Blockchain in Healthcare Market Size Envisioned at USD 14.25 Billion by 2032

Blockchain In Healthcare Market Size and Companies Report

The global blockchain in healthcare market size reached USD 0.76 billion in 2022 and is projected to hit around USD 14.25 billion in 2032, expanding at a healthy CAGR of 34.02% from 2023 to 2032.

Unlock Infinite Advantages: Subscribe to Annual Membership

Blockchain Technology has the potential to develop an efficient, transparent, safe, and effective method of communicating data all over healthcare.

A blockchain is described as a growing set of cryptographically linked records known as blocks. Each block includes a cryptographic hash of the previous block, as well as a time and date, and transaction data. The timestamp ensures that the transaction data is actually at the time the block was published and so may be hashed. Since each block carries information about the one that came before it, they form a chain, with each new block reinforcing the ones that came before it. As a result, blockchains are resistant to data change since data in any one block cannot be modified retrospectively without affecting all subsequent blocks once it has been recorded.

Permission Blockchains and Permission-Less Blockchains are the two main types of blockchain in healthcare. Permissioned blockchains, also known as private blockchains, require authorization before use and can only be accessed by those who have been granted access. These provide high customizability, access controls, improved scalability, dependability, and more efficient performance.

On-premise and cloud-based deployments are utilized in supply chain management, clinical data interchange and interoperability, claims adjudication and billing management, and other applications. Healthcare providers, pharmaceutical companies, healthcare payers, and others are among the end-users of blockchain in healthcare.

The increased prevalence of information leaks and data breaches, as well as the growing need to tackle these issues, are driving market expansion. The implementation of the technology is being driven by strategic actions by key parties, high demand to prevent drug counterfeiting, and a need for effective health data management systems.

Key Highlights in the Blockchain Healthcare Market

• In 2022, Biopharmaceutical and Medical Device firms held the biggest market share in the end-use sector.
  During the projection period, blockchain technology's clinical data exchange and interoperability sector in the healthcare industry is predicted to grow at a significant CAGR.
• Clinical Data Interchange and Interoperability are two of the most susceptible processes when it comes to massive data breaches and medication counterfeiting.
• In terms of network type, the public sector led the market in 2022.
• Europe held the largest market share by region in 2022, owing to an increase in data breaches, supporting government regulations, good reimbursement schemes, increased awareness, and growth in the number of training programs.

According to the OECD, a new blockchain application called Research Foundry has evolved to enable the management of rights and consent for the sharing and access of health data, software code, metadata, and other items related to healthcare R&D. Furthermore, increased investment in the development of effective healthcare record systems, wearable device cryptography, and medical examination systems is expected to give profitable prospects in the near future for this market.

Blockchain in Healthcare Market Companies

• PATIENTORY INC.
• IBM
• iSolve, LLC
• Guardtime
• Oracle
• Solve. Care
• BurstIQ
• Change Healthcare
• Blockpharma
• Medicalchain SA

Why Blockchain is Required in Healthcare?

In the field of healthcare, the urgency of development is increasing at tremendous speed. Today, there is a demand for high-quality healthcare facilities that are backed by innovative and cutting-edge technology. Blockchain would play a major role in revolutionizing the healthcare sector in this case. Furthermore, the healthcare environment is shifting toward a patient-centered strategy that emphasizes two key aspects: accessible services and appropriate healthcare resources. Blockchain improves the ability of healthcare organizations to deliver enough patient care and high-quality health facilities. Another time-consuming and repetitive activity that contributes to high healthcare expenses may be resolved easily with this technology. Citizens can participate in health research initiatives using Blockchain technology.

The Rise of Telehealth in Blockchain

Consumers have embraced telehealth, moving from 11% using it in 2019 to 76% who are now interested in using telehealth moving forward. This shift is driven by the need to avoid exposure to COVID-19, with over 70% of in-person visits being cancelled. Consumers are also increasingly likely to use telehealth going forward, with 76% of survey respondents indicating they are highly or moderately likely to use telehealth, and 74% of users reporting high satisfaction.

