Insomnia Market Size (2025-2030)

The Insomnia Market was valued at USD 3.76 billion in 2024 and is projected to reach a market size of USD 4.84 billion by the end of 2030. Over the forecast period of 2025-2030, the market is projected to grow at a CAGR of 5.17%.         

The insomnia market is undergoing a sea-change with sleep disorders becoming more of a concern in the fast-moving and stress-filled world of today. The increasing realisation of mental health impacts, lifestyle-induced sufferings from sleep, and the lingering impacts of poor sleep on general health are driving high demands for effective insomnia treatments, ranging from medicine to CBT and digital sleep therapies. Technological developments such as wearable sleep trackers, AI-assisted applications, and non-invasive treatments are reforming the ways by which insomnia is diagnosed and treated, thus making the market very dynamic and future-oriented.

Key Market Insights:

Over 30% of the global population suffers from symptoms of insomnia, with chronic insomnia affecting nearly 10% of adults. The growing mental health burden and lifestyle-induced stress are major contributors to this trend.

Prescription sleep aids, such as sedative-hypnotics, account for over 50% of the treatment market. However, there’s a sharp rise in demand for non-drug alternatives like CBT-I (Cognitive Behavioural Therapy for Insomnia) and natural remedies.

Insomnia Market Drivers:

The growing prevalence of mental health issues, particularly anxiety and depression, is one of the primary drivers of the insomnia market.

One of the main causes driving this market is the growing incidence of mental health disorders, especially anxiety and depression. Thus, in this digitally-connected but emotionally-stressed world in which people of all ages live, they are suffering from high levels of psychological stress, compounded by social isolation, work-from-home fatigue, academic pressures, financial insecurity, and global uncertainty. Such stress-related insomnia has now been classified under the category of common medical disorders, sometimes causing long-lasting sleep disorders if left untreated. The World Health Organisation stated that currently, depression affects more than 280 million people worldwide. Insomnia is often comorbid with such conditions. This association has prompted the healthcare provider and pharmaceutical worlds to synergistically invest in treatment modalities. Rising demand for multi-action drugs that will address the anxieties and sleep disorders of the patient reflects the bright commercial prospect of this. Mental health awareness campaigns and destigmatising behaviour toward therapy have encouraged individuals to move toward seeking help, thereby fuelling market growth. Companies and insurers, including sleep health in their wellness programs, have further strengthened this trend.

The insomnia market is being significantly shaped by the rise of digital health solutions and AI-enabled technologies.

Digital health solutions and AI technologies shape the insomnia market considerably. Traditional in-clinic sleep studies are being ousted or supplemented with smart devices, wearable sensors, and app-based diagnostic tools that deliver real-time and personalised analysis of each user's sleep. Such advances in insomnia detection are now more appealing to patients, who find it easy to convince a visit to a sleep clinic. Mobile applications like CBT-I apps, meditation platforms, and AI sleep coaching are now spreading far and wide, mainly due to their cost-effectiveness and simplicity. Recent surveys suggest that more than 60% of users report improved sleep quality within weeks of starting with digital sleep tools. Smart mattresses, contactless sensors, and voice-responsive sleep monitors have also entered into consumer health domain to fill the gap between clinical-grade diagnostics and home convenience. These innovations will enhance user compliance and reduce healthcare costs, which is appealing to both insurers and providers. With various digital therapeutics for insomnia getting FDA approval, the market seems poised for a healthy upward trajectory in this direction.

Insomnia Market Restraints and Challenges:

One of the significant restraints in the insomnia market is the growing concern over the side effects and dependency associated with sleep medications.

The insomnia market is extremely restrained due to the increasing apprehensions about side effects and dependency on sleeping medicines. Though pharmaceutically approved short-term relief such as benzodiazepines and non-benzodiazepine sedatives are available, their side effects are serious, including dizziness, impairment in cognition, drowsiness during the day, and also risk of falls among older adults. Furthermore, chronic use leads to tolerance, dependence, and withdrawal symptoms, giving rise to reluctance or resistance against continued use. As a result, there is a declining consumer trust for so-called conventional drug-based therapies, and the scrutiny of regulations has increased. Thus, healthcare professionals also recommend these sleep aids with additional caution, especially concerning long-term use. Instead, most patients generally try to seek alternative treatments, but still have to face barriers, which include limited access to CBT-I specialists and a lack of insurance reimbursement for non-pharmacological approaches. It creates challenges to regular adherence to therapy, thereby slowing the process by which such solutions become more sustainable and safe, which in the long run poisons market growth.

Insomnia Market Opportunities:

Opportunities abound within the insomnia market with the increased demand for personalised and preventive solutions associated with sleep health. As consumers become more health-conscious and proactive, there is a general shift from a model that treats only reactively to one of ongoing functioning sleep wellness management. Thus, modelling innovations based on AI sleep tracking, genetics-based analyses of sleep, and personalised cognitive therapies for each one of the consumers based on their sleep pattern and lifestyle habit assumptions are becoming very fruitful areas. Added entry points arise when sleep solutions are integrated into larger wellness ecosystems: mental health apps, smart home devices, and fitness platforms, prompting cross-industry collaboration. Emerging markets in the Asia-Pacific and Latin American regions, where awareness is blossoming but access to treatment remains sparse, hold enormous potential that is yet untapped. Further down, corporate wellness programs, insurance offsets for good sleep behaviours, along with increasing consumer willingness to pay for noninvasive therapies, signal a buoyantly attractive opportunity for those providing sleep solutions that would be easily scalable, moderately priced, and tech-enabled.

