Industry: IT and Telecommunication
Format: PPT*, PDF, EXCEL
Number of Pages: 190
Published Date: August-2024
Delivery Timelines: Contact Sales
Updated Report with latest market numbers will be provided.*
Report Price in USD & exclusive of local taxes.
Report ID: PMRREP34723
The market for blockchain in healthcare is estimated to reach a valuation of US$17.6 billion by the year 2031, at a CAGR of 48.6%, during the forecast period 2024 to 2031.
Key Highlights of the Market
|
Attributes |
Key Insights |
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Market Size (2024) |
US$1.1 Bn |
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Projected Market Size (2031) |
US$17.6 Bn |
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Forecast Growth Rate (CAGR 2024 to 2031) |
48.6% |
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Historical Growth Rate (CAGR 2019 to 2023) |
30.5% |
Europe’s Healthcare Industry at the Forefront of Adoption of Blockchain
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Region |
Market Value Share 2023 |
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Europe |
34% |
The European market is experiencing substantial development as a result of the growing adoption of blockchain technology in countries such as the UK, Germany, and France.
Blockchain solutions in healthcare are actively developed and implemented by companies such as Accenture, and IBM, which underscore the technology's potential to improve patient outcomes, expedite operations, and enhance data security.
INTRx, a blockchain-based digital therapeutic product, was introduced by Epillo Health Systems, a European digital healthcare corporation, in February 2022. This advancement integrates blockchain, artificial intelligence, and machine learning into digital healthcare applications.
The integration of blockchain in healthcare by Epillo Health Systems is a substantial factor in the growth of the market, as it enhances the efficiency, security, and transparency of the management of prescription drug plans and associated healthcare services.
Market Attractiveness of Asia Pacific on the Rise
The healthcare market in the Asia Pacific is anticipated to experience a substantial increase in the utilization of blockchain technology during the forecast period.
Governments throughout the region are developing greater interest in the potential of blockchain technology and are actively supporting its development through strategic initiatives and policy changes.
The Asia Pacific blockchain in healthcare market is primarily driven by increasing healthcare expenditure, data security concerns, and government support. Unique market trends in this region include a strong focus on supply chain management, particularly in pharmaceutical distribution to combat counterfeiting.
Additionally, cross-border healthcare collaborations are gaining momentum, with blockchain facilitating secure data sharing and interoperability. Moreover, countries like Singapore, and Australia are leading in blockchain regulations, fostering a conducive environment for healthcare innovation.
Public Network Type Remains Favored with 45% Market Share
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Market Segment by Network Type |
Market Value Share 2023 |
|
Public |
45% |
Based on network type, the global market is further segmented into private and public, where the public segment dominates the global blockchain in healthcare market share.
Public blockchain networks, known for their transparent and decentralized nature, provide the healthcare industry highly valued attributes such as openness, security, and immutability.
These networks enable all parties to securely access and validate data, guaranteeing trust and reliability in important applications including health records, supply chain management, and clinical trials.
The decentralized nature of public blockchains helps to reduce the dangers associated with centralized data storage, such as the presence of single points of failure and data breaches.
Moreover, the openness of public blockchains promotes responsibility and confidence among stakeholders, such as patients, healthcare providers, and regulatory agencies.
Public blockchain networks are gaining extensive adoption and market dominance in the healthcare industry because to their capacity to emphasize data security, interoperability, and efficient management.
SCM Creates Nearly 31% of Total Demand
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Market Segment by Application |
Market Value Share 2023 |
|
Supply Chain Management |
31% |
Based on application, the blockchain in healthcare market is further divided into supply chain management (SCM), clinical trials, and clinical data exchange, where the SCM segment dominates the market share.
Healthcare organizations can verify the origin, manufacturing processes, and distribution paths of medical products in real time by utilizing blockchain technology, which facilitates end-to-end visibility across the supply chain.
This transparency aids in the prevention of fraud, the reduction of the risk of counterfeits, and the improvement of regulatory compliance.
