May 18, 2024
Pharmacovigilance Market

The Pharmaceutical Industry Is Experiencing Significant Growth Due To Increased Outsourcing Of Pharmacovigilance Market Activities

The global Pharmacovigilance Market has witnessed significant growth in recent times owing to the growing pharmaceutical industry and stringent regulatory guidelines regarding drug safety. Pharmacovigilance plays a pivotal role in monitoring the safety of drugs post marketing authorization and includes activities such as signal detection, risk identification and mitigation.

Pharmacovigilance involves collecting, monitoring, researching, assessing and evaluating information from healthcare providers and patients on the adverse effects of pharmaceutical drugs, biopharmaceuticals and herbal medicines. Timely detection and analysis of adverse drug reactions enables early risk communication and prevents potential health hazards. With the growing complexity of therapies and burden of monitoring large patient data, many pharmaceutical companies are outsourcing pharmacovigilance services to contract research organizations which offer advanced technical expertise and scalable resourcing.

The global Pharmacovigilance Market is estimated to be valued at US$ 8.9 billion in 2023 and is expected to exhibit a CAGR of 21.% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market key Trends:

Some of the major trends in the pharmacovigilance market include increasing adoption of artificial intelligence and blockchain technology. AI and machine learning algorithms can process large amounts of data from diverse sources swiftly and detect even subtle drug safety signals. Many pharmacovigilance centers are implementing AI-based platforms to automate tasks like literature screening and case processing. Blockchain technology enables decentralized clinical data sharing among stakeholders in a secure, encrypted format and can facilitate real-world evidence generation. This will enhance pharmacovigilance processes and support development of new standards in patient safety monitoring over the coming years.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is moderate in the pharmacovigilance market. High capital requirements and regulatory barriers act as entry barriers.

Bargaining power of buyers: The bargaining power of buyers is high. Buyers can switch between service providers based on pricing and service offerings.

Bargaining power of suppliers: The bargaining power of suppliers is moderate. Suppliers of pharmacovigilance services include contract research organizations and in-house pharmacovigilance departments of pharmaceutical companies.

Threat of new substitutes: The threat of substitutes is low as there are no close substitutes for pharmacovigilance services.

Competitive rivalry: The competitive rivalry is high due to the presence of many global and regional players providing pharmacovigilance services. Players compete based on service capabilities, geographical presence, and pricing.

Key Takeaways

The global Pharmacovigilance Market Growth is expected to witness high growth over the forecast period.

Asia Pacific region is expected to dominate the market and witness the highest growth rate during the forecast period. Factors such as rising generics market, presence of major generic drug manufacturers, and medical tourism are expected to drive the growth of the pharmacovigilance market in Asia Pacific.

Key players operating in the Pharmacovigilance market are Accenture, IQVIA, PAREXEL International Corporation, F. Hoffmann-La Roche Ltd, International Business Machines Corporation, Cognizant and others. These key players are focusing on partnership and collaboration strategies to expand their presence and gain market share. For instance, in 2021, International Business Machines Corporation collaborated with Exelead to accelerate pharmacovigilance by leveraging artificial intelligence and cloud technologies.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it