Blockchain in Healthcare Market by Application (Clinical Data Exchange & Interoperability, Claims Adjudication & Billing Management, Drug Supply Chain Management, Drug Discovery & Clinical Trials, Prescription Drug Abuse) by End User (Pharmaceutical Companies, Healthcare Providers, Healthcare Payers), by Geography (U.S., Canada, Germany, U.K., France, Italy, Spain, Sweden, Estonia, Japan, China, India, Australia, Brazil, Mexico, Saudi Arabia, South Africa) – Global Market Size, Share, Development, Growth, and Demand Forecast, 2013–2023

Market Outlook

The blockchain in healthcare market revenue stood at $44.6 million in 2017, and the market is predicted to advance at a CAGR of over 67.1% between 2018 and 2023. The key factors driving the expansion of the market are the increasing implementation of policies for safeguarding consumer data, surging investments in the blockchain technology, and adoption of blockchain in the pharmaceutical supply chain.

The clinical data exchange and interoperability category dominated the market for blockchain in healthcare in 2017, with a share of more than 40.0%, under the application segment. This is attributed to the fact that the blockchain technology can transform the way clinical information and data are stored and shared among healthcare professionals and patients.

The pharmaceutical companies category is expected to hold over 50.0% of the share in the blockchain in healthcare industry in 2023, within the end user segment. Pharmaceutical firms are rapidly exploring and integrating the blockchain technology, especially in drug discovery, clinical trials, and supply chain management. For instance, Pfizer Inc. is a working group member of the MediLedger Project, which is a decentralized and open network for the pharmaceutical supply chain.

Geographically, North America dominated the blockchain in healthcare market in 2017. In the coming years, Europe is predicted to hold the largest share in the market because several private and public companies are launching blockchain initiatives in the region. For example, the European Platform on Changing Healthcare (EPOCH), a blockchain working group, has been established for the European pharmaceutical industry.

This group is evaluating the limitations and benefits of the technology for the pharmaceutical industry, particularly within the supply chain, via the launch of a joint industry strategy in Europe. Similarly, in the U.K., an All-Party Parliamentary Group (APPG) for blockchain was launched in January 2018 for ensuring that the society and industry avail of the benefits of blockchain applications, thereby making the country a leader in the implementation of and innovation in this technology.

Blockchain in Healthcare Market Dynamics

The increasing implementation of policies for protecting consumer data, surging funding in the blockchain technology, and its adoption in the pharmaceutical supply chain are the major factors fueling the growth of the market.

Due to the rising prevalence of data thefts and breaches, governments of many countries are enacting strict regulations for protecting consumer information, thereby propelling the advance of the blockchain in healthcare market. For instance, a new European Union (EU) data protection rule, called the General Data Protection Regulation (GDPR), was implemented in May 2018.

With the implementation of these regulations, companies across the world are making huge investments in data security. Due to the various benefits provided by the blockchain technology, such as greater data security and integrity, it is increasingly being adopted by healthcare organizations. This technology is helping healthcare firms mitigate the occurrence of data security issues and bolster their data network.

Many public and private organizations are making huge investments in the blockchain technology. For instance, Akiri, which is a blockchain health start-up, received investments worth $10.0 million from Health2047, an American Medical Association (AMA)-funded company, in January 2018.

Competitive Landscape

As the blockchain technology is in its nascent stage of development, the companies interested in adopting blockchain technology are partnering and collaborating with various technology providers to explore the potential applications of the blockchain technology, so that they can streamline their operational processes. For instance, In February 2018, ODH Inc. collaborated with Hashed Health to develop and implement blockchain technologies for payers and providers with the goal of improving patient outcomes. Both the companies have agreed to collectively work toward accelerating the healthcare industry’s transition to value-based care through the adoption of practical blockchain solutions.

Some of the key players operating in the global blockchain in healthcare market are International Business Machines (IBM) Corporation, Microsoft Corporation, Guardtime AS, PokitDok Inc., Hashed Health, iSolve LLC, Patientory Inc., Factom Inc., Chronicled Inc., and Accenture PLC. Other players operating in the market are Blockverify, FarmaTrust, Blockpharma, DeepMind Technologies Limited, Proof.Works, IRYO.NETWORK, Doc.ai Inc., and Coral Health Research & Discovery Inc.