SLEEP TECH DEVICES MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024 - 2031)

Sleep Tech Devices Market Size and Trends

The sleep tech devices market is estimated to be valued at USD 19.98 Bn in 2024 and is expected to reach USD 58.34 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 16.5% from 2024 to 2031.

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Technological advancements like wearable sleep trackers and apps are gaining high popularity among users. Growing awareness about sleep disorders and their impact on health is driving customers towards sleep tech devices to monitor and improve their quality of sleep. In addition, increasing health expenditure and demand for contactless healthcare monitoring during the COVID-19 pandemic have further accelerated the adoption of smart sleep tech devices globally. However, data privacy and security concerns associated with some products may hinder market growth to some extent over the next few years.

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Insights by Product - Convenience and Comfort Drive Wearables Adoption

In terms of product, wearables segment is estimated to contribute the highest market share of 54.8% in 2024, owing to their convenient and comfortable nature. Wearable sleep tech devices such as smartwatches, fitness trackers, and sleep masks can easily be worn throughout the night without much disturbance. This allows them to seamlessly and continuously monitor vital sleep metrics like heart rate, movement, and breathing patterns.

Insights by Application - High Disease Prevalence Boosts Application in Insomnia Treatment

In terms of application, insomnia segment is estimated to contribute the highest market share of 49.2% in 2024, owing to its high prevalence rates globally. Insomnia can severely impair daytime functioning due to fatigue, loss of productivity, and increased healthcare costs. This has fueled the demand for dedicated sleep tech devices that can diagnose and treat insomnia. The ability of such specialized insomnia-focused devices to reliably diagnose and treat and condition has driven their increased uptake over general sleep tools.

Insights, by End User - Technology Adoption within Hospitals

In terms of end user, hospitals segment is estimated to contribute the highest market share of 54.9% in 2024, owing to higher technology adoption compared to other settings. Hospitals are continually investing in advanced sleep tech equipment to enhance service quality. Integrating digital solutions allows centralized and remote monitoring of high-risk patients.  

Regional Insights

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Regional Analysis: Sleep Tech Devices Market

Dominating Region: North America

North America is expected to dominate the sleep tech devices industry with the highest market share of 39.3% in 2024 due to factors such as high consumer awareness about sleep disorders, large patient pool of sleep apnea and insomnia cases, and presence of major industry players. The U.S. accounts for the largest share due to supportive regulatory environment and reimbursement policies promoting adoption of sleep devices.

Fastest-Growing Region: Asia Pacific

Meanwhile, the Asia Pacific region exhibits the fastest growth in the sleep tech devices industry riding on factors like rising health expenditure, increasing incidents of lifestyle diseases and sleep disorders, growing medical tourism, and penetration of wearable sleep trackers. Countries like China and India are viewed as highly lucrative markets.

Sleep Tech Devices Market Outlook for Key Countries

Continuous product innovations in the U.S.

The U.S. sleep tech devices market thrives on continuous innovations in wearables and diagnostic tools, which significantly enhance user experience and effectiveness. These advancements drive demand by providing personalized insights and solutions for improved sleep quality. Modern wearables, such as smartwatches and fitness trackers, have integrated advanced sleep-tracking capabilities. They monitor metrics like heart rate variability, sleep stages, and movement patterns, allowing users to gain a comprehensive understanding of their sleep quality.

China’s strong government support

China sleep tech devices industry is poised for robust growth, benefiting from strong government support aimed at developing the medical device industry and enhancing healthcare access. For instance, The Chinese government has initiated public education campaigns to raise awareness about sleep disorders and their impact on overall health. This backing foster innovation and increases consumer awareness, driving demand for advanced sleep solutions.

Increasing awareness campaigns in Japan

Increasing awareness campaigns in Japan, organized by Eisai Co., Ltd.'s release of the insomnia awareness video “We Who Cannot Sleep,” play a crucial role in driving the country's sleep tech devices market. This initiative aligns with Japan's Autumn Sleep Health Weeks, emphasizing the importance of sleep health and encouraging public discourse on insomnia and other sleep disorders.

Domestic Manufacturing Initiatives in India

The India sleep tech devices market is growing rapidly due to rising awareness, lower treatment costs compared to developed nations, and initiatives to strengthen domestic manufacturing. Government initiatives aimed at strengthening domestic manufacturing are fostering the growth of the sleep tech devices market. In June 2024, Wakefit.co, a direct-to-consumer (D2C) mattress and furniture maker, launched  Wakefit's Zense range, which includes Regul8 and Track8. This range represents India's first AI-powered sleep solutions aimed at optimizing sleep quality and health. By promoting local production, India is not only reducing dependency on imports but also enhancing the availability of innovative and cost-effective sleep solutions tailored to local needs.

