Insomnia Market Research Report

Insomnia Market Size and Share:

The global insomnia market size was valued at USD 5.34 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 6.78 Billion by 2033, exhibiting a CAGR of 2.55% during 2025-2033. North America currently dominates the market, holding a significant market share of over 36.4% in 2024. Increasing prevalence due to modern lifestyles and stress, advancements in diagnostic technologies enhancing accuracy, robust research into novel therapies, rising healthcare expenditures, integration of digital health solutions, strategic industry collaborations, and growing consumer preference for non-pharmacological treatments are some of the factors bolstering the market growth. In addition to this, advanced healthcare, high sleep disorder prevalence, and adoption of innovative treatments are further increasing the insomnia market share.

The key drivers in the insomnia market are increasing prevalence of sleep disorders due to modern lifestyles, stress, and aging populations. Advances in diagnostic technologies improve accuracy while research into novel therapies is increasing the treatment options. Increasing healthcare expenditures and the adoption of digital health solutions including sleep-tracking apps and telemedicine are fueling growth in the market. For instance, in March 2024, Emma Up launched by Emma - The Sleep Company is an innovative AI sleep coaching app featuring sound-based sleep tracking. It offers personalized insights to tackle sleep issues addressing over 73% of users' desire for better sleep quality. Consumer demand for non-pharmacological treatments like cognitive behavioral therapy for insomnia and government initiatives are also creating a positive insomnia market outlook across the world.

The key drivers in the United States insomnia market are the high prevalence of sleep disorders associated with stress, sedentary lifestyles and aging populations. Increased awareness of the importance of sleep health and its impact on overall well-being is driving demand for effective treatments. Advances in diagnostic tools and therapeutic options including digital health technologies like sleep apps and telemedicine further represent some of the key insomnia market trends in the country. For instance, in October 2024, SleepScore Labs launched Sleep.AI the first evidence-based AI platform for sleep health utilizing over 500 million hours of sleep data and insights from 230+ studies. Increasing non-pharmacological treatments especially cognitive behavioral therapy for insomnia are gaining momentum among consumers. Moreover, extensive research investments, increasing healthcare expenses and supportive insurance policies also fuel the U.S. market for insomnia.

Insomnia Market Trends:

Prevalence and Lifestyle Factors

A rising prevalence of insomnia across the globe due to the changing lifestyle patterns and societal stresses is a primary driver for the global insomnia market. According to industry reports, in the US, approximately 30% of adults have insomnia, with around 10% suffering from an insomnia that impairs their daily functioning. Sleep apnea prevalence among the general population is about 9%–38%. This can be attributed to the stressful modern lifestyles, long work hours, disrupted sleep patterns, and more exposure to bright screens before bedtime, which hinders the natural rhythm, further causing insomnia. Additionally, shifts in demographics that are moving towards more urban and industrialized lifestyles have further compounded matters leading to a larger section of the population suffering from sleep disorders.

Advancements in Diagnostic Technologies

The insomnia market is witnessing a significant thrust due to the growing consumer awareness regarding the accurate and effective diagnostic through the development of advanced technologies, such as portable sleep monitoring devices, polysomnography, and actigraphy, which help healthcare professionals get a holistic picture of patients' pattern of sleep and insomnia. According to the U.S. Centers for Disease Control and Prevention (CDC), over 70 million Americans suffer from chronic sleep disorders, highlighting the urgent need for effective diagnostics. These more elaborate diagnostic details give way to specific treatment plans, thus increasing patient satisfaction and outcomes. Moreover, the escalation of artificial intelligence (AI) and machine learning (ML) based algorithms to diagnose sleep disorders in sleep diagnostics holds promise for further refining diagnostic capabilities and predicting treatment responses, thus driving continual growth and innovation in the insomnia market.

Research and Development (R&D) of Novel Therapies

The continuous investments in pipeline research and development (R&D) to focus on new targeted therapies or drugs specifically designed for various subtypes of insomnia, represents one of the primary factors bolstering the market growth. In 2023, the funding for sleep research by the NIH was approximately USD 580 million. New pharmacological agents are actively engaging in partnerships with pharmaceutical companies, research labs, and academic institutions to develop novel treatment options aimed toward resolving acute insomnia or chronic conditions. Furthermore, innovations in the fields of neuroscience and psychopharmacology have led to the discovery of novel targets and mechanisms of action, paving the way for innovative therapeutic approaches, which is further stimulating the market growth.

