U.S. Sleep Disorder Clinics Market - Industry Outlook & Forecast 2024-2029

MARKET OUTLOOK

The U.S. sleep disorder clinics market size was valued at USD 6.11 billion in 2023 and is expected to reach USD 8.43 billion by 2029, growing at a CAGR of 5.51% during the forecast period. The market growth can be attributed to multiple factors, including the rising baby boomers, the rising aging population, the increase in healthcare expenditure, the growing prevalence of heart diseases and nerve disorders, and the growing awareness among the general population. The emerging approaches in the U.S. sleep disorder clinics market include more fine-grained and continuous EEG signal feature detection and novel oxygenation metrics to better encapsulate hypoxia duration, frequency, and magnitude readily possible via more advanced data acquisition and scoring algorithm approaches.

MARKET TRENDS & DRIVERS

Rising Healthcare Collaborations
Organizations form “collaborative working” partnerships, which can take various forms. Options range from informal networks and alliances to joint delivery of projects to full mergers. Since 50 to 70 million Americans have sleep disorders, it presents a growing opportunity for both the medical and dental communities. As the public increasingly begins to recognize the central role of sleep in overall health, physicians and dentists can expect more patients to turn to their medical providers for remedies. The necessity for clear standards and best practices for diagnosing and treating sleep disorders has grown more apparent than ever, supporting the U.S. sleep disorder clinic market growth.

Shift Toward Home-Based Sleep Laboratories
New home-based sleep technologies appropriate for many healthy individuals (home sleep tests) result in the selection of increasingly medically complex patients referred to a sleep lab for an in-lab assessment. Sleep disturbances are prevalent in neurodegenerative diseases in general and Parkinson’s disease (PD) in particular. Recent evidence points to the clinical value of sleep in disease progression and improving quality of life. Therefore, monitoring sleep quality continuously at the convenience of one’s home can improve clinical research and contribute to significantly better personalized treatment. Precise mapping of the sleep patterns of each patient can contribute to a better understanding of the disease, its progression, and the appropriate medical treatment.

The Rising Awareness of Sleep Disorders
CDC and its partners work to raise awareness of the impact of sleep health on the public’s health and safety. CDC’s scientists assess the prevalence of sleep insufficiency and sleep disorders in the U.S. population and conduct applied public health research to assess the relationships between insufficient sleep and chronic disease, behavioral outcomes, and social determinants of health. The American Academy of Sleep Medicine and the Society of Behavioural Sleep Medicine are working to raise awareness of one of the most common sleep problems with Insomnia Awareness Night. Such awareness campaigns are projected to propel the U.S. sleep disorder clinics market growth during the forecast period.

SEGMENTATION INSIGHTS

INSIGHTS BY OWNERSHIP
The U.S. sleep disorder clinics market by ownership is segmented into affiliated and independent clinics. The affiliated clinics segment dominated the market share in 2023. The availability of multi-specialty services, the presence of round-the-clock assistance, and favorable reimbursement policies offered by the affiliated clinics are the major factors for the dominance in the market. However, the independent clinics segment will witness the highest CAGR during the forecast period. The growth of the independent clinics segment is attributed to several factors, which include flexibility in providing services and personalized care, resulting in the shift of patients from hospitals to independent clinics.

INSIGHTS BY APPLICATION
The sleep testing application segment holds the largest U.S. sleep disorder clinics market share. Traditional diagnostic techniques, such as polysomnography, can take much time and money, necessitating patients to spend the night in a sleep lab. Patients increasingly use home sleep testing equipment to diagnose sleep apnea in the comfort of their homes. Moreover, limited insurance coverage and payment guidelines for sleep apnea diagnostics create financial barriers for patients and healthcare professionals, influencing market adoption.

INSIGHTS BY PAYOR
The U.S. sleep disorder clinics market by payor is segmented into private, public, and out-of-pocket health insurance. Private health insurance dominated the market share in 2023. The doctor may prescribe sleep aid medication based on the sleep disorder the individual is suffering from. Many of these medications are covered by the health insurance plan. The cost will depend on which type of insurance the individual has and the price the insurer agreed to pay. Furthermore, most private health insurance policies cover PAP equipment; however, the level of coverage and rules for coverage will depend on the specific insurance policy. Also, medical care is expensive in the U.S., so most people appreciate health insurance. Still, the costs of testing and treatments for sleep disorders will vary greatly all around the U.S. and even from one community to the next.

REGIONAL ANALYSIS

The east region held the most significant share of the U.S. sleep disorder clinics market, accounting for over 33% in 2023. The East region has 309 sleep disorder treatment centers, which the AASM accredits. The states like New York (71), Pennsylvania (66), and New Jersey (48) have the most significant number of sleep centers. Furthermore, the region consists of states that include Connecticut, Delaware, Maine, Maryland, Massachusetts, New York, New Jersey, New Hampshire, Pennsylvania, Rhode Island, and Vermont. New York and Pennsylvania are among the top 10 sleep-deprived states in the U.S. and provide significant opportunities for vendors to explore. In 2020, the age-adjusted prevalence of adults not getting enough sleep was 34.8% in the U.S., meaning 1 in 3 adults got fewer than seven hours in an average 24-hour period.

VENDOR LANDSCAPE

The U.S. sleep disorder clinics market is characterized by rapid technological changes, a surge in the prevalence of sleep disorders, a rise in awareness of sleep disorders, and insurance coverage standards. Most vendors in the market have been focusing on initiatives to enhance their solutions with new technologies and develop new services to broaden their consumer base. Furthermore, although there are over 4,000 sleep laboratories in the U.S., only a few players in the U.S. sleep disorder clinics market, such as Star Sleep & Wellness Center, SleepWorks, and Comprehensive Sleep Care, have a chain of laboratories that perform large volumes of sleep studies.

The number of mergers and acquisitions is high in the market. In addition, the vendors are producing better innovative plans like luxury accommodations, customized living facilities, and more to attract customers. One of the key vendors in the market includes Star Sleep & Wellness. The company specializes in eliminating sleep disorders such as sleep apnea with innovative snoring solutions and treatment programs. Its services are offered across a wide variety of common problems, including sleep apnea, insomnia, narcolepsy, and restless leg syndrome.