Blockchain in Healthcare Market

Blockchain in Healthcare Market Size

The global Blockchain in Healthcare Market size was valued at USD 7.04 billion in 2023 and is projected to grow from USD 9.47 billion in 2024 to USD 77.59 billion by 2031, exhibiting a CAGR of 35.05% during the forecast period. The market is expanding as organizations increasingly adopt the technology to enhance data security, streamline administrative processes, and improve patient outcomes.

Blockchain’s ability to create transparent, tamper-proof records is revolutionizing healthcare data management and collaboration across the ecosystem. Growing investment in blockchain solutions and regulatory pressure for better data management are further contributing to the growth of the market.

In the scope of work, the report includes solutions offered by companies such as IBM, Patientory Inc., Guardtime, iSolve, LLC, Solve.Care, Oracle, BurstIQ, Medicalchain SA, Epillo Health Systems OÜ, Chronicled, and others.

The blockchain in healthcare market is experiencing significant growth as the industry seeks solutions to improve data security, interoperability, and operational efficiency. Blockchain's decentralized, tamper-proof nature is being utilized to safeguard sensitive patient data, streamline healthcare processes, and enhance supply chain transparency. The growing demand to combat counterfeit medicines is further driving market growth.

• According to a report published by the Centers for Disease Control and Prevention (CDC), approximately 9%-41% of medicines sold in low- and middle-income countries are counterfeit, while in high-income countries such as the United States less than 1% are counterfeit.

Rising incidents of fraudulent drug distribution are prompting pharmaceutical companies to adopt blockchain for real-time drug traceability and verification. This ensures product authenticity, improves patient safety, and complies with regulatory standards, thereby propelling market expansion.

Blockchain in healthcare refers to the application of blockchain technology to improve data management, security, and interoperability within the healthcare sector. This decentralized, tamper-proof ledger system enables secure sharing of patient information, ensuring data integrity and confidentiality.

By providing a transparent and immutable record of transactions, blockchain enhances traceability in drug supply chains, streamlines administrative processes, and facilitates interoperability among different healthcare systems.

Furthermore, it empowers patients with greater control over their health data, promotes collaboration among healthcare providers, and addresses critical challenges such as counterfeit medications and data breaches, leading to improved patient outcomes and operational efficiencies.

Analyst’s Review

Funding and strategic partnerships among key players are expected to significantly boost the growth of the blockchain in healthcare market in the coming years. Increased investments in blockchain technology are accelerating research, development, and the implementation of innovative solutions across healthcare.

• In September 2023, Briya, a comprehensive healthcare data exchange platform, secured USD 11.5 million Series A funding led by Team8, Insight Partners, Amiti Ventures, and the George Kaiser Family Foundation. The investment aims to advance Briya's mission of revolutionizing data exchange between healthcare and life sciences organizations. This is expected to support the development of a secure, blockchain-enabled platform that enhances data sharing and collaboration within the healthcare ecosystem.

Collaborations between healthcare providers, technology firms, and pharmaceutical companies are enabling faster adoption of blockchain applications. These partnerships are fostering the development of scalable, interoperable systems, which is bolstering market expansion.

Blockchain in Healthcare Market Growth Factors

The growing demand for enhanced data security is fostering the expansion of market, in response to the rising fraudulent.

• A recent collaboration between BrandShield and the Pharmaceutical Security Institute (PSI) highlighted the growing concern over pharmaceutical fraud. The Pharma Fraud report revealed that between January 2022 and January 2023, 434 rogue pharmacies and 7,500 fraudulent drug listings were removed, underscoring the scale of the issue.

Blockchain’s decentralized and encrypted structure provides a reliable solution to safeguard patient data from rising cyber threats. Its ability to ensure data integrity, privacy, and compliance with regulations such as HIPAA makes it an increasingly attractive option for healthcare providers and insurers.

Healthcare organizations are investing in blockchain to mitigate security risks and streamline data management processes, leading to broader adoption and significant growth of the blockchain in healthcare market.

