Sleep Market

Market Overview

The global sleep market size was valued at USD 60.35 billion in 2022. It is estimated to reach USD 102.07 billion by 2031, growing at a CAGR of 5.91% during the forecast period (2023–2031).

Highlights

• Smart bedding dominates the product type segment
• Insomnia dominates the indication segment
• North America is the highest shareholder in the global market

Sleep has been established as one of the most important aspects of maintaining a healthy body. Sleep is a state of decreased mental and physical activity in which consciousness is altered, and sensory activity is partially inhibited. When they sleep, a person's contact with their environment is much diminished, as is the movement of their muscles. Sleep involves active brain processes, even if it differs from alertness in the capacity to respond to stimuli, making it more responsive than a coma or disorders of consciousness. The circadian rhythm encourages sleep every night.

Most of the body's systems enter an anabolic state while we sleep, restoring the immune, neurological, skeletal, and muscular systems. These essential activities also significantly affect the health and function of the endocrine and immune systems. Humans are susceptible to a wide range of sleep disorders, including parasomnias like sleepwalking and rapid eye movement sleep behavior disorder, dyssomnias including insomnia, hypersomnia, narcolepsy, sleep apnea, bruxism, and circadian rhythm sleep disorders. Sleeping aid devices such as wearable devices, CPAP machines, smart bedding, and consumables such as prescription medicines, OTC products, and dietary supplements help combat sleep disorders.

Market Dynamics

Global Sleep Market Drivers

Increasing Prevalence of Mental Illnesses

Mental illnesses are becoming a major cause of social and individual problems in modern society, mainly affecting youth. Poor sleep can affect mental health, and poor mental health can affect sleep. Anxiety can increase the rate of thoughts, which can make it harder to calm yourself and fall asleep. According to Our World in Data, anxiety disorders have a prevalence rate of 2.5%-7% in every country. In addition, depression can alter sleeping patterns, making a person oversleep or sleep a lot during the day, which is not an ideal practice for the body. The depression rate ranges between 2% to 6% globally and is most common in people above 70.

Furthermore, the relationship between mental health and sleep disorders has created awareness of sleep disorders and mental health. It has helped in changing the perspective of the population towards sleep disorders and understanding the reasons behind them, thereby boosting the demand for preventive devices over the years. Investments in various sleeping aids such as smart bedding, sleep trackers, and natural products for sleep are increasing. They are expected to continue driving the growth of the global sleep market.

Growing Use of Sleep Trackers for Sleep Management

Sleeping trackers are witnessing increased market traction due to the increasing adoption of wearables. Wearable devices are currently trending in the healthcare market and are already popular in developed countries such as the US, Canada and Asia-Pacific countries such as Japan and China. They are witnessing an increasing demand in developed countries too. However, the sleep tracker market is not limited to wearable devices, as different types of sleep trackers are available for use in different settings. In addition, sleep trackers are available as under-mattress tracking devices and smart mattresses. Wearable sleep trackers are mostly used as wristwatches, wrist or headbands, and rings. Technological advancements, products from well-recognized brands, smart connectivity with smartphones or tablets, and usage and convenience fuel the adoption of wearable sleep trackers, driving the market growth.

Global Sleep Market Restraint

Side Effects of Sleep Medications

Sleep medications have always been criticized for the possible side effects they can produce. Most of the time, these side effects can be mild and easier to ignore. The possible side effects of sleeping medications include burning or tingling sensation in limbs, irregular appetite, diarrhea, difficulty maintaining balance while on feet, dry throat, headache, dizziness, and heartburn, which are common in any allopathy treatment. However, sleeping meds can have serious and chronic side effects on a person.

The side effects include an easy build-up of tolerance, addiction to medication, and compromised vision and motor activity, which can harm a person's health directly or indirectly. Sleeping meds can create tolerance in a short period, such as when taken for more than two weeks in general. This is a concerning situation as sleeping meds can create breathing disturbances, causing airways to block during sleep, resulting in death. Such side effects can be extremely hazardous for people suffering from chronic respiratory conditions like COPD or asthma, restricting market expansion.

