Global blockchain in healthcare market to reach $5.61 billion by 2025, reports BIS Research
According to a new market intelligence report by BIS Research, titled “Global Blockchain in Healthcare Market- Analysis and Forecast, 2017-2025”, the blockchain in healthcare is estimated to be $176.8 million in 2018, and is estimated to grow over $5.61 billion by the end of 2025.
The development in providing efficient healthcare services is extensively dependent on technological advances in the information technology, and particularly in the ability to record and store information conveniently and economically and share it securely among different applications and systems. Blockchain technology is being touted as the panacea for all of healthcare’s information system interoperability and security-related challenges.
Blockchain can play a critical role in overcoming the shortcomings and challenges associated with legal systems. Some of the significant advantages of employing blockchain are the introduction of transparency, complete elimination of third-party intermediaries, and streamlining of operational processes and large costs.
Additionally, blockchain can pave the way for the movement to a more value-based healthcare system, improve patient engagement and even open opportunities for the introduction of more consumer-centric product segments and revenue streams.
According to Pushplata Patel, an analyst at BIS Research, “The blockchain in the healthcare market is going to be driven by the urgent need to improve interoperability and security of the healthcare information systems. Around 14% of healthcare organizations are expected to have a blockchain based system in place by the end of 2018, while 70% are expected to have invested in getting the technology on-board by 2020. Various successful use-cases of blockchain have already been piloted, ranging from tracking of consent in clinical trials, development of healthcare information exchange platforms, to pharma supply chain solutions. Healthcare data exchange, health insurance, and clinical trials are expected to witness large disruption in the coming years. ”
The adoption of the technology could save the healthcare industry up to $100-$150 billion per year by 2025 in data breach-related costs, IT costs, operations costs, support function costs and personnel costs, and through a reduction in frauds and counterfeit products.
The most prominent beneficiaries of the technology will be the pharmaceutical companies, which lose approximately $200 billion to counterfeit drugs each year.
By enabling complete visibility and transparency throughout the drug supply chain, blockchain will allow tracking of drugs to their point of origin and thus, help to eliminate falsified medication, reducing revenue loss by up to $43 billion annually for pharma companies.
The use of blockchain for healthcare data exchange will contribute the largest market share to the blockchain in the healthcare market throughout the forecast period, reaching a value of $1.89 billion by 2025. This growth is due to the use of blockchain to solve the most widespread problem in healthcare information systems related to interoperability and non-standardization that has created data silos in the industry.
