The value of the blockchain technology in healthcare market is expected to surpass $1.6 billion by 2025, according to global market research and consulting firm Global Market Insights.

In a press release published on Sept. 9, Global Market Insights estimated that the blockchain in healthcare market will grow due to a number of factors such as the implementation of government initiatives and increasing investment in the field.

Growth factors for blockchain in healthcare

Examination of medical outcomes, interoperability of health data and cost component reductions will further impact blockchain adoption, according to the outlook. The company states in the release:

“Growing awareness about implementation of blockchain technology and government initiative for data standardization and operational scalability constraint in data management will spur industry growth in upcoming years.”

As for the healthcare payers segment of the blockchain in healthcare market, Global Market Insights forecasts that it could see a 65.7% compound annual growth rate by 2025. This section of the market will purportedly grow due to the widespread deployment of blockchain tech in order to improve emergency care and clinical outcomes.

Promising outlook

Global Market Insights’ recent findings echo those of information technologies firm Acumen Research and Consulting in mid-July. At the time, the firm suggested that the volume of the blockchain in healthcare market worldwide will reach more than $1.7 billion by 2026, with a compound annual growth rate of 48.1%.

As previously reported, the Ugandan government partnered with blockchain startup MediConnect to trace counterfeit drugs in the country. MediConnect’s blockchain-based platform enables the recording of prescription medication, thus identifying counterfeit drugs and preventing their distribution in the pharmaceutical supply chain.

In July, blockchain healthcare startup Solve.Care partnered with Uber Health to transport patients. A dedicated app will allow patients to schedule an Uber Health ride, which claims to be compliant with the Health Insurance Portability and Accountability Act of 1996.