Forecast Period
|
2024-2028
|
Market Size (2022)
|
USD 903.04 Million
|
CAGR (2023-2028)
|
13.29%
|
Fastest Growing Segment
|
Public
|
Largest Market
|
North America
|
Market Overview
Global Blockchain Technology 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 and is expected to reach at USD 1902.30 Million by 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 Technology 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 Technology 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 Technology 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
By Type
|
By Application
|
By End User
|
By Region
|
|
- Supply Chain
Management
- Data Exchange and
Interoperability
- Claims Adjudication
and Billing
- Others
|
- Pharmaceutical and
Medical Device Companies
- Healthcare Payers
- Healthcare Providers
|
- North America
- Europe
- Asia Pacific
- South America
- Middle East &
Africa
|
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
§ Kuwait
§ Turkey
§ Egypt
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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