Insomnia Treatment Market - Global Industry Size, Share, Trends, Opportunities and Forecast, Segmented By Type (Acute Insomnia Chronic Insomnia, Onset Insomnia, Maintenance Insomnia, Behavioral Insomnia of Childhood), By Drugs (Eszopiclone, Ramelteon, Zaleplon, Zolpidem, Estazolam, Others), By Distribution Channel (Hospital Pharmacies, Retail Pharmacies, Online Pharmacies) By Region and Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 3.82 Billion
CAGR (2026-2031)	5.68%
Fastest Growing Segment	Zolpidem
Largest Market	North America
Market Size (2031)	USD 5.32 Billion

Market Overview

The Global Insomnia Treatment Market will grow from USD 3.82 Billion in 2025 to USD 5.32 Billion by 2031 at a 5.68% CAGR. The Global Insomnia Treatment Market comprises a range of pharmacological agents and non-pharmacological therapies designed to manage difficulties with sleep initiation and maintenance. Primary drivers propelling this sector include the escalating prevalence of stress and anxiety, an aging global demographic susceptible to circadian disruptions, and heightened public awareness regarding the long-term health impacts of sleep deprivation. According to the American Academy of Sleep Medicine, in 2024, 12% of Americans reported a diagnosis of chronic insomnia, underscoring the substantial and diagnosed patient pool necessitating effective therapeutic interventions.

Despite these strong growth indicators, the market faces a significant hurdle concerning the safety profiles and dependency risks associated with conventional pharmacotherapy. The potential for adverse side effects from the long-term use of sedative-hypnotics remains a critical challenge that can deter patient adherence and limit physician prescription rates. Consequently, strict regulatory oversight regarding drug safety and efficacy standards continues to complicate the approval process for new market entrants, potentially impeding rapid industry expansion.

Key Market Drivers

The Rising Global Prevalence of Chronic Sleep Disorders serves as the fundamental catalyst expanding the insomnia treatment landscape, creating an urgent and massive demand for effective therapeutic interventions. As modern lifestyles increasingly blur the boundaries between work and rest, the incidence of sleep disturbances has surged, necessitating both pharmacological and behavioral solutions on a global scale. This expansion is not merely anecdotal; the clinical burden is immense and quantified by rigorous epidemiological study. According to Sleep Medicine Reviews, August 2025, in the 'Estimation of the global prevalence and burden of insomnia' systematic review, it was estimated that 852 million adults globally suffer from insomnia disorder, underscoring the sheer magnitude of the diagnosed and addressable patient pool. This biological imperative is matched by a strong shift in consumer attitudes toward prioritizing rest as a pillar of health. According to SingleCare, in 2025, 80% of adults worldwide stated they want to improve their sleep, indicating a vast market potential that extends beyond clinical patients to the general wellness consumer.

Technological Advancements in Digital Therapeutics and Sleep Tracking are simultaneously reshaping the market by offering validated, non-pharmacological alternatives to traditional sedatives. The industry is witnessing a pivot toward prescription digital therapeutics (PDTs) that deliver cognitive behavioral therapy for insomnia (CBT-I) via software, directly addressing safety concerns associated with long-term drug dependency. This sector has received significant validation through recent regulatory and reimbursement breakthroughs, which are essential for commercial scalability and patient access. According to Healthcare Brew, April 2025, in the 'Now that digital therapeutics have Medicare coverage' article, the Centers for Medicare and Medicaid Services (CMS) implemented new billing codes effective January 2025 that allow healthcare providers to seek reimbursement for digital mental health treatments. This integration of digital interventions into standard payer frameworks is a critical driver, incentivizing physician adoption and paving the way for sustained revenue growth in the digital sleep health segment.

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Key Market Challenges

The challenging factor hindering the growth of the "Global Insomnia Treatment Market" is the safety profile and dependency risks associated with conventional pharmacotherapy. The market faces substantial resistance due to the adverse side effects linked to the long-term use of sedative-hypnotics, such as cognitive impairment, potential addiction, and residual daytime drowsiness. These safety concerns significantly deter patient adherence and make physicians hesitant to prescribe these medications for extended maintenance, thereby limiting the potential customer base and recurring revenue streams for pharmaceutical manufacturers.

This hurdle is further compounded by emerging data that intensifies regulatory and public scrutiny. According to the American Heart Association, in 2025, research indicated that the long-term use of certain sleep aids was associated with an 89% higher risk of incident heart failure in patients with chronic insomnia. Such findings underscore the critical nature of the safety challenge, as they reinforce the apprehension towards pharmacological interventions and compel the industry to navigate a more complex and restrictive regulatory environment, directly slowing the pace of market expansion.

Key Market Trends

The Market Shift Toward Dual Orexin Receptor Antagonists (DORAs) represents a transition beyond traditional sedative-hypnotics that broadly depress the central nervous system. Unlike Z-drugs which induce sedation, DORAs selectively block wake-promoting neuropeptides to inhibit wakefulness while preserving natural sleep architecture. This mechanism mitigates safety concerns regarding dependency and cognitive impairment, driving rapid uptake among clinicians seeking sustainable maintenance therapies. The commercial impact is evident in the surging performance of key assets; according to Eisai Co., Ltd., May 2025, in the 'Consolidated Financial Report for Fiscal 2024', revenue for its DORA treatment Dayvigo reached ¥53.8 billion, marking a 128.6% year-on-year increase.

