Real world evidence incorporates clinical data relating to patient outcomes collected outside of conventional clinical research settings such as clinical trials. It uses data from electronic health records, claims and billing activities collected from diverse healthcare settings. This helps pharmaceutical and life sciences companies, regulators, and payers to gain a complete understanding of product safety, efficacy and effectiveness.

The Pharmaceutical and Life Sciences Real World Evidence Market is estimated to be valued at USD 2.0 billion in 2024 and is expected to reach USD 5.3 billion by 2031, growing at a compound annual growth rate (CAGR) of 15% from 2024 to 2031.

Key Takeaways

Key players operating in the pharmaceutical and life sciences real world evidence market are Clinerion, Clinigen Group, Cognizant Analytics, Evidera, HealthCore.

Growing incidence of chronic diseases and rising demand for cost-effective drug development are major factors driving growth of the Pharmaceutical and Life Sciences Real World Evidence Market. Real world data helps accelerate clinical trials and supports regulatory submissions through sourcing larger and more diverse patient populations.

Technological advancements have enabled improved data collection methodologies and analytics capabilities. This has increased the adoption of real world evidence solutions in pharmaceutical R&D and regulatory decision making. Hybrid models integrating real world and clinical trial data now allow drug developers to answer increasingly complex research questions.

Market Trends

One of the key trends witnessed in the market includes increasing collaborations between players to develop advanced analytics platforms and real world evidence solutions. This helps expand service offerings and access to larger patient datasets. Another major trend is the integration of real world data with other data sources like electronic medical records and claims to provide a comprehensive view of drug performance over the product life cycle.

Market Opportunities

Growing focus on personalized healthcare presents significant opportunities for real world evidence providers. Development of targeted therapies relies on real-world data to identify biomarkers, genetics and phenotypic characteristics of patient sub-groups. Emergence of technologies like artificial intelligence also creates scope for advanced analytics of real world data for clinical decision making.

Impact of COVID-19 on Pharmaceutical and Life Sciences Real World Evidence Market

The COVID-19 pandemic had a significant impact on the pharmaceutical and life sciences real world evidence market. Due to lockdowns and movement restrictions imposed worldwide to curb the spread of the virus, regular clinical trials and drug research activities came to a halt in early 2020. This hampered the market growth initially. However, real world evidence emerged as a crucial solution to understand the effectiveness and safety of existing drugs and vaccines against the novel coronavirus. Pharmaceutical companies and medical researchers extensively utilized real world data sources like electronic health records, medical claims, patient registry data to evaluate COVID-19 treatments and vaccine effectiveness in real world settings. Some other key areas where real world evidence played a vital role include disease surveillance and monitoring, evaluation of epidemiological trends, healthcare resource utilization, etc.

Post pandemic, the importance of real world evidence is well recognized by regulatory bodies and life sciences organizations. Regulators have now accepted real world data as supplementary evidence for traditional randomized control trials in certain therapeutic areas. Drug makers are focusing on generating real world evidence to support labeling expansions and expedite the review process. They are also leveraging real world data for post marketing safety surveillance of drugs and vaccines. With continued growth in EHR adoption and digitization of healthcare systems globally, real world data availability is set to increase tremendously in the coming years. This will fuel further reliance on real world evidence solutions to enhance clinical development and gain market access insights.

North America Dominates Global Pharmaceutical Real World Evidence Market

North America currently holds the largest share of the global pharmaceutical and life sciences real world evidence market in terms of revenue. The strong presence of major life sciences companies, increasing adoption of EHRs in healthcare systems, and supportive regulatory environment are driving the market growth in the region. The US FDA permits the use of real world data to fulfill various evidentiary needs across a product's lifecycle. Many clinical trials for COVID-19 vaccines and treatments in the US generated real world evidence.

Asia Pacific Emerging as Fastest Growing Market

The Asia Pacific region is emerging as the fastest growing market for pharmaceutical real world evidence globally. Countries like China, India, Japan and South Korea are witnessing significant investments by international RWE solution providers to tap the growth opportunities. Expanding healthcare infrastructure, growing disease burden, and rising healthcare expenditure are fueling the demand for real world evidence solutions to support clinical and market access decisions. Government initiatives to develop national electronic health record systems also boost real world data availability in the region.

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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc.

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