Global Health Economics and Outcomes Research HEOR Services Market 2025 – 2034

Reports Description

As per the Health Economics And Outcomes Research HEOR Services Market analysis conducted by the CMI Team, the global Health economics and outcomes research HEOR services Market is expected to record a CAGR of 13.5% from 2025 to 2034. In 2025, the market size is projected to reach a valuation of USD 1.9 Billion. By 2034, the valuation is anticipated to reach USD 8.5 Billion.

Overview

The Health economics and outcomes research HEOR services Market is in line with the global sustainability, accuracy, and compliance interests in the healthcare and industrial environment. With the principles of ESG, providers are also emphasizing the use of energy efficient platforms, components that can be recycled and minimization of environmental effects. High-quality systems have a focus on safety, reliability and convenient interfaces to facilitate high throughput.

IoT based monitoring, AI based analytics and cloud reporting make the system transparent, traceable and regulatory compliant and command trust among stakeholders and hospitals. Such innovations can be used to build partnerships with other companies in the long term, promote goodwill in the industry, and establish the health economics and outcomes research HEOR services as a key to efficient, compliant, and sustainable healthcare operations, which explains their increasing contribution to the achievement of the changing global standards.

Key Trends & Drivers

The Health economics and outcomes research HEOR services Market Trends have tremendous growth opportunities due to several reasons:

• Shifting Focus Towards the Benefits of Value Healthcare. In the healthcare industry, payment for services is increasingly being tied to patient outcomes rather than the payment for services rendered. This trend focuses deeply on the treatment’s costs, quality, and effectiveness. HEOR services support biopharma companies in establishing the clinical and economic worth and the broader social impact of drugs and medical devices. The increasing demand for HEOR services stems from payers and healthcare providers needing health economic data to support their reimbursement and pricing strategies. In the pursuit of sustainability and patient-centered values, HEOR is increasingly used in resource allocation in health systems to support the rising demand for evidence-based approaches from governments and health insurers.

• Increased Use of Real-World Evidence (RWE): Real-World evidence (RWE) is crucial in illustrating the long-term safety and effectiveness, as well as the economic impact, of any healthcare intervention. Even the FDA and EMA are beginning to use RWE in decision-making processes that go beyond standard clinical trials. HEOR services provide market access by collecting, synthesizing, and analyzing electronic health records, patient registries, wearables, claims databases, and other data to form a comprehensive perspective on patient outcomes in real-world scenarios. This not only facilitates market access but also enhances RWE-driven post-launch surveillance, pricing, and comparative effectiveness studies. The increased confidence in RWE for regulatory submission and reimbursement approval to HEOR services is propelling the demand for these services in the global market. This keeps the market for them growing and is helping the HEOR market as a whole.

• Technological Expansion in AI and Big Data Analytics: In this age, most industries are influenced by the application of AI, machine learning, and big data analytics tools. While in the past HEOR put great focus on the use of traditional methods with a great deal of manual work, current analytics technologies are capable of handling and simplifying even the most complex health care data sets. With the help of predictive modeling, simulation of patient outcomes, cost-effectiveness analyses, and the forecasting of challenges associated with market access are now possible. There is also the added advantage of AI driven platforms that foster insights in a way that High Trust stakeholders, in particular, are able to make evidence-based clinical and economic decisions with greater speed, accuracy, and transparency on complex issues. In the same way, HEOR is made more robust and dependable by seamless integration with other forms, such as IoT, cloud computing, and e-health tools. Such same-day integration simplifies data collection and more detailed analysis. Such advances in HEOR are driven by a desire to increase evidence-based strategies in healthcare, which is a solid threat that keeps on evolving.

Key Threats

The Health economics and outcomes research HEOR services Market has several primary threats that will influence its profitability and future development. Some of the threats are:

• High Cost of Implementation: While HEOR services offer numerous advantages, their adoption is still plagued by significant costs. Sophisticated predictive modeling systems, advanced data analytics, and the integration of the world’s real world evidence data all come at a premium. On the other hand, employing skilled personnel in health economics, biostatistics, and advanced analytics drives operational costs even higher. Such expenditures can prove to be critical, especially to small and medium size companies like regional consultancies and mid-sized biotech firms, which in turn constrains their competitive edge against larger cross-continental organizations. Even the biggest players in the market do not have the budgets to scale HEOR services across a multitude of regions. Having to spend on data acquisition, maintenance, and compliance driven software, coupled with the amount of HEOR services driven infrastructure, creates an overwhelming burden that brings any market growth to a snail’s pace.

