Market Trends of Global Health Economics and Outcomes Research (HEOR) Services Industry
This section covers the major market trends shaping the Health Economics & Outcomes Research (HEOR) Services Market according to our research experts:
Consultancy by Service Provider Segment is Expected to Dominate the Market Over the Forecast Period
Consulting solutions are primarily designed to expand resources. Consulting services include prospective leadership optimization planning, safety evaluation, metabolism, and analytical studies, among others. The increased activities in the development of drugs and therapeutics in the pharmaceutical and biotech industry are one of the main drivers contributing to the growth of the consulting service provider segment. Thus, consulting by the service provider segment is expected to dominate the market among other segments during the forecast period.
In addition, the strategic activities of regional and global market players accelerate the growth of the segment under study. For example, in September 2020, Oncology Analytics, a leading data analytics and technology services company, launched Pharmacy Consulting Services to help health plans successfully navigate the world of cancer drugs. Additionally, in April 2022, Snowflake Inc., a cloud computing data storage company, launched healthcare and life sciences cloud consulting services that enable organizations to securely centralize, integrate and exchange important and sensitive data at scale.
In May 2022, Moses & Singer launched its new consulting firm, MS Strategic Solutions LLC, to provide a variety of strategic and advisory services to clients in digital health/life science and other industries. Thus, the increasing activities of the major players in the country attribute to the growth of the market under investigation. In addition, in May 2022, Cigna, an American multinational managed health and insurance company, launched a new oncology consultation service to improve health outcomes for members. Hence, the continuous activities of the global market players are expected to drive the market segment under study.
Therefore, the consultancy segment is anticipated to witness growth over the forecast period owing to the aforementioned factors.
North America is Expected to Dominate the Market Over the Forecast Period
North America is expected to dominate the studied market. Factors such as increasing research and development expenditure by biotechnology and pharmaceutical companies across the countries in the region and booming clinical trials coupled with drug approvals, especially in the United States, are driving the growth of the HEOR services market in North America.
Spending on research and development (R&D) and the introduction of new drugs has increased over the past two decades in the United States (US). Every year, the American pharmaceutical industry develops a number of new drugs that provide medical benefits. Most drugs are expensive and contribute to rising health care costs for the private sector and the federal government. For example, according to data provided by the Congressional Budget Office (CBO), in April 2021, the US pharmaceutical industry spent nearly $83 billion on research and development, about ten times what the industry spent annually in the 1980s. HEOR services help healthcare providers address uncertain costs during or after drug development. Thus, the rising expenditure in the pharmaceutical industry is poised to drive the studied market growth in the country.
In addition, increasing strategic activities of major players is one of the major driving factors attributed to the growth of the market under study. For example, in August 2021, Syneos Health and Aetion partnered to provide regulatory-level data and analytics solutions to advance drug development and improve patient outcomes. This partnership combines Syneos Health's proprietary data collection and research solutions with the Aetion Evidence Platform (AEP) to generate evidence through the processing of patient and real-world data.
In addition, in April 2022, Optum and Change Healthcare agreed to extend their merger agreement through December 31, 2022. Through this agreement, Optum and Change Healthcare will connect and simplify the core clinical, administrative, and payment processes that healthcare providers and payers rely on to serve patients.
Therefore, owing to the aforesaid factors, the growth of the HEOR services market is anticipated in the North American region.
