The real-world evidence (RWE) solutions market is expected to grow at a CAGR of 15% from 2019 to reach $1.64 billion by 2024.
The researchers believe that explosive growth will be driven by a variety of factors. These include rising geriatric population and burden of chronic diseases, the shift towards value-based care, and growing focus on personalized health care.
In addition, factors such as increasing R&D expenditure in life sciences industry, delays in drug development along with a subsequent increase in development costs and the expanding use of RWE for regulatory decision making are also supporting the growth of the market.
However, uneven quality of real-world data sources and lack of standards are expected to hinder the growth of real-world evidence (RWE) solutions market to some extent.
The significant potential in emerging markets, the rising focus on end-to-end RWE services, and emerging roles of wearable devices and AI in RWE represent high-growth opportunities for players operating in real-world evidence solutions market.
Real-world data sets are widely adopted by end-users for RWE for various applications such as drug development & approvals, market access & reimbursement/coverage decisions, clinical decision-making, and medical device development & approvals, among others.
The report states that drug development & approvals currently accounts for the largest share of the total market owing to increasing need for additional insights on epidemiology, compliance, adherence, and costs in a realistic environment; increasing demand for RWD and RWE to accelerate drug discovery and development; growing investment by biopharmaceutical companies in R&D; and growing inclination of regulatory bodies towards RWE.
Pharmaceutical, biotechnology & medical device companies were the leading adopters of real-world evidence solutions in 2018 and are also expected to register the fastest growth during the forecast period. This is attributed to the increasing importance of RWE studies in drug development and approvals, growing focus to avoid costly drug recalls, increasing need to assess drug performance in real-world settings, and growing emphasis on drug safety and post-market surveillance.
An in-depth analysis of geographic scenario of the industry provides detailed qualitative and quantitative insights about the four major geographies (North America, Europe, Asia-Pacific, and Rest of the World) along with the coverage of major countries in each region.
North America commanded the largest share of the real-world evidence solutions market in 2018, followed by Europe and Asia-Pacific. The largest share and fastest growth of this region is mainly attributed to the significant availability of real-world data sets, growing focus on value-based care, rising R&D expenditure by the biopharma companies, greater emphasis on early drug/device development and approvals, presence of major RWE players in the region, stringent regulations for drug approvals, and supporting government policies (implementation of 21st Century Cures Act (December 2016) and FDA’s new 2019 strategic Framework for RWE (December 2018) in the U.S).
Some of the major players operating in the RWE solutions market are Anthem, Clinigen Group, Cognizant, IBM Corporation, ICON, IQVIA, Optum, OracleCorporation, PAREXEL International Corporation, PerkinElmer, Pharmaceutical Product Development, SAS Institute, and Syneos Health, among several others.