Pharmacovigilance is defined as the science and activities related to the detection, assessment, understanding, and prevention of adverse effects relating to a drug, i.e., post-marketing approval. So, the main aim of pharmacovigilance is to safeguard the use of medicines/drugs. In recent years, the global pharmaceutical market has grown exponentially and new pharmaceutical entities (drugs) are continuously coming to the market. Thus, the pharmacovigilance market is estimated to grow parallel to the global pharmaceutical market during the forecast period. The official website of WHO states that as of January 2016, 123 countries have joined the WHO Programme for International Drug Monitoring, and 28 associate members are awaiting full membership. This global involvement creates an expanded convenience for global pharmacovigilance market.
The rising incidence of adverse drug reactions, a growing number of national and international pharmacovigilance centers, expanding R&D support by government and major players, increasing consciousness among general people on effects of pharmaceuticals are estimated to be the major driving factors for the market. An article published by the FDA under the title Preventable Adverse Drug Reactions: A Focus on Drug Interactions states that over 350,000 adverse drug reactions occur in U.S. nursing homes each year. In this regard, to combat adverse drug reactions and its effects health organizations and pharmaceutical companies all over the globe are adopting various methods of pharmacovigilance for which the global pharmacovigilance market is gaining a steep momentum.
Following graph shows impacts of driving factors in boosting the market.
However, some restraining factors are holding back the global pharmacovigilance market from further growth which includes unskilled labor forces and data deficiency on the effects of drugs.
Owing to the above driving and restraining factors the pharmacovigilance market was valued at USD 2,170 Million in 2016 and is expected to reach USD 5,700 Million by 2023 with a robust CAGR of 16% .
The global pharmacovigilance market can be segmented by reporting methods, service provider, end user, and region.
Pharmacovigilance reporting methods include intensified ADR reporting, EHR mining, spontaneous reporting, targeted spontaneous reporting and cohort event monitoring.
On basis of service provider, the market can be sub-segmented into in-house and contract outsourcing. As per end user segment, the market is sub-segmented into industry, hospitals and research organizations.
Basing on the geographical area global pharmacovigilance market can be sub-segmented into North America, Europe, Asia Pacific and Rest of the World. Global pharmacovigilance market in North America is dominated by the USA and Canada. Europe includes the UK, France, Italy, Sweden and Germany. The Asia Pacific consists of countries as China, India, Australia and Japan. Brazil and South Africa falls in Rest of the World category.
Dominant and fastest growing region
North America is holding the dominant position in the global pharmacovigilance market and is expected to retain its position till 2023. Due to abundance of cheap labour and booming economy, the global pharmacovigilance market is gaining a strong momentum in countries like China and India, which in turn makes Asia Pacific the fastest growing region of global pharmacovigilance market.
After the thalidomide disaster in 1961, WHO established its Programme for International Drug Monitoring. Since then many major players are contributing in the global pharmacovigilance market which includes Accenture plc, Cognizant Technology, Bristol- Myers Squibb, Quintiles IMS, GlaxoSmithKline, Novartis International AG, United BioSource Corporation, BioClinica, PAREXEL International Corporation etc.