Blockchain use in global healthcare market to surpass $1.7B by 2026

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The value of blockchain technology in the healthcare market is expected to exceed $1.7 billion by 2026 according to a report by Indian research and consulting firm Acumen. To do that, the industry is expected to grow at a compound annual growth rate of 48.1%.

In the past few years, blockchain application in the healthcare industry has soared. According to the report, some of the factors behind the growth include “increasing healthcare spending and incorporation of IT in the healthcare sector.”

The North America region commands a sizable lead in the market, with the U.S. being the biggest individual market globally. In the forecast period, the U.S. is expected to dominate the industry owing to the “widespread adoption of smart technology in manufacturing and healthcare sector.” The American government has also supported the development of new technology as it seeks to keep its edge, with countries like China and Japan growing their tech sectors quite aggressively.

Europe is the second-largest market for the use of blockchain technology in healthcare. The report states, “The major factors driving the growth of the Europe blockchain in healthcare market are increasing expenditure on technology, the presence of multinational companies and huge government support. However, lack of security is the major factor restraining the growth of the blockchain in healthcare market in Europe.”

China and Japan are the leaders in the Asia-Pacific region, which comes in third globally. Japan in particular has been the world’s leader in the Internet of Things (IoT), accounting for 40% of the global market for sensors, a critical component of IoT technology. This makes the integration of blockchain technology in the country’s healthcare industry much easier than for most of its peers. China has also been keen on the use of blockchain technology in healthcare, the report indicated.

Some of the global giants that are leading in the industry include Microsoft, IBM, Accenture, Capgemini, Deloitte and Bitfury.

The new report reiterates earlier reports which have all predicted that the blockchain in healthcare industry will blow up in the next five years. A report by Global Market Insights released in March predicted that the industry would hit $1.6 billion by 2025. The report pointed to enhanced security, ease of access and speed as some of the factors driving global demand up.