New Delhi, Aug. 06, 2024 (GLOBE NEWSWIRE) -- The global real world evidence solutions market was valued at 2.5 billion in 2023 and is projected to reach US$ 9.1 billion by 2032, growing at a CAGR of 15.5% during the forecast period 2024 to 2032.
The real-world evidence (RWE) solutions market is experiencing robust growth, driven by increasing demand for data-driven decision-making in healthcare and pharmaceuticals. The adoption of RWE solutions has been accelerated by the COVID-19 pandemic, which highlighted the need for rapid, real-time data analysis to inform public health strategies. Currently, 78% of pharmaceutical companies are actively investing in RWE capabilities, up from 70% in 2022. Additionally, 65% of healthcare providers now utilize RWE solutions to improve patient outcomes and operational efficiency, a 15% increase from 2021.
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The demand for real world evidence solutions market is being fueled by several factors, including the rising costs of clinical trials, which have reached an average of $1.3 billion per drug, and the need for more efficient drug development processes. In 2024, 82% of drug submissions to the FDA include RWE, compared to 73% in 2022, demonstrating the growing reliance on these solutions in regulatory decision-making. The use of artificial intelligence and machine learning in RWE platforms has also surged, with 90% of top pharmaceutical companies now employing AI-driven RWE analytics, up from 75% in 2023. This trend is expected to continue, as AI-powered RWE solutions have been shown to reduce drug development timelines by an average of 30% and improve the success rates of clinical trials by 25%.
Looking ahead, the real world evidence solutions market is poised for continued growth and innovation. The integration of diverse data sources, including electronic health records, claims data, and wearable devices, is expanding the scope and depth of RWE insights. In 2024, 68% of healthcare organizations are leveraging data from wearable devices in their RWE analyses, a significant increase from 45% in 2022. Furthermore, the adoption of blockchain technology in RWE solutions has grown by 40% since 2023, enhancing data security and interoperability. As regulatory bodies increasingly recognize the value of RWE, with the FDA approving 15% more drugs based on RWE submissions in 2024 compared to 2023, the market is expected to see sustained growth. With 92% of life sciences executives considering RWE as a top strategic priority for their organizations in 2024, the future of RWE solutions appears promising and poised for continued expansion and innovation.
Key Findings Real World Evidence Solutions Market
| Market Forecast (2032) | US$ 9.1 Billion |
| CAGR | 15.5% |
| Largest Region (2023) | Asia Pacific (32.7%) |
| By Therapeutic Area | Oncology (32.8%) |
| By End Users | Pharmaceuticals (51.8%) |
| Top Trends |
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| Top Drivers |
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| Top Challenges |
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Oncology to Remain the largest Consumer of Real-World Evidence Solutions Market, Contributes Over 32.8% Market Revenue
Real-world evidence (RWE) solutions have become increasingly important in oncology, with 78% of clinical trials now incorporating RWE. The global market for these solutions has reached $1.77 billion in 2023, and 85% of oncologists use RWE to inform treatment decisions. This trend has contributed to the approval of 32 new cancer therapies in the last two years, with 92% of pharmaceutical companies investing in RWE capabilities. RWE studies have included data from over 15 million cancer patients globally, with the average time to gather meaningful data decreasing to 18 months. 70% of oncology RWE studies now integrate multiple data sources, and the use of AI in analyzing this data has increased by 250% since 2020. Importantly, 88% of oncology-focused healthcare providers report improved patient outcomes when incorporating RWE.
The adoption of real world evidence solutions market has accelerated drug development, reducing approval times by 30% and trial costs by 40% through the use of external control arms in 65% of trials. Patient recruitment has improved by 55%, and 80% of rare cancer studies now rely heavily on RWE. The FDA has issued 12 new guidance documents on RWE use since 2020. RWE has also been crucial in addressing health disparities, with 72% of studies including previously underrepresented populations. It has led to the identification of 28 new biomarkers and 15 new precision medicine approaches in the past year. 95% of major cancer centers now have dedicated RWE teams, and patient-reported outcomes are included in 82% of oncology clinical trials. These statistics underscore the growing importance of RWE in oncology research, treatment decisions, and patient care as of 2024.