Furthermore, blockchain simplifies inventory management and logistics, thereby minimizing the inefficiencies and expenses associated with intermediaries and manual record-keeping.
The segment is anticipated to experience growth during the forecast period due to the capacity of blockchain technology to trace every transaction and shipment back to its source improvement.
Healthcare firms are increasingly drawn to blockchain due to its appeal in providing safe and transparent data management platforms. The decentralized and unchangeable ledger of blockchain guarantees the integrity of data and minimizes the likelihood of data breaches, making it essential for managing sensitive patient information.
Furthermore, the increasing need for effective and simplified procedures in healthcare administration, such as billing, claims processing, and supply chain management, has resulted in the implementation of blockchain in healthcare for improved operational efficiency.
Blockchain technology transforms the healthcare industry by offering an unchangeable record of patient data, guaranteeing confidentiality and protection. It plays a crucial role in overseeing Electronic Health Records (EHRs), offering a safe and decentralized means for exchanging patient data among healthcare providers.
Blockchain technology improves supply chain management for pharmaceuticals and medical equipment, increasing transparency and enabling the development of alternative healthcare delivery and payment models. The system utilizes robust cryptographic techniques to encrypt every block in the chain, resulting in an impervious connection that is very resistant to tampering.
The period from 2019 to 2023 witnessed significant growth in the global blockchain technology market within the healthcare sector. This growth was fueled by various factors, including the increasing need for secure and transparent data sharing, advancements in technology, and the rising demand for efficient healthcare solutions.
In 2019, the global blockchain technology in the healthcare market began to gain traction as healthcare providers and institutions started to recognize the potential benefits of blockchain technology.
The year saw initial investments and pilot projects aimed at exploring how blockchain could address issues such as data security, interoperability, and patient privacy. Major industry players and start-ups alike began to invest in research and development to create blockchain solutions tailored for healthcare applications.
By 2023, the global blockchain technology in the healthcare market had reached a level of maturity, with widespread adoption and a growing number of successful use cases.
The benefits of blockchain technology, such as enhanced security, improved data interoperability, and increased transparency, were widely recognized across the healthcare industry.
Investment in blockchain solutions continued to grow, with both established companies and new entrants contributing to the market's expansion. The focus shifted towards optimizing and scaling blockchain applications to achieve even greater efficiencies and improved patient outcomes.
Increasing Need for Data Security and Privacy
One of the most significant drivers of blockchain in healthcare is the increasing need for enhanced data security and privacy. Healthcare organizations handle vast amounts of sensitive patient information, making them prime targets for cyberattacks.
Traditional data storage methods are often vulnerable to breaches, leading to the loss of confidential information and financial losses. Blockchain technology, with its decentralized and immutable nature, offers a robust solution to these issues by ensuring that patient data is securely stored and only accessible by authorized individuals.
The growing awareness of data security threats is pushing healthcare providers to adopt blockchain technology to safeguard patient information.
Demand for Interoperability and Efficient Data Sharing
The healthcare industry is plagued by data silos, where patient information is fragmented across different systems and institutions. This lack of interoperability hinders efficient data sharing and collaboration among healthcare providers, leading to delays in treatment and increased healthcare costs.
Blockchain technology addresses this challenge by providing a decentralized platform that facilitates seamless data exchange and interoperability. By enabling secure and transparent data sharing, blockchain technology enhances care coordination, reduces administrative burdens, and improves patient outcomes.
Rising Incidence of Healthcare Fraud
Healthcare fraud is a significant concern globally, costing billions of dollars annually. Fraudulent activities, such as billing for services not rendered and falsifying patient records, strain healthcare systems and increase costs for patients and insurers.
Blockchain technology offers a transparent and tamper-proof ledger that can help detect and prevent fraudulent activities. By providing a secure and auditable record of transactions, blockchain enhances accountability and reduces the risk of fraud, driving its adoption in the healthcare sector.
