The global real world evidence solutions market is experiencing significant growth, with revenues estimated at $1.5 billion in 2022 and projected to reach $2.9 billion by 2027, representing a CAGR of 15.2% during the forecast period. This robust expansion is driven by several key factors and is reshaping the landscape of healthcare research and development.
Download PDF Brochure-https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=76173991
Industry Trends and Market Dynamics
The market's growth is primarily attributed to the increasing number of clinical trials and a shift from volume-based to value-based care. Real-world evidence (RWE) and real-world data (RWD) are becoming essential tools in healthcare research and development. They inform better protocol design, reduce the need for costly protocol amendments, and facilitate the creation of synthetic control arms to accelerate trial execution and reduce overall costs. RWE also plays a vital role in label expansion and lowering the overall cost of evidence required for regulatory filings.
Key Drivers
- R&D Spending: Pharmaceutical, biopharmaceutical, and medical device companies are heavily investing in the development of novel drugs and devices. R&D expenditure, particularly in the pharmaceutical industry, is substantial and contributes significantly to market growth.
Key Restraints
- Reluctance to Rely on Real-World Studies: Despite the adoption of RWE in various applications, some stakeholders remain hesitant to rely on real-world studies. For example, payers prefer randomized clinical trials over external observational data for drug coverage decisions, primarily due to the lack of standardized data generation procedures.
Opportunities
- End-to-End Real World Evidence Services: The changing healthcare ecosystem emphasizes cost management and ROI. Companies are increasingly focusing on evidence-based decision-making from product R&D to commercialization. This holistic approach integrates data, evidence, and knowledge assets, breaking down traditional silos and enabling more insightful decision-making.
Challenges
- Lack of Universally Accepted Standards: The absence of universally accepted standards or principles for designing, analyzing, and reporting RWE poses a significant challenge. This lack of consensus reduces the potential value of RWE and inhibits its adoption.
Segment Insights
Services Segment: This segment is the largest in the real world evidence solutions market, driven by the need to convert data into actionable evidence and reduce drug development delays. Service providers collaborate with pharmaceutical and medical device companies to develop intelligent RWE strategies and provide meaningful statistical insights.
Drug Development and Approvals Segment: Dominated by increasing clinical trials, particularly in oncology and cardiovascular therapeutics, this segment is further divided into various therapeutic areas. Oncology leads due to the rising prevalence of cancer and the focus on cancer treatment and prevention.
End Users: Pharmaceutical and medical device companies are the fastest-growing end users, leveraging RWE studies for drug approvals, cost management, and real-world performance assessments.
Regional Growth
North America currently holds the largest share of the real world evidence solutions market, while Asia Pacific is expected to witness the highest growth rate during the forecast period. Factors such as increasing clinical trials, government initiatives for RWE adoption, rising chronic disease incidences, and a growing geriatric population drive market growth in the Asia Pacific region.
Key Players
Globally established players dominate the real world evidence solutions market, including IQVIA Holdings Inc., IBM Corporation, OPTUM Inc., Icon Plc, Syneos Health Inc., and Parexel International Corporation.
Download PDF Brochure-https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=76173991
The real world evidence solutions market is on an upward trajectory, driven by the need for evidence-based decision-making in healthcare. As the industry overcomes challenges and embraces standardized methodologies, it is poised to revolutionize healthcare research and development.
