Real World Evidence Solutions Market

The global real world evidence solutions market in terms of revenue was estimated to be worth $2.0 Billion in 2024 and is poised to reach $4.5 Billion by 2029, growing at a CAGR of 16.9% from 2024 to 2029. The new research study consists of an industry trend analysis of the market. The new research study consists of industry trends, pricing analysis, patent analysis, conference and webinar materials, key stakeholders, and buying behaviour in the market. Growth of the market is mainly driven by growing prevalence of chronic illnesses, increasing shift towards value-based care, and potential of RWE in lessening drug development cost and expediting the drug development process.

Real World Evidence Solutions Market Size, Dynamics & Ecosystem

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Global Real-World Evidence Solutions Market Dynamics

DRIVER: Shift from volume to value-based care

The future of healthcare is shifting towards more quality-oriented, centering towards quality of services provided. Many hospitals understand the inability of traditional approaches in patient care, and cost effectiveness. Thus, healthcare is undergoing transformation through volume to Value-based care, which focuses on result-oriented data. As per American Journal of Managed Care, the value-based care practice is the method used for refinement of quality of life using healthcare inventions. These interventions are identified by using sets of standard parameters that are utilized in assessing the value and cost effectiveness. Thus, most of the hospitals are understanding the ineffectiveness of traditional approaches in patient care which is leading them to shift towards value-based care. Moreover, policymakers persist in endorsing value-based pricing mechanisms like the Value-Based Payment Modifier (VBPM) and the Center for Medicaid and Medicare Innovation (CMMI).

OPPORTUNITY: Growing Opportunities in emerging markets

The RWE solutions market is poised for substantial growth during the forecast period, with emerging economies with India, China, and Southeast Asian nations offering abundant opportunities. As the emerging markets possess vast, yet often underutilized, healthcare databases and patient repositories the availability of these untapped data sources has opened doors for RWE solutions to provide valuable insights into the practical use and outcomes of medical interventions. As the healthcare systems in these markets are undergoing rapid evolution and improvement, there is a simultaneous push toward enhanced data collection through electronic health records (EHRs) and other real-world data sources. This evolution has not only supported the growth of RWE but has also aligned the broader global trend towards data-driven healthcare. Additionally, increasing number of clinical trials in emerging countries is expected to pose a significant opportunity in the RWE solution market.

CHALLENGE: Shortage of skilled professionals

The growth of the real-world evidence solutions market is hindered by a shortage of skilled professionals capable of handling advanced digital solutions. There is a gap between the available and required skilled workforce in the clinical research industry, impeding the adoption and utilization of complex and hard software solutions in clinical trials. To address this challenge, the development of user-friendly software solutions presents a valuable growth opportunity for software vendors in this market. Thus, CROs and pharma companies, are facing constraints and escalating cost pressures to increase the training for their research staff. Moreover, the dynamic landscape of the global pharmaceutical and medical device, R&D outsourcing industries requires highly skilled professionals to adapt to ongoing changes in technologies. These experts must not only keep up with the advancements but also have to deliver high-quality services while adhering to good laboratory practices. This scarcity of skilled professionals has the potential to impede the adoption of new technologies potentially limiting the growth of the RWE solutions market.

Real-world Evidence Solutions Industry Ecosystem

The market map of RWE solutions Market ecosystem involves the components within this market. This defines these elements with an analysis of parameters involved. This involves datasets and services utilized in the field, outlining their applications across various therapeutic areas and among diverse end users. The product segment involves all datasets and services utilized by industries, healthcare payers, and providers. The vendors of various RWE solutions encompass organizations engaged in the entire research, product development, optimization, and launch processes. Some companies leverage scaled-up cloud platforms to construct automated pipelines, repositories of analytical assets, and visualizations accessible to multiple stakeholders’ groups. Other companies develop platforms generating evidence across indications, therapies, and use cases, enabling numerous analyses across multiple patient outcomes and thousands of subpopulations. These evidence generation engines deploy advanced and traditional RWE analytics side-by-side to extract insights into disease biology, unmet needs, real-world therapy usage, safety, effectiveness, and other factors that are crucial for informed decision-making. The primary stakeholders in RWE solutions market are the end users, while investors or funders and regulatory authorities exert significant influences in this arena.

Real World Evidence Solutions Market Segmentation & Geographical Spread

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The Service segment accounted for the largest share of the real world evidence solutions industry in 2023.

By component, the real world evidence solutions market is segmented into services and data sets. The Service segment accounted for the largest market share in 2023. The service segment covers advanced analytics and consulting services. These services deliver insights to stakeholders and end users by extracting meaningful patterns of information and by delivering patient-centered outcomes. Moreover, the large share of this segment can be attributed to the surge in demand for converting the data into actionable evidence, coupled with the imperative to minimize delays in drug development, and the abundance of extensive healthcare data, are pivotal factors propelling the expansion of this market segment.

The drug development and approvals segment accounted for the largest share of real world evidence solutions industry in 2023.

Based on application, the real world evidence solutions market is segmented into drug development and approvals, medical device development and approvals, post market surveillance, market access and reimbursement/coverage decision making, Clinical & regulatory decision making. The drug development and approvals subsegments dominate this application segment in 2023. The drug development and approvals segment is categorized into oncology, neurology, cardiovascular diseases, immunology, and other therapeutic areas. Among these oncology sub segmented accounted largest share in 2023, attributed to increasing clinical trials conducted on medicines that are used to treat cancer. Moreover, several companies are increasing their investment in R&D for the innovation of new oncology drugs, leading to increase in segmental growth.

Pharmaceutical and medical device companies accounted for the largest share of the real world evidence solutions industry in 2023.

Based on end-users, the real world evidence solutions market is segmented into pharmaceutical and medical devices companies, healthcare payers, healthcare providers, and other end-users which includes CROs, academic institutions, patient advocacy groups, and HTA agencies. The pharmaceutical and medical devices companies dominate the end-user segment of RWE solutions market attributing to increase in adoption of RWE in these companies. This is due to its use in achieving regulatory compliances. Additionally, it has also helped in meeting the demands by the payers related to HEOR (Health Economics and Outcomes Research). Moreover, RWE data is essential for new drugs to navigate successfully through clinical trials. Thus, the efficacy of phase transition relies heavily on robust real-world outcomes. As stated in the 2011-2020 BIO industry analysis report, a mere 7.9% of drug development programs successfully reach the market, prompting pharmaceutical companies to increasingly embrace the adoption of RWE.

North America accounts the largest share of real world evidence solutions industry in 2023.

Based on the region, the real world evidence solutions market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East and Africa. In 2023 North America accounted for the largest share of the real-world evidence solutions market. APAC region is expected to grow at the highest CAGR in the forecasted period. As this region are characterized by a rapidly expanding healthcare landscape with a growing population, rising prevalence of chronic diseases, and an increasing focus on improving healthcare infrastructure. Additionally, countries such as China and Japan in the region have a well-established clinical trial infrastructure, robust healthcare capabilities, strong medical workforce, and stringent quality standards, which is supporting the market growth in Asia Pacific. 

Prominent players in real-world evidence solutions markt include IQVIA HOLDINGS INC. (US), Merative (US), Optum Inc. (US), Icon Plc. (Ireland), Syneos Health (US), Parexel International Corporation (US), ELEVANCE HEALTH, INC. (US), SAS Institute Inc. (US), Aetion Inc. (US), Trinetx Llc. (US), Trinity (US), PerkinElmer, Inc. (US), COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION (US), Clinigen Group plc (UK), Cegedim Health Data (France), Verantos (US), HealthVerity, Inc. (US), Datavant (US), Syapse, Inc. (US), Tempus (US), Flatiron Health (US), Thermo Fisher Scientific Inc. (US), LABORATORY CORPORATION OF AMERICA HOLDINGS (US), Oracle (US), and Medspace Holdings Inc. (US)

Scope of the Real World Evidence Solutions Industry

The study categorizes the real world evidence solution market to forecast revenue and analyze trends in each of the following submarkets:

By Components

• Real-World Evidence Solution, Service
• Real-World Evidence Solution, Data sets
• Disparate Data sets
• Clinical settings data
• Claims data
• Pharmacy data
• Patient-powered data
• Other data sets
• Integrated Data sets

By Application

• Drug development and approvals
• Oncology
• Cardiovascular diasease
• Neurology
• Immunology
• Other therapeutic areas
• Medical device development and approvals
• Post-market surveillance
• Market access and reimbursement/coverage decision making
• Clinical and regulatory decision making

By Mode of Deployment

• On -premises
• Cloud Based

By Revenue Model

• Pay Per Usage (Value-Based Pricing)
• Subscription
• Real-World Evidence Solution market, by end-User
• Pharmaceutical and medical device companies
• Healthcare payers
• Healthcare providers
• Other end users

By Region

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • RoE
• Asia Pacific
  • Japan
  • China
  • India
  • RoAPAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East and Africa
  • GCC Countries
  • Rest of Middle East and Africa

Recent Developments of Real World Evidence Solution Industry:

• In August 2023, Parexel (US) announced a strategic collaboration with Partex NV (Germany) to leverage artificial intelligence powered solutions and accelerate drug discovery and development for biopharmaceutical customers worldwide. This collaboration aims to improve outcomes for patients and create an environment of continues innovation in leveraging advanced technology, data-driven insights and collaborative ecosystem.
• In June 2022, Franscisco Partners (US) acquired IBM Watson Health Business (US) and formed a new standalone company named Merative. This acquisition will help Merative in expanding reach of the healthcare data analytics products and improving healthcare delivery, decision making and performance.
• In February 2022, Parexel International Corporation (US) partnered with n-Lorem Foundation (US) to improve and streamline the therapeutic development efforts of n- Lorem. This partnership will help the Parexel International Corporation in providing clinical operations, real-world data solutions, and expertise, including medical and regulatory.

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