U.S. Real World Evidence Solutions Market Size, Share & Industry Analysis, By Type (Clinical Setting Data, Claims Data, Pharmacy Data, Patient Powered Data, and Others), By End-user (Pharmaceutical and Medical Device Companies, Healthcare Payers, Healthcare Providers, and Others), and Country Forecast, 2024-2032

The U.S. real world evidence solutions market size was valued at USD 6.35 billion in 2023 and is projected to grow at a CAGR of 12.4% during the forecast period. 

Over the past few years, real world evidence solutions have gained increasing significance in product life cycle management. The growing adoption of these solutions amongst end-users, such as healthcare players, healthcare providers, and pharmaceutical companies, would propel the market growth in the coming years. Drug manufacturers are leveraging real world data (RWD) and RWE solutions to improve their clinical understanding, facilitating more efficient regulatory decision-making and expediting the drug development and approvals processes.

Furthermore, evidence of effectiveness, safety, and value is required to achieve successful market access for any product. Additionally, insights from real world data are crucial in deciding market strategy. Thus, these factors are anticipated to increase the uptake of real world evidence (RWE) solutions in the U.S. market.

On the other hand, the U.S. real world evidence solutions market witnessed a positive impact of the COVID-19 pandemic. This is due to the increased use of these solutions by biopharmaceutical companies engaged in vaccine development.

U.S. Real World Evidence Solutions Market Trends

Increasing Adoption of Value Based Healthcare

In the past few years, the U.S. RWE solutions market space for real world evidence solutions has shifted from volume to value based care. In this type of payment model, healthcare providers are compensated based on the quality of care they deliver to patients. This model offers high-quality and efficient care with the aspect of cost-effective treatment.

Real world evidence solutions contribute to delivering improved better care to patients by understanding how patient behaviors and characteristics influence health outcomes. Thus, the increasing adoption of value based healthcare has accelerated the use of real world data in recent years.  

U.S. Real World Evidence Solutions Market Growth Factors

Increasing Usage of Real World Evidence Solutions by Biopharmaceutical Companies to Propel the Demand for Preventive Products

Pharmaceutical companies are increasingly utilizing real-world evidence solutions to strengthen their clinical understanding of products in the development phase. For instance, in September 2022, Verantos launched the Evidence Platform. This system is aimed to help pharmaceutical companies generate real-world evidence solutions with highly defined standards approved by the FDA.

Moreover, the rising demand for RWE solutions from payers and providers, along with growing regulatory acceptance and increasing expertise in digital and analytics, has empowered biopharmaceutical companies to derive broader benefits from real-world evidence solutions. This is also one of the factors driving the growth of the market.

For example, Pfizer used electronic medical record data to gain approval for Ibrance, a treatment for breast cancer in males.

RESTRAINING FACTORS

Challenges Associated with Data Quality and Privacy to Hinder Market Growth

Despite the fact that the adoption of real world evidence solutions is constantly increasing, however, few factors are restraining market growth. One such factor is concerns regarding the security and quality of patient data, which may hinder market growth to a certain extent.

The leakage of private medical information poses a significant risk, leading to financial theft or identity theft. Individual data such as health insurance details, medical records, and payment information are highly susceptible to data breaches, potentially causing grave consequences for both patients and healthcare providers. These challenges contribute to the end-user's reluctance to fully rely on real world data for decision-making, thereby impeding the U.S. real world evidence solutions market growth.

U.S. Real World Evidence Solutions Market Segmentation Analysis

By Type Analysis

Based on type, the market is segmented into claims data, clinical setting data, pharmacy data, patient powered data, and others.

In 2022, the clinical setting data segment held a dominating position in the U.S. market. Key factors supporting the dominance of the segment include the rising need for reducing healthcare costs and the adoption of electronic health records (EHRs). Moreover, the presence of many contract research and manufacturing organizations in the country also supplements the segment growth.

The claims data segment captured a significant share of the market in 2022. Increasing demand for claims data, which plays an integral role in cost reduction and process efficiency improvement, is the major factor driving the growth of this segment.

By End-user Analysis

On the basis of end-user, the market is segmented into healthcare payers, pharmaceutical and medical device companies, healthcare providers, and others.

The pharmaceutical and medical device companies segment captured the highest U.S. real world evidence solutions market share in 2022.  The growth is mainly attributed to the increasing need to assess drug performance in real-world settings and the need to prevent costly drug recalls. Furthermore, market players are focused on mergers and acquisitions to offer real-world data (RWD) solutions across the country, which is projected to drive segmental growth. For instance, in April 2022, Omega Healthcare completed the acquisition of Vasta Global and ApexonHealth. With this acquisition, the company strengthened its existing position in clinical data management and revenue cycle management.

List of Key Companies in U.S. Real World Evidence Solutions Market

This market shows a consolidated structure with prominent players such as Optum Inc., IQVIA Inc., Cognizant, and IBM Corporation holding a significant share. These companies are focusing on expanding their customer base by adopting various strategies such as collaborations, partnerships and others. For instance, in March 2020, IBM (through its subsidiary Watson Health) and EBSCO information services collaborated to launch an integrated clinical decision support solution.

Syneos Health, Oracle, Parexel International Corporation, PerkinElmer Inc., and SAS Institute Inc. are some other prominent players operating in the market. These companies are also focused on strengthening their market presence by introducing new services. For instance, in October 2022, Oracle enhanced comprehensive and integrated data and analytics services to empower business users. Oracle has delivered new competencies across its ERP, Fusion CX, HCM and SCM business applications to provide greater value to organizations worldwide.

LIST OF KEY COMPANIES PROFILED:

• IQVIA Inc. (U.S.)


• IBM (U.S.)


• Cognizant (U.S.)


• Syneos Health (U.S.)


• Oracle (U.S.)


• Optum Inc. (United Health Group) (U.S.)


• Flatiron Health (F. Hoffmann-La Roche) (U.S.)


• Thermo Fisher Scientific Inc. (U.S.)


• Parexel International Corporation (U.S.)


• SAS Institute Inc. (U.S.)


• Perkin Elmer Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS: 

• May 2023: Flatiron Health expanded its RWE offerings to include scientific, analytical, and consulting services.


• March 2023: MediMergent announced the implementation of its digital clinical trials platform in national clinical trials. 


• May 2021: Optum, Inc. and Bassett Healthcare Network entered into a strategic collaboration to provide advanced analytical and IT solutions aimed at improving patient experience.

REPORT COVERAGE

The market report provides an in-depth analysis of the industry. It focuses on market segments such as type, and end-user. Besides this, it offers insights related to the market overview, the impact of COVID-19, and market trends. Additionally, the report consists of several factors that contribute to the market growth. The report also provides the competitive landscape at the U.S. level.

Report Scope & Segmentation