The Expansion of Employer-Sponsored Sleep Wellness Programs is emerging as a critical growth channel, driven by corporate recognition of the link between sleep health and productivity. Organizations are increasingly integrating sleep management solutions into benefit packages to combat presenteeism and reduce healthcare overhead. This corporate investment is validated by data highlighting the operational cost of untreated sleep deprivation. According to ResMed, February 2025, in the 'Fifth Annual Global Sleep Survey', 7 out of 10 employed respondents across 13 markets reported having called in sick at least once in their career specifically due to poor sleep, incentivizing enterprises to subsidize preventative sleep interventions.

Segmental Insights

The Zolpidem segment is recognized as the fastest-growing category in the Global Insomnia Treatment Market. This growth is primarily driven by the medication's proven efficacy as a non-benzodiazepine hypnotic, which facilitates rapid sleep onset for patients. Clinicians frequently prescribe Zolpidem for short-term management due to its established safety profile relative to traditional sedatives. Furthermore, the extensive availability of affordable generic versions has substantially increased global patient accessibility. Ongoing regulatory approval for its specific indication in treating short-term insomnia by authorities such as the U.S. FDA continues to validate its clinical utility and fuel market expansion.

Regional Insights

North America maintains the leading position in the Global Insomnia Treatment Market due to the high prevalence of sleep disorders and increasing patient awareness regarding available therapies. The region benefits from a developed healthcare infrastructure that supports the distribution of prescription medications. Furthermore, the market is strengthened by favorable reimbursement coverage and the presence of major pharmaceutical manufacturers. The ongoing approval of novel treatments by the U.S. Food and Drug Administration (FDA) also fosters continuous market development, solidifying North America’s dominance globally.

Recent Developments

• In September 2025, Vanda Pharmaceuticals reported positive results from a Phase 3 clinical trial evaluating the efficacy of tasimelteon for the treatment of primary insomnia. The study data indicated that the drug significantly improved parameters related to sleep onset and sleep maintenance compared to a placebo over a five-week period. These findings, which were published in a peer-reviewed journal, reinforced the potential of the circadian regulator to serve as an effective therapeutic option for patients with chronic sleep onset insomnia. The company stated that the successful trial outcome would support its ongoing efforts to secure regulatory approval for the indication.
• In June 2025, Idorsia Ltd announced an update to its licensing collaboration with Simcere Pharmaceuticals Group Ltd following the approval of Quviviq (daridorexant) in China. The partner company obtained regulatory clearance to market the dual orexin receptor antagonist for adult patients with insomnia characterized by sleep onset or maintenance difficulties. Under the revised agreement, Idorsia was entitled to a milestone payment of USD 50 million. The approval was notable as the medication received a status without psychotropic drug control labeling, which the companies anticipated would differentiate the treatment from traditional sedative-hypnotics and enhance patient access in the region.
• In May 2025, Eisai Co., Ltd. announced that the National Medical Products Administration in China granted approval for its internally discovered orexin receptor antagonist, Dayvigo (lemborexant). The medication was indicated for the treatment of adult patients with insomnia who experience difficulties with sleep onset or sleep maintenance. This approval facilitated the company's plan to introduce the drug to the Chinese market, addressing a significant unmet medical need in the region. The launch represented a strategic expansion of the product’s global presence, complementing its availability in other major markets such as the United States, Japan, and across Europe.
• In August 2024, Big Health received FDA 510(k) clearance for its prescription digital therapeutic, SleepioRx, aimed at treating chronic insomnia and insomnia disorder in adults. This regulatory clearance allowed the digital solution to be used as an adjunct to standard care, providing evidence-based cognitive behavioral therapy for insomnia (CBT-I) directly to patients. The company supported the application with data from numerous clinical trials, which showed that the therapeutic significantly reduced the time taken to fall asleep and time spent awake at night. This development marked a key advancement in the availability of non-pharmacological, guideline-recommended treatments for sleep disorders in the United States.

Key Market Players

• Merck & Co
• Pfizer Inc.
• Abbott Laboratories
• Genentech Inc.
• LGM Pharma
• Sigma Aldrich Corp.
• Sanofi S.A
• Takeda Pharmaceuticals Co. Ltd.
• Eisai Ltd.
• Idorsia Pharmaceuticals Apotex Corp

By Type	By Drugs	By Distribution Channel	By Region
Acute Insomnia Chronic Insomnia Onset Insomnia Maintenance Insomnia Behavioral Insomnia of Childhood	Eszopiclone Ramelteon Zaleplon Zolpidem Estazolam Others	Hospital Pharmacies Retail Pharmacies Online Pharmacies	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Insomnia Treatment Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Insomnia Treatment Market, By Type:

• Acute Insomnia Chronic Insomnia
• Onset Insomnia
• Maintenance Insomnia
• Behavioral Insomnia of Childhood

• Insomnia Treatment Market, By Drugs:

• Eszopiclone
• Ramelteon
• Zaleplon
• Zolpidem
• Estazolam
• Others

• Insomnia Treatment Market, By Distribution Channel:

• Hospital Pharmacies
• Retail Pharmacies
• Online Pharmacies

• Insomnia Treatment Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE