Real World Evidence Solutions Market Analysis

Real World Evidence Solutions Market Analysis

Based on components, the global market is classified into services and data sets. The data sets segment is further segmented into desperate data sets and integrated data sets. Disparate data sets include patient powered data sets, clinical settings data sets, claims data sets, product/disease registries data sets, and pharmacy data sets. The services segment dominated the global real world evidence solutions industry by securing a share of 58.4% in 2023. The dominance is propelled by availability of subscription-based advanced analytical tools for analysing data outputs, increasing adoption of RWE services among pharmaceutical and medical device companies, and increasing adoption of value-based healthcare models.
 

Based on the revenue model, the global market is classified into pay-per-use (value-based pricing) and subscription. Subscription segment dominated the market in 2023, securing a share of about 68.7%
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• Subscription models often involve flexible payment options and lower upfront cost in comparison to traditional licensing/purchasing models. As a result, small to medium-sized enterprises with limited budgets often prefer subscription-based payment options, which has resulted in a higher revenue in subscription models segment.
   
• Additionally, subscription -based real world evidence solutions offers scalability to meet customer needs and modify the subscription levels over the time as per the requirements of the end users. Owing to these benefits, the dominating share of end users prefer subscription over pay-per-use (value-based pricing) option.
   

Based on the deployment model, the real world evidence solutions market is segmented into cloud-based and on-premise. Cloud-based segment dominated the market valuing at about USD 1.7 billion in 2023.
 

• Cloud-based real world evidence solutions offer scalability, adaptability, cost-effectiveness, swift deployment, advanced analytics capabilities, robust security, and regulatory compliance, that make them highly appealing to organizations seeking to leverage real-world data for healthcare decision-making, research, and innovation, in comparison to on-premise deployment model.
   
• Furthermore, cloud-based rea world evidence solutions offers enhanced flexibility to the end user. Data and analytical services over cloud-based real world evidence solutions can be accessed through remote locations, which makes them more convenient to use in comparison to on-premise deployments.
   

Based on application, the real-world evidence solutions market is classified into drug development and approvals, medical device development and approvals, post-market surveillance, market access & reimbursement/coverage decision-making, clinical & regulatory decision-making. The drug development and approval segment is further segmented into oncology, cardiovascular disease, neurology, immunology, and other therapeutic areas. Drug development and approvals segment dominated the market in 2023 and is expected to reach USD 2.1 billion by 2032. Increase in clinical trials for novel drug developments, growing approvals, and ample availability of clinical trial data sets is driving the growth in the segment.
 

Based on the end user, the real world evidence solutions industry is classified into pharmaceutical and medical device companies, healthcare payers, healthcare providers, other end users. The pharmaceutical and medical device companies segment dominated the market with a share of about 61.9% in 2023.
 

• The dominating share can be attributed to increasing R&D investments for new drugs and medical device developments, growing adoption of data analytics in clinical trials, and increasing use of RWE solutions for post-market surveillance.
   

North America region is projected to maintain its dominance in the global market and is anticipated to reach USD 2.6 billion by 2032.
 

• North America is expected to continue its dominance in the real world evidence solutions industry owing to increasing adoption of real world evidence solutions in clinical research, presence of digital healthcare infrastructure supporting generation of abundant real-time data, and growing support for standardizing RWE solutions from government and regulatory agencies such as US FDA. 
   

US dominated the North America region with a share of about 88.5% in 2023.
 

• High growth in clinical research and drug development activities owing to rapid advancements in oncology, immunotherapy, genomics, precision medicine, and digital health technologies are promoting the use of real world evidence solutions in the U.S.
   
• Furthermore, presence of advanced digital health infrastructure in the country, and government support to promote the use of real world evidence solutions is also supporting the growth of the market.

Germany in Europe dominates the real world evidence solutions market owing to the presence of advanced infrastructure in the country, that comprises of electronic health records, health registries, and claims databases, that offers extensive real-world data sources for research and analysis. Moreover, Germany hosts prominent research institutions, academic medical centers, and life sciences companies, that conducts cutting edge research for which they rely heavily on real world evidence solutions. According to the Federal Institutes of Drugs and Medical Devices, about 2,000 research clinical studies are conducted and added to registry every year in Germany.
 

China is expected to offer lucrative growth opportunities during 2024-2032.
 

• Growing demand for efficient real world evidence solutions in healthcare decision-making, regulatory assessments, and market access is driving the market growth in China.
   
• Furthermore, growing use of real world claims data and clinical data, and support from government agencies for promoting real world evidence solutions is also fueling the market growth in China. For instance, National Medical Products Administration (NMPA) in China is taking steps to promote the use of real-world data (RWD) in drug approvals, post-market surveillance, and pharmacovigilance through initiatives like Real-World Data Research Plan.