Market Trends of Health Economics And Outcomes Research (HEOR) Services Industry
Consultancy Segment is Expected to Dominate the Market Over the Forecast Period
Consultancy firms are pivotal in health economics and outcomes research (HEOR), equipping pharmaceutical, biotech, and medical device companies with the expertise, tools, and methodologies needed to showcase their products' value. These consultancies develop models that illustrate how a product achieves superior health outcomes at a comparable or reduced cost relative to alternatives. Additionally, consultancy firms delve into real-world data, sourcing insights from electronic health records (EHRs), claims databases, and registries. The increased activities in the development of drugs and therapeutics in the pharmaceutical and biotech industries are one of the main drivers contributing to the growth of the consulting segment.
The increasing collaboration of market vendors with consulting firms to implement HEOR services for the end user is expected to boost segment growth. For instance, in April 2024, PharmAlliance acquired Complete Health Economics Outcomes Research Solutions (CHEORS), a prominent provider of health economics and outcomes research (HEOR) and market access services for the pharmaceutical, biotechnology, and medical device sectors. This strategic move bolsters PharmAlliance's global presence and enhances its capabilities in product launches and commercialization. Moreover, strategic activities in consulting firms providing HEOR services are expected to propel the segment's growth. For instance, in August 2024, ADVI Health acquired the Partnership for Health Analytic Research (PHAR), a global consultancy specializing in health technology assessment (HTA) and health economics and outcomes research (HEOR). PHAR is recognized for delivering high-impact, data-driven insights to major biopharmaceutical sponsors and clients.
Therefore, the consultancy segment is anticipated to witness growth over the forecast period owing to the aforementioned factors.
North America Holds Significant Share in the Market and Expected to Grow in Forecast Period
North America is poised to lead the HEOR services market. Key drivers include heightened R&D spending by biotech and pharmaceutical firms across the region and a surge in clinical trials and drug approvals, particularly in the United States.
Growing awareness of HEOR services in the United States is set to bolster market expansion. For example, in November 2022, Alira Health hosted a webinar on Health Economics and Outcomes Research (HEOR) tailored for the United States healthcare system. Furthermore, partnerships between industry players and consulting firms are anticipated to fuel market growth. A case in point: in January 2023, Deloitte Canada announced its collaboration with Synergyx, a Montreal-based consulting firm with a focus on HEOR in the health sector. Leaders from Synergyx are set to integrate into Deloitte’s Economic Advisory practice, offering strategic insights on critical matters like healthcare costs, vaccine distribution, and wait times.
Moreover, strategic activities by key players significantly drive the market's growth. For instance, in September 2023, MORSE Consulting and Medlior Health Outcomes Research, both key players in Canada's pharmaceutical market access, united forces. Their collaboration aims to blend MORSE's expertise in payer and HTA strategies with Medlior's cutting-edge real-world evidence solutions, offering clients a streamlined approach to the complex pharmaceutical market access landscape. Such collaboration creates significant synergies and improves the services offering, expands the market reach, and drives the innovation that is expected to propel the market segment growth.
Given these dynamics, including increased R&D expenditure, rising clinical trials and drug approvals, growing awareness of HEOR services, and strategic collaborations among key players, the HEOR services market is set for significant growth in North America.
