The global healthcare smart contracts market was surpassed at USD 1.7 billion in 2021 and is expected to hit around USD 7.9 billion by 2030, growing at a CAGR of 18.61 % from 2022 to 2030.
Key benefits offered by technology such as decentralized management, data provenance, robust data, traceable data drives the market. Increasing businesses demand the requirement to bring revolutionary changes in all the aspects of their businesses as technology and time progress. When it comes to the health care field, the urgency of growth escalates to higher levels. Quality healthcare services supported with the modern technology is the need. Furthermore, the healthcare system landscape is shifting to a more patient-centric approach. Thus, aforementioned factors expected to adopt the smart contract during the forecast period.
Besides, the COVID-19 pandemic has showed the restrictions in existing healthcare systems to handle patient records securely and transparently, and innovative protocols are essential to address such shortcomings. Application of Blockchain technology is gaining traction in healthcare and can alleviate these issues. For instance, a study published in January 2022 demonstrated that securely and quickly storing and retrieving COVID-19-related health information using smart contracts with the Ethereum blockchain allows the patient information protection while enabling more efficient research and communication. Thus, an attractive option of smart contracts to safeguard the storage of medical records and associated data logs will support the market growth.
According to Forbes, pharmaceutical corporations incur an estimated $200 billion annual loss owing to counterfeit drugs globally. Thus, adoption of Smart Contracts technology which is likely to trace drugs over their whole life cycle is expected to boost during the forecast timeline. Moreover, the corporations are utilizing digital technology to mitigate such issues, which in turn, supports market growth. For instance, the solution Merck KGaA are developing offers a framework to produce digital trust by simply transforming human trust in quality control into a more effective machine-to-machine (M2M) interaction. Its new, multi-patented technology, which is built on numerous blockchain layers, digital certificates, crypto anchors, and smart contracts will offer one “single source of truth”.
Scope of The Report
|Market Size in 2021||USD 1.7 billion|
|Revenue Forecast by 2030||USD 7.9 billion|
|Growth rate from 2022 to 2030||CAGR of 18.61%|
|Forecast Period||2022 to 2030|
|Segmentation||Blockchain type, application, end-use, region|
IBM, ScienceSoft USA Corporation, Blockchain AI Solutions Ltd (FarmaTrust), SmartData Enterprises, ION Medical Safety, Aetsoft Inc., Apriorit, ELEKS, Medicalchain, PokitDok
Blockchain Type Insights
The ethereum segment dominated the market for healthcare smart contracts and held the largest revenue share of over 30.0% in 2021. This type of blockchain can work with both external owned accounts and internal contract accounts. It also practices the idea of ‘gas’ to regulate computationally intensive smart contract code. The key reasons to select this type were the competence to be organized as both a permission-less and a permissioned blockchain network, in addition to the community-based development of the platform. Thus, supports in market growth.
The others segment is probable to witness the highest CAGR in the healthcare smart contracts market during the forecast period. the others are inclusive of Bitcoin, NXT, etc. Choosing a proper blockchain platform for a specific clinical or healthcare application may be challenging, because there is an extensive choice of technical features that are critical for its implementation in healthcare projects.
The supply chain management segment held the largest revenue share of over 28.0% in 2021. Many leading corporations, voluntarily, are taking the lead to implement the latest technologies for tracking their pharma produce. Throughout the pandemic, it was also seen that numerous companies were going for self-imposed tracking systems to win export orders, in the face of increasing awareness and demand for superior drugs. Thus, makes a perfect ground for smart contract technology to create adoption in the supply chain.
The data exchange and interoperability segment is expected to witness the highest CAGR during the forecast period. Healthcare records are becoming more valuable than ever owing to the rise of various new diseases and the current pandemic. Besides, there has been an upsurge in the requirement to store and secure medical data that can have substantial advantages for medical staff, healthcare facilities, and patients. The government of numerous nations is emphasizing on the digitalization of the healthcare system which supports in market growth.
The drug and medical device companies segment held the largest revenue share of over 33.0% in 2021 owing to the reduced loses and cost of transportation. As per the Health Research Funding organization report, it is found that in developing nations anywhere from 10 to 30% of all pharmaceuticals for sale are fake. Africa, Latin America, and Asia are mainly hard hit by this illicit pharmaceutical trade.
The payer segment is expected to witness the highest CAGR in the market for healthcare smart contracts during the forecast period. The growth is driven by the broad range of technology uses and applications of technology in healthcare. The benefits such as decrease in the incidence of health payers ending up paying for inaccurate claims drive the segment growth. Moreover, it can offer complete transparency to all parties.
Europe dominated the market for healthcare smart contracts and accounted for the largest revenue share of over 35.0% in 2021. The European Union plans to make a multibillion-euro investment in technology development by putting money into blockchain, high-performance computing, and data infrastructure. North America is expected to command the second-largest market share during the forecast period. Recent advancements in blockchain technology together with numerous government initiatives supporting the acceptance of innovative platforms in healthcare supports in market growth.
Investment in developing technologies in the U.S. healthcare sector is growing, which further strengthens the market growth. This upsurges the demand for secure, safe, and managed data sharing between companies, due to which major players and other healthcare organizations are investing in the market for healthcare smart contracts. In November 2018, Change Healthcare and TIBCO Software have publicized a partnership to build the first healthcare smart contract system, using the TIBCO's smart contract developer project, “Project Dovetail” and Change Healthcare Intelligent Healthcare Network blockchain technology.
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