Blockchain Technology in Healthcare Market – Overview

Report
April 4, 2024

Blockchain technology in the healthcare industry is a decentralised plus distributed ledger system that securely records as well as validates transactions across a network of participants.

The technology is about to bring a massive upheaval in the healthcare sector. It provides a transparent platform for improving data integrity along with security in healthcare operations. Blockchain facilitates the construction of a tamper-proof record of patient data, treatment history, plus medical transactions. It opens up numerous prospects in the healthcare sector.

Improved data interoperability allows healthcare providers to securely share patient records. The capability enhances patient care through fewer redundancies and increases efficiency
Blockchain’s smart contracts can automate administrative processes, saves costs and improves resource allocation
The technology also empowers patients with more control over personal data and allows for consented sharing while incentivising participation in research

The blockchain technology market in healthcare is segmented into applications such as supply chain management, clinical trials, electronic health records (EHRs), along with billing and claims administration.

Blockchain Technology in Healthcare Market – Global Market Size (2023-2033)

The healthcare industry is about to undergo a significant transformation due to blockchain technology. As stated by Hit Consultant, this revolutionary ledger system is predicted to propel the global blockchain technology in healthcare industry to an incredible USD 750 billion by 2033, a 69.2% annual growth rate from its USD 3.9 billion valuation in 2023.

Key drivers include investment growth in medical examination processes, wearable device cryptography, and health record systems. Between 2019 and 2022, the global count of wearable technology devices connected to the internet surged dramatically. This figure grew to nearly 1.1 billion in 2022 from 929 million in 2021.

As per RBC Capital markets, the healthcare industry currently generates over 30% of the total volume of global data. By 2025, the compound annual growth rate (CAGR) for medical data is expected to be 36%. The rate is 11% quicker than the media / entertainment sector, 10% faster than the financial industry as well as 6% speedier than the industrial sector.

Blockchain Technology in Healthcare Market: Regional Synopsis (2024-2036)

As per Research Nester, Europe leads the charge with a 32% market share, owing to improved healthcare infrastructure and data protection rules such as GDPR. North America along with Asia Pacific have picked up pace in the blockchain race, with big businesses such as HMS Holdings, Cerner, and Allscripts investigating the technology’s potential to transform healthcare.

Blockchain Technology in Healthcare Market – Europe

Blockchain technology is estimated to account for around 33% of the healthcare business in Europe between 2024 and 2036. Healthcare providers accounted for 53% of all data breach events in the European health sector. Hospitals, in particular, bore the brunt of it, accounting for 42% of reported instances. The implementation of GDPR, along with government initiatives, is expected to create business opportunities in the region.

Europe dominated the 2023 blockchain market due to its widespread use of digital technology and advanced healthcare infrastructure
Significant investments from European governments and healthcare organisations have boosted the adoption of blockchain technology in the market
Successful collaborations between European health agencies, research institutions, and blockchain suppliers have resulted in novel solutions
Early adopters of blockchain in healthcare, including pilot projects and real-world applications, have contribute to a mature technological ecosystem

Blockchain technology enables patients to trust multiple healthcare providers and receive swift authentication, thereby accelerating treatment. Organisations like EBSI, the Dutch Institute for Healthcare Improvement, as well as the EU Blockchain Observatory and Forum are continuously improving blockchain infrastructure in the region.

Blockchain Technology in Healthcare Market – North America

The North American blockchain technology in the healthcare business is expected to have the second highest revenue share of approximately 26% between 2024 and 2036.

The key driver of regional expansion is an increase in demand for secure medical record storage
According to the US Office for Civil Rights (OCR), health organisations reported 145 data breaches in the first quarter of 2023. The incidents occurred on the back of 707 cases in 2022 that resulted in the loss of 51.9 million records

Various elements contribute to the region’s dominance. To begin with, the existence of significant industry players, such as established tech giants and innovative start-ups, has resulted in a vibrant environment for blockchain technology in healthcare. Second, rigorous regulatory requirements in the healthcare business have boosted demand for secure and transparent data management systems, making blockchain a viable option.

Finally, the region’s strong investment in research and development (R&D) activities has accelerated the implementation of blockchain technology in healthcare.

Blockchain Technology in Healthcare Market – Other Regions

East Africa has emerged as a significant proponent of blockchain technology. Medixus, a healthtech firm in Kenya has integrated blockchain in its service offering to provide a social network with the potential to connect the healthcare community across the world. The platform allows professionals to interact and coordinate via a secure channel with a transparent system. The service integrates patient consent for information distribution while speeding up the overall healthcare delivery system.

AID: Tech, an Irish software firm partnered with PharmAccess Foundation, an NGO, to launch a blockchain project to provide medical care to pregnant women from disadvantaged backgrounds. The collaboration makes use of blockchain to collate health-related data and provide each pregnant woman with an ID. The information is saved in the form of medical ledgers to enable quick disbursement of healthcare supplements such as vitamins during pre-natal as well as post-natal contexts.

Another unique application of blockchain in healthcare is Mediconnect from Uganda. The platform serves as a vital tool to monitor the allocation of medicines plus supplies to various healthcare programmes. A crucial part of the programme is its ability to track the distribution of drugs from the manufacturer to the patient. The feature proves to be invaluable in checking the proliferation of counterfeit drugs, a major problem in Africa.

Southeast Asia is not far behind in launching blockchain related pilot programmes. Thailand’s National Health Security Office (NHSO) has partnered with National Telecommunications (NT) and Bitkub World Tech, to set up a blockchain-based national health platform. The joint venture aims to digitise the delivery of various medical services via a single user interface. Under the partnership, NHSO contributes details related to insurance policies along with regulations while NT takes care of internet services, cloud computing, cybersecurity and IT infrastructure. Bitkub brings to the table blockchain capability to develop digital health IDs to verify patients’ healthcare-related details.