Global Sleep Market Opportunities

Technological Advances in Wearable Devices

Sleeping disorders are one of the most common lifestyle-induced disorders, which cause abnormal sleep patterns. Many studies have shown that if abnormal sleep patterns are left unnoticed, they can progress to cause chronic diseases such as obesity, heart attack, stroke, and abnormal heart rates, which makes tracking sleep patterns one of the most crucial steps in risk assessment and prevention of diseases. In addition, several vendors in the wearable device market are producing devices that can monitor sleep patterns or exclusively manufacture wearable sleep trackers.

According to the American Academy of Sleep Medicine (AASM), sleep technology or wearable sleep trackers are not medical devices, so they do not require FDA approval. As a result, many tech giants are entering the sleep trackers and wearable devices market. Apple, Amazon, Xiaomi, and Samsung are leading companies entering the global market by introducing smartwatches and smart bands. The entry of these tech giants has increased the acceptance of sleep trackers as these are the trusted technology brands in the global market. It is also facilitated by these manufacturing companies providing improved connectivity to the wearable devices manufactured by the same company. Thus, the factors above create opportunities for market expansion.

Regional Analysis

Based on region, the global sleep market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America Dominates the Global Market

North America is the most significant global sleep market shareholder and is anticipated to exhibit a CAGR of 4.26% during the forecast period. In North America, the expansion of the market was fueled by the already established hard solutions market, where the leading pharmaceutical companies are active in introducing prescription and OTC products. Further, lifestyle is one of the major growth drivers in the region. Around 82% of the total population in the area lives in urban areas. People's sleep habits become erratic as they consume more alcohol and other stimulants like caffeine and nicotine. Increasing unnecessary technology consumption keeps people awake at night, thus increasing the daytime sleep period. In addition, Internet consumption in the US has increased exponentially, reaching 93% in 2021. In Canada, around 94% of the population are internet users. It is indirectly impacting the sleeping behavior in the region. However, it has also increased the usage of mobile-based activity tracking and has made the penetration of wearable technology much easier in the region.

Europe is estimated to exhibit a CAGR of 6.32% over the forecast period. In Europe, the market is driven by the growing use of technology for sleep management. Wearable devices and sleep trackers are getting traction in the European sleep market. The market growth was attributed to the growing acceptance of sleeping technology and soft sleeping solutions among the European population. Various regional research studies have established the health benefits of sleeping properly as prescribed. Furthermore, the increasing smartphone penetration in the European market has created a needed platform for smartphone-based sleep-tracking apps. In the past decade, this industry has had many fast-growing start-ups. In addition, rising mental health issues are important growth drivers in the market. Getting the appropriate amount of sleep can reduce mental health problems, and managing good mental health can reduce the onset of sleeping problems, driving market growth.

Asia-Pacific has the fastest growth rate among other regions. It is expected to continue its growth during the forecast period and fuel the growth of the global market with its power to manufacture products in large quantities. Further, India and China are two leading countries in the Asia-Pacific sleep market, where China is dominating the market with its soft solutions. Chinese manufacturers are focusing on manufacturing sleep devices such as smart bedding solutions, smart mattresses, sleep trackers, ambient lighting, and ambient sound systems that are used as preventive care against sleep deprivation and can also help treat conditions faster along with medications. In addition, India is one of the leading manufacturing hubs in pharmaceutical products. It manufactures sleeping aids in its manufacturing plants, following the regulation guidelines of the US FDA. Such approaches have increased generic medicines' export in the US, driving regional market growth.

The Latin American region is considered to be a low-resource and low-income region. Due to economic stress and rapid urbanization, with over 80% population being urban, the prevalence of sleep disorders is high. Low awareness of the significance of sleep has resulted in low levels of diagnosis in the population. A high percentage of the urban population in many key countries has reported having sleeping problems due to work stress. They have also reported taking sleep medications to increase the quality of sleep. In addition, the region has a high prevalence of obesity, mainly in Brazil and Mexico. Recent studies addressing sleep issues, obesity, and other risk factors in the Latin American population can increase awareness. Government intervention to reduce these risk factors is thus increasing the demand for sleep management products.