The market is expected to face challenges in integrating new technologies with existing healthcare systems, as numerous organizations continue to rely on legacy infrastructure. This reliance hinders the adoption of blockchain solutions, necessitating substantial investments in upgrades and staff training. Additionally, growing concerns over regulatory compliance and data privacy may hinder widespread adoption.

To mitigate these challenges, key players are focusing on developing interoperable solutions that seamlessly integrate with current systems. They are investing in user-friendly interfaces and comprehensive training programs for healthcare professionals.

Collaborative efforts between technology providers and healthcare organizations aim to establish standardized protocols that ensure compliance while prioritizing data privacy, thus fostering a smoother transition to blockchain solutions within the healthcare sector.

Blockchain in Healthcare Market Trends

Pharmaceutical companies are leveraging blockchain technology to enhance drug supply chain transparency, a critical factor in ensuring drug authenticity and compliance with regulatory requirements. The rise in demand for robust tracking systems, fueled by regulations such as the Drug Supply Chain Security Act (DSCSA), is propelling the growth of the market.

Blockchain’s ability to provide real-time, immutable tracking from production to consumption helps pharmaceutical companies prevent counterfeit medicines from entering the supply chain, ensuring patient safety and product integrity. Increasing regulatory pressures and the need for supply chain transparency are boosting the adoption of blockchain solutions, resulting in significant market expansion.

Technological innovation is emerging as a notable trend in the blockchain in healthcare market, particularly in data storage, management, and sharing. Emerging solutions, including smart contracts, decentralized data storage, and advanced security protocols are effectively addressing key challenges such as data interoperability, patient privacy, and fraud prevention.

• In March 2023, Solve.Care, a company focused on enhancing healthcare delivery through blockchain technology, introduced Care.Chain, a decentralized Layer-2 network infrastructure. This initiative represents a notable progression in Solve.Care's goal to enhance access, delivery, management, and payment processes in healthcare for both providers and consumers. By leveraging blockchain, Care.Chain promotes more efficient and transparent interactions within the healthcare ecosystem.

The platform enhances transparency, trust, and security, leading to rising adoption of blockchain in the healthcare technology landscape.

Segmentation Analysis

The global market has been segmented based on application, network type, end user, and geography.

By Application

Based on application, the market has been categorized into supply chain management, clinical data exchange and interoperability, claims adjudication and billing management, patient data management, and others. The supply chain management segment led the blockchain in healthcare market in 2023, reaching a valuation of USD 2.40 billion.

Healthcare organizations face challenges related to counterfeit drugs and fragmented data systems, making blockchain technology an effective solution for tracking and verifying products throughout the supply chain. This segment is witnessing increased investment as stakeholders aim to enhance traceability and comply with regulatory standards.

• In June 2023, BurstIQ, a leader in data-driven healthcare solutions, acquired Olive AI’s business intelligence solution. This acquisition expanded BurstIQ’s innovative product portfolio and strengthened its commitment to helping healthcare organizations navigate data complexities while ensuring privacy and compliance.

Furthermore, integrating blockchain solutions allows for real-time inventory monitoring, thereby reducing delays and improving overall operational efficiency. Collaborations among pharmaceutical companies, logistics providers, and technology firms are further supporting segmental growth by fostering innovation in supply chain processes.

By Network Type

Based on network type, the market has been categorized into public and private. The private segment captured the largest blockchain in healthcare market share of 62.52% in 2023.

Private blockchains offer a controlled environment where authorized participants can securely share sensitive patient information while maintaining confidentiality. This segment benefits from rising concerns over data breaches and the pressing need for compliance with stringent regulations such as HIPAA. Moreover, private blockchain solutions facilitate efficient data exchange among healthcare providers, insurers, and patients, improving care coordination and decision-making.

• In March 2023, Avaneer Health launched its private, peer-to-peer network in collaboration with several leading healthcare organizations. This network enables participants to connect through a single connection to the Avaneer Network, allowing for real-time data sharing and collaboration, thereby streamlining healthcare administration and enhancing the experience for all stakeholders.

The growing trend of personalized medicine further boosts the adoption of private blockchains, as these technologies enable secure sharing of genomic and health data.