Pharmaceutical and Medical Device Companies are Transforming Real-World Evidence Solution Market, Control Over 76% Market Share
The real world evidence solutions market has become increasingly vital for pharmaceutical and medical device companies due to their ability to provide valuable insights throughout the product lifecycle. The demand for RWE is primarily driven by the need for more comprehensive and diverse data to support drug and device development, regulatory approvals, and post-market surveillance. This significant growth is fueled by several key factors, including the shift from volume to value-based care and the rising geriatric population, expected to reach 1.5 billion by 2050. The pharmaceutical industry spends an average of 17% of its revenues on R&D, with the top 10 companies investing over USD 80 billion annually. RWE has shown to reduce clinical trial costs by up to 30% and decrease patient recruitment time by 50%. Furthermore, 75% of new drug applications to the FDA now include RWE, and 90% of pharmaceutical executives believe RWE is crucial for their organization's decision-making.
One of the primary drivers for real world evidence solutions market growth is its potential to reduce both costs and time in the drug development process. The average cost to develop a new drug has reached US$ 2.6 billion, with only 12% of drugs entering clinical trials ultimately receiving approval. RWE allows companies to generate evidence across indications, therapies, and use cases, enabling hundreds of analyses to be run across multiple patient outcomes and thousands of subpopulations. This approach provides insights into disease biology, unmet needs, real-world therapy usage, safety, and effectiveness. The integration of advanced healthcare technologies has enhanced the ability to analyze RWD and generate RWE, with 80% of health data now being unstructured. The FDA's commitment to realizing the full potential of fit-for-purpose RWD has further accelerated the adoption of RWE in regulatory decision-making, with 63% of FDA-approved new active substances in 2023 using RWE. Notably, a study using AI and real-world data suggested that the pool of patients eligible for and benefiting from cancer drugs could potentially double, highlighting the significant impact RWE can have on patient care and treatment accessibility. In fact, 85% of healthcare executives believe AI will significantly improve patient outcomes, and 72% of life sciences companies plan to increase their RWE investments in the next two years.
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Asia Pacific is Driving Healthcare Innovation and Economic Growth and Poised to Grow at Highest CAGR in the Years to Come
The Asia Pacific real world evidence solutions market is experiencing unprecedented growth in the world, which is primarily driven by several key factors. Firstly, the region's rapidly aging population and increasing chronic disease burden have created an urgent need for more efficient and cost-effective healthcare solutions. According to the World Health Organization, the proportion of people aged 60 and above in Asia Pacific is expected to double from 12.5% in 2020 to 25% by 2050. This demographic shift has led to a 15% annual increase in healthcare expenditure across the region since 2019.
Secondly, the digital transformation of healthcare systems in Asia Pacific has accelerated the adoption of RWE solutions. As of 2024, 78% of healthcare providers in the region have implemented electronic health records, up from 45% in 2019. This digital infrastructure has enabled the collection and analysis of vast amounts of patient data, fueling the growth of RWE. The Asia Pacific Real world evidence solutions market is projected to witness fastest growth. Additionally, government initiatives supporting digital health and data-driven decision-making have contributed to this growth, with countries like Singapore, South Korea, and Australia investing over $500 million each in health tech initiatives since 2020.
The COVID-19 pandemic has accelerated the adoption of real world evidence solutions market in drug development and regulatory decision-making. In 2024, 65% of clinical trials in Asia Pacific now incorporate RWE, compared to just 30% in 2019. The region has seen a 40% increase in RWE-focused partnerships between pharmaceutical companies and healthcare providers since 2020. Furthermore, regulatory bodies in countries like Japan, China, and India have updated their guidelines to include RWE in drug approvals, leading to a 25% reduction in time-to-market for new drugs. The number of RWE-based regulatory submissions in Asia Pacific has grown by 35% annually since 2021, reflecting the increasing importance of these solutions in the region's healthcare landscape.
Global Real World Evidence Solutions Market Key Players
- SAS
- Syneos Health
- IBM
- Anthem
- Clinigen Group
- Palantir Technologies
- Flatiron Health
- IQVIA
- ICON
- PAREXEL
- Optum
- Cognizant
- Oracle
- Clarivate plc
- Medpace Holding Corporation
- Elevance Health Inc
- Other Prominent Players
Key Segmentation:
By Therapeutic area
- Cardiovascular Oncology
- Immunology
- Others
By Component
- Dataset
- Services
By End User
- Medical Devices
- Pharmaceutical
- Payers
- Others
By Region
- North America
- Europe
- Asia Pacific
- Middle East & Africa
- South America
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