Health Economics and Outcomes Research (HEOR) Services Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The health economics and outcomes research (HEOR) services market is segmented by Service (Economic Modelling/Evaluation, Real-World Data Analysis and Information Systems, Clinical Outcome, and Market Access Solutions and Reimbursement), Service Provider (Consultancy and Contract Research Organizations (CROs)), End-User (Biotech/Pharma Companies, Healthcare Providers, Government Organizations and Healthcare Payers), and Geography (North America, Europe, Asia-Pacific, Middle-East and Africa, and South America). The report offers the value (in USD million) for the above segments.

Market Snapshot

Health Economics and Outcomes Research Services Market Size
Study Period: 2019-2027
Base Year: 2021
Fastest Growing Market: Asia-Pacific
Largest Market: North America
CAGR: 11.2 %

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Market Overview

The health economics and outcomes research (HEOR) services market is expected to register a CAGR of 11.2% over the forecast period, 2022-2027.

When COVID-19 struck, economies around the world began to struggle. Governments around the world have imposed travel restrictions and lockdowns. Many industries began to struggle because they were close. However, Health Economics and Outcomes Research (HEOR) has proven to be of great help during the pandemic. Pharmaceutical and biotech market players around the world have started investing in research and development (R&D) activities and engaged in vaccine or therapeutic treatment innovations to support the Covid-19 infection. HEOR has played a major role in this context, as it can help pharmaceutical and biologics companies evaluate their spending on an upcoming product or treatment. An article published in September 2021 titled “Effect of COVID-19 on demand for healthcare in Togo” stated that developing countries focused on reducing the risk of health care utilization during Covid-19 and ensured basic health care services as an important policy that can improve health outcomes. Hence, the Covid-19 pandemic had a positive impact on the studied market.

The growth of the HEOR services market is attributed to increasing R&D spending by the government and market players and increasing adoption of HEOR services by biotech and pharmaceutical companies. In addition, the growing demand for real-world evidence and outcome data for reimbursement is also one of the major factors influencing the researched market.

Moreover, due to the increasing number of pharmaceutical and biotech companies worldwide coupled with the rise of new drugs and increasing clinical trials, the market under study is poised for lucrative growth in the near future. Data provided by the World Health Organization (WHO) published in February 2022 shows that the number of new clinical trials registered on the WHO International Clinical Trials Registry Platform (ICTRP) increased steadily in 2021 in most WHO regions. The source said that in Europe, the Americas, and the Western Pacific regions, the number of registered studies increased much faster than in other regions. For example, the number of trials registered in the Western Pacific was 16,860, which was about 20 times more than the 851 in Africa in 2021. Therefore, the increase in the number of clinical trials is expected to demand better HEOR services worldwide, the studied market growth.

In addition, in May 2022, Trinity Life Sciences launched a project to explore the implications of significant developments and growth in the field of Health Economics and Outcomes Research (HEOR) in the United States over the past decade. Much of the change has been driven by payers, regulators, and clinicians who are increasingly looking to HEOR and Real-World Evidence (RWE) as a valuable source of patient-level data. The positive results of such studies will also have a positive impact on the market under study.

Therefore, owing to the aforementioned factors, the studied market is anticipated to witness growth over the forecast period. However, a lack of skilled healthcare professionals and restrictions on access to real-world data (RWD) may hinder the market growth over time (2022-2027).

Scope of the Report

As per the scope of the report, Health economics and outcomes research (HEOR) services guide healthcare providers to examine and select from multiple treatment options. The HEOR services establish and measure the link between treatment and actual outcomes. Therefore, enables evidence-based guidance on how to improve care.

The health economics and outcomes research (HEOR) services market is segmented by Service (Economic Modelling/Evaluation, Real-World Data Analysis and Information Systems, Clinical Outcome, and Market Access Solutions and Reimbursement), Service Provider (Consultancy and Contract Research Organizations (CROs)), End-User (Biotech/Pharma Companies, Healthcare Providers, Government Organizations and Healthcare Payers), and Geography (North America, Europe, Asia-Pacific, Middle-East and Africa and South America). The market report also covers the estimated market sizes and trends for 17 different countries across major regions, globally. The report offers the value (in USD million) for the above segments.

