The global pharmacovigilance market size is expected to reach USD 13.11 billion by 2027. It is projected to expand at a CAGR of 13.2% during the forecast period. Increasing incidence of Adverse Drug Reactions (ADR) is the key growth driver. ADR imposes a substantial burden on healthcare systems and is one of the prominent causes of morbidity in developed countries. According to the National Center for Biotechnology Information (NCBI), approximately 5% of total hospitalizations in Europe each year, are due to ADR. Pharmacovigilance services play an integral role in this clinical trial phase by assisting manufacturers in identifying adverse effects associated with the drug.
According to the World Health Organization’s (WHO) report on pharmaceutical consumption, medicines to treat chronic diseases accounted for a larger proportion of the total volume of drug consumption in non-hospital setups. Hence, there has been a significant rise in the number of medicines made available to healthcare consumers. Rising demand for drugs has significantly heightened the need for the development of novel therapeutics via extensive clinical trials, which is expected to serve this market with lucrative opportunities.
Moreover, leading pharma companies in developed countries are focusing on outsourcing PV services to reduce cost and to minimize operational expenses. This is anticipated to serve as an opportunity for contact research organizations in developing regions to gain more revenue share. Manufacturers are now focusing on remodeling their product development processes in an attempt to cater to patient needs across the globe. These factors are anticipated to fuel the demand for pharmacovigilance services during the forecast period.
Key findings from the study suggest:
- Phase IV held a dominant market share in 2019 owing to the extensive post-marketing surveillance of pharmaceuticals and increasing ADR incidences
- In the service provider segment, contract outsourcing held a significant market share of around 57% in 2019, owing to the shift in focus of pharmaceutical companies toward outsourcing services to reduce operational cost
- Based on type, spontaneous reporting held the largest revenue share in 2019, due to the wide application of the product in pharmacovigilance along with benefits such as easy simulation of data sets for better drug comparison
- Research organizations segment is anticipated to exhibit lucrative CAGR of 13.3% over the forecast period owing to increasing R&D for the development of novel biologics and medical devices
- Asia Pacific pharmacovigilance market is anticipated to showcase lucrative CAGR in the forthcoming years, attributed to the availability of low-cost labor and rising number of outsourcing companies in this region
- Market participants are focusing on increasing R&D activities to develop better pharmacovigilance services. Moreover, they are adopting strategies such as new product launch, collaborations, and mergers and acquisitions to gain competitive advantage
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Source: Odessa American
