HEOR Services Market - By Service (Economic Modeling/Evaluation, Real-world Data Analysis & Information Systems, Clinical Outcome, Market Access Solutions & Reimbursement), By Service Provider (Consultancy, CROs), By End-use & Forecast, 2023-2032

HEOR Services Market Size

Health Economics & Outcomes Research Services Market size was valued at over USD 1 billion in 2022. The industry is estimated to grow at more than 14% CAGR from 2023 to 2032 driven by growing healthcare concerns in the post-pandemic.
 

One of the primary factors driving the expansion of the health economics and outcomes research services industry is the increasing focus of pharmaceutical and biotechnology companies on the development of novel drugs for the treatment of different chronic conditions. For instance, the Center for Drug Evaluation and Research (CDER) approved 50 new drugs in 2021. Additionally, the number of businesses gaining drug approvals has increased over time, which has been advantageous for the expansion of the overall industry.
 

The strong growth of clinical trials is also contributing to the HEOR services market growth. Health economics and outcomes research supplement clinical drug trials by giving crucial information and research data, assisting decision-makers and healthcare payers in determining patient access to specific medication trials. The success rate of new drugs in some European nations, such as the Netherlands, the UK, and others is very high. Infact, each year, approximately 4,000 clinical trials are approved in Europe.
 

Shortage of skilled professionals may restrain industry progression

Lack of skilled healthcare professionals in developing and underdeveloped economies is impeding the HEOR services market demand. There is a constant need for highly skilled personnel to handle and analyze developed and technically advanced data, particularly in the data collection and analysis sector. Unfortunately, the market for health economics and outcomes research (HEOR) services has consistently struggled to find qualified workers because of the low availability of advanced HEOR services. Nonetheless, developments in HEOR services are likely to aid in combatting the issue.
 

HEOR Services Market Analysis

In terms of service, the HEOR services market is categorized into market access solutions & reimbursement, economic modeling/evaluation, clinical outcome, real-world data analysis & information systems, and others. The market access solutions & reimbursement segment is speculated to witness growth at more than 14.5% CAGR from 2023-2032. The segment includes tools and services for evidence generation and safeguard patient access to drugs at reasonable prices. The burgeoning drug launches and therapies are also accelerating the demand for market access solutions and reimbursement services.
 

With respect to the service provider, the health economics & outcomes research (HEOR) services market is divided into consultancy and contract research organizations (CRO). The consultancy segment is anticipated to depict a growth of over 14.5% between 2023 and 2032. The consultants assist businesses with advice and ideas regarding prudent regulatory requirements. Additionally, the preference for consulting services that support decision-making and provide appropriate business solutions is poised to create several prospects for business expansion.
 

In terms of end-use, the HEOR services market is segmented into healthcare providers, biotech/pharma companies, healthcare payers, government organizations, and others. The global market size from the healthcare payers is foreseen to reach USD 1.2 billion in revenue by 2032. This growth is attributed to increasing reliance of healthcare payers on HEOR studies owing to the transition from fee-for-service to value-based reimbursement, increased consumer-driven healthcare, and rising usage of specialty medications & targeted therapies, healthcare payers are pushing healthcare payers to adopt HEOR studies. The development of analytical tools in healthcare IT enables system alignment across several platforms, further impacting the market positively.
 

Regionally, the global HEOR services market is segregated into Europe, Asia Pacific, North America, the Middle East & Africa, and Latin America. Asia Pacific industry is slated to expand at more than 15.5% CAGR over 2023-2032. The region is set to experience rapid growth driven by high R&D funding by regional pharma giants. Additionally, the region's huge population base and favorable regulatory environment contribute to the market's expansion for HEOR services.
 

HEOR Services Market Share

• McKesson Corporation
• Axtria
• Cardinal Health
• Avalon Health Economics
• MEDLIOR
• IQVIA
• PharmaLex GmbH
• Syneos Health
• RTI Health Solutions
• ICON plc
• PPD Inc (Thermo Fisher Scientific, Inc.)Optum, Inc.

are some of the key HEOR services market players. These companies majorly engage in growth collaborations and alliances to expand their customer base. For instance, in September 2021, Pharmaceutical company IQVIA worked strategically with HealthCore Inc, a clinical research institution in the United States. The partnership improved the impact of real-world studies and unique research designs.
 

Impact of COVID-19 Pandemic

Due to several restrictions on healthcare services and workforce shortage, the pandemic had a moderate impact on the HEOR services industry. The rising prevalence of COVID-19 cases had a significant impact on the healthcare sector. HEOR professionals were closely involved in pandemic-related healthcare issues, examining concerns such as disease incidence and health consequences, disease economic impacts, and treatment options such as vaccines and therapies. All through early 2020, the unexpected consequence of pandemic disrupted the HEOR services industry. However, the greater use of real-world evidence following the COVID-19 outbreak is driving the demand for health economics & outcomes research services.
 

The HEOR service market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million from 2018 to 2032 for the following segments:

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By Service

• Economic Modelling/ Evaluation
• Real-World Data Analysis and Information Systems
• Clinical Outcome
• Market Access Solutions and Reimbursement
• Others

By Service Provider

• Consultancy
• Contract Research Organizations (CROs)

By End-use

• 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
  • Spain
  • Italy
• Asia Pacific
  • China
  • India
  • Japan
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • South Africa
  • Saudi Arabia