HEOR Services Market Size & CAGR (2023-2031)
The HEOR services market size is projected to reach US$ 3.2 billion by 2031 from US$ 1.50 billion in 2022. The market is expected to register a CAGR of 13.01% during 2023–2031. The increasing focus of pharmaceutical and biotechnology companies on novel drug development is likely to remain a key trend in the HEOR services market.
HEOR Services Market Analysis
Health economics and outcomes research (HEOR) provides valuable data to pharmaceutical firms; healthcare providers, payers, policymakers; and other stakeholders to help them select suitable services as per their requirements. The evaluation of treatment options must be done to assign suitable healthcare resources as there is a rise in complexities and overall healthcare costs. Many studies have been conducted through HEOR services with the aim of supporting healthcare facilities to achieve better patient outcomes with the incorporation of cost-effective therapy interventions and techniques.
HEOR Services Market Overview
North America is the largest market for HEOR services, with the US holding the major market share in the region, followed by Canada. The growth in North America is characterized by the rising demand for HEOR services, the growing significance of real-world evidence and health technology assessments, and the increasing importance of these services in healthcare-related decision-making. Moreover, the market for HEOR services is anticipated to have a significant impact on the delivery of healthcare services and the development of policies. Several organizations are providing HEOR services to help healthcare institutions in the optimization of their systems, which contributes to the rapid growth of the HEOR services market in North America.
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Health Economics and Outcome Research (HEOR) Services Market: Strategic Insights
Market Size Value in US$ 1,116.38 Million in 2019 Market Size Value by US$ 2,699.56 Million by 2027 Growth rate CAGR of 11.9% from 2020-2027 Forecast Period 2020-2027 Base Year 2020
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Health Economics and Outcome Research (HEOR) Services Market: Strategic Insights
| Market Size Value in | US$ 1,116.38 Million in 2019 |
| Market Size Value by | US$ 2,699.56 Million by 2027 |
| Growth rate | CAGR of 11.9% from 2020-2027 |
| Forecast Period | 2020-2027 |
| Base Year | 2020 |
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HEOR Services Market Drivers and Opportunities
Rising Adoption of HEOR Services for Informed Decision-Making
Health economics and its outcomes based on the research and health economics together provide important information and tools to healthcare decision-makers from the intervention level to the healthcare system level. While both these parameters can be carried out independently, their collaboration ensures that even complex healthcare issues can be analyzed by fusing the appropriate data (from outcomes research) with careful (health) economic analysis based on multiple stakeholders and their perceptions. Additionally, HEOR experts can investigate deeply into their area of expertise along with appreciating the value of including the opinions and results from related fields. HEOR experts work closely to bridge the gap between data and economic analysis by implementing a data plan so that all relevant results can be applied or gathered from various data sources and analyzed from different viewpoints.
The HEOR services are also important in budget-constrained situations in healthcare and offer a solid evidence base to help select the most economical option. For instance, Organizations such as the Institute for Clinical and Economic Review (ICER) in the US, the National Institute for Health and Care Excellence (NICE) in the UK, and the Health Insurance Review and Assessment Service (HIRA) in South Korea are additional examples of organizations that rely on health technology assessment (HTA).
Adoption of Analytical Tools in Healthcare IT
Big data analytics has gained substantial attention among companies due to its innovative contribution to decision-making. These tools also help in providing strategic development across the healthcare domain. HEOR data is being used for defining drug dosage, patient analysis, guiding healthcare outcomes, marketing product positioning, etc. Further, HEOR helps generate real-world evidence (RWE) that has proven to be a foundation to analyze and understand the way treatment for a patient works. RWE also guides healthcare providers, pharmaceutical companies, and payers for improved health systems and patient outcomes.
HEOR Services Market Report Segmentation Analysis
Key segments that contributed to the derivation of the HEOR services market analysis are services, service providers, and end users.
- Based on services, the HEOR services market is segmented into economic modeling/evaluation, real-world data analysis and information systems, clinical outcome, and market access solutions and reimbursement. The clinical outcome segment held the largest market share in 2023.
- By service provider, the market is divided into consultancy and contract research organizations. The contract research organization segment held a larger share of the market in 2023.
- By end user, the market is segmented into healthcare providers, healthcare payers, biotech/pharma companies, and government organizations. The biotech/pharma companies segment held the largest share of the market in 2023.
HEOR Services Market Share Analysis by Geography
The geographic scope of the HEOR services market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.
North America has dominated the HEOR services market. The market growth can be attributed to increasing R&D spending by the government and market players and the rising adoption of HEOR services by biotechnology and pharmaceutical companies. In addition, the growing demand for real-world evidence (RWE) and outcome data for reimbursement is one of the major factors contributing to the growth of the HEOR services market. With an increasing number of pharmaceutical and biotech companies worldwide, coupled with the rise of novel drugs and increasing clinical trials, the market is anticipated to witness lucrative growth in the coming years.
HEOR Services Market Report Scope
HEOR Services Market News and Recent Developments
The 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 HEOR services market are listed below:
- Curavit Clinical Research, a virtual contract research organization (VCRO) that specializes in decentralized clinical trials (DCTs) for digital therapeutics (DTx), launched a new Health Economics and Outcomes Research (HEOR) Practice. Curavit will incorporate HEOR services in clinical trials to capture evidence of the health economics value of novel pharmaceutical products, especially digital therapeutics, which are striving to accelerate market momentum. (Source: Curavit Clinical Research, Press Release/Company Website/Newsletter, October 2023)
- PharmaLex Group, a leading provider of specialized services for the pharma, biotech, and medtech industries worldwide, completed the merger with Oblique Consulting. (Source: PharmaLex Group, Press Release/Company Website/Newsletter, June 2021)
- Cytel Inc., a provider of quantitative insights and health data analytics to leaders in life sciences, acquired stève consultants, specialists in market access, real-world evidence (RWE), and health economics and outcomes research (HEOR). The acquisition further expands Cytel’s real-world & advanced analytics (RWAA) capabilities, giving sponsors an expanded global offering with access to additional specialists and localized expertise.
HEOR Services Market Report Coverage and Deliverables
The “HEOR Services Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- HEOR services market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- HEOR services market trends as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed PEST/Porter’s Five Forces and SWOT analysis
- HEOR services market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the HEOR services market
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Service , Service Provider , End User , and Geography
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Saudi Arabia, South Africa, South Korea, Spain, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
HEOR services market is expected to register a CAGR of 13.01% during 2023–2031.
The HEOR services market size is projected to reach US$ 3.2 billion by 2031
The key players in HEOR Services market are - Cardinal Health, Meckesson Corporation, Syneos Health, IQVIA, Icon plc, and RTI Health Solutions.
The rising adoption of HEOR services for informed decision-making and the adoption of analytical tools in healthcare IT are significant drivers of HEOR services market.
North America has dominated the HEOR services market
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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