Blockchain Pharmaceutical Supply Chain Management Market

Rising cyber threat in the healthcare sector is driving the market growth

Market CAGR for blockchain in pharmaceutical supply chain management is driven by the rising cyberattacks on the healthcare sector. Due to increased data breaches, break-ins, and the unauthorized release of sensitive healthcare data from databases, the market will grow more swiftly. Additionally, due to the rapid development in the healthcare industry, electronic clinical records with personalized medical data sets have replaced paper-based clinical records. In any instance, because of the centralized database, regular data sets, like SQL data sets, can impede the flow of information. With its decentralized character distribution control, blockchain technology successfully prevents data breaches.

The blockchain's accuracy must be verified against other data to display the two blocks to every user. This guarantees toughness and guards against data loss and harm. As a result, pharmaceutical businesses are increasing their use of DLTs to follow the supply chain from producers to customers and research facilities.

One in ten medicines fail in low- and middle-income countries because they are subpar or fake, according to the World Health Organisation (WHO). For instance, 72,430 and 169,270 kids have pneumonia yearly after using bogus medications. To reassure users that regulatory organizations have verified the manufacturer, the medical profession has been urged to switch to blockchain due to widespread worries about phony drug supply chains. Additionally, the acceptance of electronic health records (EHRs) has increased the ability of medical professionals to share clinical data to hasten disease detection.

Also, publishing such sensitive information on commercially available social media networks is unsafe. As a result of blockchains' quick uptake as a secure platform for sharing encrypted information that only verified users can access, the market is expected to expand. Thus, driving the blockchain in pharmaceutical supply chain management market revenue.

The Global Blockchain in Pharmaceutical Supply Chain Management Industry is increasingly driven by the need for enhanced traceability of pharmaceutical products. Blockchain technology allows for immutable records of transactions, enabling stakeholders to track the movement of drugs from manufacturers to end-users. This traceability is crucial in combating counterfeit drugs, which pose significant risks to patient safety. In 2024, the market is valued at 1.21 USD Billion, reflecting a growing recognition of the importance of transparency in the supply chain. As regulatory bodies emphasize compliance with stringent traceability requirements, the adoption of blockchain solutions is likely to accelerate.

Regulatory compliance is a critical factor influencing the Global Blockchain in Pharmaceutical Supply Chain Management Industry. Governments and regulatory agencies worldwide are establishing stringent guidelines to ensure the safety and efficacy of pharmaceutical products. Blockchain technology offers a robust framework for maintaining compliance by providing transparent and verifiable records of transactions. This capability is particularly relevant as regulations evolve to address issues such as drug traceability and counterfeit prevention. The increasing focus on compliance is likely to drive the adoption of blockchain solutions, positioning the industry for significant growth in the coming years.

The Global Blockchain in Pharmaceutical Supply Chain Management Industry is poised for substantial growth, with projections indicating a market value of 1.21 USD Billion in 2024 and an anticipated increase to 8.88 USD Billion by 2035. This growth trajectory reflects a compound annual growth rate (CAGR) of 19.9% from 2025 to 2035. The increasing adoption of blockchain technology is driven by various factors, including enhanced traceability, cost reduction, and regulatory compliance. As the industry continues to evolve, stakeholders are likely to invest in blockchain solutions to address emerging challenges and capitalize on new opportunities.

Data security and integrity are paramount in the Global Blockchain in Pharmaceutical Supply Chain Management Industry. The decentralized nature of blockchain technology ensures that data is protected from unauthorized access and tampering. This security is vital for maintaining the integrity of sensitive information, such as patient data and drug formulations. As cyber threats continue to evolve, the pharmaceutical industry is likely to prioritize solutions that enhance data security. The adoption of blockchain technology could serve as a proactive measure against data breaches, thereby fostering greater confidence among stakeholders and contributing to the industry's overall growth.

Cost efficiency emerges as a pivotal driver in the Global Blockchain in Pharmaceutical Supply Chain Management Industry. By streamlining processes and reducing intermediaries, blockchain can significantly lower operational costs. For instance, the automation of transactions and the elimination of manual record-keeping can lead to substantial savings. As the industry evolves, it is projected that the market will grow to 8.88 USD Billion by 2035, with a compound annual growth rate (CAGR) of 19.9% from 2025 to 2035. This growth indicates that companies are increasingly recognizing the financial benefits of implementing blockchain solutions in their supply chains.

