Sleep Tech Devices Market to reach USD 68.78 billion by 2032

The global sleep tech devices market, which is expected to be valued at USD 23.32 billion in 2025, is on a trajectory of rapid expansion. Projections indicate a USD 68.78 billion valuation by 2032, exhibiting a CAGR of 16.7% during the forecast period. The increasing prevalence of sleep disorders, growing consumer awareness about sleep health, and innovation in sleep-monitoring technologies are driving the sleep tech devices market growth.

Key Market Insights

By product, the wearables segment is estimated to dominate the market, holding a 55.3% share in 2025. This growth is being driven by the increased adoption of smartwatches, fitness bands, and ring-based sleep trackers, due to their convenience and enhanced integration with the health monitoring ecosystem.
By application, the insomnia segment is projected to hold the largest market share of 49.7% in 2025. The rising incidence of sleep deprivation and stress-related disorders, coupled with the growing preference for non-invasive and technology-driven sleep solutions, is propelling demand in this segment.
By end user, the hospitals segment is expected to lead, capturing 55.4% of the market share in 2025. Increasing adoption of sleep tech devices for the diagnosis and treatment of sleep disorders and improvements in the technologies available for sleep studies associated with hospitals are driving the segment’s expansion.
By region, North America is forecast to command the highest market share of 39.8% in 2025. This dominance is attributed to the region’s high prevalence of sleep-related disorders, growing consumer spending on health and wellness technologies, and robust adoption of AI-driven and IoT-enabled sleep devices in the U.S. and Canada.

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Sleep Tech Devices Market Report Coverage

Report Coverage	Details
Market Revenue in 2025	USD 23.32 billion
Estimated Value by 2032	USD 68.78 billion
Growth Rate	16.7%
Historical Data	2020–2024
Forecast Period	2025–2032
Forecast Units	Value (USD billion)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered	By Product, By Application, and By End User
Geographies Covered	North America, Latin America, Europe, Asia Pacific, Middle East, and Africa
Growth Drivers	· Increasing Prevalence of Sleep Disorders · Technological Advancements in Sleep Tech Devices
Restraints & Challenges	· High Cost of Advanced Sleep Tech Devices · Accuracy Issues in Some Low-cost Devices

Market Dynamics

The sleep tech devices market is growing rapidly because of the increasing awareness about sleep disorders, momentum in wearable and non-wearable sleep-tracking technology, and growing interest in personalized sleep solutions. For instance, Whoop 4.0 health and sleep tracker was released on March 25 2025, which provides extensive analysis and personalized insights that considered overall health. Unlike conventional smartwatches, Whoop 4.0 is a device without a screen that offers extensive readings on heart rate, sleep behaviors, physical exertion, and recovery status via a Bluetooth connection with the Whoop app.

Also, the integration of smart sleep technologies like IoT-based sleep trackers, contactless sleep monitoring sensors, and AI-based sleep coaching platforms are transforming the market scenario. Device companies are now more inclined towards non-invasive monitoring systems, sophisticated sleep therapy solutions, and home-based sleep diagnostics, both for consumer and clinical markets.

Market Trends

Advancements in AI-Powered Sleep Monitoring and Diagnostics

The integration of AI in sleep tech devices is revolutionizing sleep monitoring and diagnostics by providing real-time insights, personalized recommendations, and early detection of sleep disorders. AI-powered algorithms enhance accuracy in sleep stage tracking, apnea detection, and circadian rhythm analysis.

For instance, in September 2024, Honeynaps received FDA approval for its AI-driven sleep disease analysis software, SOMNUM, which utilizes deep learning to analyze biosignals and improve diagnostic accuracy. This trend is driving the shift toward precision medicine in sleep health.

Emergence of Sleep Tech Integration with Smart Home Ecosystems

The sleep tech devices industry is increasingly integrating with smart home ecosystems, offering a seamless sleep-enhancing experience. Devices such as smart beds, automated lighting, and AI-driven climate control systems are synchronizing with sleep trackers to create personalized sleep environments.

For instance, in October 2022, Sleep Number Corporation, the sleep health and wellness technology leader, announced the launch of the Climate360 smart bed. It is the world’s first and only sleep solution to help address temperature concerns, keeping sleepers at their ideal temperature throughout the night.

Market Opportunities

Expansion of Wearable and Non-Wearable Sleep Monitoring Devices

With a strong focus on non-invasive sleep monitoring, the demand for both wearable and non-wearable sleep tech devices is rising. Consumers are seeking convenient, unobtrusive options such as smart rings, contactless sleep sensors, and IoT-enabled sleep trackers that seamlessly integrate into daily routines. For instance, in October 2024, ŌURA, a maker of the most trusted smart ring, introduced Oura Ring 4. Oura Ring 4 is built around a breakthrough sensing technology, Smart Sensing, which is powered by an algorithm that works with research-grade sensors to dynamically adapt to the finger and deliver accurate and continuous data, day and night. The lightweight, all-titanium design of Oura Ring 4 features recessed sensors for a smooth interior shape and thinner profile, making it more comfortable for 24/7 wear. By combining Smart Sensing and the sleek new design, Oura Ring 4 is able to achieve both exceptional accuracy and improved comfort without having to sacrifice one for the other.

Growth in Home-Based Sleep Therapy and Diagnostics

The shift towards home-based sleep diagnostics and therapy solutions is revolutionizing the sleep tech devices industry. With rising healthcare costs and accessibility concerns, consumers are increasingly opting for at-home sleep apnea tests, and AI-assisted sleep therapy solutions.

In June 2023, a U.K.-based medical device company, Acurable, launched its AcuPebble device for obstructive sleep apnea diagnosis in the U.S. after recently securing a new U.S. Food and Drug Administration (FDA) clearance.

The patient-friendly device, which first launched in Europe in 2021, makes remote and efficient home sleep apnea testing possible, allowing for earlier detection, faster treatment, and better management of this chronic condition, according to Acurable. AcuPebble extracts respiratory biomarkers continuously and accurately, enabling automated analysis.

Analyst’s View

"The sleep tech devices market is poised for robust growth, fueled by rising awareness of sleep health and the increasing adoption of AI-driven and IoT-enabled sleep solutions, “said Manisha Vibhute, a senior analyst. "Innovations in non-invasive monitoring, such as smart rings and contactless sleep sensors, are transforming sleep tracking by providing seamless and accurate insights without disrupting user comfort. Additionally, the integration of sleep tech with smart home ecosystems—featuring AI-powered climate control, automated lighting, and adaptive smart beds—is redefining personalized sleep environments. The market is also witnessing a shift toward home-based sleep diagnostics and therapy, driven by advancements in wearable CPAP devices and AI-assisted sleep coaching platforms. With continuous technological advancements and growing consumer investment in health and wellness, the sleep tech industry is set for sustained expansion."

Recent Developments

In February 2024, ResMed launched its AirCurve 11 series devices, the company’s newest bilevel devices that use two levels of support, inspiratory positive airway pressure (IPAP) and expiratory positive airway pressure (EPAP), combined with digital technology to make it easier for healthcare providers to treat sleep apnea and to help patients start and stay on therapy. AirCurve 11 devices are built on ResMed’s market-leading AirSense 11 platform and enhance the suite of offerings available for healthcare providers and clinicians when determining the best care for sleep apnea patients.

Competitor Insights