Comprehensive Snapshot of Sleep Testing Services Market Research Report, Including Regional and Country Analysis in Brief.
Industry: Healthcare
Format: PPT*, PDF, EXCEL
Published Date: June-2025
ID: PMRREP35429
Number of Pages: 197
According to the Persistence Market Research report, the global sleep testing services market size is estimated to grow from US$ 7.6 Bn in 2025 to US$ 16.7 Bn by 2032. The market is projected to record a CAGR of 11.9% during the forecast period from 2025 to 2032.
Sleep testing services involve the clinical evaluation and monitoring of sleep patterns to diagnose disorders such as obstructive sleep apnea (OSA), insomnia, restless leg syndrome (RLS), and others. The global industry is driven by growing public awareness, increased diagnosis rates of sleep disorders, and rising health concerns linked to poor sleep.
Technological advancements, including AI-enabled analytics, wearable monitoring devices, and remote diagnostics, are transforming how sleep tests are conducted. New developments such as at-home testing kits, cloud-based data platforms, and subscription-based sleep health services are making diagnostics more accessible, personalized, and scalable than ever before. Ongoing innovations from AI tools to FDA-cleared smart wearables are rapidly transforming how sleep disorders are diagnosed and managed globally, such as ResMed’s NightOwl HSAT, U.S.FDA approved in April 2025, offering a simplified, FDA-cleared solution for diagnosing OSA from patients' homes.
Key Industry Highlights:
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Global Market Attribute |
Key Insights |
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Sleep Testing Services Market Size (2025E) |
US$ 7.6 Bn |
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Market Value Forecast (2032F) |
US$ 16.7 Bn |
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Projected Growth (CAGR 2025 to 2032) |
11.9% |
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Historical Market Growth (CAGR 2019 to 2024) |
8.6% |
The sleep testing services market is experiencing robust growth driven by widespread changes in sleep behaviour, fuelled by modern lifestyles, digital overstimulation, and elevated stress levels. Disrupted circadian rhythms and poor sleep quality are increasingly common, prompting greater health awareness and proactive clinical engagement.
The emergence of the COVID-19 pandemic further amplified demand, as many patients experience chronic insomnia, fatigue, and neurological disruptions requiring specialized diagnostics. With sleep now recognized as integral to mental, metabolic, and cardiovascular health, healthcare systems are expanding access through policy support and insurance coverage. These converging trends are firmly positioning sleep diagnostics as a cornerstone of preventive healthcare.
Despite growing awareness, the sleep testing services market faces major restraints due to widespread underdiagnosis and workforce shortages. Symptom overlap between sleep disorders and conditions like depression, anxiety, and thyroid dysfunction often leads to misdiagnosis or delayed referrals. Primary care physicians often lack training in sleep medicine, causing sleep issues to be overlooked or misattributed.
Simultaneously, a critical shortage of certified sleep technologists limits diagnostic capacity, creating long wait times and restricting service scalability. With only a fraction of sleep disorders properly identified and treated, patient outcomes suffer, and market growth slows. Fragmented care pathways and limited cross-specialty collaboration further compound these barriers. Without stronger clinical integration and targeted workforce investment, the sleep diagnostics industry is anticipated to struggle to meet its rising demand potential.
The sleep testing services market is poised for transformation through scalable, tech-enabled models such as Home Sleep Testing (HST) and Subscription-Based Sleep Health as a Service (SHaaS). Advances in HST technology such as AI integration, real-time data analytics, and telemedicine compatibility are making at-home diagnostics more accurate, accessible, and cost-effective. In April 2025, Blackstone Medical Services (BMS), partnered with EnsoData, an innovator in AI health tech solutions to enhance accessibility for diagnosis and treatment for millions of patients living with undiagnosed sleep apnea.
Additionally, SHaaS offers consumers a proactive, long-term care model with bundled services, from wearable monitoring to virtual consultations. These innovations support early detection, enhance patient engagement, and improve treatment adherence, especially for chronic conditions such as sleep apnea. With the growing digital health adoption and value-based care becoming a priority, these models offer sustainable growth avenues. Together, they redefine sleep diagnostics as more continuous, personalized, and user-centric creating vast opportunities for providers, insurers, and tech innovators alike.
In-lab testing segment is projected to account for a revenue share of over 65% in 2025 within the global sleep testing services market. In-lab tests such as polysomnography are considered the gold standard for diagnosing sleep disorders such as OSA, and insomnia. These tests offer detailed data on brain activity, breathing, and heart rate. The growing need for precise diagnostics, particularly in complex cases, drives the demand for in-lab testing services, ensuring their continued dominance in the market.
Home sleep testing (HST) is projected to grow at a CAGR of 13.9% over the forecast period. HSTs are increasingly being accepted as a reliable alternative to in-lab testing due to their convenience, affordability, and flexibility to diagnose sleep disorders at-home. This growing demand presents significant opportunities for sleep testing service providers to expand their reach and services.