• Data Privacy and Regulatory Challenges: Accessing patient-level data extracted from electronic health records, health insurance claims, and clinical registries is vital for HEOR services. On the other hand, data privacy regulations such as HIPAA and GDPR in the U.S. and Europe, respectively, pose significant hurdles in the collection, distribution, and analysis of such data. Investments in comprehensive data management systems integrated with strict regulatory legal compliance stifle progress in ultra-sensitive legal jurisdictions, as is the case with Europe. Moreover, the diversity of data management systems and frameworks across the globe, coupled with patient data ethics and legal ownership issues, serves as a major bottleneck for both service providers and customers. If regulation compliance is the paramount goal, the result is the stifled timely delivery of actionable insights. This further constrains the acceptance of HEOR on a global scale.

Opportunities

• Expansion in Emerging Markets: Rapid growth in the healthcare infrastructure and investments in the pharmaceutical and biotech industries in the economies of China, India, Brazil, and the Southeast Asian countries are attracting attention. Emerging economies have a rising need for HEOR services, which is due to the support and need for tactical pricing, market access, and reimbursement in the area. With burgeoning economies, governments are facing the brunt of cost-effective healthcare to provide and support for an increasing population and growing burden of chronic diseases, which makes HEOR a need in these countries. Many foreign firms tend to HEOR functions to HEOR due to the lower prices and developing skills. Additionally, the valuable real-world data is in abundance along with the diverse, large patient sample, which makes them HEOR goldmines, especially to the emerging markets.

• Collaborations and strategic partnerships: Innovative opportunities in HEOR are emerging from collaborations and partnerships between pharmaceutical companies, contract research organizatons (CROs), health providers, and technology firms. The combined expertise of firms in clinical trials, data analytics, AI, and health economics in strategic partnerships allows for more complete and efficient scalable solutions. For example, partnerships with technology firms enable data HEOR providers to use advanced data integration, cloud-based reporting, and predictive analytics. Partnerships also enable small companies to access advanced resources and global markets, bridging competitive gaps. HEOR collaborations strengthen credibility, drive expansion, and open new revenue streams with increasing regulatory compliance.

Category Wise Insights

By Service

• Economic modelling/evaluation: This part offers cost-effectiveness, budget impact, and cost-utility analyses on the economic value concerning the moneys worth and economic concerns of the drugs, therapies, and medical devices, and also helps the payers and providers alongside pharmaceutical companies justify pricing and repayment value, and then also guides payers and providers on decision making on the sustainable allocation of available healthcare resources and improving access to the primary health care services.

• Real-World Data Analysis and Information Systems: This part involves the use of advanced analytics, information systems, and artificial intelligence to perform analyses on the patients’ and electronic health records, claims databases, and registries to assess the effectiveness and safety of the therapy outside of trial settings, thus adding value to the treatment and improving the patients’ outcomes, diseases and the use of healthcare services and advancement for healthcare systems which helps in global regulatory approval and payer reimbursement negotiations.

• Clinical Outcome: This part measures and evaluates clinical endpoints, quality of life, and outcomes that patients of the treatment report. Sub segments in ultra-HEOR payers, providers, and healthcare advocate organizations to demonstrate that the modeled systems in place lead to assured, tangible, and measurable benefits.

• Market Access Solutions and Reimbursement: Strategies to gain regulatory approval and set price and payer reimbursement include providers performing health technology assessments, value dossiers, and payer value communication tools to substantiate product value. This sub-segment ensures drugs and devices gain expeditious market access at a fair price with unrestricted adoption, which is critical to successful global market commercialization. 

• Others: This includes tailored HEOR services such as policy browsing, epidemiology, and comparative effectiveness research. These services cater to the unique needs of government health agencies, NGOs, and specialty biotech firms. This category adds flexibility to the market by offering tailored, evidence-based insights for specialized, strategic decision-making aimed at optimizing the healthcare system.

By Service Provider

• Consultancy: HEOR consultancy is delivered by specialized firms providing strategic market access, economic modeling, and real-world evidence services. They assist pharma, biotech, and healthcare providers in value-based reimbursement and compliance with payer and regulatory mandates. They provide clients with decision support for enhancing alignment of therapy with payer and patient demands, which strengthens value proposition and reimbursement attainment—critical success factors associated with client healthcare organization.

• Contract Research Organizations (CROs): CROs provide outsourced HEOR services along with clinical trials, real world data, modeling, and outcomes research. They assist pharma and biopharma companies with regulatory submissions, market access, and lifecycle management. They provide tailored, flexible, and cost-effective solutions CROs are indispensable partners for multinational companies and small emerging healthcare companies.

By End Use  

• Healthcare Providers: Application of HEOR services by hospitals and clinics aims at improvement of clinical decision making, patient management, and adoption of economically more favorable procedures. The knowledge assists healthcare providers to improve compliance with care, legal regulations, and more optimal resource use. The treatment approaches are based on HEOR and are aligned to patient outcomes and the system of economically sustainable healthcare delivery.

