Health Economics and Outcome Research (HEOR) Services Market is expected to reach US$ 3,797.86 Million by 2031

Economic Modelling or Evaluation Segment to Lead Health Economics and Outcome Research (HEOR) Services Market Based on Service During 2024–2031

According to our new research study on "Health Economics and Outcome Research (HEOR) Services Market Forecast to 2031 – Global Analysis – by Service, Service Provider, and End User," the market was valued at US$ 1,682.92 million in 2024 and is projected to reach US$ 3,797.86 million by 2031; it is expected to register a CAGR of 12.3% during 2024–2031. Major factors driving the market include increasing product development, growing healthcare spending, and a surge in clinical trials. However, restrictions on access to real-world data hinder the market. Digitalization in healthcare is projected to bring new health economics and outcome research (HEOR) services market trends in the coming years.

HEOR services focus on evaluating the economic and clinical outcomes of healthcare interventions, treatments, or products. These services analyze the cost-effectiveness, cost-utility, and budget impact of healthcare options to inform decisions in policy-making, healthcare practice, and market access strategies. HEOR encompasses health technology assessments (HTAs), quality of life assessments, and real-world evidence studies. It helps healthcare providers, regulators, and pharmaceutical companies assess whether a treatment or intervention provides value for money while improving patient outcomes. This data is crucial for making informed decisions on pricing, reimbursement, and policy guidelines, ultimately optimizing healthcare resource allocation.

Health Economics and Outcome Research (HEOR) Services Market, by Region, 2024 (%)

The growing demand for cost-effective healthcare solutions and rising healthcare expenditures, are contributing to the growing health economics and outcome research (HEOR) services market size. Increasing healthcare costs and the need for efficient resource allocation are pushing healthcare systems to adopt evidence-based decision-making. Rising demand for value-based healthcare, where cost-effectiveness is prioritized, is expanding HEOR adoption. The growing prevalence of chronic diseases and the need for personalized treatments require more outcome-driven research. Additionally, the rise of health technology assessments (HTAs) in reimbursement processes globally encourages HEOR use to gain market access. Moreover, regulatory bodies and healthcare providers are increasingly emphasizing the importance of real-world evidence and economic evaluations in policy decisions. As healthcare systems globally shift toward more sustainable practices, HEOR services have become essential in guiding those transitions, ensuring better healthcare delivery while controlling costs.

Health Economics and Outcome Research (HEOR) Services Market Analysis Based on Segmental Evaluation:

Based on service, the health economics and outcome research (HEOR) services market is categorized into economic modeling or evaluation, real world data analysis and information systems, market access solutions and reimbursement, clinical outcome, and others. The economic modeling or evaluation segment held a significant health economics and outcome research (HEOR) services market share in 2024. Economic modeling is an important aspect of health economic analyses. It is a vital tool for healthcare authorities, payers, and experts to make decisions to streamline healthcare processes. Economic models compile observations, fragmented research data, experiences, and justified assumptions into a synthesis, which anticipates the impact of healthcare interventions on patient groups, individuals, and society. In addition, economic modeling/evaluation offers a comprehensive view of probable extreme scenarios and a range of credible results. The rising focus on health economic analysis, cost-optimization, and improved economic outcomes drives the demand for health economic modeling/evaluation. These platforms are helping organizations make data-driven decisions for improved outcomes. Market players are adopting economic modeling. In April 2024, PharmAlliance (a diversified platform for pharmaceutical and life sciences services) acquired Complete Health Economics Outcomes Research Solutions (CHEORS). CHEORS is a leading provider of HEOR and market access services for the pharmaceutical, biotechnology, and medical device industries. This acquisition enhances PharmAlliance's global presence and broadens its capabilities for product launches and commercialization. Similarly, in October 2023, Curavit Clinical Research, a virtual contract research organization (VCRO) specializing in decentralized clinical trials for digital therapeutics, launched a new Health Economics and Outcomes Research Practice. Curavit integrated HEOR services into clinical trials to gather evidence on the health and economic value of novel pharmaceutical products, mainly digital therapeutics, to accelerate market momentum. Curavit can evaluate the impact and effectiveness of DTx interventions on individual and population healthcare levels.

