The global pharmacovigilance market is projected to generate $15,259.8 million revenue in 2030, advancing at a CAGR of 9.5% during 2021–2030. The rising incidence of adverse drug reactions (ADRs) due to drug addiction, as well as the rising prevalence of diseases that necessitate a combination of drugs, are the important growth drivers for the overall market. Furthermore, an increase in the production of new pharmaceuticals, as well as the presence of a strong government regulatory framework for drug safety, are driving the growth in the pharmacovigilance industry.
The COVID-19 pandemic has further assisted in the growth of the market as there was an increase in drug development activities and clinical trials during it. The coronavirus pandemic also drove the demand for decentralized and hybrid clinical trials, as the pharma sector was forced to transition to remote models, to maintain patient safety and ensure data integrity for COVID-19 vaccine trials and other ongoing trials. The epidemic has provided an opportunity to transfer several technologies and remote patient care solutions from the pilot to production mode, thus benefitting both patients and researchers.
Based on product lifecycle, the market is categorized into pre-clinical, phase I, phase II, phase III, and phase IV. During the forecast period, the phase III category is expected to grow at a faster rate than others. Phase III clinical studies are conducted to test and establish the efficacy of a medicine. Before a medicine is commercialized, phase III clinical studies provide further information about potential drug interactions, drug safety, and efficacy.
Based on service provider, the market is categorized into in-house and contract outsourcing, of which contract outsourcing is set to dominate the market in the near future. This can be attributed to the rapid emergence of contract research organizations (CROs) that provide end-to-end clinical trial solutions, particularly in Asia-Pacific economies, such as India, China, and Japan, thus enabling resource sharing, resource flexibility, cost-efficiency, and expansion of operational capabilities.
Based on therapeutic area, the market is classified into oncology, neurology, cardiology, pulmonology, and others. Among these, oncology dominated the market, with more than 27% share, in 2021, owing to the rising prevalence of cancer, which requires extensive therapy for treatment, as well as the management of associated pain.
The impact of cancer can be ascertained from the fact that it caused 10 million deaths in 2020, as reported by the WHO. It further stated that around 70% of the deaths from cancer occurred in low- and middle-income countries, thereby reflecting a massive demand for cancer pain drugs in these nations.
Because of the presence of major pharmaceutical and medical device companies, North America acquired the largest share of the global pharmacovigilance market in 2021. The market driver with the strongest impact in the region is the rising prevalence of drug misuse and accompanying ADRs. The high investment by the leading market participants in the development of new drugs is also driving the market growth in the continent. As a result, drug production, the number of clinical studies, and the demand for post-marketing surveillance are rising in this region.
Key players in the pharmacovigilance market have been extensively involved in expansions and product approvals to gain competitive advantages.
For instance, in March 2022, Thermo Fisher Scientific Inc. announced that it will invest $97 million to expand its clinical research operations in Richmond, Virginia, to offer the biopharma sector consistent, high-quality laboratory services, to accelerate drug development.
Similarly, in January 2022, F. Hoffmann-La Roche Ltd. announced that the FDA has approved Vabysmo (faricimab-svoa) for the treatment of neovascular or “wet” age-related macular degeneration (nAMD) and diabetic macular edema (DME), the two leading causes of vision loss worldwide.
Key players in the pharmacovigilance market include Accenture plc, Bristol-Myers Squibb Company, Clinquest Group B.V., Cognizant Technology Solutions Corporation, GlaxoSmithKline plc, ICON plc, Novartis AG, F. Hoffmann-La Roche Ltd., PAREXEL International Corporation, Pfizer Inc., ICON plc, and Wipro Limited.