Blockchain Technology in Healthcare Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Public, Private), By Application (Supply Chain Management, Data Exchange and Interoperability, Claims Adjudication and Billing, Others), By End User (Pharmaceutical and Medical Device Companies, Healthcare Payers, Healthcare Providers), By Region and Competition, 2019-2029F

Market Overview

Global Blockchain Technology in Healthcare Market was valued at USD 550.02 Million in 2023 and is anticipated to project steady growth in the forecast period with a CAGR of 45.58% through 2029. A blockchain is a continually growing set of records, known as blocks, which are cryptographically linked. Each block includes a cryptographic hash of the previous block, alongside a timestamp and transaction details. The timestamp guarantees the presence of transaction data during block publication, allowing it to be hashed. With each block containing information about its predecessor, they form a chain, with each new block reinforcing the preceding ones. Consequently, blockchains resist data tampering, as altering data in any single block retroactively impacts all subsequent blocks. The primary types of blockchains are private and public, although variations like Consortium and Hybrid blockchains exist.

Blockchain technology is a groundbreaking tool revolutionizing various sectors, including healthcare. Within the healthcare system, Blockchain networks securely store and exchange patient data among hospitals, diagnostic laboratories, pharmacies, and physicians. In the medical field, blockchain applications have the potential to pinpoint critical and potentially harmful errors with precision, significantly enhancing the performance, security, and transparency of medical data sharing within the healthcare system. By leveraging this technology, medical institutions can gain valuable insights and enhance the analysis of medical records.

Key Market Drivers

Rising Incidence of Healthcare Data Breaches

In recent years, the healthcare industry has experienced a notable surge in data breaches. The rise of digital technologies offers an opportunity to reduce reliance on third-party custodians while ensuring security and transparency. Blockchain technology is being increasingly utilized to address specific challenges, such as facilitating efficient data exchange among healthcare providers. This directly impacts the accuracy of diagnoses, appropriate treatment, and the overall ability of healthcare providers to deliver cost-effective care. The growing demand for medical data storage and security brings numerous benefits to medical staff, patients, and healthcare facilities. By leveraging blockchain technology with its cross-checking, encryption, and decentralization capabilities, the security of medical data is enhanced, thereby driving market growth. Governments worldwide are prioritizing the digitization of the healthcare system and related sectors, recognizing its potential to enhance patient engagement, improve health outcomes, and enable better forecasting, among other advantages.

Adoption Of Blockchain Technology in Healthcare System

The integration of blockchain technology in the healthcare sector has spurred increased demand for its adoption. This technology holds the potential for substantial annual cost savings across IT, personnel, operations, and support functions, while also reducing instances of fraud and counterfeit goods sales. By integrating blockchain with supply chain management, it provides robust protection against fraudulent pharmaceuticals, positioning it as a highly sought-after solution in the healthcare industry.

The healthcare sector faces a critical challenge with pharmaceutical counterfeiting, exacerbated by opaque supply chains susceptible to fraud and manipulation. Blockchain technology presents an optimal solution by ensuring transparency and data integrity within the system. It enables comprehensive end-to-end visibility across pharmaceutical supply chains, effectively combating the issue of counterfeit drugs.

Cost-Effectiveness of Blockchain Technology

Several startups in the healthcare industry have adopted blockchain technology to address key challenges, thus advancing security measures to unprecedented levels. This digital ledger technology provides unparalleled safety, eliminates the necessity for third-party administrators, and guarantees a remarkable level of transparency. Tailored specifically to safeguard medical data, public blockchain technology enhances the industry's integrity. The cost-effectiveness of integrating public blockchain technology into healthcare operations plays a pivotal role in stimulating industry expansion. Anticipated market demand stands to gain from robust security protocols, dependable portal services, and the anonymity afforded by this technology.

Development of Internet-of-Healthcare System using blockchain

The emergence of an Internet-of-Healthcare System leveraging blockchain technology is poised to drive market expansion. These systems, a specialized iteration of Internet of Things technology, enable the amalgamation of patient medical data from various hospitals into a decentralized storage system built on blockchain architecture. This ensures the utmost security for storage and access, mitigating potential security and data administration issues at the local hospital level. Presently deployed across more than 350 hospitals, Internet-of-Healthcare Systems employ software agents accessible via the Message Queueing Telemetry Transport protocol, effectively overseeing numerous local systems while upholding network timeliness.

This system seamlessly integrates with a diverse array of health information systems utilized in participating hospitals, positioning it as a feasible option for a nationwide integrated health records system and exemplifying secure networks collectively referred to as an Internet of Special Things. Mobile applications afford secure and direct access to patient data stored within a central blockchain, with the capability to download data onto mobile devices via Amazon Web Services, with permissions regulated by the Key Management System. Given these factors, the market is anticipated to witness growth in the forecast period.

