Global Blockchain Technology in Healthcare Market Gaining Momentum—Projected to Reach USD 4,720.96 Million by 2027
Published | March 2021
A study recently conducted by the strategic consulting and market research firm, BlueWeave Consulting revealed that the global blockchain technology in the healthcare market was worth USD 129.22 million in 2020 and is further projected to reach USD 4,720.96 million by 2027, at a CAGR of 68.13% during the forecast period (2021-2027). The market is driven by factors, such as elimination of intermediaries, cost savings, government partnerships, transparency, removal of unscrupulous attacks, security from cyberattacks, and establishment of consortiums/ working groups, among others.
Elimination of Intermediaries and Cost Savings are expected to drive the global blockchain technology in healthcare market during the forecast period.
Blockchain technology is one of the most cutting-edge technologies available today. No discussion on blockchain technology can be complete without considering Bitcoin--the best-known cryptocurrency and the catalyst for the development of blockchain technology. Bitcoin is built on the blockchain principle, which implies that while data is immutable, it can be freely recorded and transacted. Bitcoin eliminates intermediaries or third-party participants and presents a secure, transparent, decentralized alternative to fiat currencies worldwide. Blockchain also enables bitcoin or any other cryptocurrency to eliminate certain processing or transaction fees. Additionally, it reduces the dependency on banks and governments to guarantee the value of the cryptocurrency.
Currently, more businesses are embracing blockchain technologies to encrypt transactions and payments. The healthcare industry is one of the biggest industries in the world with millions and billions of transactions done every year. With the integration of blockchain technology, companies operating in the healthcare market are looking to provide a secure and trustworthy mode of payment to their customers without ever worrying about the integrity of the payment. Increasing acceptance and willingness of healthcare companies to integrate blockchain technology for payment is expected to drive the growth of the global blockchain technology in the healthcare sector during the forecast period.
Security from cyber-attacks is estimated to contribute towards the growth of global blockchain technology in the healthcare market during the forecast period.
Blockchain is one of the most foolproof technologies available right now. With the increased use of Artificial Intelligence (AI) in devices, hackers have found it easier to gain access to the overall system through edge devices such as routers and thermostats. Blockchain can easily prevent this by decentralizing the administration of such devices and empowering them to make their own security decision. This helps eliminate the dependency on central admin or authority.
Change Healthcare, a leading independent healthcare technology firm, is now using blockchain technology to protect patient data and other confidential information from fraud. With the growing importance of data security and cybersecurity, more healthcare organizations are likely to follow Change Healthcare's lead and implement blockchain technology. This is expected to have a positive effect on blockchain technology in the health care sector, besides contributing significantly to the global blockchain technology in the health care market's growth over the forecast period.
Lack of awareness and understanding is expected to impede the growth of the global blockchain technology in the healthcare market during the forecast period.
The biggest problem with blockchain is a lack of information about the system and a general lack of awareness of how it functions. The integration of blockchain indicates 80% business process change and 20% technology implementation. Many individuals may become perplexed as a result of the high percentage of business process transition. Therefore, a creative approach is needed to understand the workings of blockchain and to see how things can improve.
A lot of companies don’t have any idea of how blockchain works. With the reputation and image of blockchain linked with cryptocurrencies, people are hesitant to integrate blockchain in other areas. This lack of awareness and understanding along with issues related to the reputation and image of blockchain technology is expected to impede the growth of the global blockchain technology in the healthcare market during the forecast period.
Supply chain management accounted for the largest share in the global blockchain technology in the healthcare market in 2020
The supply chain management segment held the largest share in the global blockchain technology in the healthcare market in 2020. Healthcare giants like Pfizer and Change Healthcare is already using blockchain technology for various purposes including supply chain management.
In March 2021, Moderna and IBM agreed to collaborate on COVID-19 vaccine supply chain tracking using blockchain technology. In August 2020, MediConnect announced a new partnership with Rishabh Software for the development of a new blockchain-based medical supply chain management platform. Blockchain technology in healthcare provides new approaches for making and distributing products and offers the potential to track the whole lifecycle of drugs down to a single dose. These applications have been helping the supply chain management segment of the global blockchain technology in the healthcare industry gain a significant market share, and the same trend is projected to continue throughout the forecast period.
Global Blockchain Technology healthcare Market: Regional insights
Global blockchain technology in the healthcare market is divided into the Asia-Pacific (APAC), North America, Europe, Latin America, and the Middle East & Africa regions. North America dominated the market in 2020 as a lot of healthcare companies operating in the North American region are integrating blockchain technology to manage their security, patient data, medicines, vaccine doses, etc. In March 2021, Moderna, a biotechnology and pharmaceutical company based in the United States signed a new agreement with IBM to use blockchain technology to handle its COVID-19 vaccines. Additionally, 3M Pharmaceuticals, another American pharmaceutical giant, uses blockchain technology to curb counterfeit pharmaceuticals, Recently, it has started using Blockchain technology to identify and stop counterfeit face masks. Availability of skilled workforce, awareness, and understanding of the technology, high disposable income, and presence of global healthcare leaders are some of the reasons contributing towards North America’s largest market share in global blockchain technology in the healthcare market.
COVID-19 Impact on Global Blockchain Technology in Healthcare Market
COVID-19 has had a negative effect on the majority of sectors across the globe. While some industries have started to recover, others are still trying to figure a way out. Owing to the pandemic-induced lockdown, clinical studies were put on hold permanently or entirely shut down in the healthcare sector, with 90 percent of them being put on hold. The focus has turned entirely to creating a vaccine for the raging pandemic. Since the development of the vaccine, the major issue has been how to administer the vaccine and keep track of its life cycle, as well as how to manage infected and vaccinated patient records. To cope with this, companies began to embrace blockchain technology, which has resulted in a dramatic development of blockchain technology in healthcare market.With no end in sight to the COVID crisis, the trend is expected to continue with blockchain technology providing a secure and reliable source for data storage and supply chain management.
The Leading Players operating in the Healthcare Market are IBM, Microsoft, Guardtime, Change Healthcare, Gem, Hashed Health, Chronicled, Patientory, Isolve, Factomand others are the key players operating in the global blockchain technology in healthcare market.
Key market players are entering into collaborations, partnerships, and engaging in mergers & acquisitions to capture a greater market share. Furthermore, the market participants are focused on improving their product quality to attain a competitive edge over other players.
OnMarch 4, 2021, Moderna and IBM announced that they will be collaborating on strengthening and improving COVID-19 vaccination management. The collaboration will see the use of IBM Blockchain and Artificial Intelligence (AI) to improve the vaccine supply chain and expand data sharing. A vaccine distribution pilot will ensure real-time tracking of the inoculations while accelerating data sharing between healthcare providers and other stakeholders.
On June 1, 2020, Change Healthcare announced the acquisition of PDX. Founded in 1985, PDX offers fully-integrated retail, specialty, and outpatient pharmacy solutions, including services that range from data analytics to revenue cycle management. As filed with the U.S. Securities and Exchange Commission, the acquisition deal was worth USD 208 million.
On May 1, 2020, Change Healthcare announced a pair of deals. The company announced the acquisition of e-prescribing company eRx Network for nearly $213 million, followed by the announcement of the sale of its Connected Analytics business to Chicago-based Kaufman Hall & Associates for $55 million.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of global blockchain technology in the healthcare market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends, along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
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