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5 Key Insights on US$3.5 Bn Opportunity in North America Healthcare Blockchain Market: Ken Research

October 12, 2022

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Driven by The Acceleration of Security and Privacy Breaches, Growing Digitization of Medical Care and Preserving Data: North America Healthcare Blockchain Market is forecasted to cross $3,490 Mn by 2027 says Ken Research Study.

Blockchain in the healthcare sector is used to store and exchange the data of patients with hospitals, pharmacy firms, laboratories, and physicians. It further helps improve data security & accuracy, cost reduction, increasing transparency, and tracing medical products. For instance, tracking a medicine as it travels from the producer to the patient is made simple by blockchain technology. This enhances a medicine’s traceability as it passes through the supply chain and reduces the likelihood of drug fraud.

According to Ken Research estimates, the North America Healthcare Blockchain Market – which grew from around US$15 Mn in 2017 to nearly US$110 Mn in 2021 – is expected to grow further into a more than US$3.5 Bn opportunity by 2027.

North America has witnessed exponential growth in Healthcare Blockchain Market, as People Have Become More Health Conscious

The North American Healthcare Blockchain Market witnessed an exponential growth during the forecast period 2017-2021 and is likely to continue similar growth over next 5 years, primarily due to acceleration of Security and Privacy Breaches, Growing Digitization of Medical Care, and Preserving Data. Furthermore, during the COVID-19 pandemic, the healthcare industry developed a focus as companies relied on blockchain technology to enhance efficiency, quality healthcare facilities, precise patient-centric data, and data security. The market is forecast to reach ~ US$3.5 Bn by 2027 from ~US$110 Mn in 2021, witnessing a CAGR of approx. 70% during this period.

North America has the Highest Adoption of Blockchain Technology in the Healthcare Sector within Total World Due to Rising Threats of Hacking, Data Phishing, and Data Leaking of Patient Data

With the increase in cybersecurity, hacking, and data phishing, the healthcare sector faced many data leaks. Therefore, blockchain has come into demand as it increases trust, security, transparency, and the traceability of data shared across a business network. As healthcare sector holds ~20% contribution in the US GDP and about 45% of global cybercrimes are reported to occur in the US, blockchain plays an important role in this sector. The Cybersecurity Solutions industry revenue within North America is likely to triple between 2021 and 2027 to over US$70 Bn.

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Security Vulnerabilities in Blockchain Technology is Restraining Market Growth

One of the problems with blockchain technology is that it lacks privacy as multiple participants within the blockchain trail can view details of others. The Blockchain technology isn’t totally secure as it still has some security loopholes. Since this being just a code it is often affected by technical bugs and due to access by almost anyone at all times it is vulnerable to exploitation of codes and social engineering. Especially publicly accessible blockchains are unsuitable for keeping private data because of the visibility they offer. As per published insights, as of 2015, more than 100 Mn healthcare data records have been breached online in US alone.

Private Deployment Segment Dominates the Market Contributing over half of the Revenue Share and they are Likely to Retain Dominance Even During Forecast Period

Among the Deployment segments, Private remained the dominant segment during the 2017-2021 period contributing over half of the market revenue share. Further the Ken Research Study found that this segment is likely to retain dominance even by 2027. It is a type of blockchain platform which is designed or used exclusively by one organization or business. The growth of the private segment is mainly due to its more centralized and only authorized entities which can participate and control the network.

However, the consortium is expected to witness the fastest growth during the forecast period at about 80%. A consortium blockchain is a type of network where more than one central in-charge grants access to pre-selected nodes for writing and auditing the Blockchain network. The growth is mainly as companies are migrating from private and public clouds to consortiums. It saves time and cost as compared to public and private deployment types and is more secure.

Few Diverse Global Players Dominate the Market Holding More than Half of Market Revenue Share despite Presence of over 200 Participants

The North America Healthcare Sector industry is highly fragmented in nature with over 200 participants comprising global players (having presence in 2 or more continents), regional players (having presence in multiple countries within North America), and Country-Niche Players (presence limited to just 1 country or very niche presence in the value chain). Most of Country-Niche’s players are startups. Some of these who successfully create application-specific solutions often get acquired by large global players seeking to grow & diversify quickly.

However, The Research Study found that few diversified global players control a dominant share of the market, and a significant number of these players are headquartered within the North American region, enabling its strong production and consumption balance.