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Key Market Challenges

Lack of Operation Knowledge

There is significant variability among healthcare providers and insurance payers regarding record management practices. Encouraging these entities to adopt blockchain technology without a unified approach, such as through a single payer system, presents substantial challenges. However, the efficacy of the entire system is compromised if any organization is resistant to its implementation. Convincing these stakeholders to transition from paper records to electronic health records (EHR) using blockchain technology is indeed a formidable undertaking. The healthcare industry operates under stringent regulations, such as HIPAA (Health Insurance Portability and Accountability Act) in the United States, and similar laws in other jurisdictions. A lack of understanding about how blockchain aligns with these regulations can lead to compliance issues and legal complications.

High Cost of Blockchain Creation

The substantial expenses associated with creating blockchain technology can greatly affect its adoption and implementation in the healthcare sector. Despite the potential benefits that blockchain offers to healthcare, the costs associated with establishing and maintaining blockchain networks can present obstacles. The high expenses involved in developing and rolling out blockchain-based healthcare solutions can serve as a significant barrier to entry for smaller healthcare organizations or startups. This limitation may hinder the diversity and speed of innovation within the industry. Healthcare institutions may find themselves needing to invest in additional infrastructure to support blockchain networks, including specialized hardware, storage, and network resources. These expenditures can be considerable and may not be feasible for all healthcare providers. Furthermore, blockchain networks can be resource-intensive, particularly if they employ consensus mechanisms like Proof-of-Work. This results in heightened energy consumption and computational demands, leading to increased operational costs for network participants.

Key Market Trends

Rising Requirement to Store and Safeguard Medical Data

The demand for secure medical data storage has surged, presenting substantial advantages for medical professionals, patients, and healthcare facilities alike. The adoption of blockchain technology, with its robust cross-checking, encryption, and decentralized features, is instrumental in safeguarding medical data and driving market expansion. Governments worldwide are placing emphasis on digitizing the healthcare system and associated industries, acknowledging its capacity to enhance patient engagement, elevate health outcomes, and facilitate improved forecasting, among other benefits.

Government Initiatives

The Centers for Medicare and Medicaid Services (CMS) have recently issued guidance regarding the integration of blockchain technology in the healthcare industry. The CMS Innovation Center has launched a pilot program to explore the application of blockchain in Medicare claims processing. Concurrently, the Department of Health and Human Services Office of Inspector General has released a report on the potential applications of blockchain technology in identifying and preventing healthcare fraud and abuse. Additionally, the FDA has initiated a pilot program to investigate the use of blockchain for drug traceability. Moreover, the U.S. Department of Health and Human Services Office of Inspector General has provided recommendations on integrating blockchain technology into cybersecurity frameworks for healthcare organizations. Some governments and public health agencies have allocated funding and grants to support research and pilot initiatives exploring the integration of blockchain technology in healthcare. These efforts contribute to fostering innovation and validating the technology's potential in enhancing healthcare practices.

Segmental Insights

Type Insights

Based on Type, Public have emerged as the fastest growing segment in Global Blockchain Technology in Healthcare Market 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.

Application Insights

Based on Application, Data Exchange and Interoperability have emerged as the dominating segment in Global Blockchain Technology in Healthcare Market 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 data exchange & interoperability applications and contribute to the revenue growth of this segment. 

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Regional Insights

Based on Region, North America have emerged as the dominating region in the Global Blockchain Technology in Healthcare Market in 2023. This is 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. 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.

Recent Developments

• In April 2023, Patientory Inc., a company specializing in blockchain-based, HIPAA-compliant ecosystems for private medical data, introduced two new solutions. The first is the Patientory Consumer Decentralized Application, aimed at aiding patients in securely and efficiently storing and monetizing their medical data. The second solution is the Neith Enterprise Dashboard, developed in collaboration with Prosper Healthtech, an equity-focused community organization headquartered in Birmingham. Prosper Healthtech offers a supportive network encompassing various organizations throughout the city, such as UAB Hospital, PackHealth, and Blue Cross Blue Shield.

Key Market Players

• IBM Corporation
• Patientory Inc.
• iSolve Technologies Private Limited
• Solve.Care Foundation OÜ
• Oracle Corporation
• Change Healthcare 
• BurstIQ, LLC
• Medicalchain SA

Report Scope:

In this report, the Global Blockchain Technology in Healthcare Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

·        Blockchain Technology in Healthcare Market, By Type:

o Public

o Private

·        Blockchain Technology in Healthcare Market, By Application:

o Supply Chain Management

o Data Exchange and Interoperability

o Claims Adjudication and Billing

o Others

·        Blockchain Technology in Healthcare Market, By End User:

o Pharmaceutical and Medical Device Companies

o Healthcare Payers

o Healthcare Providers

·        Blockchain Technology in Healthcare Market, By Region:

o North America

§ United States

§ Canada

§ Mexico

o Europe

§ France

§ United Kingdom

§ Italy

§ Germany

§ Spain

o Asia Pacific

§ China

§ India

§ Japan

§ Australia

§ South Korea

o South America

§ Brazil

§ Argentina

§ Colombia

o Middle East & Africa

§ South Africa

§ Saudi Arabia

§ UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Blockchain Technology in Healthcare Market.

Available Customizations:

Global Blockchain Technology 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).

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