By Service
Economic Modelling/Evaluation
Real-World Data Analysis and Information Systems
Clinical Outcome
Market Access Solutions and Reimbursement
By Service Provider
Consultancy
Contract Research Organizations (CROs)
By End User
Biotech/Pharma Companies
Healthcare Providers
Government Organizations
Healthcare Payers
Geography
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
France
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Rest of Asia-Pacific
Middle-East and Africa
GCC
South Africa
Rest of Middle-East and Africa
South America
Brazil
Argentina
Rest of South America

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Key Market Trends

Consultancy by Service Provider Segment is Expected to Dominate the Market Over the Forecast Period

Consulting solutions are primarily designed to expand resources. Consulting services include prospective leadership optimization planning, safety evaluation, metabolism, and analytical studies, among others. The increased activities in the development of drugs and therapeutics in the pharmaceutical and biotech industry are one of the main drivers contributing to the growth of the consulting service provider segment. Thus, consulting by the service provider segment is expected to dominate the market among other segments during the forecast period.

In addition, the strategic activities of regional and global market players accelerate the growth of the segment under study. For example, in September 2020, Oncology Analytics, a leading data analytics and technology services company, launched Pharmacy Consulting Services to help health plans successfully navigate the world of cancer drugs. Additionally, in April 2022, Snowflake Inc., a cloud computing data storage company, launched healthcare and life sciences cloud consulting services that enable organizations to securely centralize, integrate and exchange important and sensitive data at scale.

In May 2022, Moses & Singer launched its new consulting firm, MS Strategic Solutions LLC, to provide a variety of strategic and advisory services to clients in digital health/life science and other industries. Thus, the increasing activities of the major players in the country attribute to the growth of the market under investigation. In addition, in May 2022, Cigna, an American multinational managed health and insurance company, launched a new oncology consultation service to improve health outcomes for members. Hence, the continuous activities of the global market players are expected to drive the market segment under study.

Therefore, the consultancy segment is anticipated to witness growth over the forecast period owing to the aforementioned factors.

HEOR Services Market Trend 1

North America is Expected to Dominate the Market Over the Forecast Period

North America is expected to dominate the studied market. Factors such as increasing research and development expenditure by biotechnology and pharmaceutical companies across the countries in the region and booming clinical trials coupled with drug approvals, especially in the United States, are driving the growth of the HEOR services market in North America.

Spending on research and development (R&D) and the introduction of new drugs has increased over the past two decades in the United States (US). Every year, the American pharmaceutical industry develops a number of new drugs that provide medical benefits. Most drugs are expensive and contribute to rising health care costs for the private sector and the federal government. For example, according to data provided by the Congressional Budget Office (CBO), in April 2021, the US pharmaceutical industry spent nearly $83 billion on research and development, about ten times what the industry spent annually in the 1980s. HEOR services help healthcare providers address uncertain costs during or after drug development. Thus, the rising expenditure in the pharmaceutical industry is poised to drive the studied market growth in the country.

In addition, increasing strategic activities of major players is one of the major driving factors attributed to the growth of the market under study. For example, in August 2021, Syneos Health and Aetion partnered to provide regulatory-level data and analytics solutions to advance drug development and improve patient outcomes. This partnership combines Syneos Health's proprietary data collection and research solutions with the Aetion Evidence Platform (AEP) to generate evidence through the processing of patient and real-world data.

In addition, in April 2022, Optum and Change Healthcare agreed to extend their merger agreement through December 31, 2022. Through this agreement, Optum and Change Healthcare will connect and simplify the core clinical, administrative, and payment processes that healthcare providers and payers rely on to serve patients.

Therefore, owing to the aforesaid factors, the growth of the HEOR services market is anticipated in the North American region.

Health Economics and Outcomes Research Services Market Growth

Competitive Landscape

The HEOR services market is competitive and consists of several major players, along with multiple market players. Increasing strategic activities by regional and global players are increasing the competitive environment of the market studied. The competitive landscape includes an analysis of several companies which hold most of the market shares and are well known. Cardinal Health, McKesson CORPORATION, Axtria, Inc., Avalon Health Economics LLC, MEDLIOR, UnitedHealth Group (Optum, Inc.), and PHARMALEX GMBH, among others.

