Global Blockchain in Pharmaceutical Supply Chain Management Market - 2025-2033

The global blockchain in pharmaceutical supply chain management market reached US$ 1.27 billion in 2024 and is expected to reach US$ 6.57 billion by 2033, growing at a CAGR of 21.5% during the forecast period 2025-2033.

Blockchain is a decentralized, distributed ledger technology that securely records transactions between numerous computers. In the context of pharmaceutical supply chains, it maintains an immutable and transparent record of every transaction involving pharmaceutical products, from production to distribution to end users. This system allows all stakeholders, manufacturers, distributors, pharmacies, and regulators to access real-time data about the status and validity of pharmaceuticals. The cryptographic nature of blockchain safeguards sensitive data from unauthorized access and manipulation. Blockchain, by automating activities via smart contracts, can streamline operations, minimize administrative costs, and enhance supply chain timelines.

The improved data security, transparency, and traceability is the driving factor that drives the market over the forecast period. To address critical concerns about increasing the number of counterfeit pharmaceuticals, drug traceability services are launched. For instance, in November 2024, the Ethiopia Food and Drug Authority (EFDA), and Medical Value Chain announced strategic partnerships to implement cutting-edge blockchain-enabled pharmaceutical track and track system. This helps in combating counterfeit medicines and ensuring safety, authenticity.

Market Dynamics: Drivers & Restraints

Improved security, transparency, and traceability

Improved data security, transparency, and traceability is expected to be a significant factor in the growth of the global blockchain in the pharmaceutical supply chain management market. As the pharmaceutical industry faces challenges such as counterfeit pharmaceuticals, data breaches, and regulatory compliance, blockchain emerges as a revolutionary approach that effectively addresses these critical concerns.

Improved data security is one of the most appealing benefits of blockchain technology. Blockchain uses a decentralized and immutable ledger to ensure that all transaction records are securely stored and cannot be edited or destroyed without valid authority. This feature gradually decreases the likelihood of data breaches and manipulation, which are common in older centralized systems. In recent times, there have been many data breaches. For instance, in 2023, more than 540 organizations and 112 million individuals were implicated in healthcare data breaches reported to the HHS Office for Civil Rights (OCR), compared to 590 organizations and 48.6 million impacted individuals in 2022. There were 11 reported healthcare data breaches of more than 1 million records in 2022 and a further 14 data breaches of over 500,000 records. Blockchain technology plays a crucial role in data security.

The increasing number of counterfeit pharmaceuticals across the globe is one of the driving factors and it needs drug traceability services to overcome the production of counterfeit pharmaceuticals. For instance, according to an article published by Pfizer, counterfeit versions of at least 104 Pfizer medicines have been confirmed in more than 116 countries. According to the Pharmaceutical Security Institute (PSI), law enforcement officials uncovered 6,897 incidents of counterfeiting, illegal diversion, and theft of pharmaceuticals in 142 countries in 2023. The crimes involved more than 2,440 different medicines across every therapeutic category. The PSI documented 4,894 arrests for pharmaceutical crime in 2023, the largest number of arrests achieved in 22 consecutive years of data. So, the increasing number of data breaches and the production of counterfeit pharmaceuticals increase the demand for the blockchain in the pharmaceutical supply chain management market.

High initial investment

Factors such as high initial investment are expected to hamper the global blockchain in pharmaceutical supply chain management market. Implementing blockchain solutions incurs significant upfront expenditures, including investments in technical infrastructure, software development, and employee training. Organizations must purchase the appropriate technology and software to enable blockchain operations, which can be a major cost. Furthermore, the necessity for specialized skills to build and administer these systems drives up prices. Many businesses may struggle to justify these charges, particularly when the return on investment (ROI) is not immediately obvious. This hesitation may hinder the overall adoption of blockchain technology in the pharmaceutical supply chain.

Segment Analysis

The global blockchain in the pharmaceutical supply chain management market is segmented based on offerings, application, type, end-user, and region.

