Health Economics & Outcomes Research (HEOR) Services Market Size By Service (Economic Modelling/Evaluation, Real-world Data Analysis & Information Systems, Clinical Outcome, Market Access Solutions & Reimbursement), By Service Provider (Consultancy, Contract Research Organizations), By End-user (Healthcare Providers, Healthcare Payers, Biotech/Pharma Companies, Government Organizations), Industry Analysis Report, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2020 – 2026

Published Date: Jan 2020  |  Report ID: GMI3145  |  Authors: Sumant Ugalmugle, Rupali Swain

Report Format: PDF   |   Pages: 135   |   Base Year: 2019




Summary Table of Contents Industry Coverage Methodology

Industry trends

Health Economics & Outcomes Research (HEOR) Services Market size was valued at over USD 0.7 billion in 2019 and is projected to grow at 12.8% CAGR up to 2026. The field of health economics and outcomes research (HEOR) is growing exponentially as various payers and government organizations grapple for providing the best possible health outcomes at affordable costs. Health economics analyses the economic aspects of health and healthcare, with a foremost focus on costs of healthcare interventions.
 

Health Economics & Outcomes Research (HEOR) Services Market
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HEOR services help decision-makers on various aspects such as drug spending and pricing, real-world evidence, big data and value assessment, that will spur the overall market size. Growing demand for HEOR services to evaluate the effect of healthcare interventions on humanistic, patient-related clinical and economic outcomes will favour the market growth.
 

Health Economics & Outcomes Research (HEOR) Services Market Report Coverage
Report Coverage Details
Base Year: 2019 Market Size in 2019: 0.8 Billion (USD)
Historical Data for: 2015 to 2019 Forecast Period: 2020 to 2026
Forecast Period 2020 to 2026 CAGR: 12.8% 2026 Value Projection: 1.8 Billion (USD)
Pages: 135 Tables, Charts & Figures: 178
Geographies covered (14): U.S., Canada, Germany, UK, France, Italy, Spain, Japan, China, India, Brazil, Mexico, South Africa, Saudi Arabia
Segments covered: Service, Service Provider, End-user and Region
Companies covered (14): Axtria, Avalon Health Economics, Cardinal Health, ICON, IQVIA, McKesson, MEDLIOR, Optum, PharmaLex, Pharmaceutical Product Development (PPD), RTI Health Solutions, Syneos Health, PAREXEL International Corporation and TCD
Growth Drivers:
  • Surge in number of clinical trials globally.
  • Focus of pharma & biotech companies on new drug development
  • Increasing R&D expenditure worldwide.
  • Growing outsourcing of R&D activities
Pitfalls & Challenges:
  • Lack of skilled healthcare professionals in developing and underdeveloped economies

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Increasing number of clinical trials worldwide to upsurge the market progress

Health economics and outcomes research complements clinical development by helping healthcare payers as well as decision-makers to determine services, reimbursement policies and patient access for specific drugs. Continuously surging demand for HEOR data by several global reimbursement agencies and increasingly complex legislative environment will thereby, augment the overall industry expansion. Moreover, various European countries including UK and the Netherlands among others have higher success rate of new drug launch as these countries are largely dependent on reimbursement decisions of government agencies.
 

The role of HEOR services is becoming an integral part of clinical trial design, clinical R&D and management of economic endpoints during trials. Numerous such services are specifically used during initial phase of trials to minimize the disease burden. Therefore, surge in number of clinical trials will boost the overall health economics and outcomes research services industry growth. However, lack of skilled healthcare professionals in developing and underdeveloped regions may hinder market opportunities during the analysis.
 

Increasing usage of real-world data across the healthcare sector will provide lucrative growth opportunities

The service segment is bifurcated into economic modelling/evaluation, real-world data analysis & information systems, clinical outcome, market access solutions and reimbursement and others. Real-world data analysis & information systems segment accounted for around USD 100 million in 2019, owing to increasing focus on real-world data (RWD) to generate insight, foresight and explorative findings on products, diseases and patient population.
 

