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Forecast Period
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2024-2028
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Market Size (2022)
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USD 903.04 Million
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CAGR (2023-2028)
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13.29%
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Fastest Growing Segment
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Public
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Largest Market
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North America
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Market Overview
Global Blockchain in Healthcare
Market has valued at USD 903.04 Million in 2022 and is anticipated to project
robust growth in the forecast period with a CAGR of 13.29% through 2028. A blockchain is defined as an
expanding collection of records, referred to as blocks, which are
cryptographically interconnected. Each block contains a cryptographic hash of
the preceding block, along with a timestamp and transaction records. The
timestamp ensures that the transaction data was present at the time of block
publication, enabling it to be hashed. By virtue of each block containing
information about its predecessor, they form a chain, with each new block
reinforcing the preceding ones. Consequently, blockchains are resistant to data
tampering, as altering the data in any one block retroactively would impact all
subsequent blocks. Private and public blockchains represent the primary types,
although variations such as Consortium and Hybrid blockchains exist.
Blockchain technology is a novel
tool that is revolutionizing various sectors, including healthcare. Within the
healthcare system, Blockchain networks are employed to securely store and
exchange patient data between hospitals, diagnostic laboratories, pharmacies,
and physicians. In the medical field, blockchain applications have the
potential to precisely identify critical and potentially harmful errors. As a
result, it can significantly enhance the performance, security, and
transparency of medical data sharing within the healthcare system. By
leveraging this technology, medical institutions can gain valuable insights and
improve the analysis of medical records.
Key Market Drivers
Rising Incidence of Healthcare
Data Breaches
The healthcare industry has
witnessed a significant increase in the number of data breaches in recent
years. The advent of digital technologies has presented an opportunity to
eliminate the reliance on third-party custodians, all while ensuring security
and transparency. The utilization of blockchain technology to address specific
challenges, such as the efficient exchange of data among healthcare providers,
directly impacts accurate diagnosis, appropriate treatment, and the overall
ability of healthcare providers to deliver cost-effective care. The increasing
requirements for medical data storage and security present numerous benefits
for medical staff, patients, and healthcare facilities. Utilizing blockchain
technology, with its cross-checking, encryption, and decentralization
capabilities, enhances the security of medical data, thus driving market
growth. Governments of various nations are prioritizing the digitization of the
healthcare system and related sectors, recognizing its potential to enhance
patient participation, improve health outcomes, and enable better forecasts,
among other advantages.
Adoption Of Blockchain
Technology in Healthcare System
The adoption of blockchain
technology within the healthcare system has led to an increased demand for
blockchain technology in the sector. This can potentially result in significant
annual cost savings in areas such as IT, personnel, operations, and support
function expenditures, as well as reductions in fraud and the sale of
counterfeit goods. By integrating blockchain with supply chain management,
complete protection against fraudulent pharmaceuticals can be achieved, making
it the most sought-after blockchain technology in the healthcare industry.
The healthcare sector is
currently facing a critical issue: pharmaceutical counterfeiting. The lack of
transparency in pharmaceutical supply chains creates opportunities for fraud
and manipulation. However, blockchain technology offers an ideal solution to
combat pharmaceutical counterfeiting by ensuring system transparency and data
integrity. It provides comprehensive end-to-end supply chain transparency.
Cost-Effectiveness of
Blockchain Technology
Numerous startups have embraced
blockchain technology as a solution to significant challenges in the healthcare
industry, thereby elevating security protocols to new heights. This digital
ledger technology offers exceptional safety, eliminates the need for
third-party administrators, and ensures a high level of transparency.
Specifically designed for the utmost security of medical data, public
blockchain technology enhances the industry's value. Moreover, the
cost-effectiveness of implementing public blockchain technology in healthcare
plays a pivotal role in driving industry growth. Anticipated market demand is
poised to benefit from robust security protocols, reliable portal services, and
the anonymity it provides.
Development of
Internet-of-Healthcare System using blockchain
The development of an
Internet-of-Healthcare System using blockchain technology is anticipated to
stimulate market growth. The Internet-of-Healthcare Systems represent a
specialized implementation of Internet of Things technology, enabling the
integration of patient medical data from multiple hospitals into a
decentralized storage system based on blockchain. This ensures the highest level
of storage and access security, addressing potential security and data
administration concerns that may arise at the local hospital level. Currently
implemented in over 350 hospitals, the Internet-of-Healthcare Systems utilize
software agents accessed through the Message Queueing Telemetry Transport
protocol, efficiently managing numerous local systems while maintaining network
timeliness.
Moreover, the system is
compatible with a wide range of health information systems used in
participating hospitals. This positions the system as a viable option for a
nationwide integrated health records system and exemplifies secure networks
that can collectively be referred to as an Internet of Special Things. Mobile
device apps provide secure and direct access to patient data stored in a
central blockchain, with the ability to download data to mobile devices using
Amazon Web Services and permissions regulated by the Key Management System.
Based on the aforementioned points, the market is expected to experience growth
in the forecast period.