Recent Development

  • In April 2022, Excelra strategically invested in Anlitiks, a young and rapidly growing technology company in the value and evidence domain. The investment reinforces Excelra's push into the Health Economics and Outcomes Research (HEOR) and Real-World Evidence (RWE) analytics area.
  • In March 2022, Fishawack Health (FH), a leading commercialization partner for biopharmaceutical, medical technology, and wellness companies, acquired the US-based health economics and outcomes research (HEOR) consultancy Policy Analysis Inc. (PAI) as part of its expanding Value, Evidence, and Access (VEA) capability.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

      1. 4.2.1 Increasing R&D Expenditure by Government and Market Players

      2. 4.2.2 Increasing adaption of HEOR Services by Biotech and Pharma Companies

      3. 4.2.3 Growing Demand for Real-World Evidence and Outcome Data for Reimbursement

      4. 4.2.4 Growing Pharmaceutical and Biotechnology Companies coupled with Upsurge of New Drugs and Increasing Clinical Trials

    3. 4.3 Market Restraints

      1. 4.3.1 Lack of Skilled Healthcare Professional

      2. 4.3.2 Restrictions on Access to Real-World Data (RWD)

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION (Market Size by Value - USD million)

    1. 5.1 By Service

      1. 5.1.1 Economic Modelling/Evaluation

      2. 5.1.2 Real-World Data Analysis and Information Systems

      3. 5.1.3 Clinical Outcome

      4. 5.1.4 Market Access Solutions and Reimbursement

    2. 5.2 By Service Provider

      1. 5.2.1 Consultancy

      2. 5.2.2 Contract Research Organizations (CROs)

    3. 5.3 By End User

      1. 5.3.1 Biotech/Pharma Companies

      2. 5.3.2 Healthcare Providers

      3. 5.3.3 Government Organizations

      4. 5.3.4 Healthcare Payers

    4. 5.4 Geography

      1. 5.4.1 North America

        1. 5.4.1.1 United States

        2. 5.4.1.2 Canada

        3. 5.4.1.3 Mexico

      2. 5.4.2 Europe

        1. 5.4.2.1 Germany

        2. 5.4.2.2 United Kingdom

        3. 5.4.2.3 France

        4. 5.4.2.4 Italy

        5. 5.4.2.5 Spain

        6. 5.4.2.6 Rest of Europe

      3. 5.4.3 Asia-Pacific

        1. 5.4.3.1 China

        2. 5.4.3.2 Japan

        3. 5.4.3.3 India

        4. 5.4.3.4 Australia

        5. 5.4.3.5 South Korea

        6. 5.4.3.6 Rest of Asia-Pacific

      4. 5.4.4 Middle-East and Africa

        1. 5.4.4.1 GCC

        2. 5.4.4.2 South Africa

        3. 5.4.4.3 Rest of Middle-East and Africa

      5. 5.4.5 South America

        1. 5.4.5.1 Brazil

        2. 5.4.5.2 Argentina

        3. 5.4.5.3 Rest of South America

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 Cardinal Health

      2. 6.1.2 McKESSON CORPORATION

      3. 6.1.3 Axtria, Inc.

      4. 6.1.4 Avalon Health Economics LLC

      5. 6.1.5 MEDLIOR

      6. 6.1.6 PHARMALEX GMBH

      7. 6.1.7 Analysis Group

      8. 6.1.8 ICON PLC

      9. 6.1.9 Syneos Health

      10. 6.1.10 UnitedHealth Group (Optum, Inc.)

      11. 6.1.11 Thermo Fischer Scientific (PPD Inc.)

    2. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Competitive Landscape covers- Business Overview, Financials, Products and Strategies and Recent Developments

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Frequently Asked Questions

The Global Health Economics and Outcomes Research (HEOR) Services Market market is studied from 2019 - 2027.

The Global Health Economics and Outcomes Research (HEOR) Services Market is growing at a CAGR of 11.2% over the next 5 years.

Asia-Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2021.

McKESSON CORPORATION, Axtria, Inc., Syneos Health, UnitedHealth Group (Optum, Inc.), PHARMALEX GMBH are the major companies operating in Global Health Economics and Outcomes Research (HEOR) Services Market.

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