An estimated 70 million Americans suffer from insomnia and 39 million suffer from obstructive sleep apnea (OSA), mostly undiagnosed. With obesity rates still high, this problem is unlikely to go away anytime soon. Therefore, there is ample scope for future growth in CPAP devices and sleep testing performed at home or in specialty clinics.
As obesity rates rise and Americans age, more people are developing sleep apnea, restless legs syndrome, and other sleep disorders. In addition, stressors related to inflation and politics are causing more sleepless nights for Americans.
Sleep centers have had to deal with the pandemic, a shift to cheaper home tests and declining Medicare reimbursements, but they are diversifying their services to add additional revenue streams (such as CPAP fitting, oral appliance therapy and behavioral sleep medicine).
The 6 most important things to know about sleep centers and the CPAP market
- Market size and growth: Marketdata estimates the U.S. sleep center market at $7.75 billion in 2023, while the CPAP device market is estimated at $5.06 billion. The CPAP market is growing faster.
- Demand: Between 50 and 70 million American adults have a sleep disorder, of which 39 million have sleep apnea.
- Industrial structure: The sleep center market is fragmented and populated by more than 4,500 privately owned small businesses, while the CPAP market is dominated by two large healthcare companies: ResMed and Respironics (Philips).
- Sleep centers: This market is a mature, low-growth, low-profit market populated by small private companies with an average gross annual revenue of $1.7 million.
- Competition: Marketdata analysts estimate that the actual number of sleep centers in the United States is approximately 4,560. The total estimated number of ACCREDITED sleep centers is at least 3,256.
- Trends: 70% of pre-COVID volumes were laboratory and 30% home sleep testing (HST), according to various surveys, which have shown that the ratio of laboratory to home testing has reversed during the pandemic. Now 70% is home test and 30% center test.
Where to find out more
To learn more about the sleep disorder treatment market, check out the new report titled The US Sleep Disorders Treatment Market: Sleep Centers, Sleep Studies, and CPAPs by Marketdata LLC. This comprehensive 97-page report covers market size, patient demographics, competitor profiles, regional market opportunities, and more.
About the author: John LaRosa is president of Marketdata LLC and author of over 100 industry and market studies. His research appears in leading media such as ABC, CNN, Fox, Forbes, USA Today, The Wall Street Journal, The New York Timesand various trade journals.