Health Economics and Outcomes Research (HEOR) Market Report and Forecast 2025-2034

The global health economics and outcomes research market was valued at USD 1.50 Billion in 2024, driven by the rising number of mergers and acquisitions amongst leading companies across the globe. The market is anticipated to grow at a CAGR of 13.50% during the forecast period of 2025-2034 to achieve a value of USD 5.32 Billion by 2034.

Health Economics and Outcomes Research Market Overview

Health economics and outcomes research (HEOR) evaluates the economic, clinical, and humanistic outcomes of healthcare interventions, ensuring cost-effectiveness and value-based care. It integrates real-world data, economic modelling, and comparative effectiveness research to support market access, pricing strategies, and reimbursement decisions. HEOR aids pharmaceutical, biotech, and healthcare providers in optimising treatment value assessments, healthcare policies, and patient outcomes. By guiding evidence-based decision-making, HEOR helps healthcare stakeholders reduce costs, improve resource allocation, and enhance patient care quality, driving healthcare innovation and sustainable market growth globally.

Health Economics and Outcomes Research Market Growth Drivers

Advancements in Real-World Evidence Enhancing Market Growth

The increasing reliance on real-world evidence (RWE) and regulatory-grade data is driving the growth of the market. The demand for cost-effective healthcare solutions and evidence-based policymaking is further accelerating market expansion. For instance, in June 2024, a new regulatory and audit capability introduced by Truveta aims to support real-world evidence submissions to the U.S. FDA and other regulatory authorities. This advancement strengthens health economics and clinical trial solutions by ensuring high-quality, regulatory-grade EHR data from over 100 million patients across 30 U.S. health systems. By providing real-time patient data, Truveta enhances comparative research, safety evaluations, and market access for new therapies. This development is poised to strengthen the global HEOR market by enabling faster therapy approvals, optimising reimbursement strategies, and improving healthcare decision-making. As real-world data becomes a cornerstone for regulatory submissions, its adoption will expand across biopharmaceutical research, healthcare policy, and treatment efficacy studies, further driving market expansion in the forecast period.

Comparative Outcomes Research to Drive Health Economics and Outcomes Research Market Value

The growing focus on comparative effectiveness research (CER) and cost-effectiveness analysis (CEA) is fostering the expansion of the market. For instance, in September 2024, Comparative Health Outcomes, Policy, and Economics (CHOICE) Institute at the University of Washington partnered with Truveta to utilise its comprehensive EHR database for comparative health outcomes research. Covering 30 U.S. health systems, this partnership enables researchers to evaluate cost-effectiveness, patient reimbursement, and chronic disease management across multiple therapeutic areas, including diabetes, dementia, and sickle cell disease. This initiative is expected to drive significant advancements in HEOR methodologies by providing valuable insights into healthcare policies, treatment efficiency, and patient outcomes. With real-world data supporting evidence-based decision-making and resource allocation, the HEOR market will experience sustained growth and innovation, benefiting pharmaceutical companies, healthcare providers, and policymakers worldwide.

Health Economics and Outcomes Research Market Trends

The market is witnessing several trends and developments to improve the current scenario. Some of the notable trends are as follows:

Increasing Adoption of Real-World Evidence to Enhance Market Growth

The growing reliance on real-world evidence (RWE) for regulatory approvals and healthcare decision-making is transforming the market. Pharmaceutical companies and policymakers use real-world data (RWD) to assess treatment effectiveness, optimize reimbursement strategies, and improve patient outcomes. Regulatory bodies like the FDA and EMA increasingly integrate RWE into their frameworks, accelerating drug development and market access. Over the forecast period, the demand for RWE-driven insights will expand, allowing stakeholders to enhance healthcare cost-efficiency, resource allocation, and patient-centric research, ultimately boosting market growth and long-term sustainability.