Drug traceability segment is expected to dominate the global blockchain in pharmaceutical supply chain management market share

The drug traceability segment is the most dominant due to its critical role in enhancing safety, compliance, and operational efficiency within the pharmaceutical industry. As the threat of counterfeit drugs grows, stakeholders recognize the importance of strong traceability systems that can ensure the authenticity and integrity of pharmaceutical products throughout their lifecycle. Drug traceability is the process of tracking pharmaceuticals from their point of manufacture to the final consumer. This procedure is critical for preventing counterfeit pharmaceuticals from entering the supply chain, which poses serious threats to patient safety and public health. Blockchain technology provides a decentralized, immutable database that records all drug-related transactions, creating a transparent and traceable history. This feature not only aids in the detection and elimination of counterfeit products but also assures compliance with regulatory standards requiring strict pharmaceutical tracking.

The number of counterfeit pharmaceuticals is increasing day by day. The increase in the number of counterfeit pharmaceuticals increases the demand for drug traceability services. For instance, according to the World Health Organization, at least 1 in 10 medicines in low- and middle-income countries are substandard or falsified. Countries spend an estimated US$ 30.5 billion per year on substandard and falsified medical products. Substandard and falsified medical products are often sold online or in informal markets. Moreover, according to the National Institute of Health, it has been estimated that up to 15% of all sold drugs are fake, and in parts of Africa and Asia this figure exceeds 50%. The FDA estimates that fake drugs comprise approximately 10% of the global medicine market. The number of investigations of possible counterfeit drugs by the FDA has jumped from about five per year in the 1990s to more than 20 per year since 2000.

There are recent launches of blockchain-based drug traceability services. For instance, in May 2024, Merck, a leading scientific and technological firm, introduced the M-Trace Software & Mobile App, a comprehensive data tracking solution for digitizing sterility testing. The software improves overall process safety by automatically documenting data at each stage of the testing process. This decreases the chances of divergence, false positive results, and human error. The increasing number of counterfeit pharmaceuticals and recent launches of blockchain-based drug traceability services drive the market of this segment making the drug traceability segment a dominant one.

Geographical Analysis

North America is expected to hold a significant position in the global blockchain in pharmaceutical supply chain management market share

The blockchain in the pharmaceutical supply chain management market in the North American Region is driven by several key factors that underscore its robust industrial landscape and consumer demand, increasing number of cybercrimes, strong regulatory support, and increasing awareness of the benefits of blockchain technology and increased number of launches.

In recent times, there have been launches of blockchain services in this region. For instance, in May 2023, Patientory Inc., the creator of a blockchain-based, HIPAA-compliant, private medical data ecosystem, announced today that it has launched two solutions, Patientory Consumer Decentralized Application-designed to help patients more efficiently and securely store and earn money from their medical data and Neith Enterprise Dashboard in partnership with Prosper Healthtech, a community-backed organization committed to equity in Birmingham offering a supportive network of organizations throughout the city, including UAB Hospital, PackHealth, and Blue Cross Blue Shield.

The increasing number of cybercrimes is one of the major drivers in this region. The cybercrimes can be reduced by storing the systems securely using software blockchain services. For instance, according to an article posted by Palo Alto Networks in January 2024, Malicious attacks on healthcare have grown exponentially in recent years. According to the HHS Office for Civil Rights (OCR), large breaches increased by 93% between 2018 and 2023. Additionally, large breaches involving ransomware increased by 278%.

The increase in the number of counterfeit pharmaceuticals in this region increases the demand for global blockchain in pharmaceutical supply chain management which helps in the marketing of original products. For instance, in January 2024, the FDA alerted healthcare professionals and consumers that unsafe counterfeit versions of Botox (botulinum toxin) have been found in multiple states and administered to consumers for cosmetic purposes. Moreover, in December 2023, the FDA investigated and announced that a counterfeit Ozempic (semaglutide) injection of 1 milligram (mg) was found and the U.S. drug supply chain seized thousands of units of the product. All these factors make North America hold the highest market share.

