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The U.S. sleep disorder clinics market size was USD 8.62 billion in 2020. The market is projected to grow from USD 9.20 billion in 2021 to USD 15.92 billion in 2028 at a CAGR of 8.2% during the 2021-2028 period. The impact of COVID-19 has been unprecedented and staggering, with sleep disorder clinics witnessing a negative impact on demand across the U.S. amid the pandemic. Based on our analysis, the U.S. market exhibited a decline of -12.1% in 2020 as compared to the average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
Sleep disorders are conditions that disrupt an individual’s sleep pattern. More than 80 different disorders have been reported globally, including insomnia, sleep apnea, restless leg syndrome, and others. Increasing incidence of heart diseases, movement disorders, pain, depression, and anxiety are major risk factors contributing to irregular circadian rhythm among general people. For instance, according to the American Sleep Apnea Association, in 2020, an estimated 22 million people in the U.S. were suffering from sleep apnea, with 80.0% of the cases remaining undiagnosed.
Hence, the increased prevalence of these disorders and growing awareness among the affected population are a few key factors anticipated to boost the number of patients going for treatment in sleep disorder clinics in the U.S. Also, adequate reimbursement policies for sleep study and treatment and a rising shift toward telemedicine are expected to drive the U.S. sleep disorder clinics market growth during the forecast period.
Decline in Patient Visits amid Pandemic to Negatively Impact Market Growth
The COVID-19 pandemic has harmed the U.S. sleep disorder clinics market. Postponement of most services across sleep disorder clinics in the U.S. and decline in-home sleep apnea testing were some of the factors leading to a decline in the revenue generated by market players in 2020. According to a survey published by Medqor, it was found that around 68.0% of the participants had witnessed a significant decline in several patient visits to the sleep centers in March 2020 due to the outbreak of a pandemic.
However, a decline in the first half of 2020 was further compensated by a shift of physicians and patients toward telehealth services. These factors, combined with changing reimbursement policies pertaining to telehealth by the U.S. government, are anticipated to bring the growth rate back to the pre-pandemic level by the end of 2021.
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Changing Patient Preference towards Telemedicine and Home Testing Services to Bolster Volume
The U.S. government along with various public health organizations have observed that telemedicine is an effective model for the diagnosis and treatment of patients with sleep disorders, including chronic & acute insomnia, and others.
Thus, such recommendations by medical organizations and favorable reimbursement for telemedicine have led to a rapid shift of patients toward this new model. Also, a few market players have cited this opportunity and introduced wireless and disposable devices for home sleep testing. For instance, in March 2020, Ectosense NV received the pre-marketing approval for NightOwl, a wireless disposable device exclusively for home study.
Growing Prevalence of Sleep Disorders to Boost Demand for Therapy Options
Rising number of patients in the U.S. with several disorders such as obstructive sleep apnea (OSA), insomnia, and others exert a huge economic burden on the country's healthcare system.
Thus, the increasing economic burden of these disorders has forced the government and other private and non-profit organizations to promote awareness regarding these diseases among general people.
Such initiatives by the governments and public health organizations along with a favorable reimbursement scenario for sleep testing and treatment services in the U.S. will improve the flow of patients toward sleep disorder clinics, augmenting industry growth substantially.
Shortage of Physicians to Hamper Market in the U.S.
Developed healthcare infrastructure of the U.S., implementation of various healthcare reforms, and introduction of advanced services for different disorders are some of the key factors propelling the market growth in the country. However, shortage of well-skilled physicians has been observed across many parts in the U.S.
Thus, shortage of certified physicians and a large pool of undiagnosed patient populations are leading to comparatively lower use of these disorder services in rural areas and are subsequently affecting the market development.
Availability of Multispecialty Services in Hospital-owned Clinics Led to its Dominance in 2020
Among ownership, the market share is split into independent, hospital-owned, and others.
