Pharmacovigilance Global Market Report 2024

The pharmacovigilance market size has grown rapidly in recent years. It will grow from $7.63 billion in 2023 to $8.67 billion in 2024 at a compound annual growth rate (CAGR) of 13.6%. The expansion observed in the historical period can be attributed to the increasing incidence of adverse drug reactions (ADRs), rising research and development (R&D) activities, growing rates of drug development, an increased focus on personalized medicine, and the rising prevalence of chronic diseases.

The pharmacovigilance market size is expected to see rapid growth in the next few years. It will grow to $14.11 billion in 2028 at a compound annual growth rate (CAGR) of 12.9%. The anticipated growth in the forecast period can be attributed to factors such as the rising healthcare expenditure, increasing government support, and the aging population. Key trends expected in the forecast period include increasing investments, the use of artificial intelligence, adoption of innovative platforms, utilization of innovative cloud-based systems, and strategic mergers and acquisitions.

The pharmacovigilance market is set to experience growth due to increasing research and development (R&D) activities in the pharmaceutical sector. Investments in R&D enable pharmaceutical companies to develop new drugs with improved safety profiles. Rigorous preclinical and clinical testing during drug development aids in early identification of potential safety concerns, allowing for timely implementation of risk mitigation strategies. Additionally, R&D efforts contribute to the advancement of technologies for adverse event monitoring, data analysis, and signal detection, facilitating early detection of adverse drug reactions post-marketing. A study by IQVIA in February 2022 revealed a significant increase in venture capital deal activity and investments in the U.S., with pharmaceutical giants investing a record $133 billion in R&D in 2021, marking a 44% increase over previous years. This surge in R&D activities supports the growth of the pharmacovigilance market.

The pharmacovigilance market is expected to witness growth propelled by rising healthcare expenditure. Increased funding enables healthcare systems to invest in advanced technologies, data analytics, and expert teams for efficient identification and assessment of adverse drug reactions. Higher healthcare spending also facilitates better training and education of healthcare professionals on pharmacovigilance practices, ensuring timely reporting and analysis of potential drug-related issues. The Centers for Medicare & Medicaid Services projects an increase in National Health Expenditures, reaching 19.6% of GDP by 2031. Additionally, the National Association of Chronic Disease Directors reported that almost 60% of adult Americans have at least one chronic disease, emphasizing the need for increased healthcare expenditure. This upward trajectory in healthcare spending is expected to drive the pharmacovigilance market.

Pharmacovigilance market players are strategically adopting artificial intelligence (AI) to enhance efficiency. AI contributes to improved accuracy and efficiency in pharmacovigilance activities, leading to better patient outcomes. Pharma companies utilizing AI can streamline processes, enhance data management, and expedite drug discovery while reducing costs and enhancing safety. For instance, Deloitte and Sanofi collaborated on an AI software-as-a-service adverse events case intake platform called ConvergeHEALTH Safety to modernize pharmacovigilance. Sanofi reported increased case quality and processing efficiency within pharmacovigilance through the automation of case intake. The integration of AI is a significant focus in the pharmacovigilance market.

Pharmacovigilance providers are making substantial investments to expand their product portfolios and geographic presence. In September 2022, the PharmaLex Group opened a new branch in Beijing, China, offering comprehensive pharmacovigilance, regulatory affairs, development advice, and quality management services to global companies entering the Chinese market. The PharmaLex Group's expansion aims to provide enhanced support and value across the product lifecycle.


In January 2023, AmerisourceBergen acquired Pharma Lex to augment its existing service offering and provide pharmaceutical and biotech companies with comprehensive support for pharmacovigilance systems and operations, including benefit-risk management services. These strategic investments contribute to the growth and expansion of the pharmacovigilance market.

Major companies operating in the pharmacovigilance market report are IQVIA, Cognizant, ICON PLC, Accenture PLC, PAREXEL International Corporation., United BioSource LLC, ArisGlobal, Quanticate, Wipro Limited, Linical Americas, Novotech CRO, Wuxi Apptec, Simcere Pharmaceutical Group, Lee's Pharmaceutical Holdings, Luye Pharma Group, EXTEDO, Arriello, PrimeVigilance, Axios International, C3i Solutions, Alcon, Secure AI Labs, OmniSol dot Tech, Canna Call Company, Veripad, Prevnos Inc., Lifescient, Inc., BeiGene, QuintilesIMS, Labcorp Drug Development, Pharmaceutical Product Development Inc., PRA Health Sciences, Synowledge LLC, RAPAhub, illuminate health, Invenio Medical, ClinChoice Inc., MSD, Novasyte, Fortrea Holdings Inc., Syneos Health Clinical, Zoetis Inc., Telerx Marketing Inc., Gilead Sciences, Inc., Elanco, Abbott Laboratories, Spimaco, Teva Pharmaceutical Industries Ltd., DSV Healthcare.

North America was the largest region in the pharmacovigilance market in 2023. Asia-Pacific is expected to be the fastest growing region in the forecast region. The regions covered in the pharmacovigilance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the pharmacovigilance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The primary types of pharmacovigilance include spontaneous reporting, intensified adverse drug reaction (ADR) reporting, targeted spontaneous reporting, cohort event monitoring, and electronic health record (EHR) mining. Spontaneous reporting relies on individuals' voluntary reporting of suspected adverse drug reactions to local or national pharmacovigilance centers, representing a passive approach. Process flows involve case data management, signal detection, and risk management systems. Service providers can be in-house or contracted for outsourcing, covering various clinical trial phases such as preclinical, phase I, phase II, phase III, and phase IV. These services cater to different end-users, including hospitals, pharmaceutical companies, and others.

The pharmacovigilance market research report is one of a series of new reports that provides pharmacovigilance market statistics, including pharmacovigilance industry global market size, regional shares, competitors with a pharmacovigilance market share, detailed pharmacovigilance market segments, market trends, and opportunities, and any further data you may need to thrive in the pharmacovigilance industry. This pharmacovigilance market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The pharmacovigilance market includes revenues earned by collecting, analyzing, monitoring, and preventing adverse effects in drugs and therapies. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.