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Key Market Challenges
Lack of Operation Knowledge
In terms of managing records, there is significant variation among healthcare physician providers and insurance payers. Encouraging all these organizations to adopt blockchain technology without a streamlined approach, such as a single payer system, poses considerable challenges. However, the effectiveness of the entire system is compromised if any organization is unwilling to embrace it. Convincing them to transition from paper records to electronic healthcare records (EHR) using blockchain is indeed a formidable task. Healthcare is a heavily regulated industry, with laws like HIPAA (Health Insurance Portability and Accountability Act) in the United States and similar regulations in other countries. Lack of knowledge about how blockchain can align with these regulations can lead to compliance issues and legal challenges.
High Cost of Blockchain Creation
The high cost of blockchain creation can significantly impact the adoption and implementation of blockchain technology in healthcare. While blockchain has the potential to bring numerous benefits to the healthcare industry, the expenses involved in building and maintaining blockchain networks can pose challenges. The high cost of developing and deploying a blockchain-based healthcare solution can be a significant barrier to entry for smaller healthcare organizations or startups. This can limit the diversity and pace of innovation in the industry. Healthcare institutions may need to invest in additional infrastructure to support blockchain networks, including specialized hardware, storage, and network resources. These costs can be substantial and may not be feasible for all healthcare providers. Blockchain networks can be resource-intensive, especially if they use consensus mechanisms like Proof-of-Work. This means higher energy consumption and computational requirements, which can lead to increased operational costs for participants in the network.
Key Market Trends
Rising Requirement to Store and Safeguard Medical Data
The requirements for medical data storage and security have witnessed a significant increase, offering numerous benefits to medical staff, patients, and healthcare facilities. The utilization of blockchain technology, with its cross-checking, encryption, and decentralization capabilities, plays a pivotal role in ensuring the security of medical data, thereby fostering market growth. Governments of various nations are prioritizing the digitization of the healthcare system and related business sectors, recognizing its potential to enhance patient participation, improve health outcomes, and enable better forecasting, among other advantages.
Government Initiatives
The Centers for Medicare and Medicaid Services (CMS) has recently provided guidance on the utilization of blockchain technology within the healthcare sector. Additionally, the CMS Innovation Center has initiated a pilot program to investigate the application of blockchain technology in Medicare claims processing. In parallel, the Department of Health and Human Services Office of Inspector General has published a report on the potential uses of blockchain technology in detecting and preventing healthcare fraud and abuse. Moreover, the FDA has launched a pilot program to explore the implementation of blockchain technology for drug traceability. Lastly, the U.S. Department of Health and Human Services Office of Inspector General has issued guidance on the incorporation of blockchain technology in the design of cybersecurity programs for healthcare organizations. Governments and public health agencies in some countries have provided funding and grants to support research and pilot projects exploring the use of blockchain in healthcare. These initiatives help drive innovation and validate the technology's potential in the healthcare sector.
Segmental Insights
Type Insights
Based on the type, the global blockchain in healthcare market is categorized into public and private segments. The public blockchain segment is projected to hold the largest revenue share during the forecast period. This can be attributed to the decentralized and open-source nature of public blockchains, allowing anyone to access and add data to public records. Such transparency and accountability promote trust in the healthcare sector, as interested parties can verify the accuracy and currency of the data. Moreover, the encryption and distribution of data across multiple nodes make public blockchains highly secure against hacking or tampering. These factors are expected to drive the adoption of public blockchains in the healthcare sector, leading to revenue growth in this segment.
On the other hand, the private blockchain segment is anticipated to exhibit the fastest revenue CAGR during the forecast period. Private blockchains, similar to public ones, impose restrictions on access and permissions. This makes them ideal for the healthcare sector, where confidentiality and privacy are paramount. Private blockchains enable safe storage and sharing of patient data with authorized parties, including doctors, hospitals, and insurance companies. Furthermore, private blockchains can be tailored to meet the specific requirements of the healthcare sector and offer scalability. Consequently, the implementation of private blockchain in the healthcare sector is expected to increase, contributing to revenue growth in this segment.
Application Insights
Based on application, the global blockchain in healthcare market is categorized into Supply Chain Management, Data Exchange and Interoperability, Claims Adjudication and Billing, and Others. The segment of clinical data exchange & interoperability is projected to hold the largest revenue share during the forecast period. Blockchain technology facilitates secure and rapid transmission of patient health information among multiple stakeholders and providers, thereby enhancing care coordination and quality. Data interoperability remains a significant challenge in the healthcare sector, but blockchain technology can address this by providing a secure and decentralized platform for data sharing. Furthermore, blockchain has the potential to enable the development of personalized healthcare solutions and empower individuals with greater control over their health data. These factors are expected to drive the adoption of blockchain in clinical data exchange & interoperability applications and contribute to the revenue growth of this segment.