Insomnia Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2025-2033. Our report has categorized the market based on the therapy type, drug class, and distribution channel.

Analysis by Therapy Type:

• Non-Pharmacological Therapy
  • Hypnotherapy
  • Cognitive Behavioral Therapy
  • Medical Devices
  • Others
• Pharmacological Therapy
  • Prescription Sleep Aids
  • Over-The-Counter Sleep Aids

The pharmacological therapy segment is driven by the increasing demand for effective treatments targeting insomnia's physiological mechanisms and symptomatology. Pharmaceutical innovations aimed at developing medications with improved efficacy and safety profiles play a crucial role in expanding this segment. Research into novel drug formulations and delivery methods, including sustained-release formulations and combination therapies, enhances treatment options. Moreover, the rising prevalence of insomnia globally, exacerbated by lifestyle changes and stressors, amplifies the need for pharmacological interventions that can efficiently address sleep disturbances. Strategic collaborations between pharmaceutical companies and research institutions accelerate drug development processes, driving market competitiveness. Regulatory approvals for new drugs and treatment modalities also stimulate segment growth by expanding market access and enhancing patient trust in therapeutic efficacy.

Analysis by Drug Class:

• Antidepressants
• Melatonin Antagonist
• Benzodiazepines
• Nonbenzodiazepines
• Orexin Antagonist
• Others

Benzodiazepines leads the market with around 28.9% of market share in 2024. The benzodiazepines segment is driven by the increasing demand for effective anxiolytics and sedatives across various medical and psychiatric conditions. Benzodiazepines are favored for their rapid onset of action and efficacy in managing anxiety disorders, insomnia, seizures, and muscle spasms, thereby sustaining their prominence in clinical practice. Moreover, the rising prevalence of anxiety disorders globally, compounded by lifestyle stressors and mental health awareness, fuels insomnia market growth. Additionally, the segment benefits from ongoing research and development efforts aimed at improving drug formulations to minimize side effects and enhance patient compliance. Regulatory approvals for new indications and formulations also bolster market expansion, ensuring broader accessibility and application in diverse healthcare settings. Furthermore, the aging population, particularly in developed regions, contributes significantly as older adults seek treatments for anxiety-related disorders and sleep disturbances.

Analysis by Distribution Channel:

• Hospital Pharmacies
• Retail Pharmacies
• Drug Stores
• Online Pharmacies

The hospital pharmacies segment is driven by the increasing demand for specialized pharmaceutical services within healthcare facilities. These pharmacies play a crucial role in ensuring seamless medication management and distribution within hospitals, catering to inpatient and outpatient needs efficiently. Key drivers include the rising prevalence of chronic diseases requiring complex treatment regimens, which necessitate close coordination between healthcare providers and pharmacists. Additionally, advancements in hospital pharmacy automation and inventory management systems enhance operational efficiency and patient safety.

The retail pharmacies segment is driven by the increasing accessibility and convenience of healthcare services at local community settings. These pharmacies serve as accessible points of care (POC) for routine medication needs, preventive health screenings, and over-the-counter (OTC) products, catering directly to consumer demand. Key drivers include demographic trends such as aging populations requiring ongoing medication management and a shift towards self-care and wellness. Retail pharmacies also benefit from expanding healthcare insurance coverage and regulatory reforms promoting pharmacist-provided clinical services, enhancing their role in primary healthcare delivery.

The drug stores segment is driven by the increasing consumer preference for one-stop shopping experiences that combine pharmaceutical products with convenience goods. These stores offer a wide range of healthcare products, including prescription medications, over-the-counter treatments, and personal care items, appealing to consumers seeking convenience and affordability. Key drivers include strategic partnerships with healthcare providers and pharmaceutical manufacturers, which enhance product offerings and service delivery. Drug stores also benefit from location-based advantages in high-traffic areas and promotional strategies that promote health and wellness solutions.