The real-world data analysis and information systems segment is anticipated to grow with the fastest CAGR during the forecast period. In December 2016, the 21st Century Cures Act was signed to boost medical product development with higher efficiency. The law allows valuing patients' perspectives while developing biological products, drugs, and medical devices in the Food and Drug Administration's (FDA) decision-making process. Moreover, the law enables authorities to modernize or improvise clinical trial designs by incorporating clinical outcome assessments and real-world evidence, ultimately accelerating the development and review of novel medical products and countermeasures. Real-world data analysis is significantly used to fast-track drug development for rare diseases, which attracts pharmaceutical companies to implement methodologies during their clinical studies.

Increasing awareness of real-world data analysis & information systems generates significant market potential. In addition, companies are also engaged in implementing various strategies to prove their existence in the global market. In December 2023, ConcertAI acquired CancerLinQ, previously a subsidiary of the American Society of Clinical Oncology (ASCO). ASCO will maintain a multi-year cooperation agreement with CancerLinQ as part of this acquisition. This new partnership aims to build on CancerLinQ's mission, established by ASCO in 2013. The collaboration will enhance and expand the use of real-world data, analytics, next-generation artificial intelligence, and other technologies to improve cancer care and expedite clinical research. Also, in May 2022, at the International Society for Pharmacoeconomics and Outcomes Research (ISPOR) global conference, Komodo Health presented its technology platform designed to enhance the next generation of real-world evidence (RWE) research. Utilizing advanced analytics and applications such as Sentinel, the company is collaborating with an increasing number of healthcare and life sciences organizations. The partnership aims to produce the industry's most comprehensive and detailed insights, fostering a deeper understanding of various therapies' clinical and economic value.

The geographic scope of the health economics and outcome research (HEOR) services market report includes the assessment of the market performance in North America, Europe, Asia Pacific, South & Central America, and the Middle East & Africa. In terms of revenue, North America dominated the health economics and outcome research (HEOR) services market share in 2024. This growth is attributed to the increasing demand for cost-effective healthcare solutions. As healthcare costs continue to rise, both public and private healthcare payers are focusing on the economic value of medical interventions. HEOR helps healthcare organizations evaluate the cost-effectiveness, budget impact, and overall economic burden of different treatment options, making it essential for decision-making processes in reimbursement, pricing, and policy.

In North America, healthcare providers, pharmaceutical companies, and regulatory bodies increasingly rely on robust clinical and economic evidence to make informed decisions about new therapies. HEOR services play a crucial role in generating this evidence by evaluating the long-term outcomes of interventions and their economic implications, thereby contributing significantly to the health economics and outcome research (HEOR) services market growth in North America.

Rapid advancements in medical technologies and therapies, including personalized medicine and biologics, have intensified the need for comprehensive economic evaluations. These therapies are often expensive, and healthcare systems in North America require detailed analysis to determine their value and ensure their affordability. HEOR services are critical in assessing the real-world effectiveness and value of these innovations.

The expansion of healthcare reforms, such as the Affordable Care Act in the US, has increased the need for healthcare stakeholders to demonstrate the economic impact of healthcare interventions. The growing awareness of value-based care models has propelled the demand for HEOR services, as payers and providers are seeking more efficient and sustainable healthcare solutions, which bolsters the health economics and outcome research (HEOR) services 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 leading companies profiled in the health economics and outcome research (HEOR) services market report.

Based on service, the health economics and outcome research (HEOR) services market is categorized into economic modelling or evaluation, real world data analysis and information system, market access solutions and reimbursement, clinical outcome, and others. Based on service provider, the market is bifurcated into consultancy and contract research organizations. By end user, the health economics and outcome research (HEOR) services market is segmented into healthcare providers, healthcare payers, biotech/pharma companies, and government organizations. Geographically, the market is categorized into North America (US, Canada, and Mexico), Europe (France, Germany, UK, Spain, Italy, and Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia, and Rest of Asia Pacific), the Middle East & Africa (Saudi Arabia, South Africa, the UAE, and Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and Rest of South & Central America).

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