Pharmacovigilance Global Market Opportunities and Strategies to 2032

This report describes and explains the pharmacovigilance market and covers 2017-2022, termed the historic period, and 2022-2027 termed the forecast period, along with further forecasts for the period 2027-2032. The report evaluates the market across each region and for the major economies within each region.

The global pharmacovigilance market reached a value of nearly $6.7 billion in 2022, having increased at a compound annual growth rate (CAGR) of 8.5% since 2017. The market is expected to grow from $6.7 billion in 2022 to $12.6 billion in 2027 at a rate of 13.4%. The market is then expected to grow at a CAGR of 12.3% from 2027 and reach $22.4 billion in 2032.

Growth in the historic period resulted from the increasing incidence of adverse drug reactions (ADRs), the increasing research and development (R&D) activities, the growing drug development rates, the increasing focus on personalized medicine and the rising prevalence of chronic diseases. Factors that negatively affected growth in the historic period were risks associated with securing data, the lack of awareness of the importance of pharmacovigilance and low healthcare access in developing countries.

Going forward, the rising healthcare expenditure, the increasing government support and the aging population will drive the market. Factors that could hinder the growth of the pharmacovigilance market in the future include regulatory challenges and the high cost of implementation.

The pharmacovigilance market is segmented by type into spontaneous reporting, intensified ADR reporting, targeted spontaneous reporting, cohort event monitoring, and EHR mining. The spontaneous reporting market was the largest segment of the pharmacovigilance market by type, accounting for $2.2 billion or 32.8% of the total market in 2022. The targeted spontaneous reporting market is expected to be the fastest-growing segment going forward at a CAGR of 13.8%.

The pharmacovigilance market is segmented by service provider into in-house and contract outsourcing. The contract outsourcing market was the largest segment of the pharmacovigilance market by service provider, accounting for $4.0 billion or 59.9% of the total market in 2022. It is expected to be the fastest-growing segment going forward at a CAGR of 13.4%.

The pharmacovigilance market is segmented by end user into hospitals, pharmaceutical companies, and other end users. The pharmaceutical companies market was the largest segment of the pharmacovigilance market by end user, accounting for $3.2 billion or 48.1% of the total market in 2022. The hospitals market is expected to be the fastest-growing segment going forward at a CAGR of 13.8%.

The pharmacovigilance market is segmented by clinical trial phases into preclinical, phase I, phase II, phase III, and phase IV. The phase IV market was the largest segment of the pharmacovigilance market by clinical trial phases, accounting for $4.9 billion or 72.9% of the total market in 2022. The phase III market is expected to be the fastest-growing segment going forward at a CAGR of 13.6%.

The pharmacovigilance market is segmented by process flow into case data management, signal detection, and risk management system. The signal detection market was the largest segment of the pharmacovigilance market by process flow, accounting for $2.6 billion or 38.4% of the total market in 2022. The case data management market is expected to be the fastest-growing segment going forward at a CAGR of 14.1%.

North America was the largest region in the pharmacovigilance market, accounting for 44.0% of the global market in 2022. It was followed by Asia-Pacific, Western Europe and the other regions. Going forward, the fastest growing regions in the pharmacovigilance market will be Eastern Europe and Asia-Pacific, where growth will be at CAGRs of 15.8% and 15.0% respectively from 2022-2027.

The global pharmacovigilance market is fragmented, with a large number of players operating in the market. The top ten competitors in the market made up to 7.93% of the total market in 2022. IQVIA was the largest competitor with 2.83% share of the market, followed by Cognizant with 1.66%, ICON Plc. with 1.15%, Accenture plc with 0.92%, PAREXEL International Corporation with 0.57%, United BioSource LLC with 0.25%, ArisGlobal with 0.22%, Quanticate with 0.13%, Wipro Limited with 0.12% and Linical Americas with 0.07%.

The top opportunities in the pharmacovigilance market by type will arise in the spontaneous reporting market, which will gain $2.0 billion of global annual sales by 2027. The top opportunities in the pharmacovigilance market by service provider will arise in the contract outsourcing market, which will gain $3.5 billion of global annual sales by 2027. The top opportunities in the pharmacovigilance market by end user will arise in the pharmaceutical companies market, which will gain $2.8 billion of global annual sales by 2027. The top opportunities in the pharmacovigilance market by clinical trial phases will arise in the phase IV market, which will gain $4.3 billion of global annual sales by 2027. The top opportunities in the pharmacovigilance market by process flow will arise in the signal detection market, which will gain $2.2 billion of global annual sales by 2027. The pharmacovigilance market size will gain the most in the USA at $2.1 billion.

Market-trend-based strategies for the pharmacovigilance market include increasing investments, use of artificial intelligence, use of innovative platforms, use of innovative cloud-based systems and strategic mergers and acquisitions.

Player-adopted strategies in the pharmacovigilance industry include expanding operational capabilities through strategic acquisitions, achieving and sustaining excellence in pharmacovigilance services and expanding operational capabilities through strategic partnerships.

To take advantage of the opportunities, the recommends the pharmacovigilance companies to focus on innovative cloud-based systems, focus on artificial intelligence, focus on innovative platforms, focus on fast-growing service types, expand in emerging markets, continue to focus on developed markets, focus on strategic mergers and acquisitions, provide competitively priced offerings, participate in trade shows and events, continue to use B2B promotions and continue to target fast-growing end-use industries.