On the other hand, the drug supply chain management segment is anticipated to exhibit a significantly rapid revenue CAGR during the forecast period. Managing the drug supply chain is a complex process involving various parties and compliance with legal regulations. Blockchain technology can enhance the traceability and transparency of medicine supply chain data, thereby reducing the risk of counterfeit or substandard medications being circulated. By securely and effectively tracing medications from the manufacturer to the end consumer, blockchain can enhance patient safety and ensure regulatory compliance. These factors are expected to drive the utilization of blockchain in applications for medication supply chain management and support the revenue growth of this segment.
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Regional Insights
The North American market
accounted for the largest share of revenue in 2022, driven by a robust
healthcare infrastructure and the presence of key industry players. The
region's healthcare sector is heavily regulated, prompting increased adoption
of blockchain technology to ensure data confidentiality and privacy.
Furthermore, the market is expected to experience continued revenue growth due
to the rising number of alliances and partnerships between healthcare
institutions and blockchain technology suppliers.
In Europe, the market is
projected to hold a significant revenue share during the forecast period. The
region boasts an advanced healthcare sector with a strong focus on research and
development. Healthcare organizations in Europe are increasingly leveraging
blockchain technology to improve patient outcomes, safeguard data, and
streamline processes. The growing number of startups and emerging players in
the blockchain healthcare market further contributes to revenue growth in the
region.
The Asia Pacific market is
anticipated to exhibit the fastest revenue compound annual growth rate (CAGR)
throughout the forecast period. Investments in healthcare infrastructure and
the adoption of innovative technologies are driving revenue growth in the
region. The region's large population and increasing prevalence of chronic
diseases also fuel the demand for innovative healthcare solutions, including
blockchain technology. Moreover, the market in the Asia Pacific region is
characterized by the growing number of partnerships between healthcare
organizations and blockchain technology suppliers, which is expected to drive
revenue growth.
Recent Developments
- In May 2019, Batam (Indonesia)
aimed to unite numerous partners to deliver a blockchain solution to its
citizens. The primary collaboration involves BP Batam, through BP Batam
Hospital, and the clinic, which has enlisted the support of Deloitte Southeast
Asia and JP Consulting to provide project management and clinical governance
expertise.
- In January 2019, Aetna, Anthem,
Health Care Service Corporation (HCSC), PNC Bank, and IBM announced a
collaborative effort to design and construct a blockchain-based network to
enhance transparency and interoperability in the healthcare industry. The goal
is to establish an inclusive blockchain network that can benefit multiple
stakeholders in the healthcare ecosystem while maintaining high levels of
security and sharing.
- On December 18, 2018, Change
Healthcare acquired PokitDok, a blockchain technology firm, to enhance its
blockchain capabilities and expedite the development of novel healthcare
solutions.
- On May 15, 2018, Nebula Genomics
formed a partnership with Longenesis to introduce a blockchain-based platform
for secure sharing of genomic data. This platform aims to enhance data privacy
and facilitate genomic research.
- In March 2018, IBM launched a
cost-effective platform to assist startups in the development of blockchain
projects. The primary objective was to make this technology accessible to
developing countries.
Key Market Players
- IBM
- PATIENTORY INC.
- Guardtime
- iSolve, LLC
- Solve.Care
- Oracle
- Change Healthcare
- BurstIQ
- Medicalchain SA
- Blockpharma
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By Type
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By Application
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By End User
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By Region
|
|
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- Supply Chain
Management
- Data Exchange and
Interoperability
- Claims Adjudication
and Billing
- Others
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- Pharmaceutical and
Medical Device Companies
- Healthcare Payers
- Healthcare Providers
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- North America
- Europe
- Asia Pacific
- South America
- Middle East &
Africa
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Report Scope:
In this report, the Global
Blockchain in Healthcare Market has been segmented into the following
categories, in addition to the industry trends which have also been detailed
below:
- Blockchain in Healthcare Market, By Type:
- Blockchain in Healthcare Market, By
Application:
- Supply Chain Management
- Data Exchange and Interoperability
- Claims Adjudication and Billing
- Others
- Blockchain in Healthcare Market, By End
User:
- Pharmaceutical and Medical Device Companies
- Healthcare Payers
- Healthcare Providers
- Blockchain in Healthcare Market, By Region:
- North America
- United States
- Canada
- Mexico
- Europe
- France
- United Kingdom
- Italy
- Germany
- Spain
- Asia-Pacific
- China
- India
- Japan
- Australia
- South Korea
- South America
- Brazil
- Argentina
- Colombia
- Middle East & Africa
- South Africa
- Saudi Arabia
- UAE
- Kuwait
- Turkey
- Egypt
Competitive Landscape
Company Profiles: Detailed
analysis of the major companies present in the Global Blockchain in Healthcare
Market.
Available Customizations:
Global Blockchain in Healthcare
market report with the given market data, TechSci Research offers
customizations according to a company's specific needs. The following
customization options are available for the report:
Company Information
- Detailed analysis and profiling of additional
market players (up to five).
Global Blockchain in
Healthcare Market is an upcoming report to be released soon. If you wish an
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