Providers have also rapidly adopted telehealth. To meet the increased demand, health systems, independent practices, and behavioral health providers have scaled their telehealth offerings to fill the gap left by cancelled in-person appointments. This shift is reflected in the number of telehealth visits, which has increased 50-175 times since before COVID-19. Providers also view telehealth more favorably (57%) and are more comfortable using it (64%) than they did before COVID-19.

Ill Effect of COVID-19 On the Blockchain Healthcare Market

The COVID-19 pandemic boosted the global blockchain technology in the healthcare market, owing to the increased usage of cutting-edge technologies such as blockchain in the healthcare business.

As more and more people throughout the world became infected with the fatal virus, the demand for healthcare increased tremendously, and several healthcare facilities in several countries made excellent use of blockchain technology. This was done to considerably improve resource and operation planning effectiveness.

Furthermore, a large number of clinics and hospitals throughout the world were redesigned to expand hospital capacity for COVID-19 patients, which increased the demand for blockchain technology in healthcare. As a result, COVID-19 has had a beneficial market impact.

Factors Fueling The Market Growth

The increasing implementation of blockchain as a service (BaaS) is likely to propel the blockchain in the healthcare market ahead. Blockchain technology has the potential to provide innovative solutions to the healthcare industry's challenges, such as supply chain management, smart contracts, the confidentiality of personal health information, technical issues in data management, the enablement of alternative payment models, and virus outbreak tracking.

Furthermore, the cost-effectiveness of Blockchain technology in healthcare is driving market expansion. Many firms have begun to leverage blockchain technology to address critical concerns in the healthcare industry, increasing the bar for security standards. The digital ledger system is incredibly secure, does not require a third-party administrator, and has a high level of transparency. Public blockchain technology has been built to work with the greatest medical data security standards, boosting the business's value. Furthermore, the low cost of using public blockchain technology in healthcare is a key driver driving business expansion. The high grade of security procedures, dependable portal services, and anonymous nature are predicted to favorably affect market demand.

Hurdles Faced During The Market Growth

Reluctance to Share Information, a lack of a centralized authority and a set of common standards, a lack of technological infrastructure, and a shortage of trained experts will be the primary barriers to the growth of the Global Blockchain In the Healthcare Market. The main issue with using this modern technology in medical institutions is a lack of expertise. Blockchain applications are still in their infancy stages and require further work for technological investigation and study. It does, however, apply to the responsibilities of health organizations and regulators.

Open Doors For The Blockchain Healthcare Market

Technological innovations are considerably altering the Blockchain in the Healthcare Market. As the need for blockchain technology grows, the leading players in the healthcare blockchain market are focused on providing sophisticated technological solutions for the healthcare industry in order to increase their market position.

Market Scope And Categorization

In 2022, the public network segment dominated the global market by network type. The rising use of public networks for data management is the primary driver of the large share of the public segment. Ethereum, a public network, is currently one of the most widely used technologies in healthcare. It is also referred to as a "permissionless" blockchain technology. The main factors driving the growth of these public networks are low cost and access to a larger database.

In 2022, the supply chain management application category represented more than 23% of the blockchain technology market share in the healthcare market. Blockchain applications aid in the preservation of data integrity. Additionally, the technology assists pharmaceutical businesses in facilitating interoperability with the Internet of Things (IoT) devices. It also aids in the recruitment of clinical trial candidates and the regulation of the drug supply chain. Blockchain has the potential to revolutionize the healthcare industry by cutting operational costs, reducing data corruption, and optimizing healthcare processes. During the projection period, the clinical trials & eConsent segment are predicted to increase at a significant rate. Leveraging technology in clinical trials allows for more effective data management and security. The incorporation of blockchain technology enables clinicians to safely connect internally.

In 2022, by end-user, the biopharmaceutical & medical device companies’ segment had a market share of more than 47%. This is due to enormous R&D investments, the requirement to secure data interchange and interoperability, and the extensive data management performed by these organizations in pharmaceutical research and development areas. The growing use of technology for critical functions such as verifying the authenticity of returned drugs, counterfeit prevention, compliance with the pharmaceutical supply chain, transparency and traceability in clinical trials, and improving the reliability and quality of clinical trial data is expected to contribute to the segment's large share.

