The blockchain in healthcare is estimated to be $176.8 million in 2018, and is likely to grow over $5.61 billion by the end of 2025, according to a new market intelligence report by BIS Research, titled "Global Blockchain in Healthcare Market - Analysis and Forecast, 2017-2025.
The study says blockchain can play a critical role in overcoming the shortcomings and challenges associated with legal systems. Other advantages include introduction of transparency, complete elimination of third-party intermediaries, and streamlining of operational processes and large costs.
"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,” said Pushplata Patel, an analyst at BIS Research.
He believes 14% of healthcare organizations will have a blockchain based system in place by the end of 2018, while 70% will have invested in the technology by 2020.
“Healthcare data exchange, health insurance, and clinical trials are expected to witness large disruption in the coming years,” the analyst said.
According to the report, the most prominent beneficiaries of the technology will be the pharmaceutical companies, which lose approximately $200 billion to counterfeit drugs each year.
Blockchain will allow the firms to track 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.
By Jade Olafson