Health Economics and Outcomes Research Market Outlook (2026–2035): Growth Drivers, Trends, and Projections

 

The global health economics and outcomes research (HEOR) market was valued at USD 1.70 billion in 2025 and is projected to grow at a CAGR of 13.50% during the forecast period of 2026–2035, reaching USD 6.03 billion by 2035. The market growth is being driven by the increasing mergers and acquisitions among key players in the sector, advancements in healthcare research, and the growing demand for cost-effectiveness and health outcomes evaluation in healthcare services.

Key Growth Drivers in the Global HEOR Market

1. Rising Mergers and Acquisitions in the Healthcare Sector

One of the major drivers for the HEOR market is the increasing number of mergers and acquisitions (M&As) among leading healthcare companies. These strategic alliances enable companies to expand their portfolios and integrate advanced health economics tools that assess cost-effectiveness, value-based care, and health outcomes. The merging of healthcare companies accelerates the adoption of innovative research methodologies in economic modeling, and clinical trials by pooling resources and expertise.

M&As in the healthcare industry help organizations enhance their research capabilities, data analytics, and decision-making processes, all of which are essential for developing value-based healthcare models and improving patient outcomes.

2. Growing Focus on Cost-Effective Healthcare Solutions

As healthcare costs continue to rise globally, governments, health insurers, and healthcare providers are placing increased emphasis on cost-effective healthcare solutions. Health economics and outcomes research plays a critical role in evaluating the value and cost-effectiveness of new therapies, medications, and medical devices, particularly in the context of budget constraints and healthcare reforms.

Governments and private insurers are investing more in the assessment of health interventions to make informed decisions on coverage and reimbursement policies. The growing importance of health technology assessments (HTA) is propelling the demand for HEOR services to quantify the economic impact of innovative treatments.

3. Technological Advancements in Data Analytics

Advancements in data analytics, including the use of big data and artificial intelligence (AI), are transforming the HEOR landscape. Healthcare companies are increasingly relying on advanced analytics to conduct large-scale studies, model complex healthcare interventions, and predict the long-term outcomes of various health policies.

The rise of electronic health records (EHRs) and health informatics tools provides richer, more accessible data for researchers. With AI-powered insights and machine learning algorithms, HEOR specialists can analyze vast datasets more accurately and efficiently, improving the quality of health economics models and enabling better decision-making.

4. Expanding Demand for Value-Based Healthcare

With the shift toward value-based healthcare, there is a growing need for health outcomes measurement to evaluate the effectiveness of treatments in real-world settings. The value-based care model prioritizes outcomes over volume, encouraging healthcare providers to focus on improving patient health while managing costs.

HEOR is pivotal in this transition, providing essential insights into how treatments and health interventions impact both clinical outcomes and healthcare expenditures. As value-based models gain popularity, the demand for HEOR services to assess quality-adjusted life years (QALYs), cost-effectiveness ratios, and patient-reported outcomes is expected to rise.

5. Growing Chronic Disease Burden

The increasing prevalence of chronic diseases such as diabetes, cardiovascular diseases, and cancer is creating a demand for more effective healthcare solutions. Chronic disease management requires ongoing interventions, and HEOR helps healthcare organizations assess the long-term costs and effectiveness of different treatment approaches.

As the global burden of chronic diseases rises, the need to understand the economic impact of long-term treatment strategies and their potential to improve patient outcomes becomes even more critical.

Key Challenges Facing the Global HEOR Market

1. Regulatory Hurdles and Market Access

The regulatory landscape for HEOR is complex and varies by country. In many regions, health technology assessment (HTA) processes require thorough and time-consuming evaluations, which can delay the approval of new treatments or products. Navigating these regulatory hurdles can be challenging for companies looking to expand their presence in multiple markets.

Moreover, the differences in reimbursement policies across countries can create difficulties for companies trying to determine the value of their products in different healthcare systems, limiting the ability to assess outcomes and economic benefits effectively.

2. Data Privacy and Security Concerns

With the increasing use of big data in health economics research, concerns over data privacy and security are growing. Collecting and analyzing large datasets from electronic health records, insurance claims, and patient surveys requires stringent data protection measures to ensure compliance with regulations such as GDPR (General Data Protection Regulation) and HIPAA (Health Insurance Portability and Accountability Act).

Data security issues and breaches can undermine the credibility of research, delay project timelines, and lead to significant financial and reputational losses for stakeholders involved in the HEOR industry.

3. High Costs of HEOR Studies

Conducting comprehensive HEOR studies can be expensive, requiring substantial financial investment in research, data collection, and analysis. Smaller players in the market may struggle to afford these studies, limiting access to high-quality HEOR services. The need for longitudinal studies, real-world evidence collection, and the analysis of diverse populations further drives the cost, making it a barrier for some organizations.