Pharmacovigilance Market Summary

The global pharmacovigilance market size was estimated at USD 7.95 billion in 2024 and is projected to reach USD 11.78 billion by 2030, growing at a CAGR of 6.5% from 2025 to 2030. The rising incidence of Adverse Drug Reactions (ADRs) owing to drug abuse and the prevalence of diseases that require a combination of drugs are the major growth drivers for the market. Increasing patient exposure to multiple therapies, including biologics and specialty medications, further heightens the risk of ADRs, thereby strengthening the demand for comprehensive drug safety monitoring solutions.

In addition, an upward shift in the production of novel drugs and the presence of stringent government regulatory frameworks for drug safety are significantly boosting the market growth. For instance, the U.S. FDA and the EU’s European Medicines Agency (EMA) formulate regulatory guidelines for all phases of clinical trials. Moreover, advancements in the development of ADR databases and information systems have enabled accurate reporting of information, which can be further utilized by research professionals for prospective clinical studies, thereby fueling overall growth. Drug consumption has increased substantially owing to the growing prevalence of diseases.

The rising incidence of chronic diseases, such as cancers, diabetes, and cardiovascular and respiratory disorders, has increased drug consumption worldwide. According to a WHO report on pharmaceutical consumption, medicines to treat chronic diseases accounted for a larger proportion of the total volume of drug consumption in nonhospital settings. In addition, the global use of medicines has increased by 414 billion defined daily doses (DDD) over the past five years and is projected to rise by another 400 billion DDD by 2028. This surge in medication consumption highlights the growing need for robust pharmacovigilance systems to monitor drug safety and efficacy across diverse populations and therapeutic areas.

Key Market Trends & Insights

  • North America dominated the pharmacovigilance market in 2024 and held the largest revenue share of over 32.11%. The strong regulatory landscape, high adoption of advanced pharmacovigilance technologies, and increased reporting of drug safety incidents support this market dominance.
  • The pharmacovigilance industry in the U.S. held the dominant share owing to a high incidence of Adverse Drug Reactions (ADRs) in this region due to high drug consumption and extensive healthcare coverage.
  • By product, the phase IV (post-marketing) segment dominated the overall pharmacovigilance market in the product life cycle segment with over 75.90% revenue share in 2024. This stage involves monitoring real-world patient experiences after a drug is launched, making it essential for detecting long-term and rare side effects.
  • By service provider, the contract outsourcing segment held the largest market share in 2024, driven by pharmaceutical companies outsourcing drug safety functions to reduce operational costs and improve regulatory compliance.
  • By installation, the spontaneous reporting segment dominated the pharmacovigilance market in 2024 with the largest share, as it remains one of the most widely adopted methods for timely ADR detection globally.

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Market Size & Forecast

  • 2024 Market Size: USD 7.95 Billion
  • 2030 Projected Market Size: USD 11.78 Billion
  • CAGR (2025-2030): 6.5%
  • North America: Largest market in 2024
  • Asia Pacific: Fastest growing market

Key Companies & Market Share Insights

The pharmacovigilance market is highly fragmented, with many small and large players operating in this space. This leads to intense competition between smaller players to sustain their position. Strategies such as new product launches and partnerships play a key role in propelling the market growth. For instance, In November 2022, Linical Americas (a U.S. subsidiary of The Linical Group) and Science 37 Holdings, Inc. announced a partnership to enable the deployment of hybrid and fully decentralized trials. This partnership will provide enhanced access to Linical’s offerings.

Key Players

  • Accenture
  • IQVIA Inc.
  • Cognizant
  • Clinquest Group B.V. (Linical Americas)
  • IBM
  • Laboratory Corporation of America Holdings
  • ArisGlobal
  • Capgemini
  • ITClinical
  • ICON plc.
  • TAKE Solutions Limited
  • Parexel International (MA) Corporation
  • Wipro
  • United BioSource LLC
  • BioClinica Inc. (Clario)
  • ClinChoice (formerly FMD K&L)

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Conclusion

The pharmacovigilance market is expected to grow steadily as global drug usage continues to increase and health systems emphasize patient safety. With more innovative therapies entering the market and chronic diseases affecting a larger share of the population, the need for strong post-marketing surveillance is expanding. Continuous advancements in digital reporting tools, real-time analytics, and data management systems are improving the accuracy and efficiency of ADR detection. Regulatory authorities are also enhancing safety standards, supporting industry expansion. As pharmaceutical companies continue to outsource pharmacovigilance activities and focus on compliance, the market will play an increasingly essential role in ensuring safe therapeutic outcomes worldwide.