SLEEP TESTING SERVICES MARKET ANALYSIS

Global sleep testing services market is estimated to be valued at US$ 7.91 Bn in 2023 and is expected to exhibit a CAGR of 12.1%  during the forecast period (2023-2030).

Analysts’ Views on Global Sleep Testing Services Market:

The sleep testing services market offers diagnostic procedures and services for various sleep disorders. It includes in-lab and home sleep testing approaches, leveraging technology for convenience and accuracy. Increased awareness of the health implications of sleep disorders drives the demand for these services. Market players invest in research and development to enhance diagnostics and offer innovative solutions. The market presents opportunities to improve sleep health and address the rising prevalence of sleep-related conditions.

Figure 1. Global Sleep Testing Services Market Share (%), By Diagnostic Type, 2023

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Global Sleep Testing Services Market – Driver

 Increasing prevalence of sleep disorders

The increasing prevalence of sleep disorders in the U.S. including conditions like obstructive sleep apnea and insomnia, is imposing a substantial economic burden on the healthcare system. Efforts are needed to raise awareness, improve diagnostics, and expand access to therapy options to address this growing public health challenge.

A study conducted by the American Sleep Association in 2020 revealed that a significant number of adults in the U.S., estimated to be between 50 to 70 million, were affected by various sleep disorders. Specifically, approximately 25 million individuals were identified as suffering from obstructive sleep apnea.

Insurance Mandates on Home Sleep Testing Drive Growth in Global Sleep Testing Services Market

The global sleep testing services market is set to experience significant growth in the forecast period, fueled by the mandatory requirement of home sleep testing (HST) imposed by insurance service providers. A prime example is observed in the U.S., where several insurance companies now mandate the precertification of sleep testing, prioritizing the coverage of HST over the costlier polysomnography sleep testing (PSG).

Figure 2. Global Sleep Testing Services Market Share (%), By Region, 2023

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Global Sleep Testing Services Market- Regional Analysis

In 2022, the North America segment emerged as the dominant market, capturing a significant share of 44.3%. The region's market leadership can be attributed to several factors, including evolving lifestyles, increasing disposable income, the presence of renowned industry players, a rising obese population, growing prevalence of respiratory diseases, growing awareness about obstructive sleep apnea (OSA), and favorable government initiatives. Notable participants operating in North America include Philips Respironics, Somnetics International Inc., and ResMed. These companies possess robust business presence and well-established supply and distribution channels throughout the region.

Global Sleep Testing Services Market – Impact of Coronavirus (COVID-19) Pandemic

Since the COVID-19 virus outbreak in December 2019, the disease has spread to over 100 countries across the globe, and the World Health Organization declared it a public health emergency on January 30, 2020.

COVID-19 affected the economy in three main ways: by directly affecting the production and demand of drugs, by creating disruptions in distribution channels, and through its financial impact on firms and financial markets. Due to nationwide lockdowns, several countries such as China, India, Saudi Arabia, the U.A.E., Egypt, and others faced problems regarding transportation of drugs from one place to another.

However, The COVID-19 pandemic initially caused disruptions in traditional in-person sleep testing services; however, it also served as a catalyst for the rapid adoption of telemedicine and home testing alternatives. The implementation of remote consultations and the availability of home testing devices enabled patients to receive necessary care while ensuring their safety. In response to the growing demand for accessible and convenient testing options, the market quickly developed wireless and disposable devices specifically designed for home sleep testing.

In a study published by Science Direct on January 10, 2023, it was found that home-based testing utilization in Q2 2021 surpassed initial levels by 134%, while in-lab and split night testing remained at 61% of their initial levels. Additionally, patients who underwent initial home-based testing had a similar likelihood of treatment but were less likely to have a clinical visit for sleep apnea. The study also revealed that patients tested in 2021 received treatment more promptly compared to those tested in Q1 2019, and home-based testing conducted from Q4 2019 onwards was more likely to provide definitive results.

Global Sleep Testing Services Market- Segmentation

The global sleep testing services market report is segmented into By Diagnostic test type, By Application type, By End user type, and By Region.

By Diagnostic Test Type, the market is segmented into home sleep testing and in- lab sleep testing(Electroencephalogram, Full Polysomnography, CPAP/BiPAP Titration, Multiple Sleep Latency Test (MSLT), Maintenance of Wakefulness Test). Home sleep testing (HST) has gained dominance in the global sleep testing services market due to its convenience, cost-effectiveness, and technological advancements. HST offers a more natural sleep environment and accurate results, aligning with patient preferences. While in-lab testing is still used for complex cases, the increased accessibility and patient preference have propelled HST's prominence in the market.

By Application, the market is segmented into Obstructive Sleep Apnea, Insomnia, Restless Legs Syndrome, Circadian Rhythm Sleeping Disorders, Narcolepsy, and Rapid Eye Movement (REM) Sleep Disorder. Obstructive sleep apnea (OSA) is the most prevalent sleep disorder characterized by disrupted breathing during sleep and significant health risks. However, other sleep disorders, including insomnia, restless legs syndrome, circadian rhythm sleeping disorders, narcolepsy, and REM sleep disorder, also affect individuals' sleep health to different extents.

