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Blockchain in Healthcare Market Overview
The global blockchain in healthcare market generated $44.6 million revenue in 2017 and is predicted to progress at a CAGR of more than 67.1% during 2018–2023, on account of factors, such as increasing number of regulations for safeguarding consumer data, growing funding and investments in the blockchain technology, and implementation of blockchain in pharmaceutical supply chain.
Based on application, the blockchain in healthcare market has been categorized into clinical data exchange and interoperability; claims adjudication and billing management; drug supply chain management; drug discovery and clinical trials; and prescription drug abuse. In 2017, the application of blockchain in clinical data exchange and interoperability held the largest share, of 40.0%, in this market. This is led by the fact that the blockchain technology can potentially transform the way clinical data and information are shared and stored across the total care continuum, including healthcare partners, payers, and patients. Thus, it is emerging as one of the leading application areas in the market.
On the basis of end user, the blockchain in healthcare market has been classified into pharmaceutical companies, healthcare providers, and healthcare payers. Pharmaceutical companies, as an end-user category, are predicted to hold more than 50.0% share by 2023 in the market. Pharmaceutical companies are actively exploring and adopting blockchain technology, particularly in the areas of supply chain management, and drug discovery and clinical trials. For example, Pfizer Inc. is a working group member in the MediLedger Project, an open and decentralized network for the pharmaceutical supply chain.
Geographically, North America held the largest share in blockchain in healthcare market in 2017, closely followed by Europe. However, Europe is expected to emerge as the largest market by 2023, due to the fact that several public as well as private sector players are implementing several blockchain initiatives in the region. For instance, the European Platform on Changing Healthcare (EPOCH) is the first European blockchain working group in the pharmaceutical industry. The EPOCH is evaluating the benefits and limitations of blockchain technology for the pharmaceutical industry, especially within the pharmaceutical supply chain sector through the creation of a joint industry strategy in Europe.
In another instance, in January 2018, a Party Parliamentary Group (APPG) for blockchain was set up in the U.K., with an objective to ensure that industry and society get benefits from the applications of blockchain, making the country a leader in blockchain innovation and implementation.
Blockchain in Healthcare Market Dynamics
Increasing number of regulations for safeguarding consumer data, growing funding and investments in the blockchain technology, and implementation of blockchain in pharmaceutical supply chain are some of the key factors driving the growth of the blockchain in healthcare market.
Due to the increasing incidences of data breach and theft, governments around the world are implementing stringent regulations to safeguard consumers’ information. For example, in May 2018, a new European Union (EU) data protection rule, “the General Data Protection Regulation (GDPR)”, came in effect in Europe. The GDPR is aimed to protect EU citizens from privacy and data breaches. Such regulations require companies across the world to invest in data security. Owing to several benefits offered by blockchain technology including data integrity, and security and trust, the healthcare organizations across the world are actively exploring and adopting blockchain technology to strengthen their data network and deal with data security issues.
Potential of blockchain technology and its enormous scope and possibilities in the field of medicine, the technology is attracting major investments and funding from both private and public organizations. For example, in January 2018, Akiri, a blockchain health start-up received $10.0 million investment from Health2047, a company funded by the American Medical Association (AMA).
Blockchain in Healthcare Market 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.