By End User

Based on end user, the market has been categorized into pharmaceutical companies, healthcare providers, healthcare payers, and others. The pharmaceutical companies segment is expected to garner the highest revenue of USD 32.51 billion by 2031.

The segment is experiencing substantial growth as these organizations increasingly recognize the value of blockchain technology in enhancing operational efficiency and compliance. Blockchain facilitates secure and transparent tracking of drug supply chains, mitigating counterfeit medications issues and ensuring product authenticity.

Due to rising regulatory pressure for drug safety and traceability, pharmaceutical companies are adopting blockchain solutions to streamline their processes and maintain compliance with standards such as the Drug Supply Chain Security Act (DSCSA). Additionally, blockchain enables improved collaboration among stakeholders, enhancing data sharing and reducing administrative burdens, thereby fostering segmental growth.

Blockchain in Healthcare Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia-Pacific, MEA, and Latin America.

North America market accounted for the largest revenue share of 42.00% in 2023, with a valuation of USD 2.96 billion. This growth is mainly fueled by regulations aimed at enhancing patient data security and improving care standards. Increasing healthcare fraud, the need to control rising costs, and the urgency to protect medical data from tampering are key factors fueling this expansion.

In the United States, the FDA's Drug Supply Chain Security Act seeks to bolster drug supply chain security by promoting the adoption of blockchain solutions for product quality management. Additionally, medical errors from poorly coordinated care highlight the need for blockchain-based medical record systems that integrate with existing software for a comprehensive patient view.

• According to the Centers for Medicare & Medicaid Services, national health spending in the U.S. is projected to rise at an average annual rate of 5.4%, reaching USD 6.2 trillion by 2028. This positions the country among the highest healthcare expenditures globally.

These factors are expected to further contribute to regional market growth.

Asia-Pacific blockchain in healthcare market is anticipated to grow at a fastest CAGR of 37.01% over the forecast period. This growth is attributed to increasing healthcare expenditure and digital transformation.

Countries such as China and India are heavily investing in healthcare infrastructure, creating significant opportunities for blockchain adoption to enhance data security and interoperability. The rising prevalence of healthcare fraud and counterfeit medicines further highlights the need for effective tracking systems.

• In March 2023, South Korea launched "My Health," a blockchain-based electronic medical record (EMR) system developed by a consortium of healthcare providers. This system facilitates secure real-time data sharing among providers and allows patients to access their records via a mobile app, exemplifying blockchain's transformative potential.

Collaborations between technology providers and healthcare organizations are fostering innovation and positioning the regional market for robust growth.

Competitive Landscape

The global blockchain in healthcare market report will provide valuable insight with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their market shares across different regions.

Companies are implementing impactful strategic initiatives, such as expanding services, investing in research and development (R&D), establishing new service delivery centers, and optimizing their service delivery processes, which are likely to create new opportunities for market growth.

List of Key Companies in Blockchain in Healthcare Market

• IBM
• Patientory Inc.
• Guardtime
• iSolve, LLC
• Care
• Oracle
• BurstIQ
• Medicalchain SA
• Epillo Health Systems OÜ
• Chronicled

Key Industry Developments

• August 2023 (Product Launch):Care introduced the innovative Care.Trials Network. This advanced network, powered by blockchain and Zero-Knowledge (ZK) technology, provides groundbreaking solutions for conducting clinical trials.
• September 2024 (Product Launch): Oracle Health launched the Autonomous Shield initiative to assist customers in migrating to a comprehensive electronic health record (EHR) and Cloud Infrastructure solution. This initiative aims to reduce risk and enhance system performance while introducing EHR innovations that enabled clinicians to streamline routine tasks and provide more efficient, informed patient care.

The global blockchain in healthcare market is segmented as:

By Application

• Supply Chain Management
• Clinical Data Exchange and Interoperability
• Claims Adjudication and Billing Management
• Patient Data Management
• Others

By Network Type

• Public
• Private

By End User

• Pharmaceutical Companies
• Healthcare Providers
• Healthcare Payers
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • U.K.
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America