By End User, the market is segmented into Hospitals, Sleep centers, and Home Care Settings. Hospitals dominate the global sleep testing services market, primarily due to their advanced equipment, specialized facilities, and highly skilled medical personnel. With their comprehensive range of diagnostic and treatment options, hospitals are well-positioned to provide accurate sleep disorder assessments and personalized care for patients. The established presence and reputation of hospitals further solidify their dominant position in the sleep testing services market.

By Region, the market is segmented into North America, Latin America, Europe, Asia Pacific, Middle East and Africa. Out of which, the North America is expected to hold a dominant position in the global sleep testing services market during the forecast period, owing to increasing usage of sleep testing sevices.

Global Sleep Testing Services Market- Cross Sectional Analysis

The global sleep testing services market has witnessed growth due to increased accessibility and patient preference. It is segmented by application into various sleep disorders such as obstructive sleep apnea, insomnia, restless legs syndrome, circadian rhythm sleeping disorders, narcolepsy, and REM sleep disorder. Among regions, North America holds a dominant position in the market, driven by the rising usage of sleep testing services. Overall, the market analysis emphasizes the growing demand for sleep testing services and the leading role of North America. For instance, in June 2020, according to the International Health Care System report, the U.S. Government Organizations announced their commitment to enhancing the healthcare infrastructure through increased funding, legislative measures, and national strategies. These initiatives included co-funding programs and establishing fundamental requirements and regulations for the Medicaid program on sleep apena. The significant investment by the government is anticipated to have a positive impact on driving the growth of the sleep testing services market in North America region.

Global Sleep Testing Services Market: Key Developments

Key players in the global sleep testing services market are prioritizing the introduction of new products and services to meet the increasing demand. Additionally, these leading companies are focused on expanding their global footprint by establishing new service centers to provide specialized care.  

In August 16, 2021 - ResMed, a global leader in digital health and sleep apnea treatment, launched AirSense 11, its next-generation PAP device, in the U.S. The device features new digital features such as Personal Therapy Assistant and Care Check-In, designed to make therapy setup and nightly use easier for patients and provide tailored guidance throughout their treatment journey. With the integration of digital health technologies, ResMed aims to enhance patient adherence and improve the efficiency of care provided by clinicians in the management of sleep apnea

In June 2021, Marshall Medical Centers and Mayo Medical Laboratories formed a partnership in the U.S. market, enabling Marshall Medical Centers to broaden its customer base by accessing Mayo clinic's extensive range of 3,000 laboratory tests across multiple departments. This collaboration aims to facilitate global patient base expansion and growth opportunities for both organizations.

In October 2021, MedStar Health, it is the largest healthcare provider in the Maryland and Washington, D.C. region, inaugurated the center for successful aging at MedStar Montgomery Medical Center in Olney, Maryland. This newly opened center provides specialized care tailored to the unique needs of older adults, offering integrated care coordination and a patient-centered approach.

In March  2022, Withings, it is the leading consumer electronics company focused on developing connected health devices and applications. Withings  introduced a Sleep Diary feature for its Sleep Tracking Mat. This feature enhances users' understanding of sleep quality by combining biometric data collected by the mat with additional information obtained through a series of questions.

Global Sleep Testing Services Market- Key Trends

Transforming Patient Preference: Telemedicine Services Surge in Popularity

Telemedicine has caught the attention of the U.S. government and various public health organizations as an effective approach for diagnosing and treating a range of sleep disorders, including chronic and acute insomnia.

The Centers for Disease Control and Prevention (CDC)'s 2020 guidelines prompted a surge in telehealth adoption for sleep disorder care. Patients now prefer virtual consultations due to convenience and reimbursement benefits. Market players have responded by introducing wireless, disposable devices like NightOwl by Ectosense NV for home sleep testing.

Global Sleep Testing Services Market: Restraint

 Reduction in Physician Fees and Medicare Spending Impact Sleep Testing Services Market

The reduction in physician fees during the reimbursement process has impacted the sleep testing services market. As Medicare spending faces instability in the U.S., healthcare providers offering sleep services are experiencing lower reimbursements, which creates financial challenges and may affect the availability and accessibility of these services for patients.                                               

High Cost of In-Lab Sleep Testing Limits Market Growth, Home Testing Gains Popularity

The high cost of in-lab sleep testing has become a limitation for the growth of the sleep testing services market. In the U.S., where the average cost of full polysomnography ranges from US$ 3,500 to US$ 5,000, the affordability factor has led to a decline in the adoption of in-lab testing services. Instead, patients are opting for the more cost-effective option of home sleep testing, priced at around US$ 500 to US$ 800, thereby impacting the demand for in-lab sleep testing services.

Global Sleep Testing Services Market - Key Players

Major players operating in the global sleep testing services market include Midwest Sleep Services Inc., SleepMed Inc., SOVA Sleep Services Inc., Medical Service Company, Sleep Services Australia, Genesis SleepCare, St. Luke’s Center of Sleep Medicine, Total Sleep Holdings Plc., Carolinas Sleep Services.

Definition: The global sleep testing services market refers to the industry that provides diagnostic testing for sleep disorders. It involves evaluating sleep patterns and disorders through procedures like polysomnography and home sleep apnea testing. The market includes in-person testing at clinics as well as remote or home-based testing using portable devices. It involves service providers, medical professionals, and equipment manufacturers focused on accurate diagnosis and treatment of sleep disorders.