A study recently conducted by the strategic consulting and market research firm, BlueWeave Consulting revealed that the global blockchain technology in the healthcare market was worth USD 129.22 million in 2020 and is further projected to reach USD 4,720.96 million by 2027, at a CAGR of 68.13% during the forecast period (2021-2027). The market is driven by factors, such as elimination of intermediaries, cost savings, government partnerships, transparency, removal of unscrupulous attacks, security from cyberattacks, and establishment of consortiums/ working groups, among others.
Secure Payment Platform and Elimination of Intermediaries & Third Parties
Bitcoin is widely popular as it decentralizes the system, provides a secure payment platform, and secures transaction data. In a decentralized framework, the consumer does not need approval from the bank or the government. The data is maintained by network members, who have democratic authority to approve any transaction. The user can also remove third parties and intermediaries using blockchain technology, which decreases transaction costs and speeds up the process. Blockchain technology also allows cross-border transactions, automation with smart contracts, high transparency, and security, along with many other advantages. Change Healthcare in the U.S. processes up to 50 million transactions daily with the help of a blockchain. Other healthcare companies are also following suit by integrating blockchain technology to provide a secure payment platform to their customers. This is expected to affect the market positively, and drive the growth of global blockchain technology in healthcare market during the forecast period.
Management of Patient Data and Vaccine Management
One of the biggest challenges healthcare and pharmaceutical companies are facing right now is the management of patient data, along with vaccine & medicine management. Pfizer and Biogen started the integration of blockchain technology for the clinical trial supply chain in 2018. In March 2021, Moderna announced a collaboration with IBM for the management of COVID-19 vaccines via blockchain technology. Another healthcare company, Change Healthcare uses blockchain technology for secure payments, management of patient data, and many other applications.
Currently, the companies are adopting blockchain technology to track the life cycle of the COVID-19 vaccine while also managing data of COVID positive patients and vaccinated patients. With the end of the pandemic nowhere in sight and integration of blockchain technology on a rapid rise, it is expected to contribute significantly towards the growth of global blockchain technology in healthcare market during the forecast period.
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High Energy Consumption of Blockchain Technology
Blockchain technology, with all of its benefits, consumes way too much energy. It has a wide range of applications, from banking and supply chain accountability to food protection, but the non-sustainable energy consumption of blockchain technology is a major barrier to its use in any of these sectors. As a cryptocurrency miner’s power consumption increases, so do the computer’s computing power. The total energy consumption of Bitcoin is equal to the annual energy consumption of Ireland, and the working fundamental behind Bitcoin is blockchain technology. This should provide a rough idea of how much energy blockchain technology consumes.
In the United States, an average hospital uses 31 kilowatt-hours (kWh) of electricity per year. With hospitals already consuming so much energy, the addition of blockchain technology would add to their burden. Moreover, it is not feasible for most hospitals and healthcare companies to integrate blockchain technology, as the focus of the world is shifting towards sustainable energy consumption. Such high energy usage would most likely be a major restraint towards the growth of global blockchain technology in healthcare market during the forecast period.
Global Blockchain technology in healthcare market: By Application
The supply chain management segment held the largest market share in global blockchain technology in healthcare market in 2020. Every transaction is recorded onto ledgers, and every node in the blockchain maintains a record of every transaction. This makes it easier to verify the origin of the drug, the vendor, and the distributor instantly. Blockchain technology also makes it easier to track the life cycle of medicines and vaccines in the inventory. In March 2021. Moderna collaborated with IBM to monitor the lifecycle of COVID vaccines and control its supply chain more effectively. Additionally, companies like Roche, 3M pharmaceuticals, NMC Healthcare are also working to integrate blockchain technology for supply chain management.
Impact of COVID-19 in the industry
The global economy, as well as business operations, have been severely affected by the novel coronavirus. Various countries were forced to implement nationwide lockdowns due to the high infection rate and adverse impact on public health systems. Industry players are currently considering digital diagnostic and treatment solutions to serve the community and provide newfangled opportunities to do business.
However, COVID-19 is proving to be a launching pad for global blockchain technology in healthcare market. Pharmaceuticals and healthcare companies are looking to integrate blockchain technology to efficiently manage COVID-19 vaccine inventory, track the shipments of vaccines, verify the authenticity of masks, sanitizers, and store data on COVID-affected patients and vaccinated patients. Key pharmaceutical companies like Pfizer, Moderna, 3M Pharmaceuticals are all using blockchain to efficiently manage their resources and tackle the pandemic.
Global Blockchain Technology in Healthcare Market: By End-Use
Among end-use segments in global blockchain technology in healthcare industry, the healthcare providers segment holds the largest market share. Healthcare providers like Change Healthcare, Hashed Health, 3M are using blockchain technology in one way or the other. Healthcare providers are also leveraging blockchain technology for patient database management, secure payments, inventory management, and others. These applications are contributing to the large market share of the healthcare providers’ segment in global blockchain technology in healthcare market. In the pharmaceuticals segment, companies like Pfizer, Moderna, Roche, and others are using blockchain technology or planning to integrate the technology for managing their resources and leveraging it for clinical trials and supply chain management.
Global Blockchain Technology in Healthcare Market: Regional Insights
The global blockchain technology in healthcare market is segmented into five regions: North America, Europe, the Asia-Pacific, Latin America, and the Middle East & Africa. North American market accounts for the largest share in the global blockchain technology in healthcare market and is expected to lead the market in the forecast period as well.
North America has the largest market share in global blockchain technology in healthcare market. North America’s significant market share can be attributed to the availability of a skilled workforce, as well as the willingness of companies and healthcare providers to embrace blockchain technology. For example, United Healthcare, one of the leading healthcare companies in the U.S., launched a blockchain pilot in 2018. Roche collaborated with Hypertrust Patient Data Care to test blockchain solutions for personalized healthcare. Other factors contributing to North America’s dominant market share in the global Blockchain technology in healthcare market are high disposable income, good healthcare infrastructure, and strong company financials.
The global blockchain technology in healthcare market is consolidated in nature. Some of the key players operating in the market include IBM, Microsoft, Guardtime, Change Healthcare, Gem, Hashed Health, Chronicled, Patientory, iSolve, Factom, and other prominent players. Acquisitions and effective mergers are some of the strategies adopted by the key market players. The major players are also pursuing continuous technological advancement as a strategy. At the same time, companies are trying to dominate the market by investing in research and development.
Companies operating in the global blockchain technology in healthcare market compete with each other by coming up with new and innovative products, services, and solutions on a regular basis. By implementing blockchain technology, new entrants in the market are creating creative ways to mitigate risks and concerns in different segments of the healthcare industry. VXPass is one of the latest companies to emerge in the healthcare market. The U.S-based company uses bitcoin for optimizing the vaccine verification segment of the healthcare sector. Launch of new products, technology innovation, and optimization of the services are some other competing parameters in the global blockchain technology in healthcare market. SOURCE Blockchain Technology in Healthcare Market is Projected to Reach USD 4,720.96 Million by 2027 – The Manomet Current