination of IoT with Blockchain technology in the market.
• In 2018, a partnership between Hashed Health with Global Healthcare Exchange by aiming solutions to issues related to product tracks by using blockchain technology across the supply chain of healthcare.