The global Real World Evidence Solutions market size is poised for robust growth in the coming years, according to a new report from marketsandmarkets. The market, valued at $1.5 billion in 2022, is projected to reach $2.9 billion by 2027, reflecting a compound annual growth rate (CAGR) of 15.2%.

RWE refers to data regarding the usage, benefits and risks of medical products derived from real-world settings. RWE solutions encompass various services, data sets, and analytical capabilities that generate evidence from real patient data outside of randomized controlled trials (RCTs).

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The growth in the RWE solutions market is being primarily driven by the surge in clinical trials and the shift from volume- to value-based care in the healthcare industry. Pharmaceutical companies are increasingly using RWE and real world data (RWD) to optimize clinical trial design, reduce protocol amendments, enable synthetic control arms, and accelerate regulatory approvals - all of which help lower trial costs.

Among components, services accounted for the largest share of the global RWE solutions market in 2022. Services include consulting offerings that help develop smart RWE strategies, as well as analytical services to extract meaningful insights from real-world data. The demand for customized, cost-effective services is higher compared to standalone data sets.

Based on application, the drug development and approvals segment held the largest share, aided by a rising number of oncology and cardiovascular clinical trials. Among end users, pharmaceutical and medtech companies are expected to witness the fastest growth due to regulatory requirements related to RWE for new drug approvals.

While North America currently leads the global RWE solutions market, Asia Pacific is forecast to see the highest growth rate during 2022-2027. The expanding chronic disease burden, aging populations, more healthcare spending and favorable clinical trial infrastructure are fueling RWE adoption across countries like China and Japan.

Key market challenges include the lack of standardized methodologies and universal principles for RWE, which has reduced its potential value. The reluctance among some medical practitioners to rely entirely on real-world studies is another constraint. However, the market presents significant opportunities as well.

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The global RWE solutions space features a few established, large players like IQVIA, IBM, Optum and Syneos Health. In light of the high growth prospects, more collaborations and innovation focused on analytics capabilities can be expected. Ultimately, the creation of new healthcare databases and advancement of enabling technologies like AI will be instrumental in unleashing the full potential of real world evidence.