Health Economics and Outcomes Research Services Market Size, Share, and Trends 2024 to 2034

Health Economics and Outcomes Research (HEOR) Services Market

The global health economics and outcomes research (HEOR) services market size accounted for USD 1.41 billion in 2024 and is expected to reach around USD 5.14 billion by 2034, expanding at a CAGR of 13.82% from 2024 to 2034. The number of drug approvals and high expenditure on research and development in the pharmaceutical sector are driving the health economics and outcomes research (HEOR) services market globally at a higher pace.

Health Economics and Outcomes Research (HEOR) Services Market Key Takeaways

• North America led the market with the largest share in 2023.
• By region, Asia Pacific is observed to experience a notable rate of growth during the forecast period.
• By service, the market access solution and reimbursement segment dominated the health economics and outcomes research (HEOR) services market. 
• By service provider, the contract research organizations segment led the market in 2023.
• By service provider, the consultancy segment is anticipated to grow at a notable rate in the market during the forecast period. 
• By end user, the pharma and biotech companies segment led the market in 2023.
• By end user, the healthcare payers segment is observed to witness a significant growth rate during the forecast period.

Health Economics and Outcomes Research (HEOR) Services Market Overview

Health Economics and Outcomes Research (HEOR) stands for health economics and outcomes research. The field of HEOR has emerged to provide perceptible insights to healthcare professionals and the sector. Health Economics and Outcomes Research (HEOR) is a combination of two sectors working together with powerful data insights, and it is helpful in crucial decision-making related to the human healthcare system. Scientists working on Health Economics and Outcomes Research (HEOR) analysis use many proven methodologies, including analytic tools, economic models, and real-time data fetching processes. Such studies need to conserve data from medical insurance claims by patients, medical records of treatments, and overall spending on medicinal requirements by the whole healthcare unit.

• For instance, In April 2022, Excelra strategically invested in Anlitiks, which is one of the rapidly growing technology company in the value and evidence domain. The investment helps Excelra's move into the Health Economics and Outcomes Research  (HEOR) and Real-World Evidence (RWE) analytics area.

Health economics deals explicitly with the output of healthcare interventions by measuring and valuing outcomes, while outcomes research is packaged with a set of scientific rules and regulations that evaluate how the healthcare intervention has impacted a number of patients across the area, which is surveyed by a team of professionals. For instance, HTA is a health technology assessment tool that helps in comparing the pricing of health interventions and how they will affect patients' recovery in a beneficial way. Such tools can bring transparency in the treatment efficacy for society and economic reviews for individuals and, eventually, to the community.

Health Economics and Outcomes Research (HEOR) Services Market Growth Factors

• The surge in the number of clinical trials globally is driving the Health Economics and Outcomes Research (HEOR) services market.
• The significance of AI in health economics and outcomes research (Health Economics and Outcomes Research (HEOR)) is its potential to improve patient outcomes, reduce adverse medication events, save money, and increase safety.
• Pharmaceutical and biotech companies have a complete focus on research and development for new drugs and their approval. 
• The healthcare community uses real-world data (RWD) and real-world evidence (RWE) to make better decisions and develop guidelines for clinical practice. 
• Expenditure on research and development for medicinal drugs has increased in past decades, further fueling market growth worldwide. 
• Outsourcing of research and development activities causes growth of the Health Economics and Outcomes Research (HEOR) services market. 
• The development of analytical tools in the healthcare IT sector further positively impacts the market and connects it across several platforms.

Health Economics and Outcomes Research (HEOR) Services Market Scope

Market Dynamics

Driver

Real-world evidence 

Regulatory bodies in the pharma sector, such as the US FDA, have now permitted the involvement of real-world evidence data for analysis. Real-world data can be an excellent support for new drug approval, making approval decisions easier. Therefore, HEALTH Health Economics and Outcomes Research (HEOR) is playing a central role rather than just a support system in the healthcare sector. While conducting the analysis, Health Economics and Outcomes Research (HEOR) went through several steps that involved identifying data loopholes to understand economic interpretation for market access. It requires clinical trial data to decide the value of medical products. Primary and secondary data sources continuously generate these real-world datasets. All these methods conclude about budget models for help in the pricing process. These factors are observed to promote the Health Economics and Outcomes Research (HEOR) services market’s growth.

Restraint

Lack of skilled professionals 

There is a constant need for skillful professionals to analyze a vast amount of data generated by the healthcare sector. As data is vast and technically advanced, it requires several professionals to perform data analyses and gain insights from it. However, the Health Economics and Outcomes Research (HEOR) services market has faced resistance regarding highly qualified professionals, particularly in developing and underdeveloped countries. Due to this, Health Economics and Outcomes Research (HEOR) services market growth can be impeded.

Opportunity

Integration of Artificial Intelligence (AI)

Artificial Intelligence (AI) can be implemented to analyze large amounts of clinical data by using machine learning algorithms. Machine learning can be applied to data that can be viewed in different ways and aid researchers in gaining helpful insight into safety and treatment aftereffects. In the Health Economics and Outcomes Research (HEOR) services, machine learning algorithms can yield improved decisions by organizing high-volume data of the healthcare sector from different sources. ML algorithms can also be used to create diagnostic tools that can monitor human work and its quality. These can be some future visions that AI could create in the healthcare sector. And it will build numerous possibilities in the future.

Service Insights

The Health Economics and Outcomes Research (HEOR) service market is segmented into clinical outcomes, real-world data analysis with information, market access solutions with reimbursement processes, and others. Among these, the market access solution and reimbursement segment held the largest share of the market in 2023. The segment consists of various tools and services for the generation of evidence and providing drugs to the patient at reasonable prices. The ongoing therapies and new medicines launches are also expanding the global Health Economics and Outcomes Research (HEOR) services market growth with the market access solutions and reimbursement segment. 

Service Provider Insights

The contract research organizations segment led the market in 2023. Contract Research Organizations have extensive experience and expertise in conducting clinical trials, real-world evidence studies, and health economic evaluations. They employ a diverse team of researchers, statisticians, health economists, and clinical experts who are well-equipped to design and execute Health Economics and Outcomes Research (HEOR) studies across various therapeutic areas and healthcare settings.

The consultancy segment is expected to grow at a significant rate in the Health Economics and Outcomes Research (HEOR) services market during the forecast period. Consultants require advice and innovative ideas to assist and grow businesses as per the regulatory requirements to avoid imprudent situations. Also, business owners prefer consultancy services for decision-making and to provide proper guidance and insight for business solutions. Such a demand for consultancy services stabilizes the Health Economics and Outcomes Research (HEOR) services market and creates a wave of business expansion. 

End User Insights

The pharma and biotech companies segment led the Health Economics and Outcomes Research (HEOR) services market in 2023. Pharmaceutical and biotech companies are under growing pressure to demonstrate the value and effectiveness of their products to payers, healthcare providers, and regulators. HEOR services play a crucial role in generating real-world evidence (RWE) and conducting health economic evaluations to inform pricing, reimbursement, and market access decisions for pharmaceuticals and biologics.

Regarding the end user, the healthcare providers segment is expected to witness market growth in the Health Economics and Outcomes Research (HEOR) services market during the forecast period. Various customized therapies increase the usage of specialty medicines to target needy patients, thereby supporting healthcare payers in accepting and implementing Health Economics and Outcomes Research (HEOR) analysis. The development of many analytical tools that aid in analyzing healthcare data is pushing the healthcare IT field across many platforms, and it is impacting the market positively. For instance, In May 2022, Moses & Singer launched its premium consulting firm name as, MS Strategic Solutions LLC, to provide various strategic as well as advisory services to clients in digital health-science and other industries. 

Regional Insights

North America dominated the health economics and outcomes research (HEOR) services market in 2023. Increasing expenditure by pharmaceutical and biotechnology companies on research and development is the primary reason for a growing market. The frequency of clinical trials and new launches of drugs and their approvals, especially across countries like the United States, are driving factors of the health economics and outcomes research (HEOR) services market in North America. Every consecutive year passes with the new approval for medicinal drugs, which increases the rampancy of clinical trials coupled with drug approvals in the US. 

Most drugs are expensive in terms of costs, which contributes to rising healthcare costs for both the private and government healthcare sectors. For instance, in April 2021, nearly 83 billion USD was spent by the US pharmaceutical industry, merely for research and development purposes. Health economics and outcomes research (HEOR) services aid in addressing unpredictable costs during the development stages of clinical drugs. Hence, such rising expenditure drives the market in the country. 

Moreover, strategic activities by the primary key players are a significant factor that fuels market growth. For instance, in April 2022, Optum and Change Healthcare extended their agreement until December 31, 2022. According to this agreement, Optum and Change Healthcare will connect to simplify the payment process for healthcare providers and payers along with core clinical and administrative processes to serve patients. Hence, owing to these factors, the health economics and outcomes research (HEOR) services market is proliferating in the North American region.  

The health economics and outcomes research (HEOR) services market is projected to witness vital growth and tremendous opportunities in Asia Pacific. This region preferentially includes precision medicine in hospital settings with the new feature, which is equipped with technological tools. Such changes can attract patients, further expanding market growth in the Asia Pacific region. For instance, India is increasing its testing capacity to control fatal diseases. During COVID-19, as per the data published on February 13, 2021, around 8.2 million doses were administrated in India. 

Health Economics and Outcomes Research (HEOR) Services Market Companies

• Cardinal Health
• Axtria
• McKesson Corp.
• MEDLIOR
• IQVIA
• PharmaLex GmbH 
• ICON plc.
• PPD Inc.
• RTI Health Solutions
• Syneos Health

Recent Developments

• In May 2022, Trinity Life Sciences launched a project to explore the implications of significant developments and growth in Health Economics and Outcomes Research  (HEOR) in the United States.  
• In May 2022, Cigna, an American multinational managed health and insurance company, launched a new oncology consultation service to improve health outcomes for members.  
• In April 2022, Snowflake Inc., a cloud computing data storage company, launched healthcare and life sciences cloud consulting services that enable organizations to centralize, integrate, and exchange essential and sensitive data securely at scale.
• In January 2024, the Professional Society for Health Economics and Outcomes Research announced the expansion of its editorial scope and its plan to transition to a gold open access journal.

Segments Covered in the Report

By Service

• Economic evaluation
• Real world data analysis and information
• Clinical outcome
• Market access solution and reimbursement
• Others

By Service Provider 

• Contract Research Organizations (CROs)
• Consultancy

By End user

• Government Organizations
• Healthcare Providers
• Health Care Payers
• Pharma and Biotech Companies
• Others

By Geography

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