Blockchain Technology in Healthcare Market - Global Industry Analysis

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Blockchain is a digital, public ledger of transactions comprising of a list of blocks (records) that can be viewed by everyone. Blockchain is basically a string of computers. For a transaction or record to be verified and documented all the blocks must approve it. The recent transactions are recorded and joined to the chain in chronological order so that the participants can track the transactions. Every computer, which is connected to the network, receives a copy of the blockchain. Every block is comprised of a time stamp, a cryptographic hash of the previous block, and transaction data. A blockchain is designed in such a way that modification to the existing data is next to impossible. A peer-to-peer (P2P) network validates new blocks and manages a blockchain collectively by adhering to inter-node communication protocols. The current form of blockchain was developed by Satoshi Nakamoto in 2008. It was originally developed to act as a public transaction ledger of bitcoin.

Post-2014, there was a sudden rise in the investment to explore the application of blockchain technology in healthcare, transportation, insurance, supply chains, voting, and many more. One of the most revolutionary applications of blockchain technology is in healthcare. Multiple studies have suggested that blockchain technology can bring in much-needed transformation in the healthcare sector. The most important application of blockchain technology in healthcare is in the management of health data. The security and interoperability of health data can be improved exceptionally by using blockchain technology in healthcare. This technology has the potential to make electronic health records (EHR) more safe, dynamic, and devoid of any mediation. Interoperability is the key factor that can unlock the true potential of health information exchange (HIE). Interoperability can be described as the capacity of systems and devices to exchange data and interpreting the received data. Implementing blockchain technology in healthcare can significantly eradicate the disharmony caused due to the intermediaries.

Blockchain technology in healthcare can transform the way data is processed in the healthcare industry. As the number of patients keeps rising, the data volume will keep growing. Hospitals and clinics will find it difficult to store and process such high volumes of information. By creating a blockchain, healthcare providers will be able to add and access patient data with relative ease. Different types of medical data that include insurance claims, patient health information (PHI), electronic health records (EHR), and data collected from monitoring systems can be accessed by both healthcare providers and covered entities. By using blockchain technology in healthcare, the information can be secured and verified.   
 
Aspects like increasing cases of medical data breach, growing number of fraudulent drugs and medicines, rising investment in blockchain technology startups working in healthcare sector will push the growth of global blockchain technology in healthcare market. Other factors like the growing adoption of blockchain as a service (BaaS) solutions and government initiatives in implementing blockchain technology in healthcare are expected to drive the market growth. The growing use of Internet of Things (IoT) in healthcare will act as a major opportunity for the companies working in the blockchain technology in healthcare market. However, factors like absence of pivotal entity and universal standards, paucity of awareness, and knowledge of blockchain technology will restrain the growth of blockchain technology in healthcare market.

The global blockchain technology in healthcare market has been segmented into application, end user, and region. The application segment has been segmented into clinical data exchange & interoperability, supply chain management, and claims settlement & billing. Supply chain management segment holds the maximum share of the application segment. Based on end user, blockchain technology in healthcare market has been segmented into healthcare payers, pharmaceutical companies, and healthcare providers.

North America will remain the dominant region during the forecast period. Presence of developed IT infrastructure and presence of key startups working on blockchain technology will boost the market in this region. Europe will be the second largest market. Asia Pacific will grow at the fastest rate over the forecast period. High penetration of internet and steps taken by government to implement blockchain technology in healthcare are driving factors for the growth of market in this region. Latin America market is projected to grow at a moderate rate during the forecast period. The Middle East and Africa are expected to experience noticeable growth in the years to come.

Some of the key players in blockchain technology in healthcare market include Microsoft, IBM, PokitDok, Guardtime, Gem, iSolve, Chronicled, Hashed Health, Factom, Patientory, Proof.Work, FarmaTrust, SimplyVital Health, Medicalchain, and Blockpharma, among others.