The Global Blockchain in Pharmaceutical Supply Chain Management Industry benefits from improved collaboration among various stakeholders, including manufacturers, distributors, and healthcare providers. Blockchain facilitates secure and transparent information sharing, which enhances trust and cooperation across the supply chain. This collaborative environment is essential for addressing challenges such as inventory management and demand forecasting. As stakeholders increasingly recognize the value of shared data, the industry is expected to see a rise in blockchain adoption. This trend may contribute to the projected market growth, with a potential increase to 8.88 USD Billion by 2035.

By region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American blockchain in the pharmaceutical supply chain management market area will dominate this market. The North American blockchain in the pharmaceutical supply chain management market is being driven by the presence of large pharma players in the U.S., the dominance of top blockchain providers in North America, high awareness regarding data management and counterfeit drugs, and growing support from public and private bodies to adopt blockchain technologies.

Further, the major countries studied in the market report are US, Canada, France, German, Italy, UK, Spain, Japan, China, Australia, India, South Korea, and Brazil.

Figure 2: BLOCKCHAIN IN PHARMACEUTICAL SUPPLY CHAIN MANAGEMENT MARKET SHARE BY REGION 2023 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe’s blockchain in the pharmaceutical supply chain management market accounts for the second-largest market share. Governments around the region support using this revolutionary technology and cryptocurrencies in the entire healthcare ecosystem due to its potential to increase efficiency, improve security, simplify transactions, and engage patients. Further, the German blockchain in the pharmaceutical supply chain management market held the largest market share, and the UK blockchain in the pharmaceutical supply chain management market was the rapidly growing market in the European region.

The Asia-Pacific Blockchain in Pharmaceutical Supply Chain Management Market is anticipated to grow quickly between 2023 and 2032 due to the large population, which generates enormous numbers of patient records that must be safeguarded at all costs. As a result, Renji Hospital and VeChain jointly developed a blockchain-based IVF service application introduced in China in June 2021. Moreover, China’s blockchain in the pharmaceutical supply chain management market held the major market share, and the Indian blockchain in the pharmaceutical supply chain management market was the rapidly growing market in the Asia-Pacific region.

Leading market players are largely investing in research and development to expand their product lines, which will help the blockchain in the pharmaceutical supply chain management market, grow even more. The launch of new products, larger-scale mergers and acquisitions, contractual agreements, and collaboration with other organizations are significant market developments in which market participants engage to increase their presence. Blockchain in pharmaceutical supply chain management industry must provide affordable products to expand and thrive in a more competitive and challenging market environment.

One of the major business strategies manufacturers use in the blockchain in the pharmaceutical supply chain management industry to increase market sector and benefits customers is local manufacturing to lower operational costs. In recent years, the blockchain in the pharmaceutical supply chain management industry has stipulated some of the most important medicinal benefits. Major players in the blockchain in the pharmaceutical supply chain management industry, including Huawei, Digital Treasury Corporation, Vechain Foundation, Auxesis Group, Microsoft, and others, are funding operations for research and development to boost market demand.

Nokia firm, founded in 1865, is a Finnish multinational telecommunications, information technology, and consumer electronics firm. Over the last 150 years, the organization has worked in various industries. It was formed as a pulp mill and has long been connected with rubber and cables, but it has focused on large-scale telecommunications infrastructure, technological development, and licensing since the 1990s. In March 2022, Nokia was picked by Equideum Health to aid in the development and delivery of healthcare use cases, according to Nokia. Equideum Health will use Nokia's Data Marketplace (NDM) solution, offered via its Software-as-a-Service (SaaS) architecture.

Equideum Health, a blockchain leader in healthcare and life sciences, will be able to introduce new use cases.

Avaneer Health provides a secure and open network that supports utility services for the healthcare industry. The company provides transparency and security to help consumers navigate healthcare decisions and reduce administrative burdens caused by regulation, privacy protection, and competitive dynamics, allowing the industry to collaborate effectively to improve the consumer experience and interoperability in healthcare. In January 2022, Avaneer Health secured funding from numerous famous healthcare institutions, totaling USD 50 million in seed capital.

Based on blockchain technology, the network focuses on payer-to-payer data sharing, eligibility, and prior authorization while utilizing HL7's FHIR specification to expand data access among healthcare firms.