Asia Pacific is growing at the fastest pace in the global blockchain in pharmaceutical supply chain management market

Asia Pacific's rapid growth in the Global Blockchain in Pharmaceutical Supply Chain Management Market is driven by a combination of factors including the booming e-commerce sector, increasing industrialization, proactive technology adoption, increasing number of counterfeit versions, and supportive government initiatives. The Asia Pacific area is rapidly industrializing, resulting in rising consumer markets that require improved supply chain visibility and efficiency. Countries like as China, India, and Japan are at the forefront of using blockchain technology to simplify processes and combat counterfeit products.

The rapid expansion of the e-commerce sector is a major driver of blockchain implementation in the Asia Pacific pharmaceutical supply chain. As e-commerce grows more popular, there is a greater demand for efficient and transparent supply chain solutions that guarantee timely delivery and product authenticity. Blockchain technology provides a reliable foundation for tracking pharmaceuticals along the supply chain, giving stakeholders real-time visibility into product movements.

Competitive Landscape

The major global players in the global blockchain in pharmaceutical supply chain management market include IBM, Microsoft, SAP SE, Oracle, Cloud Software Group, Inc., Auxesis Infotech Pvt. Ltd., Omnichain Solutions, Walmart Inc., FarmaTrust, Amazon Web Services, Inc. among others.

Emerging Players

VeChain, Modum, and Everledger among others

Key Developments

• In September 2023, the Republic of Mauritius launched a blockchain-based eVerify service. E-Verify is a system that uses blockchain to verify and authenticate information or transactions electronically. Emerging technologies such as blockchain, big data, Artificial Intelligence, and the internet create new ways for consumers to interact while disrupting traditional business models.

Why Purchase the Report?

• Pipeline & Innovations: Reviews ongoing clinical trials, product pipelines, and forecasts upcoming advancements in medical devices and pharmaceuticals.
• Product Performance & Market Positioning: Analyzes product performance, market positioning, and growth potential to optimize strategies.
• Real-World Evidence: Integrates patient feedback and data into product development for improved outcomes.
• Physician Preferences & Health System Impact: Examines healthcare provider behaviors and the impact of health system mergers on adoption strategies.
• Market Updates & Industry Changes: Covers recent regulatory changes, new policies, and emerging technologies.
• Competitive Strategies: Analyzes competitor strategies, market share, and emerging players.
• Pricing & Market Access: Reviews pricing models, reimbursement trends, and market access strategies.
• Market Entry & Expansion: Identifies optimal strategies for entering new markets and partnerships.
• Regional Growth & Investment: Highlights high-growth regions and investment opportunities.
• Supply Chain Optimization: Assesses supply chain risks and distribution strategies for efficient product delivery.
• Sustainability & Regulatory Impact: Focuses on eco-friendly practices and evolving regulations in healthcare.
• Post-market Surveillance: Uses post-market data to enhance product safety and access.
• Pharmacoeconomics & Value-Based Pricing: Analyzes the shift to value-based pricing and data-driven decision-making in R&D.

The global blockchain in pharmaceutical supply chain management market report delivers a detailed analysis with 60+ key tables, more than 50 visually impactful figures, and 176 pages of expert insights, providing a complete view of the market landscape.

Target Audience 2024

• Manufacturers: Pharmaceutical, Medical Device, Biotech Companies, Contract Manufacturers, Distributors, Hospitals.
• Regulatory & Policy: Compliance Officers, Government, Health Economists, Market Access Specialists.
• Technology & Innovation: AI/Robotics Providers, R&D Professionals, Clinical Trial Managers, Pharmacovigilance Experts.
• Investors: Healthcare Investors, Venture Fund Investors, Pharma Marketing & Sales.
• Consulting & Advisory: Healthcare Consultants, Industry Associations, Analysts.
• Supply Chain: Distribution and Supply Chain Managers.
• Consumers & Advocacy: Patients, Advocacy Groups, Insurance Companies.
• Academic & Research: Academic Institutions.