The health economics and outcome research (HEOR) services market size is projected to reach US$ 3,797.86 million by 2031 from US$ 1,682.92 million in 2024. The market is expected to register a CAGR of 12.3% during 2024–2031. Digitalization in healthcare is likely to remain a key trend in the health economics and outcome research (HEOR) services market.
The health economics and outcome research (HEOR) services market is expected to witness substantial growth in the coming years due to increasing demand for cost-effective healthcare solutions and the need to demonstrate the value of medical interventions. The market is poised for significant growth with an increasing number of drug approvals and substantial investments in research and development within the pharmaceutical sector. As healthcare systems worldwide strive to balance cost and quality, the demand for HEOR services is expected to continue its upward trajectory, offering valuable insights into the economic and clinical outcomes of medical treatments.
HEOR services are essential for evaluating the economic impact and effectiveness of medical interventions, thereby informing healthcare policies and treatment decisions. The market is driven by the pharmaceutical and biotechnology sectors, which rely on HEOR to demonstrate the value of their products to payers and regulators. Additionally, the growing number of clinical trials and the integration of real-world evidence (RWE) into healthcare decision-making are contributing to market expansion.
One of the most important developments in HEOR is the growing use of RWE in healthcare decision-making in Germany. RWE is being utilized more and more to supplement randomized controlled studies and research as it offers important insights into the efficacy and cost-effectiveness of healthcare interventions in real-world settings. Cegedim Health Data has expanded its European database, THIN, to include German real-world data (RWD) in November 2023. With over 10 million active EHRs annually, THIN serves as a key source of anonymized longitudinal data for various healthcare stakeholders, including pharmaceutical companies and researchers. The standardized data model of THIN allows for easy comparisons and is recognized for its statistical robustness, contributing to improvements in patient care and public health outcomes.
The broad healthcare industry has a constant demand for product developments that offer quality products. Moreover, the rising incidence of acute and chronic diseases, growing demand for minimally invasive treatments, rising healthcare expenditure, and evolving technologies are propelling the demand for healthcare product development. The upgrading healthcare systems and increasing technological development have offered technologies such as genomics, artificial intelligence, minimally invasive services, point-of-care services, and robotics treatments.
The main focus of the manufacturer is to offer cost-effective and efficient products in the market. Product development leads to better communication between the healthcare provider and patients. This results in an increased awareness and knowledge, leading the company and industrial growth. Health economics and their outcomes are studied to drive better business. Designing a product and its lifecycle becomes difficult for market players in the developmental process. Various companies outsource HEOR services to understand regulations, healthcare coverage, and access decisions and identify the intervention that would benefit the specific populations of patients. The HEOR's most essential service is helping players fill the gap between clinical trials and actual health outcomes.
Startup registrations have increased, and North America, Europe, and Asia Pacific have registered various startups post-COVID-19 pandemic. The number increased significantly during the COVID-19 pandemic, resulting in increased product developments. As these players are new to the market, they require proper guidance and understanding of the market; also, they need to outsource HEOR services. Various well-established companies also outsource HEOR services to save the cost of production. The HEOR service providers help pharmaceutical, biotechnology, and medical device companies explain the value of their innovations to their respective stakeholders, such as physicians, payers, and patients. Thus, increasing product development is driving demand for HEOR services and fuels market growth.
Precision medicine is an emerging segment in the healthcare industry. Research and developments have shown promising results in the betterment of people and health improvement. However, despite various developments and improvements, there is a lack of evidence, thresholds, and reimbursement scenarios. Various researchers, payers, healthcare service providers, and market players are working to deploy new insights into personalized or precision medicine applications in early drug development and their consequences for health technology assessment. These provide ample growth opportunities for HEOR service providers to enhance their services for strategy and consulting, real-world evidence, modeling and microsimulation, and evidence synthesis associated with precision medicine. In addition, the HEOR guidelines and frameworks can clarify outcomes and their impacts caused by regulatory and reimbursement policies for precision medicine applications. Moreover, they are expected to guide research investments to improve the appropriate use of precision medicine.
The HEOR services market is expected to have vital growth opportunities in North America and Europe. These two regions are incorporating precision medicine into hospital settings. For instance, Europe has initiated the 1+ Million Genomes initiative, aiming to sequence one million genomes by 2022 and use the potential of genomics to improve disease prevention and enable more personalized treatments. Thus, the emergence of precision medicine is expected to provide vital growth opportunities for the market during the forecast period.
Key segments that were the foundation of health economics and outcome research (HEOR) services market analysis are service, service provider, and end user.
The geographic scope of the health economics and outcome research (HEOR) services market report is divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.
North America held a significant share of the market in 2024. The regional market growth is driven by growing demand for HEOR services by the healthcare market players, growing support from the government to provide cost-effective healthcare service, increasing strategic developments by the HEOR players to enhance services, and a growing healthcare industry that demands frameworks and guidelines based on the real-world data for their business models.
Increased research and development investments by the US government and market players are fueling the HEOR services market. According to the National Center for Science and Engineering Statistics (NCSES), businesses contributed US$ 130 billion to research in 2021, which accounted for 49% of all research spending in the US and 22% of all corporate funding for research and development. 77% of all US research and development in 2021 was conducted by businesses, totaling US$ 609 billion.
Canada is the fastest-developing country in North America and has a well-established healthcare system, which is among the best healthcare systems globally. The country has the Canadian Center for Health Economics (CCHE) for HEOR services. The system is highly regulated and thus offers world-class healthcare services. Public organizations and companies widely offer healthcare services in the country.
The government of Canada is making large investments in clinical trials to develop new instruments and therapies. According to the Canadian Institutes of Health Research (CIHR) article published in August 2024, more than US$ 103.1 million has been allocated for 36 clinical trial projects since 2022 through the CIHR Clinical Trials Fund, Canada's Strategy for Patient-Oriented Research, and Canada's Centre for Research on Pandemic Preparedness and Health Emergencies. Fourteen new clinical studies aimed at addressing health emergencies and developing the life sciences industry are being supported by a recent investment of more than US$ 43 million. For a range of medical issues, these studies evaluate therapies, diagnostic procedures, and preventative measures.
The regional trends and factors influencing the Health Economics and Outcome Research (HEOR) Services Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Health Economics and Outcome Research (HEOR) Services Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2024 | US$ 1,682.92 Million |
| Market Size by 2031 | US$ 3,797.86 Million |
| Global CAGR (2024 - 2031) | 12.3% |
| Historical Data | 2021-2023 |
| Forecast period | 2024-2031 |
| Segments Covered |
By Service
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Health Economics and Outcome Research (HEOR) Services Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Health Economics and Outcome Research (HEOR) Services Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The health economics and outcome research (HEOR) services market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the health economics and outcome research (HEOR) services market are listed below:
The "Health Economics and Outcome Research (HEOR) Services Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:
The market is estimated to register a CAGR of 12.3% during the forecast period.
The increasing product development, growing healthcare spending, and surge in clinical trials are noteworthy factors contributing to market growth.
PharmaLex GmbH, ICON Plc, IQVIA Holdings Inc., Syneos Health Inc., Optum Inc., Certara Inc., ExlService Holdings, Inc., Avalon Health Economics LLC, Axtria Inc., and McKesson Corp are among the key players operating in the health economics and outcome research (HEOR) services market.
North America dominated the health economics and outcome research (HEOR) services market in 2024.
The market is expected to reach a value of US$ 3,797.86 million by 2031.