INSOMNIA MARKET REPORT COVERAGE:

Insomnia Market Segmentation:

Insomnia Market Segmentation: By Type

• Primary Insomnia
• Secondary Insomnia

In the insomnia market, there are two major segments, Primary Insomnia and Secondary Insomnia, whereby the two segments vary in approach in terms of their causes and treatment. Primary insomnia refers to the disruption of sleep that is not directly attributable to other health conditions and stands in its category as a disorder; it is most often caused by stress, poor sleep habits, or irregular sleep-wake cycles. Secondary insomnia is more commonly experienced as it results from co-existing medical conditions such as depression, anxiety, chronic pain, asthma, or substance use. There is a growing awareness of the interrelationship between mental health and sleep quality, thus inciting providers to begin adopting different treatment paths for the two types of insomnia. The secondary form of insomnia has a larger market due to the high burden posed by chronic illnesses and psychological disorders worldwide. However, with increasing proficiency in early-stage detection, primary insomnia diagnosis is also on the rise, especially among the younger population, who follow a digital lifestyle. For pharmaceutical companies and therapists, this differentiation is important as treatment protocols and patient engagement strategies vary noticeably. A probable convergence of diagnostics establishing a clear classification of these types is forecasted to promote treatment effectiveness.

Insomnia Market Segmentation: By Treatment

• Pharmacological Treatment
• Non-Pharmacological Treatment

Sedative-hypnotics, benzodiazepines, non-benzodiazepines (Z-drugs), melatonin agonists, and some antidepressants comprise pharmacological agents; almost all of these agents serve as popular first-line treatments, especially for short-term relief, highly favoured in practice setting-like hospital wards. However, the development of long-term side effects of these agents, like dependence, tolerance, and cognitive impairment, is encouraging a gradual switch to safer and better-accepted non-drug options. Particularly non-pharmacological treatments, notably CBT-I, relaxation techniques, and digital therapeutics, have become popular for highlighting their efficacy along with the absence of side effects. The digital health paradigm has furthered this shift, with the growing popularity of app-based CBT-I tools among the younger generation. Furthermore, a lot of healthcare policies are now recognising CBT-I as a reimbursable treatment, which will only speed up its acceptance. We expect that during the projection date (2025-2030), non-pharmacological treatments will accrue a faster CAGR, whereas pharmacological options will maintain stable demand mainly in acute care instances.

Insomnia Market Segmentation: Regional Analysis:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

The global insomnia market exhibits distinct regional distribution with North America at the forefront owing to high awareness, a robust healthcare infrastructure, and widespread acceptance of pharmacological and digital therapeutic solutions. Europe follows closely with increasing initiatives in mental health promotion, sleep disorder programs supported by governmental bodies, and advanced forms of cognitive behavioural therapies. Meanwhile, urbanisation, rising stress levels, and increasing access to sleep health technologies in China, Japan, and India make the Asia-Pacific region a burgeoning high-growth market. Slowly, yet steadily, South America is witnessing the growth of its market, supported by better access to healthcare and increasing diagnosis of sleep disorders.

COVID-19 Impact Analysis on the Insomnia Market:

Yet, the pandemic brought an immediate change in visibility and sleep disorders in the insomnia market and as an agent, prodding the increased incidence and awareness of sleep disorders globally. The sudden shift to working from home, social isolation, health anxieties, and uncertainties about one's finances resulted in increased sleepiness complaints; over 20%-30% more insomnia cases were reported in studies during peak pandemic months. Diagnosis is referred to by experts as coronasomnia, and it marks a very common infection across healthy sections of society. As a result, demand for pharmacological and non-pharmacological management increased, pushing healthcare systems toward digital remedies, such as CBT-I apps and telehealth consultations. Increased use of home-based special solutions was witnessed during this new normal among the most wearable sleep monitors and AI-based sleep diagnostics. While pharmaceutical companies had short-term increases in sales of sleep aids during the pandemic, many consumers opted to seek out long-term term sustainable methods due to worries regarding side effects. Overall, the COVID-19 pandemic transformed the consumers' behaviour in terms of sleep health and opened up opportunities for innovations and opportunities for market development for the clinical and consumer sectors in the long run.

Latest Trends/ Developments:

The insomnia landscape is rapidly changing due to advances in digital therapeutics, wearables, and AI. A really noteworthy trend is the use of digital platforms delivering CBT-I, such as Sleepio, which provides clinically validated, medication-free therapy via personalised digitally delivered programs. AI-powered mental health chatbots also offer 24/7 availability for access to better care. Wearable sleep diagnostics such as smart rings and EEG-based headbands have extended the gap between home monitoring and clinical accuracy, allowing an average user to assess the quality of their sleep with medical-grade precision. Apple and Fitbit have taken the integration of multi-sensor arrays and AI-driven sleep coaching to the next level through their applications into their smartwatches, using this particular device to make sleep monitoring commonplace. Increased uptake of telemedicine consultations for sleep since the pandemic has made encounters more convenient and private. This all represents a clear broader directional shift toward individualised, non-invasive, and tech-enhanced care for insomnia, focusing on long-term wellness and empowerment through use.

 Key Players:

1. Merck & Co., Inc.
2. Eisai Co., Ltd.
3. Pfizer Inc.
4. Sanofi S.A.
5. Takeda Pharmaceutical Company Limited
6. Big Health
7. Pear Therapeutics
8. ResMed
9. Headspace Health
10. Philips Healthcare
11. Apple Inc.
12. Fitbit
13. Oura Health
14. Withings