The hospital-owned segment dominated the market share during 2020. Some of the major factors attributing to the dominance of this segment are availability of multispecialty services, presence of round-the-clock assistance, and favorable reimbursement policies offered by these settings.
Independent clinics are anticipated to be the fastest growing segment during the forecast period. The rapid growth is attributed to distinct benefits offered by these settings, such as flexibility in providing services, and personalized care, resulting in the shift of patients toward independent facilities.
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Growing Popularity of CPAP Devices among Sleep Specialists to Boost its Market Growth during 2021-2028
Based on application, the market is segmented into consultations, sleep testing, CPAP therapy, and others.
Among them, the CPAP therapy segment is projected to grow with the highest CAGR during the study period. Some of the key factors attributed to the highest growth of this segments are a large pool of patients with sleep disorders, increasing introduction of advanced CPAP devices by key manufacturers, and adequate reimbursement policies for polysomnography & home sleep testing.
Meanwhile, the CPAP therapy segment will record a notable CAGR over 2021-2028. The significant growth is attributable to the higher popularity of this therapy among specialists and patients for treatment of OSA, owing to its clinical superiorities compared to other sleep apnea devices. For instance, according to the data published by the American Sleep Association, it was estimated that around 66.0% of the patients undergoing these disorder treatments were adherent to CPAP therapy.
The consultation and other segments are expected to register a comparatively moderate CAGR during the forecast period.
Presence of Large Patient Pool under Private Insurance Coverage Led to Market Dominance
Based on payor, the market share is broken down into public health insurance and private health insurance/out-of-pocket.
The private health insurance/out-of-pocket segment held a dominant share of the market in 2020 due to the presence of a large patient pool in the U.S. with private health insurance. For instance, according to the data published by the United States Census Bureau, in March 2020, an estimated 66.5% of the total health insured population in the U.S. had a private plan, and around 8.6% of the total U.S. population had no health insurance at any point during the year.
However, the public health insurance segment is expected to grow at a comparatively higher CAGR due to the increasing shift of patients in the U.S. toward public insurance to treat chronic conditions.
Strong Presence across the U.S. and Diverse Portfolio Led to Market Dominance of SleepMed
The competitive landscape of the market consists of large, mid-size, and small clinics that provide different types of services for the diagnosis and treatment of sleep disorders. Major players, such as SleepMed and Graymark Healthcare, Inc., held a dominant share of the market in 2020 owing to their strong direct presence across different states of the U.S. and their robust services portfolio and highly skilled workforce.
Also, few players are adopting inorganic growth strategies, such as partnerships & mergers, to expand their consumer base in the U.S. For instance, in June 2021, Marshall Medical Centers entered into a collaboration with Mayo Medical Laboratories to expand its patient base globally and gain access to 3,000 laboratory tests in every department of Mayo clinic. Other key players operating in the U.S. market are Koala, UAB Health System, the Health Care Authority of the City of Anniston, Grand View Health, and Clark Memorial Health.
An Infographic Representation of U.S. Sleep Disorder Clinics Market
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The U.S. sleep disorder clinics market research report provides a granular overview of the industry by performing corporate analysis and accurate data. It focuses on key aspects such as growth rates, leading market players, industry trends, ownership, application, and payor. Besides this, it offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report analyzes and understands several factors that have contributed to the growth of the market in recent years.
Value (USD billion)
By Ownership, Application, and Payor
Fortune Business Insights says that the market stood at USD 8.62 billion in 2020 and is projected to reach USD 15.92 billion by 2028.
In 2020, the market value stood at USD 8.62 billion.
The market will exhibit steady growth at a CAGR of 8.2% during the forecast period (2021-2028).
The sleep testing segment is set to lead the market by application.
The increasing prevalence of sleep disorders in the U.S. and the rising initiatives taken by the government to promote services are the key factors driving the market.
SleepMed and Graymark Healthcare, Inc. are the top players in the market.
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