Sleep disorder clinics are expected to experience a big boom in the next two years.
While clinics felt the sting of Covid, as many other in-person businesses, with dramatic declines in patient visits immediately following the declaration of a pandemic by the World Health Organization in March 2020, two years down the line, business is looking up. As a matter of fact, it looks like there’s a $15.92 billion boom on the way.
According to a recent Fortune Business Insights’ analysis, the market for sleep disorder clinics is not only expected to rebound, but it may grow far beyond its old ceiling.
Here are a few of the astounding numbers: In 2021, sleep disorder clinics enjoyed a market size of $9.20 billion. According to Fortune Business Insights, that market size is expected to grow to $15.92 billion in 2028 with a compound annual growth rate of 8.2 percent. The market analysis reported a prevalence of sleep disorders and growing awareness among those diagnosed with them as the factors most likely to play a key role in this eye-opening turnaround.
“One factor driving the growth is the increased recognition that sleep plays a critical role in almost every aspect of physical and mental health,” says research scientist and pediatric sleep psychologist Lisa Meltzer. “Also, during lockdown, many people experienced increased sleep duration (some for the first time in many years) and saw, firsthand, the benefits of improving their own sleep quantity and quality. Now, post-pandemic, people are working on improving their overall health and well-being, and sleep plays an important role in that,” she says.
Stephen Light, CEO of Nolah Mattress and a Certified Sleep Science Coach, also notes that the pandemic was a springboard for change.
“The pandemic has shifted many people’s attitudes toward health and wellness,” he says. “For decades, millions of people have foregone sleep to complete more work, and our culture has largely praised this behavior. Post-pandemic, and in the light of The Great Resignation, perceptions have shifted, and [people] are funneling more attention into their mental and physical well-being.”
Beyond the active role people are now taking with their health, a continued shift toward telemedicine and reimbursement policy changes (some insurance companies are now offering reimbursement for sleep apnea tests performed at home) are other key drivers in the rebound of sleep disorder clinics.
Licensed clinical psychologist and sleep expert Dr. Kristen Casey notes that the marked increase in people leaning into telehealth is another sign of the times and another boom for the sleep industry, in general.
“People enjoy seeing their sleep coach or insomnia specialist from the comfort of their own home to get treatment and get better, rather than wait in a waiting room, or commute to therapy, all while being exhausted.”
The Pandemic Dimmed the Lights on Sleep Disorder Clinics
In 2020, The American Sleep Association reported that roughly 50 to 70 million adults had some type of sleep disorder. Digging a little deeper, we find that as many as 25 million people were diagnosed with obstructive sleep apnea, and 30 percent reported issues with insomnia.
And while sleep disorder clinics were experiencing year-on-year growth between 2017 and 2019, a market analysis conducted by Fortune Business Insights showed that sleep clinics were negatively impacted by the pandemic, with a market decline somewhere to the tune of -12.1 percent.
Government Initiatives May Give The Sleep Industry A Boost
The ever-increasing number of patients with sleep disorders such as obstructive sleep apnea and insomnia are putting a strain on the country’s healthcare system. So much so that government and non-profit organizations are taking notice—and action.
Current estimates place the direct and indirect costs from undiagnosed patients with sleep disorders somewhere around $411 billion annually. And understandably so, as Dr. Casey points out, “the lack of sleep is correlated with increased absenteeism, cognitive deficits, attention and concentration issues, and increased likelihood of accidents.” Meanwhile, studies show that just one hour of extra sleep per night per person can put an estimated $200 billion back into the economy annually.
