Health Economics and Outcome Research (HEOR) Services Market Report: Size, Share and Outlook by 2031

The market for health economics and outcome research (HEOR) services is anticipated to expand significantly, with projections indicating growth from approximately US$ 1,682.92 million in 2024 to around US$ 3,797.86 million by 2031. This growth trajectory suggests a compound annual growth rate (CAGR) of 12.3% from 2024 to 2031. Key drivers of this market expansion include an increase in product development, rising healthcare expenditures, and a notable rise in clinical trials. However, the growth of HEOR services is somewhat impeded by limitations on access to real-world data.

The healthcare sector has undergone substantial transformation, particularly with the integration of information technology, artificial intelligence, and digital innovations. The digitalization of healthcare has attracted major technology firms such as Apple, Inc., Amazon.com, Inc., Alphabet Inc., and Microsoft Corporation to venture into healthcare-related domains. For example, Google, a subsidiary of Alphabet Inc., is heavily invested in life sciences and other healthcare initiatives. These corporations leverage their technological prowess to develop a range of products, including wearable devices, digital applications, diagnostic technologies, and therapeutic solutions that monitor health and fitness.

Some notable outcomes of healthcare digitalization include the implementation of electronic medical records, the rise of telemedicine, and the utilization of big data analytics. Microsoft Corporation is actively exploring artificial intelligence applications to revolutionize various aspects of healthcare, including genomics, telehealth, cloud computing, and cybersecurity. Continuous advancements by leading healthcare companies are significantly contributing to the growth of the HEOR services market. For instance, in October 2023, Curavit Clinical Research, a virtual contract research organization (VCRO) focused on decentralized clinical trials for digital therapeutics, introduced a new Health Economics and Outcomes Research Practice. This initiative aims to integrate HEOR services into clinical trials to collect evidence regarding the health economic value of innovative pharmaceutical products, especially digital therapeutics, thereby enhancing market momentum. Additionally, Curavit plans to assess the impact and effectiveness of digital therapeutics interventions on both individual and population health levels. Consequently, the ongoing digital transformation in healthcare is expected to introduce new trends within the HEOR services market in the near future.

Insights Based on End Users

The HEOR services market is categorized by end users, which include biotech and pharmaceutical companies, healthcare payers, government entities, and healthcare providers. In 2024, the segment comprising biotech and pharmaceutical companies is projected to hold the largest share of the HEOR services market. These companies are increasingly adopting HEOR services to enhance product development, facilitate market access, and improve economic outcomes. Furthermore, there is a significant rise in investments aimed at optimizing products and market strategies.

In August 2024, ADVI Health announced its acquisition of the Partnership for Health Analytic Research (PHAR), a global consultancy renowned for its expertise in health technology assessment and health economics and outcomes research. PHAR is recognized for delivering impactful, data-driven insights to leading biopharmaceutical sponsors and clients. This acquisition is set to bolster ADVI's Strategic Analytics, Value, and Economics (SAVEs) team, enhancing their capabilities in data analysis and value strategy with substantial HEOR expertise. The PHAR team brings two decades of experience in primary and secondary real-world data research, patient registries, expert panels, and literature reviews, thereby propelling the growth of the HEOR services market.

To compile the report on the HEOR services market, various primary and secondary sources were utilized, including the Canadian Center for Health Economics, the World Health Organization, and the Organization for Economic Co-operation and Development. These sources provide valuable insights and data that inform the current understanding of the market dynamics and trends in health economics and outcome research.