The online pharmacies segment is driven by the increasing adoption of digital health solutions and e-commerce platforms, facilitating convenient access to medications and healthcare products. These pharmacies offer a diverse range of prescription drugs, over-the-counter medications, and health supplements, often at competitive prices and with home delivery options. Key drivers include the growing consumer demand for telemedicine services, which integrate online consultations with prescription fulfillment, enhancing accessibility and patient convenience. Online pharmacies also benefit from regulatory frameworks supporting virtual healthcare delivery and secure online transactions, ensuring patient safety and data privacy.

Regional Analysis:

• North America 
  • United States 
  • Canada 
• Europe 
  • Germany 
  • France 
  • United Kingdom 
  • Italy 
  • Spain
  • Russia
  • Others 
• Asia Pacific 
  • China 
  • Japan 
  • India 
  • South Korea 
  • Australia 
  • Indonesia 
  • Others 
• Latin America 
  • Brazil 
  • Mexico 
  • Others 
• Middle East and Africa

In 2024, North America accounted for the largest market share of over 36.4%. The North America regional market is driven by the increasing awareness and diagnosis of insomnia disorders, supported by robust healthcare infrastructure and diagnostic capabilities. The region's high prevalence of lifestyle-related factors such as stress, irregular work hours, and sedentary lifestyles contribute significantly to the rising incidence of sleep disorders. Moreover, the growing elderly population in North America, characterized by a higher susceptibility to insomnia, further propels insomnia market demand. Advances in medical research and technology within the region continuously enhance diagnostic accuracy and treatment efficacy, fostering innovation in therapeutic approaches. Additionally, the proactive regulatory environment and favourable reimbursement policies stimulate market growth by facilitating quicker approvals and broader patient access to treatment options. Collaborative efforts between healthcare providers, pharmaceutical companies, and research institutions drive the development of novel therapies and personalized medicine approaches tailored to address specific patient needs.

Key Regional Takeaways:
 

United States Insomnia Market Analysis

In 2024, the United States captured 80.00% of revenue in the North American market. A rise in awareness levels of sleep disorders and an uptick in insomnia prescriptions are resulting in the expanding U.S. insomnia market, according to an NIH report wherein it is observed that more than 70 million Americans suffer from sleep disorders; insomnia is reported to be at the top position. The emergence of new pharmaceutical technologies, like advanced melatonin receptor agonists, which are more effective in treating insomnia, continuously drives the market for medical sleep aids. The major players driving this market are Eisai and Merck. Digital therapeutics are also being developed and more prominently harnessed as non-pharmacological interventions for treatment of insomnia. Consumer-awareness campaigns, along with the sensitiveness of the population towards mental health issues, leads to high demand for sleeping treatments. Some governments that propagate better sleep hygiene also play a role in accelerating the demand for effective insomnia treatments.

Europe Insomnia Market Analysis

Gradual growth in the European insomnia market is observed with rising health concerns and awareness of sleep disorders. More than 10% of Europeans suffer from chronic insomnia, and a report by the European Sleep Research Society highlights the growing demand for effective treatment options. Countries such as Germany, the UK, and France have reported growth in sleep medicine prescriptions; simultaneously, new treatments are adopted in these markets, which includes cognitive behavioral therapy for insomnia, CBT-I. Furthermore, increased regulatory support through the European Medicines Agency for sleep-based therapies is a source of fuel to market growth in this region. Non-prescription remedies also continue to be followed more prominently within this region: such includes over-the-counter sleep aids, as well as natural supplements. Pharmaceutical companies' collaborations with health care providers continue to make the European market more robust.

Asia Pacific Insomnia Market Analysis

The insomnia market is highly growing in the Asia Pacific region due to high urbanization and stress level among the masses. A meta-analysis of 17 studies also stated that pooled prevalence of insomnia was at 15.0% in China, which is quite lower than the rest of Western countries but equivalent to other Asian nations. An overall prevalence of insomnia at 49.0% was found in a study in Macau. Government-backed initiatives and sleep health, especially in a country like India and South Korea, are thus boosting market awareness. In the case of Japan, the regulatory approval of the novel insomnia medicines, such as suvorexant, further boosts market adoption. Traditional herbal remedies also supplement the region's growing insomnia treatment market. Rising disposable income, increased healthcare accessibility, and popular digital health products are generating strong opportunities for the pharmaceutical and alternative insomnia treatment product markets.