In the Middle East and Africa, the population lacks awareness regarding how sleep disorders are diagnosed and their treatment options. Due to this, a large population is undiagnosed for many sleeping disorders. The risk factors causing sleep disorders, such as obesity, hypertension, respiratory disorders, and mental health problems, are significantly prevalent in the region. These risk factors are expected to increase. Therefore, the sleep market in the region is predicted to grow quickly during the forecast period.

Segmental Analysis

The global sleep market is segmented by product type and indication.

Based on product type, the global market is bifurcated into smart bedding, sleep lab services, sleep apnea devices, medication, wearable devices, and others. 

The smart bedding segment dominates the market and is projected to develop a CAGR of 5.67% over the forecast period. Smart bedding is focused on improving environmental and behavioral factors that affect sleep. It is about creating the most suitable environment for a person to feel comfortable during sleep. Smart bedding includes using a smart mattress, which provides several improved functionalities such as sleep tracking, automatic adjustment of bed's firmness, temperature control according to surrounding, adjustable bed bases, improved fabric integrity and quality, and smart connectivity with other home appliances such as lighting and sound. Furthermore, smart mattresses aim at providing comfort to a person during sleep. They also track sleep to access sleep patterns, which then is used to improve the bedding for improved comfort. Features provided by smart mattresses have a straight impact on the quality of sleep. These features have increased the market demand for smart bedding and smart mattress.

Sleep facilities, sleep clinics, and sleep labs are the three main categories of sleep lab services. The sleep center has a clinic for assessing patients and a lab for diagnosing them. A sleep clinic is an outpatient establishment where patients can visit, assess their sleep disorders, and receive treatment. On the other hand, sleep labs are where sleep disorders are diagnosed. Both in-lab testing and home sleep testing are options. A general sleep lab consists of around 7-8 beds. A person undergoing a sleep study must visit the lab at around 8-9 pm and be exposed to PSG testing for 7 to 8 hours, i.e., until around 6 am.

Based on indication, the global market is segmented into insomnia, sleep apnea, narcolepsy, restless leg syndrome, REM sleep behavioral disorder, and others. 

The insomnia segment owns the highest market share and is predicted to exhibit a CAGR of 5.33% during the forecast period. Insomnia is a sleeping disorder associated with difficulty sleeping, short sleep duration, and diminished sleep quality. It can make a person suddenly fall out of sleep and make it challenging to fall back asleep. It also induces a feeling of tiredness during the day. Insomnia can be further categorized into acute insomnia and chronic insomnia. With increasing factors such as obesity, aging, urban lifestyle, and work shifts, insomnia is increasing. The pandemic has also contributed to the increasing incidence of insomnia. It is common in post-COVID-19 patients due to stress, anxiety, and isolation during quarantine. The sleep market has been dominated by diagnostic and treatment products for insomnia, which is expected to continue during the forecast period.

A neurological condition called narcolepsy affects a person's capacity to wake up and go to sleep. It induces daytime sleepiness in a person, which makes them feel sleepy all the time. It can also make the person fall asleep while doing any task. Narcolepsy instantly causes a person to enter REM sleep, making them fall asleep. There are two types of narcolepsies, type 1 and type 2. Type 1 narcolepsy involves the sudden loss of muscle tone, making the person feel weak and tired, thus inducing sleep. This event is termed catalepsy. Type 2, on the other hand, does not involve catalepsy.

Recent Developments

• March 2023- Wesper received US Food and Drug Administration (FDA) clearance for its next-generation sleep care device. It is claimed that the new Wesper Lab patch is the first and only platform to collect significant longitudinal clinical-grade data over multiple nights to monitor treatment efficacy, diagnose, and titrate over time.
• January 2023- Aculys Pharma, Inc. and Four H, Inc. announced an exploratory research collaboration using wearable devices to help patients with narcolepsy and excessive daytime sleepiness (EDS) due to obstructive sleep apnea (OSAS).