Sleep Testing Services Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Diagnostic Service (Home Sleep Testing, In-Lab Testing, Multiple Sleep Latency Test), By Application (Sleep Apnea, Insomnia, Restless Legs Syndrome, Narcolepsy, Others), By End user (Hospitals, Sleep Centers, In-Home Care), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 8.07 Billion
CAGR (2026-2031)	6.85%
Fastest Growing Segment	Home Sleep Testing
Largest Market	North America
Market Size (2031)	USD 12.01 Billion

Market Overview

The Global Sleep Testing Services Market will grow from USD 8.07 Billion in 2025 to USD 12.01 Billion by 2031 at a 6.85% CAGR. Global Sleep Testing Services consist of diagnostic medical procedures performed in clinical laboratories or via portable home devices to detect conditions such as obstructive sleep apnea and narcolepsy. The primary drivers supporting market growth include the escalating global prevalence of sleep disorders and an aging demographic increasingly susceptible to respiratory complications. Additionally, the growing clinical recognition of the correlation between untreated sleep apnea and chronic cardiovascular diseases further fuels the demand for diagnostic evaluations. According to the American Academy of Sleep Medicine, in 2024, nearly 30 million adults in the United States were estimated to have obstructive sleep apnea.

A significant challenge impeding market expansion involves the high cost of comprehensive laboratory testing and the complex reimbursement landscape governing these procedures. Variable insurance coverage policies often deter patients from pursuing necessary diagnostics while the significant expense of maintaining specialized sleep centers limits accessibility in developing regions. Furthermore, a shortage of trained technologists required to interpret complex diagnostic results creates operational bottlenecks. These financial and resource barriers continue to restrain the broader adoption of sleep testing services globally.

Key Market Drivers

The surging prevalence of Obstructive Sleep Apnea (OSA) and chronic sleep disorders acts as the foremost catalyst driving the expansion of the Global Sleep Testing Services Market. This growth is inextricably linked to rising global obesity rates and a rapidly expanding geriatric population, both of which are high-risk demographics for respiratory complications. Clinical recognition of comorbidities, particularly the correlation between untreated sleep apnea and cardiovascular health, has further intensified the urgency for diagnostic evaluations. According to the National Council on Aging, June 2025, in the 'Sleep Apnea in Older Adults' article, studies indicate that 56% of people age 65 and older have a high risk of developing obstructive sleep apnea, highlighting the critical demand for accessible diagnostic services within this vulnerable demographic.

Simultaneously, the market is being propelled by the accelerated adoption of cost-effective Home Sleep Apnea Testing (HSAT) devices and technological advancements in remote diagnostics. The shift from expensive, complex in-lab polysomnography to user-friendly, portable home testing solutions has democratized access to sleep healthcare, supported by favorable reimbursement policies and the integration of AI-driven analytics. This trend is evident in the financial performance of major industry players who are capitalizing on the demand for remote care solutions. According to Royal Philips, November 2025, in the 'Third quarter 2025 results' report, their Sleep & Respiratory Care business saw comparable sales growth of 5.1%, driven by increased demand for connected care solutions. Furthermore, reflecting the broader robust market trajectory, according to ResMed, in 2025, the company reported a revenue increase of 10% to $1.3 billion in its second quarter, underscoring the sustained financial momentum in the sleep health sector.

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Key Market Challenges

The chronic shortage of trained sleep technologists constitutes a primary restraint on the Global Sleep Testing Services Market, directly limiting the industry’s capacity to process diagnostic volumes. Sleep diagnostic procedures, particularly in-lab polysomnography, are labor-intensive operations that require highly specialized professionals to manage patient instrumentation, monitor physiological signals in real-time, and interpret complex data. When clinical laboratories cannot secure adequate staffing, they are frequently compelled to reduce their operational bed count or limit appointment availability. This operational bottleneck results in extended patient wait times and lost revenue opportunities, as facilities are physically unable to meet the rising demand for sleep apnea evaluations.

This workforce contraction has been quantified by key industry bodies, signaling a deepening retention crisis. According to the American Association of Sleep Technologists, in 2024, the organization’s active membership declined to just over 2,000 professionals, reflecting a significant shrinkage in the engaged specialized workforce. This reduction in available certified personnel creates a competitive hiring environment that drives up operational costs while simultaneously restricting the volume of tests that can be performed. Consequently, the market’s growth is artificially capped not by a lack of patient demand, but by the tangible inability of service providers to scale their human resources to perform the necessary diagnostics.

Key Market Trends

The convergence of clinical and consumer wearable technologies is fundamentally reshaping the market by transforming widely adopted lifestyle devices into regulated medical screening tools. Unlike traditional Home Sleep Apnea Testing (HSAT) which requires dedicated dispatched hardware, this trend utilizes the user's existing smartwatch to passively assess sleep apnea risk, thereby dramatically lowering the barrier to entry for diagnostic evaluation. Tech giants are aggressively entering this regulated space, leveraging advanced sensors and algorithms to identify undiagnosed patients at an unprecedented scale. According to AppleInsider, September 2024, in the 'FDA approves Apple Watch sleep apnea detection' article, the newly cleared sleep apnea notification feature is set to roll out to more than 150 countries, instantly expanding the reach of preliminary sleep screening to a massive global population that previously lacked access to conventional diagnostic channels.