Latin America Insomnia Market Analysis

The Latin American insomnia market is picking up with growing levels of stress, increasing healthcare accessibility, and lifestyles. One research indicated that 39.52% of people in Latin America suffer from insomnia, making it the region with the highest prevalence of sleep disturbances. The largest economy in the region, Brazil, has witnessed an increase in prescriptions for insomnia treatment. The regulations on sleep medications have also become less complex. Over-the-counter products are becoming more popular, with a focus on natural sleep aids and supplements. Furthermore, the rising demand for sleep therapy services and online mental health support is adding to the growth of the market. Regional players like Medley and EMS are leading the way in the provision of insomnia treatments. The growth of the middle class and the increasing use of telehealth services will further drive the market.

Middle East and Africa Insomnia Market Analysis

In the Middle East and Africa, the market for insomnia treatment is expanding with an increasing awareness of mental health issues and the increased accessibility of healthcare. The WHO has stated that over 30% of adults in the Middle East are victims of insomnia. Stress, lifestyle, and environmental factors contribute to this percentage. UAE, Saudi Arabia, and South Africa are currently leading the market, with prescription and over-the-counter sleep medicines being offered by pharmaceutical companies. The growth in digital healthcare platforms is also creating a lot of scope for expansion in the market, focusing on mental health services that address sleep disorders. This demand is mainly attributed to growing public awareness regarding the significance of sleep hygiene and increased treatment needs in the form of therapy and medication. The regional insomnia treatment market is influenced by local manufacturers as well as international collaborations.

Competitive Landscape:

Key players in the insomnia market are actively engaged in a variety of strategic initiatives aimed at enhancing their market position and meeting evolving consumer demands. These initiatives include ongoing R&D efforts focused on discovering and developing new pharmacological treatments and therapies tailored to address different types and severities of insomnia. Additionally, players are investing in advanced diagnostic technologies to improve the accuracy of insomnia diagnosis, thereby enabling more personalized treatment approaches. Collaborations with healthcare providers and academic institutions are also common, facilitating the exchange of knowledge and the development of innovative treatment protocols. Furthermore, there is a growing emphasis on the integration of digital health solutions and telemedicine platforms to expand access to insomnia care and improve patient outcomes through remote monitoring and support services. Players are also navigating regulatory landscapes to secure approvals for new products and indications, ensuring compliance with evolving healthcare regulations. Market leaders are increasingly focused on sustainability and social responsibility initiatives, aligning their business strategies with broader environmental and community health goals.

The report provides a comprehensive analysis of the competitive landscape in the insomnia market with detailed profiles of all major companies, including:

• Astellas Pharma Inc.
• Aurobindo Pharma Limited
• Biocodex
• Eisai Co. Ltd.
• Mallinckrodt Pharmaceuticals
• Merck & Co. Inc.
• Neurim Pharmaceuticals Inc.
• Pfizer Inc.
• Sanofi S.A.
• Sumitomo Dainippon Pharma Co. Ltd. (Sumitomo Chemical Co. Ltd.)
• Takeda Pharmaceutical Company Limited
• Vanda Pharmaceuticals Inc.

Latest News and Developments:

• July 2024: Neurim Pharmaceuticals announced that they received a positive CHMP opinion for Slenyto® (Pediatric Prolonged-Release Melatonin) to treat insomnia in children with neurogenetic disorders, expanding its indication to benefit more patients.
• June 2024: Merck & Co revealed that their trial for the insomnia medication suvorexant demonstrated continued effectiveness over a 12-month period in a late-stage study, making it the first sleep aid trial to last a full year.
• July 2023: Astellas Pharma announced a significant collaboration with Pfizer to advance the combination therapy of PADCEV™ (enfortumab vedotin) with KEYTRUDA® (pembrolizumab) for the first-line treatment of advanced urothelial cancer. This therapy has shown promise in improving overall and progression-free survival compared to standard platinum-containing chemotherapy.
• June 2022: Merck launched the Merck Digital Sciences Studio (MDSS) to support early-stage biomedical startups. This initiative aims to foster innovation in drug discovery and development by providing startups with investment, access to Azure Cloud computing, and collaboration opportunities with Merck scientists. MDSS will prioritize startups developing AI and ML applications, offering resources and expertise to accelerate their technologies.

Insomnia Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the insomnia market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global insomnia market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyse the level of competition within the insomnia industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.