Blockchain Technology in Healthcare Market – Application Insights

In 2023, Supply Chain Management emerged as a dominant force, accounting for an impressive 26.2% of the blockchain technology market in healthcare. Its success is credited to blockchain’s essential role in improving transparency and efficiency in healthcare supply chains

Clinical Data Exchange & Interoperability was another prominent participant, with a sizable market share due to its capacity to facilitate seamless sharing and integration of clinical data

Claims Adjudication & Billing has grown significantly due to its automated capabilities. The technology provides dependable billing platforms for healthcare providers

Additionally, Clinical Trials & eConsent gained traction, indicating an increase in blockchain use for keeping track of clinical trial data.

Aside from these segments, blockchain drives healthcare innovation in areas such as patient data protection and administrative efficiency. The market’s evolution is driven by a shared commitment to guarantee integrity and security along with smooth sharing of critical healthcare information.

Blockchain Technology in Healthcare Market – End-User Insights

In 2023, biopharmaceutical / medical device companies emerged as leaders in the healthcare blockchain sector, accounting for 41.4% of the overall market.

The companies’ dominance arises from effective use of blockchain technology to improve operational efficiency across a wide range of biopharmaceuticals and medical devices.

Concurrently, healthcare providers gained a considerable market share, with notable growth attributed to improved data management, interoperability, and increased security measures.

Payers such as insurers expressed strong interest in blockchain applications with a focus to enhance claims processing, reduce fraud, and assure transparent transactions.

The broader spectrum of stakeholders like research institutions, regulatory organisations and technology suppliers has increasingly acknowledged blockchain’s diverse benefits. The category is expected to account for a significant market presence.

Blockchain Technology in Healthcare Market – Benefits

Fort Knox for Medical Records: Blockchain’s encrypted blocks protect sensitive information against unauthorised access and tampering. This results in increased security and peace of mind for patients as well as healthcare practitioners

Unlocking Interoperability: Incompatible technologies have hampered healthcare data exchange for years. Blockchain provides a standardised platform that eliminates silos while allowing seamless flow of information across hospitals, labs, and doctors

Patient Empowerment: Blockchain empowers patients with more decision-making authority over how personal healthcare-related data is utilised. Patients can now decide who has access to personal records. The benefits include faster administrative operations such as billing and claims management

Logistics Network on Steroids: Blockchain technology enhances healthcare supply chains through transparency along with traceability to prevent counterfeiting while assuring patient safety

Innovative Deals: Smart contracts automate administrative tasks and speed up insurance claims processes allowing for better patient care

Blockchain Technology in Healthcare Market – Drivers

Blockchain Technology Ensures Data Integrity: Blockchain technology has gained popularity as the healthcare industry places a greater emphasis on data protection. Its decentralised nature provides a strong barrier against tampering of patient records. The technology provides healthcare data management organisations a unique tool for maintaining confidentiality and reliability

Improving Interoperability and Efficient Data Sharing: Blockchain facilitates seamless interoperability in healthcare systems, promotes efficient patient data sharing, and reduces need for unnecessary tests. The capability strengthens healthcare ecosystems and enhances overall patient care

Using Blockchain to Optimise Healthcare Operations: Blockchain technology can streamline healthcare workflows whether administrative or operational. The technology promotes transparency, efficiency, and cost reductions, leading to more resilient healthcare systems

Smart Contracts in Healthcare: Blockchain technology’s smart contracts automate crucial healthcare procedures like insurance claims and payment settlements. The feature reduces errors and enhances transaction efficiency

Blockchain Technology in Healthcare Market – Restraints

Stringent Regulatory Frameworks: Healthcare institutions face challenges to adopt blockchain technology due to stringent regulatory frameworks, constant regulatory changes, and the need to allocate resources for compliance-related activities

Outdated Legacy Systems: The integration of blockchain with outdated legacy systems in healthcare is hindered by incompatibility issues, making it time-consuming and costly to implement the technology

Issues of Interoperability: Blockchain implementation in healthcare faces challenges due to lack of standard protocols and frameworks. An industry-wide standard needs to be implemented to effectively address interoperability issues

Patient Privacy: Blockchain offers data security but raises privacy concerns due to its transparency, making it difficult for healthcare institutions to balance the technology’s implementation with privacy regulations

Blockchain Technology in Healthcare Market – Recent Developments

December 2023: BurstIQ and Lytics Health merged to offer a comprehensive healthcare data management solution, combining BurstIQ’s AI analytics with Lytics Health’s blockchain-based data security platform

November 2023: Guardtime launched its Keyless Trust Anchor Service, a new product that provides tamper-proof evidence of data integrity within pharmaceutical supply chains. The service improves authenticity along with traceability for more secure pharmaceutical distribution systems

October 2023: iSolve LLC acquired MedLedger LLC to broaden its blockchain platform capabilities for clinical trial management and patient data protection. iSolve aims to enhance its footprint in healthcare by leveraging MedLedger’s expertise in the domain

September 2023: PATIENTORY Inc. and Health Gorilla partnered to integrate the former’s patient engagement platforms with the latter’s interoperability network. The partnership aims to enhance coordination and secure sharing of medical records.

Future of Healthcare Blockchain

Blockchain technology has enormous potential in healthcare, with multiple applications that simplify and streamline operations while enhancing patient outcomes. As more healthcare organisations use blockchain technology, the industry is projected to see increased innovation, collaboration, and transformation. Blockchain applications range from personalised healthcare apps to secure clinical trial data management, going beyond what is currently possible. This breakthrough technology has the potential to empower individuals, optimise healthcare operations, and, eventually, provide better care for all.