The sleep services market is expected to be valued at US$8,395.7 million by the end of 2021, reflecting a compound annual growth rate (CAGR) of 12.9% during the forecast period (2016-2021), according to Persistence Market Research (PMR).
In-lab polysomnography has strong penetration in in-lab sleep testing services owing to reliable outcome and diversified scope in terms of disease diagnosis, PMR reports in its “Global Market Study on Sleep Testing Services: Increasing Prevalence of Sleep Disorders Attributes Double Digit Growth of the Sleep Testing Services During Forecast Period, 2015 – 2021” report. Moreover, ready availability of reimbursement and higher awareness level of PSG tests positively impacted growth of full polysomnography testing segment in 2015. Reimbursement policies are playing a vital role in sleep disease diagnosis and are also responsible for the commercial success of home-based sleep testing solutions. Preference in the leading market of North America is shifting from laboratory-based sleep testing services to home sleep testing services owing to lower cost and easy availability of services.
Increasing number of individuals diagnosed with sleep disorders is expected to promote the use services. In-lab sleep testing services sub-segment accounted for 69% share of the diagnostic sleep testing services segment share in 2015. However, the segment is expected to witness reduction in terms of market growth owing to increase in adoption of cost effective and less time consuming home sleep testing (HST) services over the forecast period.
On the basis of service type, the report segments the sleep testing services market into diagnostic services and treatment monitoring. Diagnostic sleep testing services is segmented into in-lab sleep testing and HST. In-lab sleep testing services segment is further sub-segmented into electroencephalogram, full polysomnography, CPAP/BiPAP titration, Multiple Sleep Latency Test (MSLT), and maintenance of wakefulness test (MWT). Full polysomnography test sub-segment is expected to witness highest growth potential during the forecast period. High revenue from this sub-segment is attributed to high cost of full PSG sleep testing. However, the in-lab sleep testing sub-segment is anticipated to witness a significant growth in terms of revenue, owing to transition to HST services.
By sleep disease treatment monitoring, the report sub-segments the market into obstructive sleep apnea (OSA), insomnia, restless legs syndrome, circadian rhythm sleeping disorders, narcolepsy, and rapid eye movement (REM) sleep disorder. OSA the most prevalent condition, holding around 49% share in 2015 and is expected to remain dominant over the forecast period.
On the basis of end user, the report segments the sleep testing services market into hospitals, sleep centers, and home care settings. Sleep center end users accounted for largest revenue share in 2015, owing to strong penetration of sleep testing services across sleep clinics. However, home care setting end user segment is projected to outperform in terms of revenue growth during the forecast period, reflecting a CAGR of 15.7%.
On the basis of geography, the sleep testing services market is segmented into North America, Latin America, Europe, Asia Pacific, and Middle East & Africa. Growth of the North America sleep services market is driven by favorable reimbursement policies and high awareness of sleep disease. However, there is significant variation in reimbursement policies for sleep testing services across European countries, which is promoting growth of home-based sleep testing services across the region. Large patient population, popularity of medical tourism services, and low cost of sleep testing services are driving growth of the Asia Pacific sleep testing services market.
The sleep service providers are mostly competing in local markets of their respective geographies. These sleep service providers are competing on the basis of high end service, which has increased the overall prices of sleep services, especially in North America. However, ongoing research in HST and government support to HST testing over in-lab testing is expected to change the role and responsibility of sleep technicians in future.