Marketdata Enterprises Inc, an independent market research publisher of off-the-shelf studies about service industries since 1979, has released a new 175-page report entitled The U.S. Sleep Market.

Marketdata research director John LaRosa says in a release, “As obesity rates climb and Americans age, more people are developing sleep apnea, restless leg syndrome, and other sleep disorders. Plus, stressors related to the volatile stock market, terrorism, mass shootings, healthcare, student debt, and protests against politicians are all resulting in more sleepless nights. As a result, a huge industry has emerged to analyze and treat America’s insomniacs—sleep lab and home test devices, CPAP masks, premium mattresses and pillows, Rx and OTC [over-the-counter] sleep medications, apps, sound machines, and more.”

Major findings of the report include:

  • Marketdata estimates that the US sleep market was worth $28.6 billion in 2017. For 2018, the market should grow by 3.3%. To 2023, Marketdata forecasts 4.7% average annual growth.
  • The major prescription insomnia drugs market, led by Belsomra, Ambien, and Lunesta, has been declining in value due to the expiration of patents and the entry of cheaper generics. These drugs’ sales total about $1.4 billion. But the non-prescription or over-the-counter sleeping pills market, valued at $576 million, is growing faster.
  • According to Marketdata, there are about 4,700 US sleep centers. The typical lab has revenues of $920,000 and a bed count of about 7 to 8. Labs are located in hospitals, physician practices, universities, or are independent. This segment was worth $4.3 billion in 2017. There has been consolidation and closures due to reimbursement pressure from portable home testing devices approved by Medicare.
  • CPAP devices comprise a $4.3 billion market that’s growing 7.2% a year. Marketdata says the CPAP devices market is largely untapped (only 12% penetrated). It has major potential, as more people, especially the obese, are diagnosed with obstructive sleep apnea.
  • The huge $16 billion mattress market is undergoing transformation, as technology changes the materials mattresses are made of, and the major retailers merge. E-commerce upstarts such as Casper have revolutionized how consumers purchase mattresses—online out of a box. Premium non-innerspring (air, memory foam) models are selling well.
  • The sleep pillows market is worth $1.6 billion and is also growing, as new materials and premium-priced pillows enter the market.
  • Retail devices generate about $200 million in sales. These include earplugs, light therapy machines, sound conditioning machines, books about sleep advice, sleep pods, eye masks, smartphone apps, and other devices.

LaRosa says, “An estimated 70 million Americans have insomnia, and 43 million suffer from obstructive sleep apnea (OSA), mostly undiagnosed. As obesity rates remain high, this problem is not likely to dissipate any time soon. Therefore, there is ample room for future growth of CPAP devices, sleep studies, OTC and prescription medications, and other services.”

The U.S. Sleep Market report costs $1,495, but is sold by individual chapters at lower cost. A 27 page overview of report highlights is available to the general public for $99.