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

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  • 115 Pages
  • June 2022
  • Region: Global
  • Mordor Intelligence
  • ID: 5617277
The health economics and outcomes research (HEOR) services market is expected to register a CAGR of 11.2% over the forecast period.

When COVID-19 struck, economies across the globe started to struggle. Governments worldwide imposed travel restrictions and lockdowns. Many of the industrial sectors started to struggle as they were close. However, Health Economics and Outcomes Research (HEOR) was proven to be a great help during the pandemic. Pharmaceutical and biotech market players across the globe started investing in research and development (R&D) activities and engaged in the innovation of a vaccine or a therapeutic treatment to aid the Covid-19 Infection. HEOR played a major role in this context, as it can help pharmaceutical and biologics firms to evaluate their spending on the 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 the increasing R&D expenditure by government and market players, increasing adaption of HEOR services by biotech and pharma companies. In addition to that growing demand for real-world evidence and outcome data for reimbursement is also one of the major factors driving the studied market.

Moreover, owing to growing number of pharmaceutical and biotechnology companies globally coupled with upsurge of new drugs and increasing clinical trials the studied market is poised to witness lucrative growth in near future. The data provided by World Health Organization (WHO) published in February 2022 shows that there was a steady rise in the number of new registered clinical trials in WHO International Clinical Trials Registry Platform (ICTRP) for most of the WHO regions in 2021. Also, the source mentioned that in Europe, Americas and Western Pacific regions the number of trials registered has increased at a much higher rate than in other regions. For instance, the number of trials registered in Western Pacific was 16,860, which was around 20 times higher than that in Africa 851 in the year 2021. Hence, the increase in number of clinical trials is anticipated to demand for better HEOR services globally, driving the studied market growth.

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

Key Market Trends

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

Consulting solutions basically designed to extend resources. The consulting services provide prospective planning of lead optimization, safety assessment, metabolism, and analytical study services among other benefits. Owing to the increased drug and therapeutics development activities in the pharmaceutical and biotechnological industries is one of the major driving factors which contributes to the growth of the consultancy segment by service providers. Thus, the consultancy by service provider segment is expected to dominate the market over the forecast period among other segments.

Moreover, the strategic activities by regional and global market players are accelerating the studied segment growth. For instance, In September 2020, Oncology Analytics, a leading data analytics, and technology-enabled services company launched Pharmacy Consulting Services designed to help health plans successfully navigate the world of anti-cancer drugs. Additionally, in April 2022, Snowflake Inc., a cloud computing-based data warehousing company launched a Healthcare and Life Sciences Data Cloud Consulting Services which enable organizations to securely centralize, integrate, and exchange critical and sensitive data at scale.

Again, in May 2022, Moses & Singer launched its new consulting company, MS Strategic Solutions LLC, to provide diverse strategic and advisory services to clients in digital healthcare/ life sciences sectors and others. Thus, increasing activities by major players in the country attributes to the studied market growth. In addition, in May 2022, Cigna, an American multinational managed healthcare and insurance company launched a new oncology consulting service to improve health outcomes for members. Thus, continuous activities by global market players is expected to drive the studied market segment.

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

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.

The research and development (R&D) spending and the introduction of new drugs have both increased in the past two decades in the United States (U.S.). The U.S. pharmaceutical industry develops numerous new drugs every year which provide medical benefits. Most drugs are expensive and contribute to rising health care costs for the private sector and the federal government. For instance, as per data provided by the Congressional Budget Office (CBO), the U.S. pharmaceutical industry spent nearly USD 83 billion on R&D which is about 10 times what the industry spent per year in the 1980s. The HEOR services helps healthcare service providers to pay attention to uncertain spending during or after drugs development. Hence, increasing expenditure in the pharmaceutical industries is poised to drive the studied market growth in the country.

Furthermore, increasing strategic activities by major players is one of the major driving factors attributed to the growth of the studied market. For instance, In August 2021, Syneos Health and Aetion partnered to provide regulatory-grade data and analytics-driven solutions to advance drug development and improve patient outcomes. The partnership brings together Syneos Health’s proprietary data collection and research solutions with Aetion Evidence Platform (AEP) to generate evidence through patient data curation and real-world data.

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

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

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.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

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Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing R&D Expenditure by Government and Market Players
4.2.2 Increasing adaption of HEOR Services by Biotech and Pharma Companies
4.2.3 Growing Demand for Real-World Evidence and Outcome Data for Reimbursement
4.2.4 Growing Pharmaceutical and Biotechnology Companies coupled with Upsurge of New Drugs and Increasing Clinical Trials
4.3 Market Restraints
4.3.1 Lack of Skilled Healthcare Professional
4.3.2 Restrictions on Access to Real-World Data (RWD)
4.4 Porter's Five Force Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION (Market Size by Value - USD million)
5.1 By Service
5.1.1 Economic Modelling/Evaluation
5.1.2 Real-World Data Analysis and Information Systems
5.1.3 Clinical Outcome
5.1.4 Market Access Solutions and Reimbursement
5.2 By Service Provider
5.2.1 Consultancy
5.2.2 Contract Research Organizations (CROs)
5.3 By End User
5.3.1 Biotech/Pharma Companies
5.3.2 Healthcare Providers
5.3.3 Government Organizations
5.3.4 Healthcare Payers
5.4 Geography
5.4.1 North America United States Canada Mexico
5.4.2 Europe Germany United Kingdom France Italy Spain Rest of Europe
5.4.3 Asia-Pacific China Japan India Australia South Korea Rest of Asia-Pacific
5.4.4 Middle East and Africa GCC South Africa Rest of Middle East and Africa
5.4.5 South America Brazil Argentina Rest of South America
6.1 Company Profiles
6.1.1 Cardinal Health
6.1.3 Axtria, Inc.
6.1.4 Avalon Health Economics LLC
6.1.7 Analysis Group
6.1.8 ICON PLC
6.1.9 Syneos Health
6.1.10 UnitedHealth Group (Optum, Inc.)
6.1.11 Thermo Fischer Scientific (PPD Inc.)

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • Cardinal Health
  • Axtria, Inc.
  • Avalon Health Economics LLC
  • Analysis Group
  • Syneos Health
  • UnitedHealth Group (Optum, Inc.)
  • Thermo Fischer Scientific (PPD Inc.)