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Sleep Medicine Market Shows Promise for Investors

4 Min Read

An Uptick in Sleep Disorder Diagnoses, At-home Treatment, and Growing Technological Advances Drive Significant Growth

The sleep medicine market is experiencing a surge that’s projected to more than double in size within the next decade. This expansion is driven by the increasing prevalence of sleep disorders, rising demand for convenient, at-home diagnostic solutions, and innovations in remote monitoring technology. 

The sleep medicine and diagnostics market was valued at approximately $6.5 billion in 2023 and is anticipated to grow at a compound annual growth rate (CAGR) of 12.3% from 2024 to 2032.1

More reimbursements for sleep disorder medicine and at-home testing, as well as convenient telemedicine services, makes treating sleep issues more accessible for patients—and offers investors opportunities to align with the evolving industry.  

Sleep Medicine Investor Insights

Increased Awareness and Diagnosis, and Growing Demand for Convenient Treatment Options Shape Industry Expansion 

The sleep medicine market is driven by several key factors, including:

  • Increase in sleep disorders: Recent findings from the American Academy of Sleep Medicine show that the estimated prevalence rates of sleep disorders, particularly obstructive sleep apnea, have increased substantially over the last two decades. It is now estimated that 26% of adults between the ages of 30 and 70 years old have sleep apnea.2
  • Prioritization of sleep health: American adults are increasingly aware of the importance of sleep health, with over half reporting in a recent Casper-Gallup poll that a good night’s sleep is a major priority. Additionally, prioritizing a good night’s rest has become even more important to them than spending time with family and friends (45%) or eating healthy (40%).3
  • Interest in wearable sleep tech, telemedicine, and at-home testing: Increased public demand is propelling advancements in sleep diagnostic devices, diagnosis, and treatment techniques. The convenience and cost-effectiveness of home sleep testing and treatment are significant contributors to market growth. Advancements allow patients to undergo testing in their own homes and wear portable monitoring devices to track key indicators, such as breathing rate, airflow, blood oxygen levels, heart rate, and body position. This information is also being collected and used to provide more effective treatment and care. Recent studies show patients are frequently sharing sleep data obtained from their wearable devices with healthcare providers.4 The growing accessibility of commercial devices, advanced research, and clinical tools has spurred the widespread integration of wearables in sleep research.5
  • Treatment reimbursement: Concerns over higher costs related to in-lab sleep testing services is waning as coverage for both in-hospital and at-home testing becomes the norm. Medicare in the United States now covers 20% of the cost after the Part B deductible is met. As a result, the adoption of in-lab testing is high for sleep studies6 The increased coverage not only enhances access to sleep study services; it also contributes to a growing number of sleep centers opening their doors.7

Sleep Medicine Industry Landscape and Challenges

Key Competitors in the Sleep Medicine Landscape

The sleep medicine landscape is populated by numerous players who are instrumental in shaping the industry, including:

  • Circle Health Group
  • Cleveland Clinic
  • Imperial College Healthcare NHS Trust
  • Interdisciplinary Center of Sleep Medicine
  • International Institute of Sleep
  • Koninklijke Philips N.V.
  • Korea University Medicine
  • London Sleep Centre
  • Medical Service Company
  • MedStar Health
  • Midwest Sleep Services Inc.
  • Millennium Sleep Lab
  • SleepMedSite
  • SOVA Sleep Services Inc.
  • USA Sleep Diagnostic

Two trends that companies use to differentiate themselves in this market are Home Sleep Apnea Testing (HSAT) and AI products that sync with smart home devices8. Global players like Koninklijke Philips N.V. are leaning into these trends and collaborating directly with sleep clinics to deliver personalized and effective remote, at-home patient care. 

Several market leaders are also merging to strengthen their foothold against the competition. A notable merger in recent years includes Zoll Medical’s purchase of Itamar Medical. The acquisition lends Zoll Medical more diversification opportunities for its sleep apnea products. Additionally, Nox Health and Fusion Health merged into an all-encompassing sleep technology company to deliver both sleep tracking and monitoring devices.9

Risks and Restraints

Challenges Impacting the Sleep Medicine Market’s Growth and Success

While ripe with opportunities, the sleep medicine and remote solutions market faces several factors that could impact its growth trajectory. 

  • Regulatory challenges: The approval process for new medical devices, especially those intended for home use, is often lengthy and complex. It requires compliance with strict safety standards and data privacy laws, which can delay product launches and increase costs for companies entering the market.
  • Cost: The high initial cost of these technologies poses a barrier to entry for both healthcare providers and patients. While home sleep tests (HSTs) offer convenience and potential for more accurate diagnoses, not all patients and insurance companies are ready to adopt and cover these newer technologies due to their expense. This financial restraint can hinder widespread adoption, limiting market growth.
  • Technology standards: Another significant challenge is the variability in technology standards and interoperability. The integration of new remote monitoring devices with existing health systems can be problematic. Without seamless data exchange between these devices and electronic health records (EHRs), the benefit of remote monitoring is diminished, and the value proposition to healthcare providers is reduced.
  • Compliance: Patient compliance is also a concern in remote monitoring. While the technology allows for at-home assessments, its effectiveness relies heavily on patients correctly using the equipment and consistently following prescribed treatment protocols. Non-compliance can lead to less accurate data and suboptimal health outcomes, which can adversely affect the perceived reliability and efficacy of these solutions.

Sleep Medicine and Remote Monitoring Solutions Takeaways for Investors

Ready to invest in the growing sleep medicine and technology sector? Contact us today to connect with experienced advisors and explore investment strategies tailored for success.

Resources:
1 Sleep Study Market – Testing Services (In-Lab Testing, Home Sleep Testing), Indication (Obstructive Sleep Apnea, Insomnia, Restless Leg Syndrome, Circadian Rhythm Sleeping Disorders, Narcolepsy, Bruxism), End-user– Global Forecast (2024 – 2032). Global Market Insights.
2 Ibid.
3 Casper-Gallup State of Sleep in America 2022 Report. Gallup.
4 State of the science and recommendations for using wearable technology in sleep and circadian research. National Library of Medicine.
5 Sleep Study Market – Testing Services (In-Lab Testing, Home Sleep Testing), Indication (Obstructive Sleep Apnea, Insomnia, Restless Leg Syndrome, Circadian Rhythm Sleeping Disorders, Narcolepsy, Bruxism), End-user– Global Forecast (2024 – 2032). Global Market Insights.  
6 Ibid.
7 Sleep Testing Services Global Market Report 2025. The Business Research Company.
8 Home Sleep Apnea Test Market Size, Share & Trends Analysis Report by Region (North America, Asia Pacific, Europe, Latin America, Middle East & Africa), and Segment Forecasts, 2024 – 2030. Grand View Research.
9 Sleep Tech Market by Product, Application, End-Use Industry, and Region – Global Forecast to 2030. Markets and Markets.