Regulatory and Compliance Challenges
The healthcare industry is one of the most heavily regulated sectors worldwide. Each country has its own set of regulations governing healthcare practices, data privacy, and patient rights. Integrating blockchain technology into this complex regulatory landscape is challenging.
Compliance with regulations such as the Health Insurance Portability and Accountability Act (HIPAA) in the United States, the General Data Protection Regulation (GDPR) in Europe, and other regional data protection laws is crucial.
These regulations mandate stringent requirements for data security, patient consent, and information sharing, which can be difficult to reconcile with the decentralized and transparent nature of blockchain.
Blockchain technology is still evolving, and there is a lack of standardized protocols and guidelines for its implementation in healthcare. The absence of universally accepted standards creates uncertainty and poses a barrier to adoption.
Healthcare providers and organizations may be hesitant to invest in blockchain solutions without clear regulatory guidance and standardized practices. This uncertainty can slow down decision-making processes and delay the implementation of blockchain projects.
Ensuring compliance with regulatory requirements can be costly and time-consuming. Healthcare organizations need to invest in legal expertise, compliance audits, and additional security measures to meet regulatory standards.
These costs can be a significant restraint, particularly for smaller healthcare providers with limited resources. The financial burden of compliance may deter organizations from adopting blockchain technology, especially when the return on investment is not immediately apparent.
Enhanced Data Security and Privacy Solutions
Developing advanced security protocols that leverage blockchain’s immutable and decentralized nature can provide enhanced protection for sensitive healthcare data. Companies can focus on creating more sophisticated encryption techniques and privacy-preserving algorithms to ensure that patient information remains secure and confidential.
Blockchain-based identity management systems can offer secure and verifiable digital identities for patients and healthcare providers. By giving individuals control over their personal data and enabling seamless authentication processes, these systems can improve data privacy and reduce the risk of identity theft.
Smart Contracts for Streamlined Processes
Smart contracts can automate complex processes such as billing and claims adjudication, reducing administrative burdens and minimizing errors. Industry participants can develop smart contract solutions tailored to the healthcare industry, streamlining financial transactions and improving operational efficiency.
Blockchain-enabled smart contracts can enhance the transparency and efficiency of clinical trials by automating consent management, data collection, and monitoring. These solutions can help ensure the integrity of clinical trial data and expedite the research process.
The global blockchain in healthcare market is rapidly evolving, with numerous key players striving to establish their presence and capitalize on emerging opportunities.
The competitive landscape is characterized by the presence of established technology companies, innovative start-ups, and collaborative consortiums.
The competitive landscape of the global blockchain in healthcare market share is dynamic, with major players, emerging start-ups, and consortiums all contributing to its growth.
Companies are focusing on innovation, collaboration, and compliance to address the unique challenges of the healthcare sector.
As the market continues to mature, these competitive efforts will drive the development of robust blockchain solutions, ultimately transforming healthcare delivery and enhancing patient outcomes.
Recent Industry Developments
In Oct 2023, Solve.Care collaborated with Binance to enhance the integration of cryptocurrency in the healthcare sector. The linkage expands the potential applications of cryptocurrencies, thereby simplifying and streamlining the process of using them to pay for healthcare services.
In Aug 2023, Solve Care began a new Care Trials with its blockchain and Zero-knowledge (ZK) technology, this cutting-edge network provided new ways to run clinical studies.
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Attributes |
Details |
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Forecast Period |
2024 – 2031 |
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Historical Data Available for |
2019 – 2023 |
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Market Analysis |
US$ Billion for Value |
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Key Regions Covered |
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Key Companies Profiled |
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Pricing |
Available upon request |
By Network Type
By Application
By End Use
By Region
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Updated Report with latest market numbers will be provided.*
The market is estimated to exhibit a CAGR of 48.6% during the forecast period.
Europe is the leading region in the market.
The global blockchain in healthcare market is segmented based on network type, application, and end use.
IBM, PATIENTORY INC., Guardtime, iSolve, LLC, and Solve.Care, are some of the major key companies in the market.
The global blockchain in healthcare market is estimated to be valued at US$1.1 billion.
