MEWA Health Economics & Outcomes Research (HEOR) Services Market Key Players by 2030

[Research Report] The MEWA health economics & outcomes research (HEOR) market size is expected to reach US$ 57.90 million by 2030 from US$ 34.47 million in 2022. The market is estimated to grow at a CAGR of 6.7% from 2022 to 2030.

Market Insights and Analyst View:

Health economics focuses on measuring and evaluating the outcomes of health interventions. Outcomes research encompasses a range of scientific disciplines that help in evaluating the impact of health interventions on patients. Therefore, health economics and outcomes research (HEOR) combines two fields to provide meaningful data and insights for healthcare decision-makers. Interest in HEOR has grown exponentially as governments and other payers grapple with how to achieve the best possible health outcomes at an affordable cost. HEOR can help healthcare decision-makers, including physicians, governments, payers, ministries of health, patients, and more, appropriately compare and select available options. The growing biotechnology & pharmaceutical companies and drug developments and increasing healthcare spending are driving the MEWA HEOR market. However, the restrictions on access to real-world data (RWD) hinder the market growth.

Growth Drivers and Challenges:

Drug development activities are being conducted constantly in the MEWA to provide quality drugs and improve lives owing to the rising chronic diseases and aging population. To drive business, there is a need for understanding the health economics and their outcomes. Thus, it becomes difficult for market players to design a product and its lifecycle throughout the developmental process. Various companies outsource health economics and outcomes research (HEOR) services to understand the regulations, healthcare coverage, and access decisions and identify the intervention that would benefit the specific population of patients. Thus, various well-established companies outsource HEOR services to save on production cost. The HEOR service providers help pharmaceutical and biotechnology companies explain the value of their innovations to their respective stakeholders, such as physicians, payers, and patients. Given the potential for economic growth and improved health outcomes, the biotechnology sector in the Middle East is attracting increasing attention and investment. Such partnerships are expected to boost the HEOR services in the Middle East. Chinese pharmaceutical companies are also entering Africa by making multibillion-dollar investments in local drug manufacturing facilities, lured by the unmet health needs of the world's fastest-growing and most developing continent. The investments by the pharmaceutical companies in the region are adding up to the market growth.

Healthcare spending in the Middle East has increased rapidly, leading to a growing demand for new and innovative healthcare solutions. According to a Dubai Chamber of Commerce report, Saudi Arabia and the UAE hold the largest market share in the biotechnology market in the Middle East and is expected to reach US$ 2.6 million by 2028. In the 2023 federal budget, the UAE allocated US$ 1.3 billion for community health care and protection. Further, different demographic characteristics and health outcomes, among others, characterize West Africa. Health systems in sub-Saharan Africa, including West Africa, have long suffered from a dual burden of communicable and noncommunicable diseases. Governments support technological developments in the health sector to improve living standards in West Africa. As a result, policies are implemented to provide quality healthcare by investing in advanced technologies such as sophisticated equipment, diagnostic items, and high-quality medicines for treatments. Investments in the health sector are encouraged as they lead to increased human capital development and well-being of the population, which in turn leads to economic growth in the region. Thus, the growing healthcare expenditure in the MEWA is positively influencing the HEOR service market growth.

The HEOR service is primarily based on analyzing RWD, and the real-world evidence (RWE) is derived. In the healthcare industry, countless research and developments are being conducted, owing to which a huge database is generated during and after the clinical research. Companies cannot store and manage data; hence, they outsource the data maintenance. Due to security and personal reasons, it becomes difficult for HEOR service providers to collect data from third-party companies and generate an RWE. In addition, access to RWD is highly regulated. The owners do not allow access to their data, so generating evidence for any new product launch and development becomes challenging. Sharing the data with payers is also restricted, which further restricts HEOR service providers from gathering vital information on the developing areas of the healthcare industry. Thus, restricted access to RWD restrains the MEWA HEOR service market growth.

MEWA Health Economics & Outcomes Research (HEOR) Services Market: Strategic Insights

Report Segmentation and Scope:

The “Middle East & West Africa Health Economics & Outcome Research (HEOR) Services Market” is segmented based on service, service provider, end user, and region.

Segmental Analysis:

Based on service, the MEWA health economics & outcome research (HEOR) services market is segmented into clinical outcome, economic modelling/evaluation, market access solutions and reimbursement, and real-world data analysis and information systems. The clinical outcome segment held the largest market share in 2022. The real-world data analysis and information systems segment is predicted to register the highest CAGR of 7.5% during 2022–2030. Clinical outcome studies are important to understand the effect of treatment on the patient. It also studies the mortality and morbidity rate, treatment efficacy, and functioning of particular drug candidates. A clinical outcome assessment provides a quantitative rating to indicate some aspects of the patient's health status. Moreover, the outcome assessments are used to overview clinical studies comprehensively. In July 2020, Certara launched the COVID-19 clinical outcomes database worldwide to offer real-time information about COVID-19 studies. Further, the database will help determine the feasibility of potential vaccines and therapeutics for viral infection from more than 500 registered studies worldwide. Further, real-world data analysis is significantly used to fast-track drug development for rare diseases. In addition, the benefits of real-world data analysis attract pharmaceutical companies to implement the methodologies during their clinical studies. In May 2023, Komodo Health announced that its real-world evidence (RWE) technology platform is used to help 17 new health economics and outcomes research (HEOR) studies, which were presented at the global conference 2023 at International Society for Pharmacoeconomics and Outcomes Research (ISPOR). Increasing awareness of information systems and real-world data analysis generates significant market potential. In addition, the companies are implementing various strategies to prove their existence in the global markets.

The MEWA health economics & outcome research (HEOR) services market, by service provider, is bifurcated into contract research organizations and consultancy. The contract research organizations segment held a larger market share in 2022 and is anticipated to register a higher CAGR during 2022–2030.

Contract research organizations offer support to biopharmaceutical, medical device, pharmaceutical, and biotechnology companies in terms of research services on a contract basis. In November 2022, IQVIA and Clalit Health Services partnered to advance research by launching the first Prime Site in Israel. The collaboration combines IQVIA and Clalit's clinical trial delivery, data, genomics, and real-world research capabilities. Benefits such as cost & time optimization and lower investments are estimated to positively impact the contract research organization segment growth.

The MEWA health economics & outcome research (HEOR) services market, by end user, is segmented into biotech/pharma companies, healthcare payers, government organizations, and healthcare providers. The biotech/pharma companies segment held the largest market share in 2022 and is anticipated to register the highest CAGR during 2022–2030. Biotechnology and pharmaceutical companies extensively adopt HEOR services to improve product development, market access, and economic outcomes. In addition, growing investments of the companies for product and market optimization are likely to drive segment growth.

Regional Analysis:

Based on country, the health economics & outcome research (HEOR) services market is divided Saudi Arabia, UAE, Qatar, Kuwait, and the Rest of MEWA. Saudi Arabia held the largest market share, followed by the UAE. The market growth is attributed to the growth of pharmaceutical expenditure due to rising interest in the country's economic evaluation of healthcare interventions. A sharp increase in the state health budget is also expected to increase the demand for the pharmaceutical industry. In 2019, Saudi Arabia's health budget increased by 8% compared to the previous year, amounting to US$ 46 billion. Saudi Arabia also has a large number of clinical trials in progress. The successful passing of drug candidates through clinical trials and hitting bulk production will likely create the demand for efficient manufacturing procedures such as continuous manufacturing. For instance, according to clinicaltrials.gov, in August 2018, ~121 studies were conducted in Saudi Arabia. Further, the Saudi Arabian Government also encourages the private healthcare sector to develop and deliver innovative models of care. Therefore, the factors mentioned above are driving the growth of the market in the country.

Competitive Landscape and Key Companies:

Developments in the MEWA health economics & outcome research (HEOR) services market have been characterized as organic and inorganic growth strategies. Various companies focus on organic growth strategies such as launches, expansion, enhancement, and relocation. Inorganic growth strategies witnessed in the market were mergers & acquisitions, partnership, and collaborations. These activities have paved the way for the expansion of businesses and customer base of MEWA health economics & outcome research (HEOR) services market players.

• In April 2023, PharmaLex Group announced its intention to merge with Cpharm. The merger plays a crucial role in expanding PharmaLex’s footprint in Australia and New Zealand with the help of Cpharm’s expert capabilities in drug and device vigilance in the region, thereby offering complementary services and thus expanding the service portfolio of both companies. 
• In March 2023, LEO Pharma and ICON plc announced a strategic partnership that enabled LEO Pharma to perform clinical trial execution that is patient-centric and cost-effective, and the partnership further supports the company’s overall ambition to build an effective and efficient clinical portfolio execution organization in the industry.
• In March 2023, IQVIA partnered with (RED) to fight AIDS and the injustices that enable pandemics to thrive, to support laboratory system strengthening, and to save lives. This US$ 5 million impact partnership will channel life-saving money to the Global Fund’s Laboratory Systems Integration Fund.
• In September 2021, SM Health and Optum announced a collaboration that mainly focused on making quality care more accessible and affordable for people across the Midwest. SSM Health and Optum partnered across certain functions—including inpatient care management, digital transformation, and revenue cycle management—to improve health outcomes and patients’ healthcare experiences.

Company Profiles

• PharmaLex GmbH
• ICON Plc
• IQVIA Holdings Inc
• Syneos Health Inc
• Optum Inc
• Value In Research
• ExlService Holdings, Inc
• Clarivate Plc
• CCHO

MEWA Health Economics & Outcomes Research (HEOR) Services Report Scope