The global healthcare smart contracts market size was valued at USD 1.58 billion in 2021. It is projected to reach USD 8.92 billion by 2030, growing at a CAGR of 21.2% during the forecast period (2022–2030). A smart contract's terms are predetermined, and the contract is a computer program that runs on a blockchain platform. Acceptance of smart contracts could lead to financial gains if patient data, insurance information, and data management are digitized and managed. A positive outlook for the market could be indicated by the decentralized nature of blockchain technology and the additional security benefits it provides for protecting patient data.
Numerous instances of massive data theft have resulted in healthcare organizations deciding to implement the novel approach. The shared ledgers have the potential to provide transparency throughout the transactions and aid in the negotiation of complex claims. Furthermore, purchasing health insurance by patients via smart contracts and eliminating paper contracts can significantly boost market demand. The application of telemedicine to facilitate communication between patients and physicians via mobile devices, such as smartphones, could benefit the market.
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Adoption of Smart Contracts by Government Bodies to Boost Market Progress
It is anticipated that the demand for smart contracts within the public sector will increase during the forecast period due to the proliferation of smart contracts among government organizations worldwide. Smart contracts require significantly less human intervention than traditional contracts and significantly cut the costs associated with contract management. For Example, in 2019, the Jurisdiction Taskforce of the United Kingdom acknowledged intelligent contracts as a form of a legally enforceable agreement. In addition, the Hangzhou Internet Court has implemented smart contracts in the court proceedings.
Growing Data Breaches in the Healthcare Industry to Impede the Market Growth
There has been an increase in the number of data breaching cases in the healthcare industry. These are prominent drivers behind expanding the global market for smart contracts in healthcare. Healthcare providers and pharmaceutical companies are negotiating prices and compiling a formulary, a list of medications covered by a specific insurance policy. The blockchain has the capability of accepting a smart contract. The blockchain encrypts the contracts, allowing only those with the appropriate authorization to read them. The smart contract between the customer and the drug manufacturer will also ensure that a small portion of the co-pay is transferred directly from the customer to the drug manufacturer.
High Initial Cost of Technology to Hinder Market Growth
Due to the fact that smart contracts are still in their infancy, even large corporations are having difficulty integrating them into their core systems. The high interest in the technology, combined with the massive amount of processing power needed to keep it running, is proving to be a deterrent. Extensive data, such as CT scans, will be challenging to store in blockchains, even though they can handle personal data such as IDs and certificates. IDs, certificates, transactions, memberships, smart contracts, and renewals leading to automatic subscription renewals or daily payments are just a few examples of blockchain usage in healthcare. This is a step in the direction of the patient-centered care system that payers and providers of healthcare have long envisioned. Smart contracts are created using blockchain technology, but blockchain platforms' lack of standardization and interchangeability makes developing smart contracts complex and potentially error-prone. This is expected to hinder the global smart contract market's growth during the forecast period.
The global healthcare smart contracts market has been segmented based on type, application, and end-user.
Based on type, the segment is divided into Hyperledger Fabric, Multichain56, Ethereum, and Others. Ethereum has the largest market share of the revenue. This blockchain is compatible with externally owned and internally managed contract accounts.
Based on application, the market is segmented into data exchange and interoperability, clinical trials, supply chain management, claims adjudication, and billing management. Supply chain management holds a significant share of the market. The expansion can be attributed to rising levels of awareness as well as increased demand for superior medications.
Based on end-user, the market is categorized into healthcare providers, healthcare payers, and drug and medical device companies. The healthcare payer sector demonstrated the highest growth rate as a market due to the wide variety of technological uses and applications in the healthcare industry.
The global healthcare smart contracts market is divided into different regions, namely North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.
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North America holds the largest market share and is anticipated to dominate the global smart contracts in the healthcare market during the forecast period. The market expansion can be attributed to the increased investments of top-tier companies such as IBM, SimplyVital Health, and Microsoft. In addition, research and academic institutions significantly contribute to developing smart contract solutions in the region. During the forecast period, Europe is anticipated to be the market segment for smart contracts in healthcare with the highest growth rate. The expansion of the market is attributable to rising healthcare spending in the developed economies of Western Europe.
The global healthcare smart contracts market’s major key players are