Blockchain Market in Healthcare - Growth, Trends, and Forecast (2022 - 2030)
Market Overview
The blockchain market in healthcare was valued at USD 1.95 billion in 2018 and is expected to reach USD 3.21 billion by 2024, with a CAGR of 8.7% during the forecast period 2019 - 2024. In 2018, the Illinois Blockchain initiative launched several pilots including a birth registration pilot to develop secure identity solutions and a pilot to develop blockchain health provider credentialing solutions. Proposals like these are forecasted to improve market condition.
- In 2018, the healthcare industry continued to be plagued by data breaches involving sensitive patient information, with public reports of hacking and phishing incidents reminding us how vulnerable patient data remains. According to Breach Barometer 2019 Report, more than 15 million patient records were breached in 2018. These incidents allow blockchain vendors to launch new solutions.
- Government mandates also require healthcare industries to come up with innovative ways to manage their assets. From February 2019, the Falsified Medicines Directive came into force across the EU and require all prescription medicines to come with a security feature enabling hospitals, pharmacies or healthcare providers to verify their authenticity.
- One of the biggest challenges faced by the healthcare industry is lack of understanding and awareness of a trustless system. Most of the use cases of blockchain are in BFSI sector. Also, the bad reputation of bitcoin highlighted by media discourages the market expansion.
Scope of the Report
Blockchain in healthcare can help complex transactions, such as clinical supply chain and value-based reimbursements, to bring more transparency between several stakeholders. Considering the fast growth toward the development of more efficient and new health care record system, medical examination systems and wearable devices cryptography in future is expected to be an integral part of the entire healthcare industry. With the increase in the number of patients globally, managing health-related data is becoming a bottleneck for the healthcare providers
Key Market Trends
Managing Healthcare Supply Chain Using Blockchain to Dominate the Market
- WHO estimates that many countries in Africa and parts of Asia and Latin America have areas where more than 30% of the medicines on sale can be counterfeit.
- Pharmaceutical supply chain surveillance has shown that incidents of substandard or counterfeit medicines continue to increase, in what are perceived to be legitimate supply chains around the world. A number of factors have contributed to this rise such as pharmaceutical supply chains which are very complex and are at risk due to the involvement of under-regulated wholesalers, illicit distributors, non-legitimate internet pharmacies and multiple routes for importation around the world.
- Advancements in technology has make it easier for pharmaceutical counterfeiting to copy both product packaging and the pharmaceutical itself so that visually there is a little distinction.
- When a recall happens, manufacturers must communicate clearly and swiftly with the entire supply chain, from wholesalers to pharmacies and collect the faulty item. This demands an increased need of collaboration which can be attained by Blockchain.
North America to Witness the Highest Growth
- In the US, the FDA’s Drug Supply Chain Security Act outlines requirements to develop and enhance drug supply chain security by 2023. These developments are good news for blockchain industry as the companies try to manage product quality and security.
- Major U.S. healthcare companies have formed an alliance called Synaptic Health Alliance, consists of Humana, Multiplan, UnitedHealth Group's Optum, UnitedHealthcare, Quest Diagnostics and Ascension to trial blockchain solutions in order to improve data quality and reduce costs,
- According to Centers for Medicare & Medicaid Services, at least half of the information on Medicare Advantage Organizations contained mistakes, which affects customers by causing delays in medical services and can make them subject to fines.
- In Boston, medical offices use more than two dozen systems for keeping electronic health records. This makes them prone to frauds and hacking.
- Ageing population and rising healthcare costs indicate higher healthcare spending in the US. Thus blockchain offfers a potential solution to safegaurd patient and clinical data.
Competitive Landscape
The market for blockchain is limited due to expertise required in implementing any of the new projects, thus creating a high entry barrier. The concentrated market allows enterprises to take advantage of specialized blockchain healthcare offerings from vendors like Gem, IBM and Microsoft.
- May 2019 - Batam, Indonesia is aiming to bring together a significant number of partners to help deliver a blockchain solution for Batam citizens. The primary partnership is between BP Batam, through BP Batam Hospital, and dClinic, who have engaged Deloitte South East Asia and JP Consulting to provide project management and clinical governance expertise.
- January 2019 - Aetna, Anthem, Health Care Service Corporation (HCSC), PNC Bank and IBM announced a new collaboration to design and create a network using blockchain technology to improve transparency and interoperability in the healthcare industry. The aim is to create an inclusive blockchain network that can benefit multiple members of the healthcare ecosystem in a highly secure, shared environment.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- Report customization as per the client's requirements
- 3 months of analyst support
The blockchain market in healthcare was valued at USD 1.95 billion in 2018 and is expected to reach USD 3.21 billion by 2024, with a CAGR of 8.7% during the forecast period 2019 - 2024. In 2018, the Illinois Blockchain initiative launched several pilots including a birth registration pilot to develop secure identity solutions and a pilot to develop blockchain health provider credentialing solutions. Proposals like these are forecasted to improve market condition.
- In 2018, the healthcare industry continued to be plagued by data breaches involving sensitive patient information, with public reports of hacking and phishing incidents reminding us how vulnerable patient data remains. According to Breach Barometer 2019 Report, more than 15 million patient records were breached in 2018. These incidents allow blockchain vendors to launch new solutions.
- Government mandates also require healthcare industries to come up with innovative ways to manage their assets. From February 2019, the Falsified Medicines Directive came into force across the EU and require all prescription medicines to come with a security feature enabling hospitals, pharmacies or healthcare providers to verify their authenticity.
- One of the biggest challenges faced by the healthcare industry is lack of understanding and awareness of a trustless system. Most of the use cases of blockchain are in BFSI sector. Also, the bad reputation of bitcoin highlighted by media discourages the market expansion.
Scope of the Report
Blockchain in healthcare can help complex transactions, such as clinical supply chain and value-based reimbursements, to bring more transparency between several stakeholders. Considering the fast growth toward the development of more efficient and new health care record system, medical examination systems and wearable devices cryptography in future is expected to be an integral part of the entire healthcare industry. With the increase in the number of patients globally, managing health-related data is becoming a bottleneck for the healthcare providers
Key Market Trends
Managing Healthcare Supply Chain Using Blockchain to Dominate the Market
- WHO estimates that many countries in Africa and parts of Asia and Latin America have areas where more than 30% of the medicines on sale can be counterfeit.
- Pharmaceutical supply chain surveillance has shown that incidents of substandard or counterfeit medicines continue to increase, in what are perceived to be legitimate supply chains around the world. A number of factors have contributed to this rise such as pharmaceutical supply chains which are very complex and are at risk due to the involvement of under-regulated wholesalers, illicit distributors, non-legitimate internet pharmacies and multiple routes for importation around the world.
- Advancements in technology has make it easier for pharmaceutical counterfeiting to copy both product packaging and the pharmaceutical itself so that visually there is a little distinction.
- When a recall happens, manufacturers must communicate clearly and swiftly with the entire supply chain, from wholesalers to pharmacies and collect the faulty item. This demands an increased need of collaboration which can be attained by Blockchain.
North America to Witness the Highest Growth
- In the US, the FDA’s Drug Supply Chain Security Act outlines requirements to develop and enhance drug supply chain security by 2023. These developments are good news for blockchain industry as the companies try to manage product quality and security.
- Major U.S. healthcare companies have formed an alliance called Synaptic Health Alliance, consists of Humana, Multiplan, UnitedHealth Group's Optum, UnitedHealthcare, Quest Diagnostics and Ascension to trial blockchain solutions in order to improve data quality and reduce costs,
- According to Centers for Medicare & Medicaid Services, at least half of the information on Medicare Advantage Organizations contained mistakes, which affects customers by causing delays in medical services and can make them subject to fines.
- In Boston, medical offices use more than two dozen systems for keeping electronic health records. This makes them prone to frauds and hacking.
- Ageing population and rising healthcare costs indicate higher healthcare spending in the US. Thus blockchain offfers a potential solution to safegaurd patient and clinical data.
Competitive Landscape
The market for blockchain is limited due to expertise required in implementing any of the new projects, thus creating a high entry barrier. The concentrated market allows enterprises to take advantage of specialized blockchain healthcare offerings from vendors like Gem, IBM and Microsoft.
- May 2019 - Batam, Indonesia is aiming to bring together a significant number of partners to help deliver a blockchain solution for Batam citizens. The primary partnership is between BP Batam, through BP Batam Hospital, and dClinic, who have engaged Deloitte South East Asia and JP Consulting to provide project management and clinical governance expertise.
- January 2019 - Aetna, Anthem, Health Care Service Corporation (HCSC), PNC Bank and IBM announced a new collaboration to design and create a network using blockchain technology to improve transparency and interoperability in the healthcare industry. The aim is to create an inclusive blockchain network that can benefit multiple members of the healthcare ecosystem in a highly secure, shared environment.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- Report customization as per the client's requirements
- 3 months of analyst support
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