Blockchain technology in the healthcare sector [USD 108.77 Bn by 2032]

Overview of blockchain technology in the healthcare market

Published via 11Press: Blockchain technology in healthcare is growing rapidly, driven by a need for secure, interoperable and cost-effective solutions for processing healthcare data. Blockchain technology is being adopted by healthcare providers, payers and life sciences companies to address data privacy, security and accessibility. With increasing incidence of information leaks and breaches combined with increasing demands to mitigate them has driven this market growth. Strategic initiatives from key players, high demand to reduce the counterfeiting of medicines and inefficiency in health data management systems are some of the main drivers behind its use.

Global Blockchain technology in the healthcare sector size is expected to reach USD 108.77 billion by 2032up from the estimated value of USD 0.48 billion in 2022 growing at an annual compound growth rate (CAGR) of 72.0% between 2023 and 2032.

Important takeaways

• Blockchain technology in the healthcare sector is estimated to experience a compound annual growth rate (CAGR) of 70.45% between 2020-2025, driven by the need for secure, interoperable and cost-effective solutions for healthcare data processing.
• Blockchain technology is being adopted by healthcare providers, payers and life sciences companies to address data privacy, security and accessibility.
• North America leads the healthcare blockchain technology market, followed by Europe and Asia Pacific.
• Key players in the market include IBM Corporation, Microsoft Corporation, Guardtime, PokitDok, Gem, Hashed Health, Chronicled, iSolve, Patientory, and Factom.

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Regional snapshot

North America leads blockchain technology in the healthcare sector, due to its widespread adoption and the presence of major technology providers. Europe is following suit, with countries such as Germany and the UK adopting blockchain technology for health data processing. Moreover, the Asia Pacific region is expected to witness significant growth in the coming years due to the increasing adoption of blockchain technology in emerging economies such as China and India.

Drivers

The drivers driving the growth of blockchain technology in healthcare include:

• The need for secure, interoperable and cost-effective solutions for processing health data
• Increasing use of digital healthcare services
• Growing awareness of blockchain technology’s benefits
• Expand government initiatives related to the processing of health data
• Increased healthcare costs

Over the past five years, data breaches in the healthcare sector have grown in both size and frequency. Some of the most important events affected up to 80 million people. Healthcare data breaches often expose highly sensitive information such as social security numbers, names, addresses, as well as sensitive health details such as Medicaid ID numbers, health insurance information and patients’ medical histories.

Limitations

The healthcare market faces several barriers to adopting blockchain technology, such as:

• Lack of awareness regarding blockchain technology
• High implementation costs
• Absence of standardization
• Legal and regulatory obstacles.

In the healthcare sector, many healthcare providers and payers, especially in emerging nations, are reluctant to disclose data due to a lack of regulations regarding medical data exchange. Healthcare professionals usually prefer to keep data private, as sharing it with healthcare professionals can reduce reimbursement due to different rates for different patients. In a world where healthcare stakeholders are engaged in intense competition to maximize profits, the implementation of transparent technologies such as distributed ledgers can prove difficult. This is likely to hinder the adoption of blockchain technology in this sector.

Possibilities

The growth prospects for blockchain technology in the healthcare sector include:

Telemedicine and external patient monitoring are on the rise, with an emphasis on patient-centred care becoming even more prominent. Furthermore, blockchain technology is used for clinical studies as well as the development of interoperable blockchain platforms.

Blockchain technology is quickly becoming a go-to solution in the healthcare sector. Startups have used it to solve major pain points (such as medical record interoperability, data security, and preventing counterfeit drugs from entering the pharmaceutical supply chain) with ease. Over the past few years, this trend has taken hold among various stakeholders within the healthcare system; public bodies around the world are investing heavily in blockchain research.

Challenges

The challenges for using blockchain technology in healthcare include:

• Lack of qualified professionals
• Security and Privacy Issues
• Integration challenges with older systems
• Absence of regulations.

The biggest barrier to adopting blockchain technology in healthcare is a lack of understanding of this distributed ledger technology and how it works. Without understanding, companies may be discouraged from investing in this rapidly developing field. Currently, blockchain is still an unknown frontier with uncertain growth potential; investors, public officials and entrepreneurs have yet to fully see the potential to revolutionize business processes.

Blockchains use cryptographic algorithms that run over a large network of independent computers. Therefore, technical expertise with respect to this technology is necessary to fully appreciate its benefits. Lack of public knowledge and awareness are two major obstacles to adopting blockchain technology. With increased adoption and use of distributed ledger technology expected in the near future, an understanding of blockchain will become essential. This can lead to the establishment and spread of platforms that offer training in this field. Unfortunately, legacy infrastructure will remain an obstacle as implementing decentralized cryptosystems requires skills beyond what traditional IT developers possess.

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Recent developments

• In 2018, Microsoft, Viant and GSK formed the Viant Blockchain Program to accelerate the adoption of blockchain-based supply chains across various verticals such as healthcare.
• In 2018, Chronicled announced its partnership with the Qtum Foundation. Through this arrangement, both companies combine intelligent devices with a secure distributed ledger backend by leveraging blockchain technology.
• In 2018, Hashed Health joined Global Healthcare Exchange – a healthcare services and data automation provider – with the vision of using blockchain technologies to address product tracking, auditing, data management and order processing issues across the healthcare supply chain.
• In 2017, Microsoft and Accenture joined forces to develop solutions for identity management.

Important market segments

By network type

• Public
• Private
• Other network type

Upon application

• Clinical data exchange and interoperability
• Supply Chain Management
• Claims processing and invoicing
• Clinical studies and e-consent
• Other applications

By end user

• Suppliers
• Biopharmaceutical and medical devices
• Payers
• Other end user

Important market players

• IBM
• Patientory Inc.
• Guard time
• iSolve, LLC
• Caring
• Oracle
• Change the healthcare system
• BurstIQ
• Other key players

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