Blockchain’s perceived value seems to be wavering with significant polarity. While recently adopted use cases like VMware's Blockchain Group and MEF's implementation of smart contracts are giving it more credence, blockchain remains a technology of pending skepticism. 

Part of this teetering traction may stem from a lack of conceptual understanding and an under-informed association with Bitcoin, even up in the C-suites. This year GlobalData’s Q2 Emerging Trends Survey reported that 41.4% of execs reported to either not know about blockchain’s substance or attribute it to puffery.

Despite this confusion, the Blockchain Technology in Health Care Market generated $531.19 million last year, and Allied Market Research projects this to hit $16.3 billion by 2031, with a compound annual growth rate (CAGR) of 40.8% from this year to 2031.

Furthermore, the report found that pharmaceutical and medical device companies dominated market growth last year with $241.85 million owed to the “replacement of [a] traditional system with blockchain.” The health care payers’ segment also saw its highest CAGR [41.4%] during the “blockchain in health care market forecast period.”

Part of the health care industry’s active involvement with the technology stems from an alarming surge in data breaches. According to a Critical Insight report, an all time high of 45 million patient records were compromised in 2021, up 11 million from the year prior, and “triple the number of individuals impacted only three years ago.”

Allied Market Research’s report rationalizes that the COVID-19 pandemic “accelerated the use of cutting-edge technologies such as blockchain in the health care industry,” contending that blockchain tracking systems are being developed by “many market players to stop the spread of false information.”

The global outbreak prompted a massive number of hospitals and clinics to increase their patient capacity, leading to a higher demand for safety technology protocols, according to the research group. 

“Whether the attack vector is ransomware, credential harvesting, or stealing devices, the health care industry is a prime target for attackers to monetize PHI and sell on the Dark Web or hold an entity ransom unable to deliver patient care,” health care cybersecurity strategist at Critical Insight John Delano stated. 

Implementing blockchain into the health care market can render supply chain management “completely safe” from counterfeit drugs, according to Allied Market Research. But the research firm acknowledges that part of what obstructs the technology’s market growth is the lack of standardization. 

“As we continue into 2022, health care organizations need to be on guard not only of their cybersecurity posture but also of third party vendors that have access to data and networks. We are seeing more awareness and proactive approaches to cybersecurity within this sector, but there is still a long way to go,” Delano continued.