Blockchain Market in Healthcare - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Blockchain Market in Healthcare - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The blockchain market in healthcare was valued at USD 2.12 billion in 2020, and is expected to reach USD 3.49 billion by 2026, with a CAGR of 8.7% during the forecast period, 2021 - 2026. In 2018, the Illinois Blockchain Initiative (IBI) 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 expected to improve the market conditions.

Key Highlights

• 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 how vulnerable the patient data remains. According to the Breach Barometer 2019 Report, more than 15 million patients’ records were breached in 2018. Such incidents allow blockchain vendors to launch new solutions.
• Government mandates require healthcare industries to come up with innovative ways to manage their assets. From February 2019, the Falsified Medicines Directive (FMD) came into force across the European Union. This prescription medicines came with a security feature enabling the 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 application of blockchain are in the BFSI sector. Additionally, the bad reputation of bitcoin, highlighted by media, discourages the market expansion.

Key Market TrendsManaging Healthcare Supply Chain Using Blockchain to Dominate the Market

• The 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, which are perceived to be legitimate supply chains around the world. Several factors have contributed to these incidents, 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 have made it easier for pharmaceutical counterfeiting, to copy both product packaging and the pharmaceutical itself, so that there is a little distinction.
• When a recall happens, manufacturers must communicate clearly and swiftly with the entire supply chain, from wholesale to retail 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 United States, the FDA’s Drug Supply Chain Security Act outlines requirement to develop and enhance the drug supply chain security by 2023. These developments are good news for the blockchain industry, as the companies try to manage product quality and security.
• Major US healthcare companies have formed an alliance called Synaptic Health Alliance, which consists Humana, Multiplan, UnitedHealth Group's Optum, UnitedHealthcare, and Quest Diagnostics and Ascension to try blockchain solutions, in order to improve data quality and reduce costs.
• According to the Centers for Medicare & Medicaid Services, at least half of the information on the Medicare Advantage Organizations had errors, which affects the customers by causing delay in medical services and can make them subject to fines.
• In Boston, medical offices use more than two dozen systems for maintaining electronic health records. This makes them prone to fraud and hacking.
• Ageing population and rising healthcare costs indicate higher healthcare spending in the United States. Thus, blockchain offers a potential solution to safeguard 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) planned to bring together a significant number of partners, to help deliver a blockchain solution for its citizens. The primary partnership is between BP Batam, through BP Batam Hospital, and dClinic, who have engaged Deloitte Southeast Asia and JP Consulting, to provide project management and clinical governance expertise.
• Jan 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 and 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 and shared environment.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Microsoft Corporation
Gem
Patientory Inc.
Guardtime Federal
Hashed Health
Factom Inc.
iSolve LLC
PokitDok Inc.
Chronicled Inc.

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