Rising Utilization of AI-Driven Analytics to Influence Health Economics and Outcomes Research Market Size Positively

Artificial intelligence (AI) and machine learning (ML) are transforming HEOR analytics, enabling advanced predictive modeling, cost-effectiveness analysis, and patient outcome tracking. AI-driven tools process large healthcare datasets to identify treatment patterns, optimize drug pricing, and improve resource allocation. The adoption of natural language processing (NLP) and deep learning algorithms further enhances HEOR applications in comparative effectiveness research and value-based healthcare models. As AI capabilities advance, HEOR professionals can generate more precise and actionable insights, accelerating market development and supporting data-driven decision-making across biopharmaceutical companies, payers, and healthcare providers.

Expansion of Value-Based Healthcare to Boost Health Economics and Outcomes Research Market Demand

The shift toward value-based healthcare (VBHC) is increasing demand for HEOR solutions that assess treatment outcomes and cost-effectiveness. Payers, policymakers, and healthcare providers seek data-driven insights to optimize pricing, reimbursement models, and patient care strategies. HEOR methodologies, including budget impact analysis and quality-adjusted life years (QALY) calculations, are now integral to healthcare policy. As governments and insurers focus on cost containment and performance-based payments, HEOR will play a crucial role in supporting evidence-based healthcare investments. This trend is expected to drive market value, ensuring sustainable healthcare expenditures and improved patient outcomes globally.

Rising Demand for Personalized Medicine to Strengthen Health Economics and Outcomes Research Market Growth

The increasing focus on personalized medicine and precision therapies is reshaping market dynamics. Tailored treatment approaches require comprehensive health outcomes data to justify costs and demonstrate effectiveness. Health Economics and Outcomes Research plays a crucial role in evaluating the economic and clinical impact of genomic-based therapies, biologics, and cell and gene treatments. With regulatory agencies emphasizing real-world data for personalized treatment approvals, HEOR applications in patient stratification, treatment cost analysis, and long-term health impact assessments are growing. Over the forecast period, the integration of HEOR insights into personalized medicine frameworks will fuel market expansion and support innovative healthcare solutions.

Health Economics and Outcomes Research Market Segmentation

Health Economics and Outcomes Research Market Report and Forecast 2025-2034 offers a detailed analysis of the market based on the following segments:

Market Breakup by Service

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

Market Breakup by Service Provider

• Consultancy
• Contract Research Organizations (CROs)

Market Breakup by End User

• Healthcare Providers
• Healthcare Payers
• Biotech/Pharma Companies
• Government Organizations
• Others

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Health Economics and Outcomes Research Market Share

Real-World Data Analysis and Information Systems to Dominate the Services Segment

Real-world data analysis and information systems are expected to hold the largest market share due to their critical role in healthcare decision-making, regulatory submissions, and value-based assessments. The rising adoption of real-world evidence (RWE) by pharmaceutical companies, payers, and regulators drives demand for advanced data analytics and predictive modelling. Increasing reliance on electronic health records (EHRs), claims databases, and patient registries enhances treatment evaluation and healthcare resource optimisation. With expanding applications in personalised medicine and post-market surveillance, this segment is set to propel market growth, improving healthcare cost efficiency and patient outcomes.

Consultancy Services to Lead the Health Economics and Outcomes Research Market Segmentation by Service Provider

Consultancy firms are poised to dominate the HEOR service provider segment due to their expertise in health economics modelling, market access strategies, and reimbursement planning. Pharmaceutical companies, biotech firms, and payers seek consultancy support to navigate complex regulatory landscapes and value-based pricing models. The growing demand for customised HEOR solutions and data-driven insights further strengthens this segment. Consultancy firms leverage AI-driven analytics, policy expertise, and stakeholder engagement strategies, enabling clients to optimise drug pricing, market entry, and health policy influence. As healthcare cost containment remains a priority, consultancy services will drive market growth and competitive advancements.

Biotech and Pharma Companies to Hold a Significant Health Economics and Outcomes Research Market by End User

Biotech and pharmaceutical companies will lead the HEOR end-user segment as they heavily invest in economic modelling, clinical outcomes research, and reimbursement strategies. Increasing drug development costs and stringent regulatory requirements necessitate robust HEOR data to demonstrate treatment value and secure market access. The shift toward real-world evidence, precision medicine, and innovative pricing models fuels demand for HEOR services. With growing collaborations with payers, regulators, and research organisations, pharma companies leverage HEOR insights to optimise drug lifecycle management and post-market surveillance, ensuring sustained market growth and competitive differentiation in the forecast period.