The importance of real-world data is continuously growing across the healthcare value chain. In addition, physicians, pharmaceuticals and regulatory bodies use these data points or evidence to make certain decisions, thus escalating the market progression. The advent of technology in electronic medical records (EMR) have made real-world data useful and accessible for outcomes research & regulatory purposes, thus proving beneficial for HEOR services market growth.
 

Currently, IQVIA is one of the largest CROs in the world, focusing on digital health and artificial intelligence

HEOR Services Market, By Service Provider

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HEOR service providers segment covers consultancies and contract research organizations (CROs). Contract research organizations segment was valued around USD 350 million in 2015. Healthcare contract research organizations generally provide assistance to biotechnology, medical device and pharmaceutical companies in the form of research services outsourced on a contract basis.
 

Several companies including IQVIA, Parexel and Covance among others are involved in offering contract-based research services. Rising demand for secured services including clinical and preclinical testing as well as regulatory approvals will enhance the overall market growth.  
 

HEOR services enable payers to provide timely product coverage decisions

The end-user segment of HEOR services market share is bifurcated into healthcare providers, healthcare payers, biotech/pharma companies, government organizations and others. Healthcare payers segment accounted for over USD 200 million in 2019, owing to growing impact of HEOR services on payer decision making. Healthcare payors highly rely on HEOR studies due to shift from fee-for-service to value-based reimbursement, rising consumer-driven healthcare as well as increasing use of specialty drugs & targeted therapies.
 

Moreover, growth of healthcare IT and analytic tools that allow systems to align across diverse platforms will further increase the need for HEOR services in payer decision making, thus proving beneficial for the market growth.
 

Presence of skilled researchers in North America proves beneficial for the HEOR services market expansion

HEOR Services Market By Country

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North America held substantial revenue share in 2019 and will witness around 12.5% CAGR during the analysis period. Regional growth is primarily attributed to transition towards value-based care in the region. The market has experienced market researchers and outcome-based market researchers with proven track records within the pharma sector.
 

Presence of major industry players in the U.S. and increasing focus on novel drug development will favor the U.S. HEOR services market expansion. Moreover, various government initiatives and presence of government agencies in this region to support HEOR services will propel the regional market growth.
 

Prominent industry players operating in HEOR services focus on delivering multiple services to sustain market competition

Some of the eminent business players operating in the HEOR services market share include Avalon Health Economics, McKesson, Cardinal Health, MEDLIOR, Optum, PharmaLex, Pharmaceutical Product Development (PPD), IQVIA, RTI Health Solutions and TCD. The prominent industry players strategically implement various organic and inorganic growth strategies to garner more revenue and sustain market competition.
 

Some of the recent industry developments:

  • In May 2019, ICON introduced advanced web-based patient engagement platform to support enrollment in clinical trials. It provides patients with connectivity and study specific information with the nearest investigative site. The new product introduction enabled company to diversify its service portfolio.
     
  • In July 2018, PPD expanded its central lab technology proficiencies integrated with Preclarus, a comprehensive data solution company. This integration helped the company to expand its existing service portfolio and capitalize on market opportunities
     

The HEOR services market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2015 to 2026, for the following segments:

By Service

  • Economic modelling/evaluation
  • Real-world data analysis & information systems
  • Clinical outcome
  • Market access solutions & reimbursement
  • Others

By Service Provider

  • Consultancy
  • Contract research organizations (CROs)

By End-user

  • Healthcare providers
  • Healthcare payers
  • Biotech/pharma companies
  • Government organizations
  • Others

The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Spain
  • Asia Pacific
    • Japan
    • China
    • India
  • Latin America
    • Brazil
    • Mexico
  • Middle East & Africa
    • South Africa
    • Saudi Arabia

 

Frequently Asked Questions (FAQ) :

HEOR services extensively help decision-makers such as health ministries, governments, clinicians & payers to adequately compare and choose among the available options.
Real-world data analysis & information systems segment accounted for USD 100 million in 2019 and is expected to achieve significant gain in the forecast period owing to increasing focus on real-world data (RWD) to generate insight, foresight and explorative findings on products, diseases and patient population.
The HEOR services market was worth over $ 0.7 bn in 2019 and is expected to grow at more than 12.8% CAGR through 2026?

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