Real World Evidence Solutions Market Expected to Reach $5 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Real World Evidence Solutions Market," The Real World Evidence Solutions Market size was valued at $1.4 billion in 2021, and is estimated to reach $5 billion by 2031, growing at a CAGR of 13.7% from 2022 to 2031.

Real-world evidence (RWE) is defined as the clinical evidence about the usage and potential benefits or risks of a medical product derived from the analysis of real-world data (RWD). It can be generated by different study designs or analyses, randomized trials, including large simple trials, pragmatic trials, and observational studies (prospective and/or retrospective).

Real World Evidence Solutions Market trends are an increase in the prevalence of cancer and chronic diseases, which increase the demand for the development of novel drugs and medical devices across the world. In addition, rise in the adoption of technologically advanced real-world evidence solutions; and an increase in the number of pipeline drugs are the key factors that further boost the growth of the market. Moreover, rise in R&D activity rates, government initiatives, improved healthcare infrastructure, and increased funding for research projects across the world further propel the Real World Evidence Solutions Market growth.

However, lack of awareness, reluctance to rely on real-world data hampers the market growth. Furthermore, high growth potential in developing economies and growth in focus on end-to-end real-world evidence services are expected to provide lucrative opportunities for the growth of the real-world evidence solutions market during the forecast period. The real-world evidence solutions market is segmented on the basis of component, application, end-user and region.

On the basis of components, the real-world evidence solutions market is segmented into datasets and consulting services. In 2021, the datasets segment accounted for the largest share of the market. The dominance of this segment can be attributed to rising in prevalence of chronic and autoimmune disorders and the increase in adoption of artificial intelligence-based RWE solutions by pharma companies.

On the basis of application, the RWE Solutions Market is segmented into market access & reimbursement/coverage decisions, drug development and approvals, post-market surveillance, medical device development and approvals and others. The market access & reimbursement/coverage decisions segment exhibited the highest growth in 2021 and is anticipated to lead during the forecast period, owing to an increase in demand for reimbursement policies, an increase in demand for real-world evidence solutions to accelerate market access & reimbursement/coverage decisions, rise in access of pharmaceuticals to poor and middle-class families due to increase in disposable income and rise in investments by biopharmaceutical companies in R&D activities for drug development.

By end user, the RWE Solutions Industry is segmented into pharmaceutical and medical device companies, healthcare providers, healthcare payers, and others. The pharmaceutical and medical device companies segment exhibited the highest growth in 2021 and is anticipated to lead during the forecast period, owing to the rise in the prevalence of chronic diseases and the increase in R&D activities and production processes by large-scale pharma companies, which are the key factors that drive the growth of the market in upcoming years.

North America accounted for a majority of the Real World Evidence Solutions Market share in 2021 and is anticipated to remain dominant during the forecast period, owing to an increase in demand for real-world evidence-based solutions or services, the shift toward value-based care instead of volume and the strategies they adopt for their product development.

Asia-Pacific was the second largest contributor to the market in 2021, and is expected to register the fastest CAGR during the forecast period, owing to a rise in geriatric population, increase in the prevalence of cancer and other chronic diseases, rise in geriatric population, increase in a number of cancer patients and an emerging economy.

The key players that operate in the real-world evidence solutions market are Clarivate PLC, Clinigen Group PLC, Cognizant Technology Solution Corporation, Elevance Health Inc., Flatiron Health, IBM Corporation, ICON PLC, IQVIA, Medpace Holding Corporation, Oracle Corporation, Parexel International Corporation, Perkin Elmer Inc., SAS Institute Inc., Symphony Innovation LLC, and Syneos Health Inc.

Key findings of the study

• By component, the datasets segment was the highest contributor to the market in 2021.
• By application, the market access and reimbursement/coverage decisions segment was the highest contributor in 2021.
• By end user, the pharmaceutical and medical device companies dominated the market in 2021 and is expected to continue this trend during the forecast period.
• By region, North America garnered the largest revenue share in 2021, whereas Asia-Pacific is anticipated to grow at the highest CAGR during the forecast period