Health Economics and Outcomes Research Market Analysis by Region

North America is expected to hold the largest market share, driven by high healthcare expenditure, strong regulatory frameworks, and extensive RWE adoption. The presence of leading pharmaceutical companies, advanced healthcare infrastructure, and favourable reimbursement policies enhances market growth. Europe follows closely, supported by stringent health technology assessment (HTA) policies and increasing government funding for cost-effectiveness studies. Meanwhile, Asia Pacific is witnessing rapid growth due to expanding healthcare systems, rising clinical trials, and growing HEOR adoption in emerging economies. The Middle East, Africa, and Latin America are also investing in value-based healthcare models, fostering HEOR market expansion.

Leading Players in the Health Economics and Outcomes Research Market

The key features of the market report comprise funding and investment analysis, and strategic initiatives by the leading players. The major companies in the market are as follows:

McKesson Corporation

McKesson Corporation plays a crucial role in the market, offering data-driven insights, real-world evidence (RWE), and healthcare analytics. The company provides value-based care solutions, pharmaceutical distribution, and patient access programs, supporting healthcare providers, payers, and pharmaceutical companies. Its advanced analytics and technology-driven services enhance cost-effectiveness assessments and healthcare decision-making, contributing to market growth and improved patient outcomes.

Axtria

Axtria is revolutionising the HEOR market through cloud-based data analytics, AI-driven healthcare insights, and real-world data analysis. It supports life sciences companies, payers, and providers in optimising market access, pricing strategies, and patient outcomes. Axtria’s HEOR solutions integrate predictive modelling, advanced analytics, and automation, enabling cost-effective treatment evaluations and regulatory submissions, driving healthcare innovation and strategic decision-making in the forecast period.

Cardinal Health

Cardinal Health significantly impacts the market by offering comprehensive healthcare analytics, real-world evidence (RWE), and patient access solutions. It supports pharmaceutical manufacturers, healthcare providers, and payers with outcomes-based research, cost-effectiveness analysis, and clinical insights. Cardinal Health’s strong supply chain network, advanced healthcare data solutions, and technology-driven services strengthen market access strategies, improving healthcare decision-making, patient care efficiency, and market growth.

Avalon Health Economics

Avalon Health Economics focuses on cost-effectiveness studies, market access strategies, and real-world data analytics to support pharmaceutical, biotech, and medical device companies. Its expertise in economic modelling, health technology assessments (HTA), and reimbursement strategy development enhances pricing and regulatory decisions. Avalon’s research-driven approach aids in optimising treatment value assessments, supporting evidence-based policymaking, and accelerating global HEOR market expansion.

Medlior

Medlior is a specialised HEOR and RWE research firm providing systematic reviews, database studies, and economic evaluations for pharmaceutical, biotech, and healthcare organisations. It supports clinical trials, post-market surveillance, and health policy development through advanced real-world data analytics. Medlior’s evidence-based approach enhances market access, regulatory approvals, and cost-effectiveness studies, driving HEOR market growth and improving healthcare decision-making.

Other key players in the market include Iqvia, Pharmalex GmbH, ZS, Deloitte, and Cytel.

Key Questions Answered in the Health Economics and Outcomes Research Market

• What was the global health economics and outcomes research market value in 2024?
• What is the global health economics and outcomes research market forecast outlook for 2025-2034?
• What is market segmentation based on the services?
• What is market segmentation based on the service provider?
• What is market segmentation based on end user?
• What are the major factors aiding the global health economics and outcomes research market demand?
• How has the market performed so far, and how is it anticipated to perform in the coming years?
• What are the market's major drivers, opportunities, and restraints?
• What are the major global health economics and outcomes research market trends?
• Which services will lead the market segment?
• Which service provider will lead the market segment?
• Which end user will lead the market segment?
• Who are the key players involved in the global health economics and outcomes research market?
• What are the current unmet needs and challenges in the market?
• How are partnerships, collaborations, mergers, and acquisitions among the key market players shaping the market dynamics?

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