• Healthcare Payers: HEOR is used by insurance companies and government payers for assessment of cost effectiveness, safety, and real world impact of various treatments. The results from HEOR help in reimbursement policies and pricing and formulary inclusion. The value of HEOR is in being able to provide sustainable healthcare financing and access to patients with effective, cost-effective, and value based healthcare solutions.

• Biotech/Pharma Companies: Pharmaceutical and biotech firms use HEOR to substantiate the clinical and economic value of new drugs, biologics, and devices. Such services assist with regulatory submissions, pricing, and global market access. Such services assist with submissions to regulatory bodies, setting prices, and gaining market access globally. While HEOR is focused on effectiveness and cost-benefit analysis, it still enables adoption and reimbursement and maintains market-share competitiveness even under tough market conditions for biopharma companies.

• Government Organizations: Health ministries and regulators use HEOR for health technology assessment, policy making, and managing the expenditure of public funds. They use economic modeling and outcomes research to enable access, cost effectiveness, and adherence to legislative compliance. HEOR bolsters healthcare policy which nourishes the national healthcare system, fostering evidence-based policy formulation and rational, sustainable healthcare. 

• Others: This refers to NGOs, scholars, and organizations that support the interests of patients. They apply HEOR for research and health policy advocacy. These entities contribute to the formulation of policy, patient access, and the enduring integrity of the healthcare system. Such engagements partner to expand the market, increasing the HEOR application in various fields.

Impact of Latest Tariff Policies

Raising tariffs on the US, China, and the EU has shifted the Border Global Market for HEOR Services. Growing border taxes on software tools, data management systems, and advanced analytic infrastructure are driving up operational costs. Health systems and organizations dependent on the import of real-time analytic technology and IoT systems are struggling with integrating and utilizing these advanced tools.

To address this, many HEOR multinational companies are relocating supply chains, altering procurement processes, and relocating new product development to tariff free zones in Southeast Asia, Eastern Europe, and Latin America. All these areas are currently using automation, AI analytics, and Cloud computing to balance cost and global competitive trade while avoiding import restrictions.

Rising transport costs, low capital, and weak bargaining power still disadvantage small consultancies and regional firms. This condition works in favor of global companies that have invested heavily in R&D and have stronger supply chains making the process of advancement easier.

Report Scope

Regional Perspective

The Health economics and outcomes research HEOR services Market can be divided across different regions such as North America, Europe, Asia-Pacific, and LAMEA. This is a cursory overview of each region:

North America: HEOR service focus in North America is secondary only to the United States in relative sophistication to both North America and the world. This observation is close to the region’s boundary, and available data suggests very little independent primary HEOR research in economic evaluation. A more abrupt boundary is followed to the north in Canada. Definite boundaries of Canada are matched by advancing low-density economic corridors. New patterns of economic settlement are transforming the former inner frontier and outer periphery of concentration.

• United States: The United States dominates the HEOR market both nationally and worldwide. Widespread adoption of HEOR systems and practices is apparent in hospitals and firms in pharma and biotechnology. HEOR adoption is lowest in HEOR around elements of compliance with and the use of real world data and outcome value assessment frameworks driven by the FDA regulatory guidance.

• Canada: Canada is in the early stages of adoption of HEOR. Support comes from universal health care and government efforts to rationalize spending. The focus is on cost effectiveness, environmental sustainability, patient reported outcome measures, and national guideline compliance. Collaborative relationships between the academy and health care are enhancing Canada’s position as a contributor to the North American HEOR market.

Europe: Europe’s market for HEOR Services has developed quite fast and is believed to have been supported by the Tight European Union (EU) rules comprising Health Technologies Approval and sustainability cross-border initiatives. For a reason, Germany, France and the United Kingdom (UK) are believed to be the leaders in investing in HEOR Services for pricing, reimbursement, and policymaking frameworks that are supported by evidence. Investments in collaborative research digital health platforms strengthen the regional market.

• Germany: The Adoption of HEOR in Germany is unparalleled in Europe due to the countless Health Technology Assessments (HTA) , the incorporation of health outcome research into the decision-making framework and the The robust research and development (R&D) in the pharmaceutical industry. Payers and hospitals use HEOR models to verify clinical outcome payments and also reimbursement for healthcare services. The Germany’s emphasis on the use of automation in healthcare further accelerates the adoption of HEOR systems.

• United Kingdom (UK): Supporting the adoption of HEOR is the need for comprehensive analysis as outlined by the National Institute for Health and Care Excellence (NICE) on drug pricing and reimbursement, which has resulted in the adoption of HEOR systems. Compliance of the HEOR systems to set standards of clinical outcome is a winner. The Pharma, Life Sciences and Hospital Systems in the UK have a high adoption level.

