Health Economics & Outcomes Research Services Market size is set to exceed USD 2 billion by 2028, according to a new research report by Global Market Insights, Inc.
Growing biotechnology and pharmaceutical industry along with expanding research and development activities will favor the market growth over the forecast period. Additionally, growing demand for real-world evidence and outcome data for reimbursement will foster the health economics & outcomes research services industry outlook.
Increasing research and development expenditure will boost market progression
Rising expenditure in research and development by pharmaceutical and biotech companies for the development of drugs is one of the major factors driving health economics & outcomes research services market growth. For instance, according to a report published in Congressional Research in September 2021, from the year 2000, total global R&D expenditures has more than tripled, i.e., from USD 677 billion to USD 2.2 trillion in 2019. Addition to this, due to increasing number of potential innovations in drug development, the demand for health economics & outcomes research services have also increased in recent years.
Moreover, increasing cases of COVID-19 and its adverse effect on economies have pushed the research and development sector to provide effective drugs and vaccines in order to curb the infection spread. This has again surged the demand for health economics & outcomes research services. Such aforementioned factors will foster the HEOR services market size.
Application of economic modelling and evaluation to manage company’s finances will help the market expansion
Based on service, the health economics & outcomes research services market is segmented into economic modelling/evaluation, clinical outcome, market access solutions & reimbursement, real-world data analysis & information systems, and others. Among these, economic modelling and evaluation segment held around 24.2% revenue share in 2021. Segment growth is attributed to growing demand for various economic modelling and evaluation services such as budget impact analysis and comparative effectiveness analysis. The economic modelling evaluation model is cost-effective as it provides information from various sources to help analyze which intervention represents the best value to secure reimbursement, thereby propelling the segmental demand.
Browse key industry insights spread across 136 pages with 159 market data tables & 15 figures & charts from the report, “Health Economics & Outcomes Research Services Market Forecasts By Service (Real-world Data Analysis & Information System, Economic Modelling/Evaluation, Market Access Solutions & Reimbursement, Clinical Outcome), Service Provider (Contract Research Organizations, Consultancy), End-user (Healthcare Providers, Biotech/Pharma Companies, Healthcare Payers, Government Organizations), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2022– 2028 ” in detail along with the table of contents:
Rising demand for consultancy in HEOR services industry for effective business solutions will propel the market progression
By service provider, health economics & outcomes research services market is bifurcated into contract research organizations and consultancy. The consultancy segment is anticipated to witness over 13% CAGR across the forecast period. The consultancies help organizations in offering opinions and guidance to address prudent regulatory needs. Additionally, consultancies help pharmaceutical companies in re-examining predictive database studies, and statistical analysis. They also help in literature reviews and offer pharma companies a calculated plan to work with their clients and get optimized results.
Increasing adaption of HEOR Services by biotech and pharma companies will increase the market expansion over the years
Based on end-user, the health economics & outcomes research services market is categorized into healthcare providers, biotech/pharma companies, healthcare payers, government organizations, and others. Among these, the biotech/pharma companies segment accounted for USD 337.9 million in 2021. The segmental growth is attributed to increasing adoption of HEOR services by biotechnology and pharmaceutical companies for novel product development and approval. Also, HEOR helps pharmaceutical companies in communicating the value of their innovations to stakeholders such as payers, physicians, and patients. Moreover, with growing demand for precision medicine and value-based care HEOR is moving from a support function to a central role in pharmaceutical companies. Such scenarios will propel the industry statistics.
Huge rise in research and development funding drives the HEOR services market in Europe
European health economics & outcomes research services market held more than 36.5% market share in 2021 and expect similar trend between 2022 and 2028. The regional growth is attributable to the rising awareness and high adoption rate of HEOR services. European companies are opting for HEOR services for customizable and transparent cost-effectiveness model for a pre-launch drug. Additionally, increasing funding on research and development will propel the regional market size. For instance, Germany increased its R&D investment that doubled the country’s spending in the last 20 years that is expected to reach 3.5% of GDP by 2025. Furthermore, presence of prominent HEOR service providers will foster the regional market statistics.
Major leaders are inclining on HEOR services focusing on new product development
Some of the well-known industry players operating in the health economics & outcomes research services market include Axtria, Cardinal Health, Optum, Avalon Health Economics, IQVIA, PharmaLex, McKesson, Syneos Health, MEDLIOR and Pharmaceutical Product Development.
Market players mainly focus on strategic associations including mergers, acquisitions, collaborations, and new product launches to broaden the product portfolio and exploit on market opportunities. For instance, in June 2021, Oblikue Consulting merged with PharmaLex to strengthen health economics & outcomes research services. This merger also benefited in strategic growth area of pricing and reimbursement, that strengthened their global leadership position in the HEOR services industry.