The lack of interoperability and limited transfer of data between healthcare storage system, make it difficult to transmit, retrieve, and analyze data, and thus most of the data is stored in silos. Blockchain technology can play a vital role in overcoming these shortcomings as it provides various advantages such as more transparent procedure, elimination of intermediaries, streamlining of operational processes, and significant costs. According to the latest market intelligence report by BIS Healthcare titled, ‘Global Blockchain in Healthcare Market- Analysis and Forecast (2018-2025),’ the market is expected to reach a value of $5.61 billion by 2025. Further, the market is expected to grow at a CAGR of 63.85% from 2018-2025. This significant market growth is owing to the use of blockchain to solve the problems related to interoperability and non-standardization, that is responsible for producing data in silos.
The adoption of the blockchain technology could save the healthcare industry up to $100 billion per year in data breach-related costs, IT costs, operational costs, and counterfeit-related funds and insurance funds. Every year, pharmaceutical companies lose approximately $200 billion to counterfeit drugs. Therefore, enabling blockchain can reduce the costs to a great level and will track the drugs to their point of origin and thus eliminate falsified medication. However, for the adoption of blockchain based solutions, significant investments and efforts including seamless integration with the current infrastructure are required. Also, industry alignment is necessary to bring in standardization and to promote interoperability between different networks.
The use of blockchain for healthcare data exchange will account for the largest market share of $1.89 billion by 2025, from 2018-2025. Owing to the number of frauds in the health insurance industry, the insurance industry is expected to witness $10 billion loss to health department, annually. Further, the market for blockchain in health insurance is expected to register the highest CAGR of 70.2% during the forecast period. This tremendous growth is attributed to the use of blockchain to reduce IT and operational cost in insurance processes as well as to reduce the healthcare related frauds.
The development in providing efficient health care services is extensively dependent on the advancements in information technology sector. Majorly, in the ability of a system to record and store information easily and further share it securely among disparate applications and systems. Blockchain technology presents an ocean of opportunities to the consumer-centric product segment and revenue streams. Moreover, proper regulatory measures are required from the government and market players to run and manage the blockchain technology in healthcare industry successfully. Blockchain can pave the way for more value-based healthcare system form the existing fee-based healthcare systems.
BIS Healthcare has conducted extensive research on the global blockchain in healthcare market and compiled the observation and insight in this report. The market intelligence report aims at providing an in-depth analysis of the key development strategies, marketing strategies and market trend dynamics which include drivers, restraints, and opportunities prevailing in the industry.
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