• France: With government assistance concerning HTAs and aligned compliance frameworks, France continues to grow steadily, supporting the ongoing and sustained growth of both France and its biotech and pharma industries. HEOR services are used by the former for patient outcome optimization and the latter for market access. France’s position regarding sustainable, eco-friendly, and analytical solutions for healthcare in Europe also helps to maintain France’s position in the HEOR market.

Asia-Pacific: The HEOR services market growth in the Asia-Pacific region is the highest globally and is being driven by increased government funding for pharma R&D, higher healthcare spending, and swift industrial expansion. Countries such as China, India, Japan, and South Korea are making big investments in health-related R&D and infrastructure. Increased demand for data driven, cost-effective, and easily scalable healthcare solutions drives HEOR adoption in Asia Pacific.

• China: Within APAC, China has the most sophisticated HEOR market, driven by powerful government policies on real world data use and cost-effectiveness. Rapid urban growth, proliferation of the pharmaceutical sector, and increased automation and IOT monitoring, and tier city development, augment HEOR adoption. China’s expansion in drug production and clinical trials facilitates HEOR implementation in health care and industries in China.

• India: Cost-efficient healthcare solutions being churned out for the healthcare market in India make it the fastest HEOR adopting country in South Asia. India, being the target market for pharmaceutical exports can easily afford healthcare solutions & HEOR aids in value recovery. India based CROs and consultancies are gaining traction for value HEOR services catered to a global clientele.

• Japan: HEOR adoption in Japan is propelled by government funded pharmaceutical & hospital value outcomes R&D initiatives. Japanese companies are among the most advanced in the world in the application of the IoT and Precision Medicine technologies and Japan is emerging as one of the leaders in sustainable HEOR development in the Asia Pacific region.

LAMEA: The LAMEA region is still in the early stages of HEOR adoption, supported by external partnerships and the international HEOR market. Countries such as Brazil, Saudi Arabia, and South Africa are creating new opportunities for HEOR as they focus on value healthcare and value outcomes initiatives.

• Brazil: Brazil is among the leaders in HEOR development in Latin America due to the Latin American dominance of proprietary and government funded healthcare systems, pharmaceutical integration and HEOR infrastructures. The value placed on health, HEOR & outcomes research is growing rapidly in Brazil improving demand for value based HEOR.

• Saudi Arabia: As part of Vision 2030, Saudi Arabia has been investing in the modernization of the healthcare system and the construction of research facilities. Hospitals, payers, and pharmaceutical companies have started adopting HEOR services for administrative and operational, compliance, and international competition purposes. Saudi Arabia’s position as the HEOR hub in the Middle East is strengthened by the integration of IoT-enabled healthcare monitoring and research in outcomes.

• South Africa: South Africa is characterized by steady growth which is reflected in the construction of hospitals, laboratory facilities, and investment into academic research. Use of HEOR in compliance and policy is increasing, especially for the HEOR frameworks developed by other countries. South Africa’s advantageous positioning in the African region is the result of robust partnerships with CROs and healthcare systems, which facilitate the more sophisticated integration of HEOR.

Key Developments

• In July 2025, LCP Health Analytics partners with COTA to advance real-world data applications in cross-border oncology health technology assessments, developing new methodologies for international evidence synthesis. This collaboration addresses growing demand for standardized RWD approaches across diverse regulatory environments.

Leading Players

The Health economics and outcomes research HEOR services Market is highly competitive, with a large number of product providers globally. Some of the key players in the market include:

• McKesson Corporation
• Axtria
• Cardinal Health
• Avalon Health Economics
• MEDLIOR
• IQVIA
• PharmaLex GmbH
• Syneos Health
• RTI Health Solutions
• ICON plc
• PPD Inc
• Others

The Health Economics and Outcomes Research HEOR services market is witnessing robust growth as healthcare systems emphasize value-based care, cost-effectiveness, and improved patient outcomes. Pharma, biotech, and payers are increasingly adopting HEOR to demonstrate clinical and economic value for market access, reimbursement, and regulatory compliance. Integration of AI, big data analytics, and real-world evidence enhances transparency, scalability, and decision-making. Sustainability initiatives, including eco-friendly platforms and efficient data systems, further support adoption. Strategic partnerships among CROs, consultancies, and technology providers are expanding service offerings. These factors position HEOR services as essential tools for optimizing resources and enabling patient-centric, evidence-driven healthcare globally.

The Health Economics and Outcomes Research HEOR Services Market is segmented as follows:

By Service

• Economic Modelling/Evaluation
• Real-World Data Analysis and Information Systems
• Clinical Outcome
• Market Access Solutions and Reimbursement
• Others

By Service Provider

• Consultancy
• Contract Research Organizations (CROs)

By End-use

• Healthcare Providers
• Healthcare Payers
• Biotech/Pharma Companies
• Government Organizations
• Others

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America