Simultaneously, the adoption of contactless and radar-based sleep sensing represents a critical shift toward longitudinal, zero-friction monitoring solutions that eliminate the compliance challenges associated with wearable sensors. This trend focuses on "nearable" technologies, such as under-mattress pneumatic mats and bedside radar units, which can capture continuous physiological data over weeks or months rather than a single night. This capability is essential for detecting condition variability that sporadic testing often misses. Highlighting the clinical necessity of this approach, according to Fierce Biotech, September 2024, in the 'FDA clears Withings contactless mattress mat' article, a study of over 11 million nights revealed high variability in sleep apnea severity measures, demonstrating that long-term, contactless data collection is superior to point-in-time testing for accurately characterizing chronic sleep disorders.

Segmental Insights

Based on data from comprehensive market analysis, the Home Sleep Testing segment is identified as the fastest-growing category within the Global Sleep Testing Services Market. This accelerated expansion is primarily driven by the rising demand for cost-effective diagnostic alternatives that offer greater convenience compared to traditional facility-based polysomnography. Furthermore, the American Academy of Sleep Medicine has established clinical guidelines supporting the use of home sleep apnea testing for uncomplicated adult patients, which has significantly bolstered clinical confidence in these devices. Consequently, many insurance providers now prioritize this modality for initial screening, thereby fueling its widespread adoption across the healthcare sector.

Regional Insights

North America leads the Global Sleep Testing Services Market, primarily driven by the substantial prevalence of sleep disorders such as obstructive sleep apnea. The region benefits from comprehensive reimbursement frameworks and supportive policies from entities like the Centers for Medicare & Medicaid Services, which facilitate broader access to diagnostic solutions. Additionally, the strong presence of key industry players and adherence to rigorous clinical guidelines established by the American Academy of Sleep Medicine ensure high service standards. These elements create a robust ecosystem that prioritizes early detection and treatment, solidifying North America’s market leadership.

Recent Developments

• In September 2024, Withings announced that its Sleep Rx mat received clearance from the U.S. Food and Drug Administration. This contactless device, which is placed under the user's mattress, is designed to aid in the diagnosis of obstructive sleep apnea by monitoring respiratory rate, body movement, and heart rate without requiring wearable sensors or wires. The clearance allows the product to be prescribed by healthcare professionals as part of clinical sleep management or remote patient monitoring programs. This innovation offers a non-intrusive alternative to traditional testing methods, facilitating longitudinal sleep data collection for better diagnostic accuracy.
• In August 2024, ReactDx, a division of React Health, launched the NiteWatch, a new FDA-cleared home sleep testing device. The device, designed to be worn on the wrist and finger, was validated against traditional polysomnography to ensure accuracy in sleep staging and the detection of sleep apnea. This product launch addresses the need for more accessible diagnostic tools in the Global Sleep Testing Services Market by providing a user-friendly, type III home sleep test that measures six distinct health parameters. The platform allows clinicians to prescribe tests and access results efficiently, streamlining the diagnostic process for patients.
• In February 2024, Samsung Electronics announced that the sleep apnea feature on its health monitoring application received De Novo authorization from the U.S. Food and Drug Administration (FDA). This authorization established the feature as the first of its kind to be cleared by the FDA for use on a consumer smartwatch. The software-only medical device enables users to detect signs of moderate to severe obstructive sleep apnea over a two-night monitoring period. By integrating this capability into widely used wearable technology, the company aims to help individuals proactively identify potential sleep issues and seek further professional medical testing and diagnosis.
• In January 2024, Onera Health, a company specializing in remote sleep diagnostic and monitoring solutions, secured €30 million in Series C financing. This investment was directed toward accelerating the manufacturing and deployment of the company's self-applied, wire-free sleep testing technology to meet increasing customer demand. The funding also aimed to expedite the regulatory clearance of the second generation of its polysomnography system in Europe and the United States. This development represents a significant step in the Global Sleep Testing Services Market by expanding access to clinical-grade, at-home sleep studies, thereby enhancing the capacity for remote diagnosis of sleep disorders.

Key Market Players

• ResMed
• Philips Respironics
• Nox Medical
• Compumedics
• Itamar Medical
• Fisher & Paykel Healthcare
• Natus Medical
• Welch Allyn
• SleepMed
• Drive DeVilbiss

By Diagnostic Service	By Application	By End user	By Region
Home Sleep Testing In-Lab Testing Multiple Sleep Latency Test	Sleep Apnea Insomnia Restless Legs Syndrome Narcolepsy Others	Hospitals Sleep Centers In-Home Care	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Sleep Testing Services Market, By Diagnostic Service:

• Home Sleep Testing
• In-Lab Testing
• Multiple Sleep Latency Test

• Sleep Testing Services Market, By Application:

• Sleep Apnea
• Insomnia
• Restless Legs Syndrome
• Narcolepsy
• Others

• Sleep Testing Services Market, By End user:

• Hospitals
• Sleep Centers
• In-Home Care

• Sleep Testing Services 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