Market Concentration and Competitive Landscape

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Top Strategies Followed by Sleep Tech Devices Market Players

• R&D Investment: Leading companies in the sleep tech devices market focus extensively on research and development to innovate high-performance products. Companies like Philips, ResMed, and Fitbit invest over 5% of their annual revenue in R&D. This helps them develop cutting-edge technologies such as advanced sensors, AI-enabled algorithms, and enhanced sleep tracking features. The innovative products strengthen their market position.
• Cost-Effective Solutions: Mid-level companies concentrate on offering affordable yet feature-rich products targeting price-sensitive customers. Some adopt a direct-to-consumer model to maintain lower costs. Others partner with local manufacturers in Asian countries to benefit from low production costs. This enables them to make inroads into the mass market segment.
• Niche Specialization: Small-scale players identify gaps in the market by focusing on specialized needs of niche customer groups such as side sleepers, shift workers, kids, etc. They design highly customized solutions with unique features. This differentiation strategy allows them to efficiently tap opportunities in the fragmented industry.

Emerging Startups in the Sleep Tech Devices Market

• Innovative Technologies: Startups are developing cutting-edge technologies like AI-powered smart masks to optimize treatment of sleep apnea and smart mattresses equipped with biometric sensors to monitor heart rate, respiration, etc. Such technical innovations have the potential to disrupt existing market trends and models of care delivery in the long run.
• Sustainable Solutions: Some startups focus on sustainability, for example, Whoop offers a recovery tracker band made of environment-friendly materials. Another startup, Dawn Simulations, creates digital therapy solutions to address insomnia, thus reducing the carbon footprint of traditional CPAP machines. Their efforts are lowering the industry's impact on the environment.
• Niche Markets: Startups often enter niche, underserved segments like women's health, pediatric care, etc. They design products specifically addressing the needs of these populations.

Sleep Tech Devices Industry News

• On October 28, 2024, Neurovalens, a prominent health-tech company, launched Modius Sleep, a groundbreaking device aimed at treating chronic insomnia. This innovative product utilizes non-invasive neurostimulation technology to enhance sleep quality by targeting specific neurons in the brain responsible for regulating sleep patterns.
• On September 30, 2024, ResMed, a health technology company, a new collection of patient-centric digital solutions designed to enhance the management of sleep apnea. This launch includes innovative products that integrate artificial intelligence and digital wearables to improve patient engagement and health outcomes.
• On June 13, 2024, Wakefit, a company that offers home solutions, particularly in sleep products, launched Wakefit Zense range, an AI-powered sleep solutions, in India. It includes Regul8 and Track8 where former is a mattress temperature controller which manages the surface temperature of the mattress, while latter is a contactless sleep tracker.

Key Takeaways from Analyst

Key drivers include rising awareness about the importance of quality sleep and associated health risks of poor sleep. Growing consumer demand for fitness trackers and smart watches with sleep monitoring capabilities is another key tailwind.

Data privacy concerns around biometric data collected through these devices and doubts over accuracy of data can restrain widespread adoption. Lack of medical validations for many consumer-focused products is another limiting factor. High price points of clinical-grade devices also restrict the accessible market size.

The North America region currently dominates the global sleep tech devices market owing to high disposable incomes and obesity rates that exacerbate sleep problems. Asia Pacific is expected to witness the fastest growth led by increasing health awareness, a growing middle class, and large unmet demand in populous nations like India and China.

Market Report Scope

Market Dynamics

Market Driver - Increasing prevalence of sleep disorder

Increasing prevalence of sleep disorder is expected to drive the market growth over the forecast period. For instance, in October 2023, according to Science Direct, a scientific, technical, and medical research journal, obstructive sleep apnea (OSA) is a common medical disorder affecting between 9% and 38% of the global adult population.

Market Challenge - High cost of advanced sleep tech devices

One major challenge facing the sleep tech devices market is the high cost of advanced devices. As technology improves, prices for sophisticated sleep trackers, which monitor vital signs like heart rate and breathing patterns, have surged to several hundred dollars. While justified by R&D costs, these high prices limit accessibility and hinder mass adoption, necessitating a focus on cost reduction and more affordable options to drive sustainable market growth.

Market Opportunity - Integration of AI and IoT in Sleep Tech Devices for Market Growth

One significant opportunity for the sleep tech devices market lies in integrating advanced technologies such as artificial intelligence (AI) and Internet of Things (IoT) capabilities. By combining data from wearable trackers with AI, manufacturers can deliver personalized insights to improve sleep quality. This integration facilitates seamless sharing of biometric data with other health devices, enhancing user engagement and targeting new segments like the elderly, who require remote health monitoring such as patient wearables.

Key Stakeholders of Market

What does Growth in the Sleep Tech Devices Industry mean for Different Stakeholders?

The global sleep tech devices industry has multiple players with varied designations and offers multiple opportunities based on their scope of operations.

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Market Segmentation

• By Product Insights (Revenue, USD Bn, 2019 - 2031)
• • Wearables
  • Non-wearables
  • Others
• By Application Insights (Revenue, USD Bn, 2019 - 2031)
• • Insomnia
  • Obstructive sleep Apnea
  • Others
• By End User Insights (Revenue, USD Bn, 2019 - 2031)
• • Hospitals
  • Homecare Settings
  • Others
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
• • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
• • Wakefit
  • Fisher & Paykel Healthcare Limited.
  • Fitbit Inc.
  • Garmin Ltd.
  • Itamar Medical
  • Koninklijke Philips N.V.
  • Oura Health Oy
  • SleepScore Labs
  • ResMed Inc.
  • Nihon Kohden Corporation
  • Huawei Technologies Co. Ltd.
  • Smart Nora
  • Indiegogo, Inc.