The adoption of blockchain technology in healthcare is primarily supported by the demand for reducing operating expenses, data corruption, and optimization of healthcare processes. It is becoming increasingly necessary to eliminate the risk of data tampering while storing and sharing patient data across hospitals, diagnostic laboratories, pharmacies, and clinicians to precisely identify severe and even dangerous errors.
Medical institutions are using this technology to obtain insight and improve the analysis of medical records. It also enables decentralized data security in healthcare, eliminates the risk of data tampering, and supports a unique data storage pattern, ensuring the safety and confidentiality of health records. This technology aids marketers in keeping track of medical products and helps pharmaceutical industries to eliminate counterfeit medications.
The global blockchain in healthcare market is expected to expand at a CAGR of over 60% during the forecast period 2022-2028. The market’s growth can be attributed to the rising occurrence of data leaks and breaches and the growing need to address these concerns. Information updates or alterations are not permitted on the blockchain, thus, ensuring high security of the data or information.
This is expected to drive industry growth in the coming years. Demand for blockchain technology is driven by its soaring use for critical functions such as verifying the authenticity of returned drugs, counterfeit prevention, pharmaceutical supply chain compliance, clinical trial transparency and traceability, and improving the reliability and quality of clinical trial data.
Increased adoption of blockchain technology in biopharmaceutical & medical device companies
Blockchain technology has the potential to revolutionize healthcare globally by providing innovative solutions that are economical, faster, and more effective. Blockchain has paved its way in almost every aspect of the healthcare industry, including biopharmaceutical & medical devices companies, hospitals, etc. Biopharmaceutical & medical device companies hold a significant market share due to considerable R&D budgets, the requirement for secure data interchange and interoperability, and a large quantity of data management done by companies in drug research and development fields account for the biopharmaceutical & medical device companies. Moreover, the surging adoption of blockchain technology in hospitals is expected to provide the necessary thrust to the segmental growth.
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Healthcare data security concern is primarily driving the North America market
The EU government implemented the General Data Protection Regulation (GDPR) in 2018 to prevent data breaches. GDPR implementation, combined with the tremendous expansion of blockchain technology, is projected to offer businesses in the region with new opportunities. With increased investment in developing technology in the US healthcare sector, the North American is likely to witness an increase in demand for medical record security.
Moreover, Asia Pacific is expected to witness a proliferation of blockchain technology across various industry verticals. Healthcare data security, the creation of blockchain consortiums, government initiatives, rising incidences of data breaches, and increased usage of blockchain technology in the healthcare and pharmaceutical industries will all contribute to an increase in the Asia Pacific market size. With the increased emphasis on blockchain technology due to privacy and security concerns in Saudi Arabia, South Africa, Turkey, UAE, and the rest of the Middle East and North Africa, this technology will be extensively used by healthcare institutions in these regions.
Market Structure and Competitive Landscape
The blockchain market is highly competitive, and there are numerous players operating in the market. Though the industry is in its initial stage, healthcare and technology businesses are adopting new and novel computer technologies to enhance the healthcare sector’s existing competencies. To maintain their position in the market, the companies are employing various business strategies, such as expanding cooperation, partnerships, and mergers & acquisitions.
Major healthcare institutions are investing in blockchain technology as demand for safe, secure, and managed Electronic Medical Records (EMR) grows. Some of the prominent players in blockchain technology in the healthcare market are IBM Corp., Change Healthcare, Oracle Corp., BurstIQ Inc., UnitedHealth Group, Medicalchain SA, Blockpharma, iSolve LLC, Solve.Care, and Patientory Inc. among others.
- In October 2021, amid the COVID-19 spread, a COVID-19 testing service was launched by MDS Mexico. This service is blockchain technology-based and ensures the authenticity of vaccination certificates.
- In April 2020, to tackle COVID-19, IBM Corp. established the IBM Rapid Supplier Connect, a blockchain-based network that connects healthcare companies and governments with non-traditional device, equipment, and supply vendors.
RationalStat has segmented the global blockchain in healthcare market on the basis of network type, application, end user, and region.
- By Network Type
- Public Network
- Private Network
- Others (Consortium Network)
- By Application
- Clinical Trials & eConsent
- Claims Adjudication and Billing
- Supply Chain Management
- Clinical Data Exchange and Interoperability
- Others (Medical Credentialing)
- By End User
- Biopharmaceutical & Medical Device Companies
- Healthcare Providers
- Nursing Homes
- Others (ASCs)
- Others (Healthcare Payers)
- By Region
- North America
- Latin America
- Rest of Latin America
- Western Europe
- Rest of Western Europe
- Eastern Europe
- Rest of Eastern Europe
- Asia Pacific
- South Korea
- ASEAN (Indonesia, Vietnam, Malaysia, etc.)
- Rest of Asia Pacific
- Middle East & Africa
- South Africa
- Rest of the Middle East & Africa
- North America
RationalStat has developed a state-of-the-art research methodology to crunch numbers and provide the best possible real-time insights to clients. We combine a varied range of industry experience, data analytics, and experts’ viewpoint to create a research methodology for market sizing and forecasting.
RationalStat combines a mix of secondary sources as well as primary research to assess the market size and develop a forecast. Key steps involved in accurately deriving the market numbers are:
- Defining the problem by understanding the type of market and data required by the client.
- Data gathering and collection through relevant paid databases, publicly available sources, company reports, annual reports, surveys, and interviews.
- Formulating a hypothesis to create market numbers, forecast, influencing factors, and their relevance.
- Evaluating and analyzing the data by referring to data sources utilized and leveraged.
- Validating, interpreting, and finalizing the data by combining the details gathered from primary and secondary sources with the help of experienced analysts.
- Annual reports, company filings, investor presentations, industry associations, product catalogues, and company documents
- Industry and market-related documents available in the public domain
- Paid database including Bloomberg, Factiva, S&P Capital IQ, FactSet, Refinitiv Eikon, ICIS, EUWID, and Thomson Reuters, among others
- Whitepapers, research papers, and industry blogs.
Why Buy this Report?
The report is intended for pharmaceutical companies, healthcare facilities, blockchain-based start-ups, government organizations, educational organizations, regulatory agencies, and market research firms, among others. The report provides an in-depth analysis of market size, consumption pattern, ongoing market trends and challenges, and future market opportunities. The report will serve as a source for a 360-degree analysis of the market thoroughly delivering insights to clients to find the right answers to their business questions.
Frequently Asked Questions (FAQs)
The global blockchain in healthcare market is expected to grow at a CAGR of over 60% during the forecast period 2022-2028.
The global blockchain in healthcare was valued at nearly US$ 1.25 billion in 2021.
The use of blockchain technology for healthcare supply chain management is one of the key trends in the market.
North America is dominating the market in 2021.
Major companies operating in the global blockchain in healthcare market are IBM Corp., Change Healthcare, Oracle Corp., BurstIQ Inc., etc.