The obstructive sleep apnea (OSA) segment is expected to dominate the indication category in 2025, with 44.8% of the global sleep testing services market share. The segment’s dominance is owed to the high prevalence of OSA, growing awareness, increasing diagnostic testing, and a strong clinical focus. OSA is significantly more common than many other sleep disorders and is closely linked to rising rates of obesity, hypertension, and cardiovascular diseases, particularly in aging population. Recent meta-analytic studies estimate the global prevalence of OSA to range from 9% to 38% in adults.
OSA often requires in-lab diagnostic procedures such as polysomnography (PSG) or home-based sleep testing to accurately monitor multiple physiological parameters and to detect airway blockages. These comprehensive tests are essential for confirming OSA severity, ruling out other sleep disorders, such as insomnia, RLS, circadian rhythm sleeping disorders, narcolepsy, rapid eye movement (REM) sleep disorders, periodic limb movement disorders (plmb), or bruxism. Compared to sleep disorders, OSA has more definitive diagnostic criteria and treatment protocols, making it one of the dominant and the most rapidly expanding segments in clinical settings.
North America is anticipated to hold 36.6% of the global market share in 2025, driven by the high prevalence of sleep disorders and increasing adoption of diagnostic technologies, including home sleep testing and polysomnography.
Recent studies indicate that nearly 70 million U.S. individuals are affected by sleep disorders yearly. National Sleep Foundation’s 2025 Sleep in America Poll reported six out of ten Americans not getting enough sleep, while four in 10 adults struggle to fall asleep at least three nights per week.
The increasing collaboration between medical device companies and research institutes plays a pivotal role in advancing the U.S. sleep testing services market. For instance, in April 2025, Samsung Electronics Co., Ltd. partnered with Stanford Medicine to enhance solutions leveraging the OSA detection feature on the Galaxy Watch. Similarly, in March 2025, researchers at the Icahn School of Medicine, U.S., developed an AI model called patch foundational transformer for sleep (PFTSleep) to analyze brain waves, muscle activity, heart rate, and breathing to classify sleep stages more accurately and support future clinical diagnostics.
These advancements highlight the growing emphasis on technological innovation to address the nation’s sleep health crisis and improve long-term patient outcomes.
Europe is estimated to generate a significant share of 23.6% in 2025 due to the strong presence of national sleep societies and government-supported awareness campaigns promoting increased diagnosis rates of sleep-related conditions.
Public education efforts, such as those by The Sleep Charity in the UK, are increasing recognition of sleep health and encouraging timely diagnosis and treatment. EU initiatives such as the Healthier Together program and the 2023 Mental Health Strategy, provide frameworks to integrate sleep disorders into broader non-communicable disease (NCD) and mental health policies.
Untreated sleep apnea alone contributes to over €120 billion in annual healthcare and societal costs, highlighting the need for action. With growing collaboration across stakeholders, Europe is well-positioned in sleep health innovation and service accessibility.
Asia Pacific market for sleep diagnostic services is estimated to grow by 13.8% during the forecast period due to increasing healthcare investments and expanding diagnostic labs in countries such as China, South Korea, and India. Additionally, the rising prevalence of chronic diseases and the growing demand for early disease detection are also fuelling market expansion.
Launch of state-of-the-art “Sleep Lab” by Calcutta Medical Research Institute (CMRI) on World Sleep Day, March 2024, in Eastern India, highlights a growing focus on diagnosing and treating sleep disorders, particularly OSA and Sleep Disordered Breathing (SDB), among the Indian population. Recent studies indicate a high prevalence of sleep disorders in Indian adults, with 37.4% affected by OSA, and 25.7% experiencing insomnia. Furthermore, an alarming 93% of the population experiences some form of sleep disorder or deprivation. CMRI’s initiative represents a vital step in strengthening regional sleep health infrastructure and improving patient outcomes through early detection and intervention.
Additionally, recent advances in Asia are transforming sleep disorder diagnosis and monitoring. In June 2024, Korea approved Soomirang, an abdominal-worn device for at-home sleep apnea detection via a smartphone app. Earlier in April, Beacon Biosignals partnered with Takeda to enhance at-home sleep monitoring for clinical trials using AI-powered EEG technology. These innovations are driving greater accessibility and precision in managing sleep health across the region.
The sleep diagnostic services market is characterized by intense competition, driven by continuous innovation and strategic collaborations. Key players are focusing on developing advanced diagnostic technologies and expanding their geographic reach. Partnerships with healthcare providers and research institutions are enhancing product offerings and service quality.
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Report Attribute |
Details |
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Historical Data/Actuals |
2019 - 2024 |
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Forecast Period |
2025 - 2032 |
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Market Analysis Units |
Value: US$ Mn/Bn |
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Geographical Coverage |
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Segmental Coverage |
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Report Highlights |
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Customization and Pricing |
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By Diagnostic Services
By Indication:
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The global market is set to reach US$ 7.6 Bn in 2025.
The market is projected to record a CAGR of 11.9% during the forecast period from 2025 to 2032.
Growing prevalence of sleep disorders, increased awareness of sleep health, and advancements in diagnostic technologies.
North America is projected to dominate the global market in 2025.
Some key players in the sleep testing services market include MedStar Health, Millennium Sleep Lab, OBniSleep Sleep Health, and PM Sleep Lab.
