The global blockchain technology in healthcare market size is expected to reach USD 11.5 billion by 2026, according to a new report by Grand View Research, Inc. It is anticipated to expand at a CAGR of 63.9% during the forecast period. Increasing need to prevent drug counterfeit coupled with demand for efficient clinical data management is anticipated to drive the growth. Furthermore, technological advancements and untapped opportunities in the healthcare sector are some of the major factor leading to the adoption of the technology.
Blockchain technology has grown at a rapid pace in the past few years. The technology has been utilized by the big corporations for profit maximization and cost cutting. Many leading healthcare and life science companies including Pfizer Inc.; Amerisource Bergen Corporation; McKesson Corporation; and Premier Inc. have all recently joined blockchain-powered project MediLedger to tackle the inadequacies of supply chain. Reduction or elimination in frauds and errors, reduction in delays from paperwork, identification of issues rapidly, minimization of courier costs, improvement in inventory management, and increase in consumer and partner trust are some of the purported benefits of blockchain technology facilitating supply chain management.
Furthermore, the pharmaceutical industry is only one part of the overall healthcare ecosystem which is vigorously exploring the use cases of the blockchain and many of the ideas already have the proof-of-concept implementations. The technology holds ability to effectively improve the patient care while maintaining the funds at reasonable rate. The hindrances and challenges that arise in multiple level authentication can also be eliminated through the adoption of blockchain. Furthermore, with the growing adoption, the technology has made its way to healthcare sector. Even at its beginning and infancy stage, the technology is being accepted by the people and company in the healthcare ecosystem.
Clinical data exchange and interoperability segment of the blockchain technology in healthcare market is expected to expand at the considerable CAGR during the forecast period. Clinical data exchange and interoperability are currently the most vulnerable processes affected by a huge data breach and drug counterfeit. For Instance, according to the Health Research Funding Organization (HRFO), in 2017, nearly 10% to 30% of the drugs in emerging countries were not original, which represent a huge market of drug counterfeit. The U.S. healthcare industry, in 2017, bore a loss of about $200 billion annually, due to counterfeit issues.
Further key findings from the study suggest:
- Drug and medical device companies accounted for the largest market share in the end use segment in 2018
- Clinical data and e-consenting segment held over 26.0% market share in 2018.
- Private blockchain type segment is anticipated to witness the fastest growth due to supportive legislative policies in developed countries
- Europe held the leading market share of over 35.0% in 2018, attributed to increase in incidence of data breaches, supportive government policies, favorable reimbursement schemes, rise in awareness, and increase in number of training programs
- Key players operating in the blockchain in healthcare market include IBM Corporation; Microsoft; PokitDok, Inc.; Patientory, Inc.; GuardTime; Blockpharma; MedRec; iSolve, LLC; DeepMind Health; and Stratumn; among others.