A new report by MarketsandMarkets predicts strong growth ahead for the global real world evidence (RWE) solutions market. The market was valued at $2 billion in 2024 and is expected to reach $4.5 billion by 2029, reflecting a compound annual growth rate of 16.5% over the period.

RWE refers to data on health interventions collected outside of traditional clinical trials. This includes data from sources like electronic health records, insurance claims databases, patient registries, and mobile health apps. RWE provides valuable insights into real-world clinical practice and patient outcomes.

The growth in the RWE solutions market is being driven by a shift towards value-based healthcare, rising rates of chronic illness, and the potential for RWE to reduce costs and accelerate drug and device development. RWE enables healthcare stakeholders to evaluate the safety, effectiveness, and cost-effectiveness of treatments in real-world settings.

The service segment holds the largest share of the RWE solutions market based on components. Services include advanced analytics and consulting to help end users extract meaningful information from RWE data. The large market share for services reflects rising demand to translate expansive healthcare data into actionable evidence.

In terms of applications, drug development and approvals make up the largest market segment. RWE is increasingly used to support clinical trials and satisfy regulatory requirements for new drugs and devices. The oncology sub-segment has seen particularly high adoption of RWE.

Pharmaceutical and medical device companies are the leading end-user segment in the RWE solutions industry. RWE allows these companies to demonstrate real-world safety and outcomes to meet payer evidence requirements and support product commercialization.

Geographically, North America holds the greatest share of the global RWE solutions market. However, the Asia Pacific market is poised for rapid expansion in the coming years thanks to sizable opportunities in fast-growing healthcare markets like China and India. These countries are investing heavily in healthcare data capabilities that will support RWE adoption.

While promising growth lies ahead, the RWE solutions industry still faces challenges like shortages of skilled personnel to handle new digital health platforms. As stakeholders continue addressing barriers to adoption, the market outlook remains positive overall. Key players in the RWE space include IQVIA Holdings Inc., Optum Inc., Syneos Health, and Oracle.

Through its in-depth analysis, the MarketsandMarkets report provides crucial intelligence for companies looking to capitalize on the burgeoning RWE market. With value-based care models gaining momentum globally, demand for real-world evidence to support decision-making will only increase in the years ahead.