Due to different initiatives taken by regional governments to minimize data leaks, Europe held the largest market share in 2022. For instance, the EU government proposed the General Data Protection Regulation in 2018 (GDPR). The implementation of GDPR, together with the massive expansion of blockchain technology, is projected to give more chances for companies in the region. During the projected period, North America is expected to have the second-largest market share. The primary driver of regional growth is the rising demand for medical record security.

5 Blockchain Healthcare Application Cases in Digital Health

Transparency In The Supply Chain

• Using a blockchain-based system to monitor products from the point of manufacture and at each level of the supply chain provides customers with complete visibility and transparency of the goods they are purchasing.

E-Health Records Centered On The Patient

• Every country and region's healthcare systems are dealing with the problem of data silos, which means that patients and their healthcare professionals have an incomplete understanding of their medical history.

Insurance And Supply Chain Settlements Using Smart Contracts

• Pharmaceutical companies, medical device OEMs, wholesalers, insurers, and healthcare providers, for instance, can authenticate their identities as organizations, log contract details, and track transactions of goods and services, as well as payment settlement details for those goods and services, using blockchain-based systems provided by companies such as Chronicled and Curisium.

IoT Security For Remote Monitoring

• One of the biggest trends in digital health is the adoption of remote monitoring solutions, where all kinds of sensors measuring patients’, vital signs are being used to help give healthcare practitioners more visibility into patients’ health, enabling more proactive and preventative care. We’ve previously covered many promising remote monitoring use cases in our articles on 5G and edge computing in digital health.

Remote Monitoring Of IoT Security

• One of the most significant developments in digital health is the usage of remote monitoring systems, in which various sensors tracking patients' vital signs are utilized to provide healthcare practitioners with more insight into patients' health, allowing for more proactive and preventative care.

Key Developments And Strategies

• Zenith Chain, a Blockchain firm located in Lithuania, signed a USD 35 million venture capital agreement with GEM Digital Ltd on April 9, 2022. This investment is intended to strengthen the former company's position, allowing it to improve existing products while also launching new ones to offer blockchain solutions for increased user acceptance.
• IBM establish the IBM Rapid Supplier Connect, a blockchain-based network, in April 2020 to connect healthcare institutions and governments with non-traditional suppliers of COVID-19 devices, equipment, and supplies.
• MDS Mexico introduced a COVID-19 testing service based on blockchain technology in October 2021 to confirm the authenticity of vaccination certificates.
• Change Healthcare acquired PokitDok in December 2018 to expand the capabilities and technology of its Intelligent Healthcare Network by integrating PokitDok's DokChain technology and blockchain use cases.
• Optum, a subsidiary of UnitedHealth Group, announced in January 2021 its intention to acquire Change Healthcare in order to streamline core administrative, clinical, and payment processes.
• Solve. Care, a healthcare blockchain technology firm based in Ukraine, launch the Global Telehealth Exchange (GTHE) in May 2020, a decentralized care network based on blockchain and digital currency. All patient records and transactions will be securely recorded on the GTHE blockchain and accessible to Solve. care.
• Aetna, Anthem, Health Care Service Corporation (HCSC), PNC Bank, and IBM announced new cooperation in January 2019 to develop and create a blockchain-based network to increase healthcare transparency and interoperability. The objective is to create a diverse blockchain network that can benefit many people.
• On March 30, 2022, IBM stated that it is collaborating with Discover Financial Services, a renowned digital bank, and payments provider, to improve the digital transformation of apps and update current systems to a hybrid cloud architecture utilizing Red Hat Openshift. This coordinated effort aims to safeguard user data while also addressing customer requests for speedier access to integrated digital banking and payments. The former is also employing IBM Garage and agile technologies to update existing applications and co-create new solutions, which is expected to assist DFS in developing more business and technical advantages.

What Is The Future Of The Global Blockchain Healthcare?

Blockchain technology can aid in the growth of the global healthcare business by saving money and encouraging further investment in critical resources. With so much at risk, it's difficult to believe that the current inefficient, highly bureaucratic, and failing healthcare business will continue. It is time for patients, practitioners, and executives to adopt the technological and system-based innovations at their disposal.